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The Texas State Securities Board (TSSB) has announced a series of counter actions against 15 online investment entities that illegally trade cryptocurrency, binary options and forex investments in Texas.
Fake social media accounts
The regulator argues that the operators of the companies are using their social media and internet expertise to mask the fraudulent nature of their operations. The Emergency Execution Order, therefore, prevents reported companies from continuing to operate from the state of Texas until they obtain a license from the regulator.
Meanwhile, in his comments accompanying the termination and termination orders, TSSB commissioner Travis J. Iles points out the key observations made by his organization when it comes to online trading investment firms. He says:
This series of actions clearly demonstrates the risk of dealing with trendy online investment platforms. Investors cannot afford to take everything at face value when transacting on the Internet. They need to investigate thoroughly before investing, because, on the Internet, anyone can forge a business license, post fake testimonials, or falsely claim to be regulated by an offshore agency.
According to the statement released by Iles, the top 10 entities that were hit with a cease and desist order were all linked to James Blundell, an unregistered binary trader. Blundell is accused of using fake social media accounts, forging documents and making fraudulent claims to lure his victims.
Unregistered investment platforms
The TSSB found that Blundell, who purports to be a Texas resident, has “at least three Instagram accounts, seven Facebook websites and a Linkedin profile (which he uses) to recruit victims.” In order to cease and desist, Blundell is accused of using his “broad social media presence to promote his experience in the cryptocurrency markets, as well as his relationships in binary options and forex trading.”
Additionally, the order accuses Blundell of “bolstering his expertise by publishing an image of a trade certificate purporting to be a binary options trading license issued by Texas City, Texas.” According to the TSSB order, “the license is actually a fake”.
Fake testimonials
Meanwhile, the second termination and termination order accuses three organizations of “falsely claiming to operate out of Valentine, Texas.” The order also states that the companies “are fraudulently claiming that these investments are guaranteed and the use of false testimony adds credibility to their plans.”
However, the order noted an attempt by the three to avoid regulation after claiming that they fall under the jurisdiction of an overseas regulator. The order says:
According to the second order, they are also taking it one step further, falsely claiming to be regulated as e-gaming in the British Isles by the Isle of Man Gambling Supervision Company.
However, the TSSB statement states that the three companies are “effectively regulated by the Securities Board when it comes to securities in or from Texas”. The regulator reveals that the platforms “are not authorized to sell securities in Texas and have not been registered in any way with the agency.”
Meanwhile, in conclusion, TSSB Commissioner Iles urges residents who intend to invest to “initiate their due diligence process by contacting the regulator”.
Can TSSB Issue Order Stop Internet Scammers? Tell us what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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