DALLAS (AP) — Federal prosecutors say the CEO of Dallas-based AriseBank has been arrested in a cryptocurrency scheme that tricked hundreds of investors out of more than $4 million.
Authorities say Jared Rice Sr. was arrested Wednesday and faces multiple counts of wire fraud and securities fraud. Prosecutors say Rice claimed AriseBank could offer consumers FDIC-insured accounts and Visa-brand debit and credit cards, on top of cryptocurrency services. But they say AriseBank was not FDIC insured and “did not have any sort of partnership with Visa.”
Rice is accused of converting investor funds and spending the money on clothing, food and hotels.
Online court records tied to the case did not list an attorney for Rice.