John and JonAtina “Tina” Barksdale are accused of defrauding thousands of investors through a fake digital cryptocurrency they dubbed Ormeus Coin from June 2017 to 2022, according to SEC documents. They are also accused of running a multi-level marketing program called Ormeus Global from June 2017 through April 2018 that sold subscription packages that included Ormeus Coin.

“We allege that the Barksdales acted as modern-day snake-oil salesmen, using social media, promotional websites, and in-person roadshows to mislead retail investors for their own personal benefit,” said SEC Division of Enforcement Associate Director Melissa Hodgman. “We will continue to vigorously pursue persons who sell securities in schemes to defraud the investing public no matter what label the promoters apply to their products.”

According to the SEC, the Barksdales told investors that they were in the process of mining Ormeus Coin in collaboration with an unnamed major crypto mining company. The duo also said that the mining was helping to produce $5.4 to $8 million worth of the coin per month. However, the mining was called off in 2019, unbeknownst to the investors that had already invested in the coin.

Fake wallets were created by the Barksdales in order to mask the fact that Ormeus Coin was allegedly not being mined. The siblings, primarily Tina according to the SEC, also allegedly ran numerous social media accounts that promoted lies about the coin’s worth. Not only that, but their multi-level marketing business also forced investors to put money into Ormeus Coin as well as other cryptocurrencies.

“The men and women of HSI [Homeland Security Investigations] will not allow fraudsters to sell dreams of inflated and unrealistic revenues to innocent investors with the goal of lining their own pockets,” said acting HSI New York Special Agent in Charge Ricky Patel. “By leveraging federal and international partnerships, Barksdale is now facing prosecution in the Southern District of New York for his alleged criminal acts.”

John Barksdale is currently being charged with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud and wire fraud. It is unknown whether Tina Barksdale has also been charged with these counts.

Update at 3/8/22, 3:52 p.m. ET: This story has been updated with more information on the case.