Tag Archives: TSSB

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

Richard Havard-Former Invest Financial Broker-Sanctioned by Texas Regulator-Prosper, Texas

December 2017- Prosper, Texas 

The FINRA records of Richard L. Havard ,  a  stockbroker who previously worked for Invest Financial Corp. , disclose 5 pending liens filed by the Internal Revenue Service in Collin County, Texas. The liens are for delinquent income taxes and date back to 2010.

In December 2017, the Texas State Securities Board (TSSB) entered a Disciplinary Order reprimanding and fining Havard $7,500 for failing to update his FINRA record to disclose the IRS liens in a timely manner in violation of TSSB rules.

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.

Havard  was employed by Invest Financial Corp. from 11/2007-10/2017. He is currently  employed by Dominion Investor Services , a broker dealer headquartered in Horseshoe Bay, Texas.

If you have questions about an account handled by Richard Havard, call for a no charge consultation.

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

Michael K. Parish-San Antonio Investment Adviser Sanctioned by Texas Regulator

July 2017 -San Antonio, TX

The Texas State Securities Board  (TSSB)entered a disciplinary order against San Antonio investment adviser Michael Keith Parish for violations of Board Rule 116.17, known as the “custody rule” which prohibits registered investment advisers from maintaining custody of client funds and/or securities unless certain safeguards are implemented and/or the investment adviser satisfies compliance with an exemption from such safeguards. Link to TSSB Disciplinary Order. 

According to the TSSB Order, Parish did not maintain a balance sheet, income statement and general ledger and did not implement the safeguards required by Section 116.17(b) of the Board Rules.

Parish was fined  $5,000 and his registration as an investment adviser was suspended for 30 days. In addition Parish was ordered to retain an outside auditor registered with the Public Company Accounting Oversight Board (PCAOB) to conduct an audit of all funds under his management.

 

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