Pursuant the Securities Act 5(a) and 5(b), the Securities Exchange Commission filed a complaint on July 2, 2018 against attorney T.J. Jesky and the law firm's manager Mark DeStefano. Involved since early days of UBI Blockchain Internet Ltd, a technology company registered in Hong Kong, both partners received shares in october 2017 and sold them at a higher price than the fixed price authorised via Form S-1 registration.
On January 5, 2018 the SEC had already stopped trading of UBIA shares because of questions regarding the accuracy of UBIA filings and concerns about the market activity.
In a press release the SEC affirms that the two defendants agreed to return the $1.4 million of gains as well as pay penalties. The settlement is subject to the court’s approval.
