Got off the phone with the Guy from the S.E.C

[Shadow383]

Numbers above call him yourself lol Email whatever get off my nuts, if you want copies from me gweedo. Use the U.S. Freedom of information act, they will be there in about a week.

Nefario Ill email you everything I can recall if you would like.

I want someone from NY to go to the S.E.C office and have the person video tape the convo. Cause I am not buying this, it smells of weak facts and just good old FUD. Plus your a clown anyway so I take what you say with a grain of salt. I will be calling myself, with my lawyer.

Call then come back and tell us please, then you can say sorry for being your normal turd self and doubting me.

Read the whole post as well other people have called, and people have been mailing me that called as well.

I will never say sorry, cause your still a clown, and I don't care what other people say, half these people aren't even in the States so I don't care about them.

Plus I don't believe the S.E.C can do anything about this since they don't deal with any other currency, plus there are ponzi schemes that worth 100's of millions that they are investigating, I doubt a little one like this is really going to show up on their radar. Anyway to get pirate in jail, you need to attack using the IRS.

I stopped reading here and just concluded that you're horribly, horribly wrong.

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[tiberiandusk]

It's the SEC. Pirate would get a fine smaller than the amount he stole.

[galambo]

I gotta wonder, did Pirate shut down before or after he learned the SEC was investigating him? He's obviously known for some time now.

I would assume he got a visit and they sat down and had a long conversation.  That is how it usually works.

I'd imagine this has already happened for two reasons:

1) Pirate hasn't posted for a long time.
2) This guy doesn't seem to care much for the SEC's typical policy of maintaining confidentiality of an investigation and seems to be talking to random victims of the scheme. It suggests the case is in a high state of development.

http://www.sec.gov/news/press/2012/2012-112.htm

Bitcoin would be small stuff for Philip after his previous case.

Small stuff monetarily to be sure. However, as far as sending a message and making good publicity it would be larger than his previous case, which was a mostly local to New York Long Island ponzi.

[repentance]

Well looking quickly, the SEC does investigate and prosecute ponzi schemes. I thought that would be the FBI's department (fraud).

The SEC is responsible for civil litigation of securities fraud.

The following organizations are responsible for criminal enforcement of fraud :

Department of Justice Federal Bureau of Investigation
United States Postal Inspection Services
Internal Revenue Service Criminal Investigation Division
United States Secret Service

You forgot the US Attorney's Office.  They've been extremely prominent in past ponzi prosecutions.

[imsaguy]

Well looking quickly, the SEC does investigate and prosecute ponzi schemes. I thought that would be the FBI's department (fraud).

The SEC is responsible for civil litigation of securities fraud.

The following organizations are responsible for criminal enforcement of fraud :

Department of Justice Federal Bureau of Investigation
United States Postal Inspection Services
Internal Revenue Service Criminal Investigation Division
United States Secret Service

You forgot the US Attorney's Office.  They've been extremely prominent in past ponzi prosecutions.

Which just so happens to be his former employer.

[jojo69]

dearest OP,

get a life douchebag

[tvbcof]

He doesn't want to be a part of the process of GLBSE becoming legitimate.

I don't think posts implying that GLBSE has not been legitimate in the past are going to be helpful to any investigation of its activity.  The DoJ has a long reach and where your business is based is often less material to their powers than whether you are conducting business with people in the US (see online poker debacle).  A number of countries have laws which make it illegal to offer unregulated securities to people who don't qualify as "sophisticated investors".  You may or may not be in the clear, but don't assume that you are purely on the basis of location.

Get legal advice now.  Even if you're cleared of any wrong-doing, the cost of complying with investigations by financial regulators can be devastating.

For those who might have other skeletons in the closet, here's another suggestion that may or may not be worth considering:  Run like a bastard!

[galambo]

Well looking quickly, the SEC does investigate and prosecute ponzi schemes. I thought that would be the FBI's department (fraud).

The SEC is responsible for civil litigation of securities fraud.

The following organizations are responsible for criminal enforcement of fraud :

Department of Justice Federal Bureau of Investigation
United States Postal Inspection Services
Internal Revenue Service Criminal Investigation Division
United States Secret Service

You forgot the US Attorney's Office.  They've been extremely prominent in past ponzi prosecutions.

Most people don't consider lawyers to be policemen.

[repentance]

GLBSE is based in the UK and is subject to regulation by the  Financial Services Authority (FSA), we are in the process of becoming a registered company that meets all conditions to carry on business.

We have not been contacted by the SEC and are not subject to SEC regulation.

Nefario.

With due respect, they'll almost certainly pass any information they gather about GLSBE on to their UK counterparts.  And there's a very good chance that they'll look at whether GLSBE has broken any US laws (you don't have to be based in the US in order to break US laws).  Never take the attitude of "she'll be right mate" once you're on the radar of a financial regulator or financial intelligence service of any nation because there are so many mutual aid agreements between nations that your head would spin.  If there's any chance that US citizens are laundering money or evading taxes through your service, you're a potential target of both US investigators and those in the UK.

[repentance]

Most people don't consider lawyers to be policemen.

The US Attorneys are the chief federal law enforcement officers in their jurisdictions.

http://www.justice.gov/usao/

[Nefario]

With due respect, they'll almost certainly pass any information they gather about GLSBE on to their UK counterparts.

I would expect them to, and this is not a problem for us.

If there's any chance that US citizens are laundering money or evading taxes through your service, you're a potential target of both US investigators and those in the UK.

There are two issues here

1) Taxes, which only really becomes an issue when amounts involved become significant.
2) Money laundering, which IS an issue, and is one we're working on, it becomes more of an issue as amounts grows.

[galambo]

Nefario,

I think that you forgot you are the sole issuer and custodian for counterfeit, unregistered securities. I think that would be a problem for you.

[Nefario]

Please tell me the GLBSE makes multiple off site backups, somewhat frequently.

I know you are working toward going "legit", but worst case and they decide to gank the domain and hit the host, GLBSE will just pop up elsewhere right?

Many would be interested considering the counter party risk involved. You have the only ledger of members in an offering and the holdings of each.
Without you, issuers would have absolutely no way of honouring their commitments.

Yes we've got frequent offsite backups, you've need to read our threads on our disaster plans, from government action to me being hit by a bus.

[galambo]

Most people don't consider lawyers to be policemen.

The US Attorneys are the chief federal law enforcement officers in their jurisdictions.

http://www.justice.gov/usao/

I'm trying to keep it simple for Nefario by pointing out the people that kick down doors and carry guns. He still doesn't want to understand the seriousness of his actions.

[Bitcoin Oz]

Most people don't consider lawyers to be policemen.

The US Attorneys are the chief federal law enforcement officers in their jurisdictions.

http://www.justice.gov/usao/

I'm trying to keep it simple for Nefario by pointing out the people that kick down doors and carry guns. He still doesn't want to understand the seriousness of his actions.

It is not illegal for people to pool their money together. If 10 people got together and bought a cow its no business of the SEC the same as its no business if 10 people get together and buy a GPU and mine bitcoins with it. GLBSE is just a glorified spreadsheet tracking who owns what. It doesnt use USD or any countries official money.

[Nefario]

Most people don't consider lawyers to be policemen.

The US Attorneys are the chief federal law enforcement officers in their jurisdictions.

http://www.justice.gov/usao/

I'm trying to keep it simple for Nefario by pointing out the people that kick down doors and carry guns. He still doesn't want to understand the seriousness of his actions.

Dude, this is Britain!

People knock politely.

[Nefario]

There are two issues here

1) Taxes, which only really becomes an issue when amounts involved become significant.
2) Money laundering, which IS an issue, and is one we're working on, it becomes more of an issue as amounts grows.

It is great you have plans in place for these things, but one how would you be responsible for taxes. Yes if you convert bitcoin to cash then you should report that as income depending on how you acquired it but if it stays in bitcoins how can it be taxed? Then they would have to start taxing all internet currencies, from games to bitcoins. So I think your good there.

Two I think your too far from the source to be accused of money laundering cause only exchanges have to comply with those codes. You accept bitcoins and pay out bitcoins, there is no transfer of bitcoins to cash or cash to bitcoins. So I think your ok.

But plan B is always good!

No, we as a business are liable for taxes on profits we make, even if those are in bitcoins.

[galambo]

Dude, this is Britain!

People knock politely.

It's not knocking politely. It's more like being crushed by a steam roller in slow motion.

Pretty much everybody here that has told you that what you are doing is a terrible idea has been involved in this process in their past. Maybe it will become real to you when you realize it may be too late.

[stochastic]

I hope this doesn't bring down GLBSE...

...GLBSE would fall under the new croudsourcing legislation that's come out.

...

The JOBS act is not effective until January 1, 2013.

[Nefario]

I hope this doesn't bring down GLBSE...

...GLBSE would fall under the new croudsourcing legislation that's come out.

...

The JOBS act is not effective until January 1, 2013.

Yeah but thats just making official what already exists.