Blockvest Saved from Default Judgement in Fraud Case

Blockvest, which is currently embroiled in a dangerous lawsuit with the SEC, obtained a small victory in a similar case filed by an elderly couple. However, the Jan. 21 court filing suggests that this is based on a legal technicality.

The case against Blockvest was filed by Tommy and Christine Garrison, who alleged that the project violated securities law and regulations, and engaged in unlawful business conduct and financial elder abuse.

The couple had filed the case against Rosegold Investments and Master Investment Group, the companies behind the project. They also cited Reginald Buddy Ringgold, III, aka Rasool Abdul Rahim El, as a defendant.

Ringgold filed an answer for himself, while the companies failed to respond to the lawsuit and were put in default liability on Sep. 25, 2019, due to lack of opposition.

On Jan. 21 the court vacated the default judgement.

Ringgold still in trouble

Court filings revealed that the rationale for the retraction was the fact that all three entities were closely related. Ringgold is the founder and managing director of both companies, but he was not part of the default judgement. Blockvest may still be in trouble if it does not successfully defend itself.

This may be tricky, as the project has recently been accused by the Securities and Exchange Commission to have falsified key evidence. The commission motioned for a default judgement due to sanctions, which is yet to be granted. Both cases accuse Blockvest of violating securities regulation, meaning that a loss in one case would likely lead to the same in another.

Blockvest ran a $2.5 million pre-initial coin offering before being restricted by the SEC. While the court initially took its side, the decision was later reconsidered.