Steven Seagal to Pay $314,000 to SEC for ‘Unlawfully Touting’ Cryptocurrency Investment
Actor pushed Bitcoiin2Gen, a cryptocurrency promoting itself as a “more advanced” Bitcoin, on his social media accounts
Sean Burch | February 27, 2020 @ 7:50 AM
Last Updated: February 27, 2020 @ 7:56 AM
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Actor Steven Seagal’s wallet just took a hit, with the Securities and Exchange Commission on Thursday announcing the former action star will pay a $314,000 settlement for “unlawfully touting” a cryptocurrency investment.
According to the SEC, the “Above the Law” actor received $250,000 in cash and another $750,000 worth of Bitcoiin2Gen (B2G) to promote B2G on his social media accounts. The government agency found that the actor warned his followers not to “miss out” on B2G’s initial coin offering — which is essentially an IPO but for cryptocurrencies — and issued a press release dubbed “Zen Master Steven Seagal Has Becoe the Brand Ambassador of Bitcoiin2Gen.”
Seagal failed to comply with federal anti-touting laws, according to the SEC, by promoting the coin without disclosing the “nature, scope and amount of compensation received in exchange for” his promotion.
“These investors were entitled to know about payments Seagal received or was promised to endorse this investment so they could decide whether he may be biased,” said Kristina Littman, chief of the SEC Enforcement Division’s Cyber Unit. “Celebrities are not allowed to use their social media influence to tout securities without appropriately disclosing their compensation.”
A quote from Seagal, where he said he “wholeheartedly” endorsed B2G, was also featured in a B2G press release. The press release came out in early 2018 — a few months after Bitcoin had reached $20,000 per coin and the cryptocurrency market was at its peak — claiming B2G was a “more advanced” version.
As part of the settlement, Seagal has agreed to pay $157,000 in disgorgement, to cover his promotional payments and a $157,000 penalty. Seagal is also not allowed to promote any securities for three years; he did not admit or deny the SEC’s findings as part of his settlement.
A rep for Seagal, who rose to fame in the late ’80s and early ’90s starring in action films such as “Under Siege” and “Hard to Kill,” did not immediately respond to a request for comment.
18 Stars We're Worried About on Tax Day, From Nicolas Cage to Lindsay Lohan (Photos)
Tax Day is here, and don't worry Cardi B, it's confusing for everyone. These stars have all had issues with the IRS in the past. Hopefully they're not sweating it again at the deadline.
Wesley Snipes
The "Blade" star spent three years in prison after being found guilty on three counts of failing to file a federal income tax returns in 2008. Snipes dodged $7 million in taxes between 1999 and 2000.
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Lindsay Lohan
The "Mean Girls" star was caught trying to stiff the IRS three years in a row (2009, 2010, 2011), leading the IRS to seize her bank accounts in 2012. Charlie Sheen eventually helped pay back some of her debt.
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Chris Tucker
"Rush Hour" star Chris Tucker reached a settlement with the IRS in 2014. A federal tax collector filed a $2.5 million lien against the actor, but it was described as a formality necessary to the settlement.
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Dennis Rodman
The former NBA star may need to put his friendship with North Korean dictator Kim Jong-un to the test by taking out a loan to pay off the $450,000 he owed to the states of California and Michigan, plus the federal government, in back taxes in 2014.
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Teri Polo
"The Fosters" star Teri Polo filed for bankruptcy in 2014, with Chapter 11 filings that showed she owed $745,000 in back taxes to the IRS and another $27,000 to the state of California.
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Sean Kingston
The "Beautiful Girls" singer was hit with a lien in 2012 after the IRS found out he never paid $131,379 in taxes from 2009, the year he made it big in the music industry.
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Lauryn Hill
This Grammy-winning singer paid her tax debt to society, failing to file returns on $1.8 million earned between 2005 and 2007, by serving three months in prison in 2013.
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O.J. Simpson
"The People v OJ Simpson" detailed O.J. Simpson's murder charges, but not his tax issues. In 2013, the IRS filed a lien for more than $500,000 of unpaid taxes between 2000 and 2011.
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Richard Hatch
The original "Survivor" winner Richard Hatch was convicted of tax evasion in 2006 for failing to pay taxes on the show's $1 million prize. He served 51 months in federal prison.
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Willie Nelson
When the IRS came asking for millions of dollars in unpaid taxes from Willie Nelson, the country singer was forced to auction off his personal belongings. He even released the album "The IRS Tapes: Who'll Buy My Memories?" to help raise the money for repayment.
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Pamela Anderson
Former "Baywatch" star Pamela Anderson was hit with tax liens totaling more than $350,000 in 2012 over unpaid taxes to the federal government and the state of California.
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Martha Stewart
Unrelated to her 2004 prison sentence for insider trading, Martha Stewart was forced to pay $220,000 in back taxes to the IRS in 2002 for her home in New York.
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Nicolas Cage
The IRS slammed Nicolas Cage with a bill for $6.2 million in 2009. The actor promptly sued his money manager for negligence and fraud.
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Al Sharpton
In 2014, The New York Times reported that Reverend Al Sharpton owed more than $4.5 million in back taxes to the IRS, adding that his National Action Network was only able to survive by not paying payroll taxes on its employees.
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Joe and Teresa Guidice
After filing for bankruptcy in 2009, Joe and Teresa Giudice were convicted on fraud charges in 2013. Joe was also charged with failure to file tax returns for 2004-08.
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Lionel Richie
In 2012, Lionel Richie owed $1.1 million to the IRS in unpaid income taxes from 2010.
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Christie Brinkley
The IRS issued a tax lien against supermodel Christie Brinkley totaling $531,000 in 2011. Worth an estimated $80 million, Brinkley apologized publicly soon after and vowed to pay it back immediately.
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Ja Rule
Rapper Ja Rule plead guilty to tax evasion and illegal firearm possession in 2011, serving two years in New York prison. He owed more than $1.1 million to the IRS in unpaid income taxes.
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Tax Day is here. If you’re stressed out about the IRS, don’t worry: so are lots of rich and famous celebrities
Tax Day is here, and don't worry Cardi B, it's confusing for everyone. These stars have all had issues with the IRS in the past. Hopefully they're not sweating it again at the deadline.