Basketball: NBA great Paul Pierce fined US$1.8m over 'misleading' crypto promotion
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The SEC said former NBA player Paul Pierce was paid EMAX tokens worth US$244,000 to promote the securities.
PHOTO: EPA-EFE
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WASHINGTON – Former Boston Celtics star Paul Pierce was ordered to pay more than US$1.4 million (S$1.9 million) in penalties after being charged with making false and misleading statements about crypto securities he was paid to promote, US regulators said on Friday.
The United States Securities and Exchange Commission (SEC) said in a statement that Pierce had been charged with touting EthereumMax (EMax) tokens without disclosing that he had been paid to do so.
The SEC statement said Pierce – nicknamed “The Truth” during his National Basketball Association (NBA) playing days – was paid EMax tokens worth US$244,000 to promote the securities.
The 45-year-old also posted a screenshot of an account showing large holdings and profits of the securities when in fact his holdings were much lower than those shown.
“This case is yet another reminder to celebrities that the law requires you to disclose to the public from whom and how much you are getting paid to promote investment in securities, and you can’t lie to investors when you tout a security,” SEC chief Gary Gensler said.
“When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements.”
Pierce is a 10-time NBA All-Star who was the NBA Finals Most Valuable Player in 2008, when he led Boston to the NBA championship.
Also on Friday, it was reported that two former NBA players will spend years in federal prison after admitting to participating in a plan to defraud the league’s healthcare plan with false claims for medical and dental expenses.
Keyon Dooling, 42, who played for seven teams over 13 years in the NBA, was sentenced to 30 months in prison.
That comes after Alan Anderson, 40, who suited up for five teams over a span of 12 years, got two years in prison on Feb 10.
Dooling is a former vice-president of the NBA players’ association and, at the time of his arrest, was an assistant coach for the Utah Jazz.
The two were in 2022 added to a case prosecutors first filed in 2021 against a group of people including ex-NBA players Sebastian Telfair, Darius Miles and Glen Davis. Those three have pleaded not guilty.
The alleged leader of the scheme, former player Terrence Williams, pleaded guilty in August
The cases came as the NBA headed into its All-Star weekend.
Jose Alvarado of the New Orleans Pelicans swished the game-ending three-pointer as Team Pau won the Jordan Rising Stars competition with a 25-20 victory over Team Joakim at Salt Lake City, Utah.
The shot completed a 9-2 run and allowed Team Pau to hit the target score of 25. Alvarado was named Rising Stars MVP.
Team LeBron and Team Giannis will face off in the All-Star Game on Sunday. AFP, BLOOMBERG, REUTERS
