The Ontario Securities Commission (OSC) and other provincial regulators in Canada have issued a temporary "cease trade order" against the Bitcoin MLM scheme USI Tech. Based on what grounds did the Canadian regulators issue the order against the entity without a hearing?
16 February, AtoZForex – The Ontario Securities Commission (OSC) has issued a warning against USI Tech and two individuals involved with the entity. According to the regulator, they are not registered to sell securities in the province Ontario. The two individuals in question are Eleanor Parker, and Casey Combden.
Suspicious activities of Bitcoin MLM scheme USI Tech
The commission issued a temporary ‘cease trade order’ to curb trading activities of securities by this questionable entity. Other securities commissions in different regions of Canada have also followed suit, warning investors against USI Tech. These provincial regulators include; New Brunswick, British Columbia, Nova Scotia and Manitoba. The warning statement of OSC accuses the aforementioned entity and individuals of two questionable activities, which are outlined below;
(1) Being involved in a multi-level marketing scheme that reels Ontarian investors in and persuades them to buy Bitcoin mining packages;
(2) trading securities without registration and without an exemption to the registration requirement contrary to the Securities Act.
The OSC chose to issue the stop trade order and the warning without conducting a hearing on the matter. If no further queries are brought against them, USI Tech, Parker and Combden will be unable to continue trading until March 1.
Texas Hits USI Tech With Cease and Desist Order
It seems this is not the first restraint for USI Tech. Back in December of 2017, the state of Texas ordered a Cease and Desist against USI Tech after an internal investigation shows an evidence of securities fraud. Though restrained, Horst Jicha, CEO of USI Tech disclosed his plans to resume operations within the United States. In his letter to his affiliates, Horst stated;
“USI-Tech customers in the US and Canada will now be able to buy BTC packages and continue to enjoy the benefits of our product. We are also working closely with our corporate lawyers to look at ways of resuming commission payments and continuing the referral commission for our partners in North America.”
Contrary to the charges brought against USI Tech, Mr. Horst declared that;
“USI-Tech never had a problem in the USA and Canada, the authorities have been active solely through misconduct, false statements and unauthorized marketing activities of local distributors.”
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