A Federal Judge Accuses SEC Lawyers of Lying
A federal judge, Robert Shelby, has accused lawyers from the Securities and Exchange Commission (SEC) of lying to obtain a temporary restraining order (TRO) against Digital Licensing, operating under the name DEBT Box.
The company, accused of selling unregistered securities and defrauding investors of over $49 million, allegedly attempted to transfer funds overseas, relying on bank account closures to support its claims, according to the SEC.
The Truth Comes Out
In September, two defense groups challenged the TRO, claiming that the SEC had misled the court. It turned out that the closed accounts were closed by the banks themselves and not by the defendants.
This revelation, along with the SEC’s inability to explain the account closures or provide evidence of fund transfers since January 2023, led to the dissolution of the TRO in October.
The communication errors and false statements by the SEC, particularly regarding the closure of 33 bank accounts within 48 hours, have raised judicial and sectoral concerns about the integrity of the SEC’s actions, which has been embroiled in controversies for the past few months.