DCG CEO Barry Silbert and Soichiro “Michael” Moro, CEO of Genesis, DCG’s wholly owned trading arm, are fighting back against civil fraud charges brought against them by New York Attorney General Letitia James, according to WuSay. James accuses Genesis and DCG of making “false assurances” on Twitter, claiming that DCG had absorbed Genesis’ losses from the collapse of 3AC. Rather than filling the $1 billion hole with a cash infusion, DCG temporarily covered it up with a promissory note promising to pay Genesis $1.1 billion at a 1% interest rate over ten years. DCG, Silbert, and Moro have been fighting back against the fraud charges, calling the lawsuit “without merit” and denying that the promissory note was a scam, arguing that it was fully vetted and legally binding. In addition, DCG transferred hundreds of millions of dollars in funds and assets to Genesis to fill the hole on its balance sheet. James countered that the tweets were “deliberately fabricated misrepresentations of existing facts” designed to mislead investors in violation of the Martin Act, New York’s strict anti-fraud law.
