In a letter addressed to Hon. Lorna G. Schofield of the New York Southern District Court, the Securities and Exchange Commission (SEC) says it seeks civil penalties of $4,526,765 from Ponzi scheme Bar Works, Inc. and $1,810,706 from Bar Works 7th Avenue, Inc., whereas the penalty sought from Bitcoin Store is $1,550,000.
In June this year, the United States Securities and Exchange Commission (SEC) filed fraud charges against Renwick Haddow, a UK citizen living in New York. The SEC alleged that he created a broker-dealer and did not register the firm with the SEC as required under the federal securities laws. Haddow allegedly used sales representatives to cold call potential investors and sell securities in Bitcoin Store Inc. and Bar Works Inc.
Haddow allegedly diverted more than 80% of the in funds raised by the broker-dealer for the Bitcoin Store, and sent more than $4 million from the Bar Works bank accounts to one or more accounts in Mauritius and $1 million to one or more accounts in Morocco.