The actions of 30-year-old Jared Rice Sr. are particularly egregious in contrast to those of Reginald Buddy Ringgold III, in that he is alleged to have actually gone on a spending spree even while his unregistered and unregulated security offering was in progress. As DOJ tells it:
“Even as he touted AriseBank’s nonexistent benefits in press releases and online, Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, clothing, a family law attorney, and even a guardian ad litem.”
According to public records and the Grand Jury indictment, Jared Rice was previously charged with tampering with government records in Texas for forging the Secretary of State’s seal and signature on incorporation documents. In the same case, which dates back to 2015 and was related to another attempted internet venture, Rice was charged with stealing – in that case, investor funds. This would have been something an ICO reviewer might have come across with any degree of research.