Tag Archives: Texas State Securities Board

Cryptocurrency Promoters Shut Down by Texas Regulator-Austin, TX

May 2018-Austin, TX

The Texas State Securities Board (TSSB) entered emergency orders against the following unregistered promoters who are fraudulently offering high-return investments in cryptocurrencies:

  • Bitcoin Trading & Cloud Mining, Ltd. -also known as BRCRUSH-also named in the Cease and Desist Order are Jaylon Cross, Bruce Rodgerson, and Robin Lozinski, all of  London, UK, and Thomas A. Johnson of Panama City, Panama.
  • Forex EA & Bitcoin Investment LLC.-also named in the Cease and Desist Order are James Butcher and Richard Dunn of New York City.

According to the TSSB these companies are violating the Texas Securities Act by failing to disclose any material information about their principals, strategies, finances, and the extensive technical and regulatory risks of cryptocurrency-related offerings.

The TSSB issued an Investor Alert warning of the dangers of fraud found in cryptocurrency offerings. Link to the April 10, 2018 alert. 

Losses on cryptocurrency investments recommended by your registered stockbroker? 

Call for a no charge consultation to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Cryptocurrency Offerings Targeted by Texas Securities Regulators

April 2018- Austin, Texas

The Texas State Securities Board (TSSB) found widespread fraud in cryptocurrency offerings that were tied to virtual currencies and has issued a 14 page report which can be found here: Enforcement Report:Widespread Fraud Found in Cryptocurrency Offerings. 

Since September 1, 2017, the TSSB Enforcement Division has opened over 60 investigations related to cryptocurrency investments.

If you are considering such an investment, you would be wise to read the TSSB report.

A few highlights from the report:

  • Investigators found that most promoters of cryptocurrencies were not providing investors with their physical address. If you invest in a mystery company, particularly one located overseas, you’re at great risk of never recouping your money if the investment is a scam.
  • None of the 32 promoters being investigated by the TSSB were registered to sell securities in Texas.
  • Instead of relying on registered professionals to sell the investments, some promoters recruit investors to pitch the investment to friends and family by offering a finders fee. This is a multi-level marketing scheme exposing the recruits to civil and criminal enforcement actions.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Texas Securities Board Appoints New Commissioner-Austin, TX

August 2017-Austin, Texas

Travis J. Lies was appointed Securities Commissioner of the Texas State Securities Board (TSSB) effective September 1, 2017. Lies has worked for the TSSB for 16 years and has been serving as Deputy Commissioner for the past year. He will succeed current Commissioner John Morgan who will retire August 31 after 33 years with TSSB.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Daniel J. Haugh-PTI Securities & Futures Broker-Discloses $2.5 Million Customer Arbitration & Regulatory Sanction-Chicago, IL

June 2017-Chicago

According to publicly available records Daniel John Haugh  (CRD#2162854) ,  a  stockbroker who currently is the chief compliance officer of  PTI Securities & Futures , disclose a recent regulatory event and a customer dispute.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In April 2017 Haugh was censured and fined $2,500 by Illinois securities regulators for failing to verify information to determine if emails that he received requesting the transfer of funds were being sent by his client. The account involved was an IRA account which belonged to a Texas resident. A phony SPAM email purportedly from the account holder resulted in the transfer of about $45,000 by PTI Securities  to an individual in Louisiana. Another phony email a month later resulted in PTI Securities transferring another $45,000 to an individual in Alabama.

In May 2017 a customer of PTI Securities & Futures filed FINRA Case 17-01171 seeking $2.5 million in damages alleging that their account, which contained derivatives, equities and options, was mismanaged from 2008-2016. That matter is currently pending.

If you have questions about an account handled by Daniel J. Haugh, call to learn about your options.

TEXAS REGULATORS SANCTION PTI SECURITIES FOR BEING FOOLED BY SPAM EMAIL

In June 2017 PTI Securities & Futures was sanctioned by the Texas State Securities Board (TSSB) for supervisory failures that led to these bogus transfers which were initiated by SPAM emails. See this for more details. 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

PTI Securities & Futures Sanctioned by Texas Regulators for Transferring Client Funds Based on Spam Emails-Austin, TX

June 2017 -Austin, TX

The Texas State Securities Board entered a disciplinary order against Chicago-based PTI Securities & Futures for transferring nearly $100,000 from a 75 year old Texan’s IRA to unknown individuals based on the authority contained spam emails. Link to TSSB Disciplinary Order. 

 

According to the TSSB Order, PTI Securities missed numerous red flags along the way:

  • One of the emails requesting the transfer contained the term “SPAM” in the subject line.
  • The signatures on the forms requesting the transfers did not match the signature on the client’s account application
  • The distribution requests had an incorrect social security number and birth date for the client. The client was born in 1934 and the birthdate on the form was 1969.
  • The client had never previously made wire transfers to either of the individuals on the transfer forms
  • PTI Securities’ CCO did not speak to the client prior to processing the wire transfers.

PTI Securities & Futures made a full repayment of the $91,560 which was wrongly transferred and now prohibits transfers from client accounts to accounts that are not owned by the client.

TSSB reprimanded PTI Securities & Futures and fined the firm $5,000.

In April 2017 Illinois regulators, who had been investigating the matter, assessed PTI Securities & Futures a fine of $2,500.

 

If you have losses  in an account handled at PTI Securities & Futures contact us to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870