Dallas Businessman Busted For Crypto Currency Fraud

Steven Pickering
March 21, 2019 - 7:38 am
Cryptocurrency

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DALLAS (1080 KRLD) - A businessman from Dallas who admitted to scamming investors out of more than $4 million could go to federal prison for up to 20 years.

Jared Rice, Sr. entered a plea of "guilty" to a federal charge of securities fraud. Rice was the CEO of a company called AriseBank.

ederal prosecutors say Rice recruited people to invest his own crypto currency, similar to BitCoin, called AriseCoin. He also told investors his business would also offer traditional banking services, accounts that were insured by the FDIC, and credit cards. But prosecutors say none of those benefits actually existed. They say Rice was taking the money that investors provided and using it for his personal expenses.

"I'm proud of the Northern District of Texas' innovative work enforcing the rule of law in the crypto currency space," said U.S. Attorney Nealy Cox. "We will not tolerate flagrant deception of investors - virtual or otherwise."

Rice is scheduled for sentencing on July 11th. He faces a maximum sentence of 20 years in federal prison. He could also be required to re-pay the investors he defrauded.