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September 18, 2021

The Hip Hop Library

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T.I. Photo: T.I. Facebook

T.I. Arrested On 911….

According to a press release we just read on the SEC website Atlanta base hip hop mogul T.I. Tip Harris was arrested a few days ago on September 11, 2020. Reports say T.I. along with a few others “… film producer Ryan Felton, rapper and three others promoted one of Felton’s two unregistered and fraudulent initial coin offerings (ICOs)…”In a settled administrative order, the SEC finds that T.I. offered and sold FLiK tokens on his social media accounts, falsely claiming to be a FLiK co-owner and encouraging his followers to invest in the FLiK ICO. T.I. also asked a celebrity friend to promote the FLiK ICO on social media and provided the language for posts, referring to FLiK as T.I.’s “new venture.” The SEC’s complaint alleges that T.I.’s social media manager William Sparks, Jr. offered and sold FLiK tokens on T.I.’s social media accounts, and that two other Atlanta residents, Chance White and Owen Smith, promoted SPARK tokens without disclosing they were promised compensation in return….”reports also say that, with the exception of one individual in the group (Felton), everyone else including T.I…”have agreed to settlements to resolve the charges against them.”

Felton on the other hand seems to have a lot going on to say the least. “The U.S. Attorney’s Office for the Northern District of Georgia brought criminal charges against him in a parallel action.The SEC complaint mentions a host of charges: it claims “…Felton allegedly promised to build a digital streaming platform for FLiK, and a digital-asset trading platform for CoinSpark. Instead, Felton allegedly misappropriated the funds raised in the ICOs. The complaint also alleges that Felton secretly… transferred FLiK tokens to himself and sold them into the market, reaping an additional $2.2 million in profits, and that he engaged in manipulative trading to inflate the price of SPARK tokens.  Felton allegedly used the funds he misappropriated and the proceeds of his manipulative trading to buy a Ferrari, a million-dollar home, diamond jewelry, and other luxury goods. Plus three of Felton’s family members and an LLC that he established were also named as relief defendants.

Tip and his crew weren’t the only one charged in this scam.The SEC also charged FLiK and CoinSpark, the two companies controlled by Felton that conducted theThe  ICOs.

Due to the nature of this incident. The SEC’s Office of Investor Education and Advocacy has issued an Investor Bulletin that cautions investors to be wary of celebrity endorsements and to always independently research investment opportunities.

Click here to read full Press release from the source >>>SEC

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