The U.S. Securities and Exchange Commission (SEC) has settled charges with two former executives of AriseBank, a crypto-banking platform. AriseBank’s then-CEO Jared Rice Sr. and then-COO Stanley Ford have been ordered to pay ~$2.7M in disgorgement and penalties. The SEC is also prohibiting Rice and Ford from serving as officers or directors of public companies or participating in future offerings of digital securities. According to Shamoil T. Shipchandler, Director of the SEC’s Fort Worth Regional Office, “the officer-and-director bar and digital securities offering bar will prevent Rice and Ford from engaging in another cryptoasset-based fraud.” Rice and Ford agreed to the settlements without admitting or denying the allegations in the SEC’s complaint.
Rice was indicted last month by U.S. Attorney’s Office of the Northern District of Texas last month for "duping hundreds of investors out of more than $4M". Rice allegedly lied to investors, claiming that AriseBank could offer consumers FDIC-insurer accounts and traditional banking services. In actuality, AriseBank has not been authorized to conduct banking in Texas, nor was it FDIC insured.