WASHINGTON (Reuters) – Grammy award-winning rapper Clifford Harris, often known as T.I., agreed to pay a U.S. regulator $75,000 to settle costs that he broke securities legal guidelines by promoting fraudulent crypto-currency investments, the company mentioned on Friday.
The Securities and Change Fee (SEC) mentioned it had charged the Atlanta rapper and actor together with 4 associates, together with movie producer Ryan Felton who it says managed the businesses FLiK and CoinSpark that performed the preliminary coin choices which T.I. promoted.
T.I. neither admitted nor denied the SEC’s findings, in keeping with the SEC. His lawyer Henry E. Mazurek mentioned T.I. regretted getting concerned with Felton, whom T.I. had believed to be an area entrepreneur making an attempt to make it simpler for brand spanking new artists to enter the music trade.
The rapper “by no means obtained a greenback from Mr. Felton’s failed enterprise and instantly eliminated his identify from it as soon as he discovered that the mission was undeveloped,” mentioned Mazurek, including T.I. absolutely cooperated with the SEC’s investigation.
T.I., 39, is finest identified for 2008 hits “No matter You Like,” “Dwell Your Life” and “Swagga Like Us,” and was featured on Robin Thicke’s No. 1 single “Blurred Strains” in 2013.
The SEC alleged that T.I. in 2017 promoted and offered FLiK tokens on his social media accounts, falsely claiming to be a FLiK co-owner and urging his followers to spend money on the cash.
FLiK tokens have been offered as funding contracts within the firm which claimed it might function as a “Netflix on the blockchain,” a streaming platform the place customers may purchase services and products with FLiK tokens. However Felton allegedly used the funds to purchase a Ferrari, million-dollar dwelling, diamond jewellery and different luxurious items, the SEC mentioned.
Felton, the one one of many 5 who didn’t settle with the SEC, was additionally charged by the Division of Justice on Friday.
Felton’s lawyer Joshua Sabert Lowther mentioned the Justice Division’s allegations have been “grossly misplaced” and that he seemed forwarding to defending himself at trial.
Reporting by Mohammad Zargham and Michelle Value; further reporting by Katanga Johnson and Nate Raymond; Modifying by Matthew Lewis, Cynthia Osterman and Chizu Nomiyama