The NAC Foundation has accused the Securities and Exchange Commission of mischief in the ongoing case. Rowland Marcus Andrade and his firm, the NAC Foundation, asked a federal judge in San Francisco to dismiss an SEC lawsuit in June. He alleges that he and his partner Jack Abramov defrauded investors in a proposal, according to court records dated October 20. worth $ 5.6 million.
Stated Accusations Against SEC
Andrade accused the SEC of deliberately trying to mislead the court by accusing him of offering technology that he never developed. According to the defendants, the SEC has anti-money laundering patents related to the NAC Foundation digital currency known as “AML BitCoin.”
Andrade also said that the terms of sale of AML BitCoin clearly show that the token is not an investment contract. He claims that anyone who has purchased AML BitCoin has given written consent to know they are not an investment.
All buyers know that tokens are a medium of exchange and not a common interest in the business, company, or joint venture.
The defendants emphasized that the written terms of sale stated that their customers should not expect a return on investment and that the token was not a debt instrument.
The defendant’s statement, together with the SEC’s alleged inability to identify critical elements of Howie’s test, suggests that the marker is not security. The accused further said that the situation meant the SEC “has no cases.”
SEC’s Charges Against the NAC Foundation
The SEC reportedly filed a lawsuit against Andrade and the NAC Foundation at the end of June 2020. It accused Jack Abramov of selling unregistered securities in the form of digital tokens. The Securities and Exchange Commission charged the defendants with raising to $ 5.6 million for AML BitCoin from August 2017 to 2018.
Apart from being charged with multiple counts of conspiracy to fraud and violating the Lobby Disclosure Act, Abramov faced more charges of crimes dating back to 2006. Afterward, the court sentenced him to six years in prison, which he served only for four.
Abramov pleaded guilty to crimes related to illegal lobbyings, such as lobbying Congress members on behalf of undercover FBI agents posing as businessmen.
According to Law 360, Abramov did not participate in Andrade’s action because he faced a separate lawsuit against the SEC. The Securities and Exchange Commission (SEC) and the San Francisco Court behind the ruling ruled that Abramoff paid $ 55 million for his financial breach. He resolved his case in July and bore full responsibility and prejudice. He has also got definitively excluded from future offerings of securities.