On April 5, the State Securities Board of Texas have issued an Emergency Cease and Desist letter to the Millionaire Mentor University, Mark J. Moncher, and another connected player to ban selling unlicensed securities and defrauding investors in an allegedly fraudulent complex cryptocurrency trading and medical marijuana investment scheme.
Estrada Trucking of Capital Cash and Moncher are other respondents who are been accused of providing promissory notes. It is considered as unlicensed securities for a California-licensed unknown marijuana cultivating operation. Monceher is implicated for recommending residents of Texas to defraud credit card companies.
Investment in cryptocurrency:-
The investments in the cryptocurrency trading program are associated with Moncher that has offered 8percent weekly returns on the investment. The minimum investment is $2000 and sign up fee is $150 which is been paid by credit or debit card.
The crypto trading program is been offered to the investors with an invoice that states that which brought a “gold Seiko watch that can’t be achieved”, as “protection in the event somebody runs away.” In the case of bad investments, investors were recommended to report to their credit or debit cards company which the watch never arrived and receive their money back.
The cease and desist order notes that the respondents involved the crypto trading program which is attempted to hide the cryptocurrency aspect of the investment. It is cited as “We really don’t want to portray this as an investment in crypto because then you’re opening yourself up to a can of worms”.
The appellant failed to disclose that Moncher is a convicted felon who served 57 months for conspiracy to commit mail and wire fraud. It is not disclosing the risks associated with cryptocurrency investments like market volatility and potential for hacking.
Texas has run a cease and desist letters to crypto-related businesses from the beginning of the year. This is alleged in a Ponzi scheme Bitconnect ordered to ban selling unlicensed securities in Texas in early January and asking an alleged scam related to cryptocurrency bank to leave the state.
In mid-February, Texas regulators have sent a cease and desist letter to Leadinvest.com eluding the trade of unlicensed securities and overall alarming for an irreversible damage.
Image Source:- Texas