Inc. says it sells investors portions of rare collectibles like sports trading cards using crypto technology, but theThe OSC’s Capital Markets Tribunal said Friday it will hold a hearing next month onthat the company’s three top executives illegally diverted millions of dollars in investor funds to themselves, then lied to OSC staff when questioned about their income.
LMP also made false and misleading statements about its core business, the OSC alleged. The company sells “LMP Tokens” for 10 cents each, which it claims represent fractional ownership of a certain collectible. For example, one of the first items LMP offered when it launched in 2022 was a 2003 autographed Lebron James jersey patch rookie card.
Even when a collector was known to have previously brought fraudulent collectibles to the LMP platform, the OSC alleged the company never conducted any diligence to ensure the authenticity of subsequent collectibles brought to the platform by the same collector. According to the OSC, it was in late 2021 that the three men “devised a scheme to make significant payments to themselves through purported consulting companies,” each of which had “Kooney” in its name. More than $2.5-million was eventually transferred to what the OSC referred to as “the Kooney Companies,” the OSC alleged.