Texas Securities Board Issues Emergency Cease and Desist Order to Abra and CEO, William Barhydt
Luisa Crawford Jun 16, 2023 06:58
The Texas State Securities Board has taken decisive action against Abra by issuing an Emergency Cease and Desist Order. The order, also directed at Abra's CEO, William (Bill) Barhydt, alleges securities fraud and misleading statements in connection with Abra's digital asset depository accounts.
The Texas State Securities Board has taken decisive action against Abra by issuing an Emergency Cease and Desist Order. The order, also directed at Abra's CEO, William (Bill) Barhydt, alleges securities fraud and misleading statements in connection with Abra's digital asset depository accounts. This development comes as part of an ongoing investigation conducted by a working group of state securities regulators.
Abra, operating under various entities, including Plutus Financial, Inc. dba Abra, Plutus Lending, LLC dba Abra, and Abra Boost, LLC, is accused of selling investments in Abra Earn, a digital asset depository account, to both accredited and unaccredited investors across the United States. The Enforcement Division of the Texas State Securities Board has presented evidence suggesting fraudulent activities by Abra and its affiliates.
Under the Emergency Cease and Desist Order, Abra and its subsidiaries are required to halt their alleged fraudulent practices immediately. The order highlights Abra's principal addresses in Delaware and California, signaling the board's intention to ensure compliance across state lines.
The allegations made by the Texas State Securities Board raise concerns about the integrity of Abra's investment offerings. The working group of state securities regulators leading the investigation believes that Abra made materially misleading statements and engaged in securities fraud, potentially deceiving investors. The board's action aims to protect the public and prevent further harm.
Furthermore, the order emphasizes the financial instability of Abra, suggesting that the company is either insolvent or on the verge of insolvency. This revelation adds urgency to the case, prompting the Texas State Securities Board to take immediate action.
Abra's CEO, William (Bill) Barhydt, is also a subject of the investigation. The board has served Barhydt with the Emergency Cease and Desist Order at various addresses, including Abra's principal locations and Barhydt's personal address in California.
The Securities Commissioner has requested a hearing on the matter, and the State Office of Administrative Hearings will consider the evidence presented by the Enforcement Division. The proposed relief includes cease and desist orders, refunds of principal to investors, and administrative fines against Abra, its subsidiaries, and Barhydt.
It is important to note that the Emergency Cease and Desist Order does not prevent Abra and its entities from returning assets to investors. The board's primary concern is the protection of investors and ensuring fair treatment for those who have invested in Abra's Earn and Boost accounts.
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