What Investment Fraud Looks Like
The Texas Securities Board sends out emails on investment people that get busted. I think that these offer up good examples as to what to stay away from. Here is the story and my comments in bold.
Order Filed to Stop Cryptocurrency, Marijuana Investments
Texas Securities Commissioner Travis J. Iles on April 5th entered an Emergency Cease and Desist Order against a convicted felon who is offering investments in two things that usually don’t go together: a cryptocurrency trading program and a marijuana growing operation.
According to the order, the Enforcement Division of the State Securities Board found sufficient evidence that the felon, Mark J. Moncher, is offering investments in an unregistered cryptocurrency trading program that purportedly delivers returns of 8% per week.
If someone is offering unrealistic returns per week, there is something wrong. There are radio advertisements playing today that are offering this type of thing. Also the majority of investment fraud involves unregistered investments.
In March 2010 Moncher was sentenced to 57 months in federal prison to be followed by three years of supervised release. He was also ordered to pay $2 million in restitution.
Check out your broker ahead of time, if he or she are registered (which they should be) go to www.brokercheck.org and check them out. You can determine whether you want to work with an adviser who has a past.
The order alleges that Dalotto is telling potential investors that to avoid securities laws, he and 911MoneyStore “really don’t want to portray this as an investment in crypto” and will refer to the profit payments as a “commission.”
HUGE RED FLAG! An investment is an investment. If not and characterized as something else, it is probably a fraud.
Dalotto, Moncher, and their companies are also encouraging investors to commit felony offenses in connection with an initial $2,000 investment in the trading program.
According to the order, investors are told that after making the initial investment via a charge or debit card, they will receive an invoice for the purchase of “a gold Seiko watch which you’ll never get.”
If the “investment goes bad,” Dalotto is telling investors, investors can claim they never received the watch and request a refund from the financial institution that issued the card.
Dalotto’s statements are encouraging investors to file a materially false or misleading written statement with a financial institution, a state criminal offense in Texas.
Could this be anymore evident? A gold Seiko Watch? Lying? Please use common sense.
The email goes on. I don't have to go into the marijuana fraud to prove a point. I think that you get the message. There are con artists live and well and trying to rip off the public. Please don't be one of them!