Three associates of U.S. rapper and actor Clifford Joseph Harris Jr., also known as T.I., will have to part with $103,000 in connection with their alleged roles in promoting a scam initial coin offering (ICO). The three had been accused of promoting FLiK and CoinSpark, two initial coin offering projects that turned out to be scams. The U.S. Securities and Exchanges Commission (SEC) announced charges against the three—Chance White, William Sparks, and Owen Smith—in September.
Defendants agree to settle charges with the US SEC.
The U.S. regulator also charged the rapper T.I. and Ryan Felton, the film producer who founded the two fraudulent companies. All the defendants agreed at the time to settle their charges with the regulator, except Felton. As Law360 now reports, the SEC has settled its charges against the three associates of the rapper. The three have agreed to jointly pay the regulator $102,992 to cover the fees, penalties, and disgorgement of their ill-gotten gains. William Sparks Jr. is the social media manager for the three-time Grammy award-winning rapper. The U.S. regulator alleged that Sparks sold FLiK tokens via rapper T.I.’s social media platforms, violating registration provisions.
Defendants neither admitted nor denied their wrongdoing.
With the payment of the penalties, the three defendants neither admitted nor denied their wrongdoing. Announcing charges against the five two months ago, the US SEC accused the rapper of selling and offering FLiK tokens on his social media accounts. He allegedly claimed to be a co-owner of the company and encouraged his followers to invest in it. He further asked a celebrity friend to promote the FLiK ICO, requesting him to use “T.I.’s new venture” as part of the quote for the posts.