On March 18, 2021, the Securities and Exchange Commission charged James Roland Jones with running a fraudulent online scheme to market “insider tips” on the dark web. The dark web enables users to access the internet anonymously and is frequently used as a marketplace for illegal activity. This is also referred to as the “black market.”
In late 2016 and 2017, Jones, utilizing the dark web, sought to acquire non-public, inside information that for his own use. He later sought the non-public information in order to sell it. Although Jones never acquired inside information, he attempted to deceive others into believing he had the information and that it was for sale.
Several clients paid in bitcoin and purchased the alleged tips based on the information Jones provided. The Securities and Exchange Commission charged Jones with violating anti-fraud provisions.
This case demonstrates that the SEC can and will go after securities law violators wherever they operate, including the dark web. If you have not hired an attorney and wish to discuss any securities related question, please contact David A. Weintraub, P.A., 7805 SW 6th Court, Plantation, FL 33324. By phone: 954.693.7577 or 800.718.1422.