A SA businessman has been convicted in a New York court of defrauding investors through three investment schemes.
Eyal will be back in court in February after the US Securities Exchange Commission added new charges after the plea deal on Thursday. The SEC wants to recover all of the ICO’s $42.5m and bar him for life from holding any management role in a US entity.
The SEC alleges he ran a fraudulent unregistered securities offering and that he spent $500,000 of investor funds on rent, shopping, entertainment and a dating service. But investigators have only been able to find $450,000 of the $42.5m, and he has been ordered to return that amount to investors. Eyal launched a company called Springleap while living in Sea Point between 2010 and 2014, and after moving to New York he convinced investors it was a tech start-up on the verge of transforming the advertising and marketing industries by crowdsourcing, using social media and its own online platform.
He claimed Springleap had a network of more than 300,000 community members and 180,000 vetted creative professionals with agency-level experience. He also misled investors to believe that the company had a prestigious management team and did business with large companies, such as Google and Coca-Cola.
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