US Texas State Regulators issue cease-and-desist order for LeadInvest, referring to a failure to disclose information about its specialists and cryptocurrency mining activities.
28 February, AtoZForex – The US Texas State Securities Board has issued a cease-and-desist order to yet another fraudulent firm. The regulatory body has ordered website Leadinvest.com to halt operations referring to a failure to disclose information about its specialists and cryptocurrency mining activities.
US Texas State Securities Board Activities
The US Texas State Securities Board has also mentioned that the website has been fraudulently selling unlicensed securities. The authorities have also referred to an overall “ immediate and irreparable harm.”
Earlier this January, the Texas State Securities Board has issued two other cease and desist notices to the cryptocurrency related firms. The first order has been sent to the planned initial coin offering (ICO) of BitConnect. The letter has marked the second instance this month that BitConnect receives the cease-and-desist warning.
Another cease-and-desist order has been issued for the so-called cryptocurrency bank AriseBank. The authorities have ordered it to stop any services to the residents of the state.
US Texas State Regulators Issue Cease-and-Desist Order for LeadInvest
The latest order starts by explaining that all of the LeadInvest’s staff photos are not real. Regulators believe that these are either stock photos or photos of other people. The cease and desist letter for LeadInvest also mentions that LeadInvest “agents” are promised that they will receive a ten percent commission for all new clients that use their referral link.
Moreover, the letter outlines that Leadinvest is breaching the securities laws by “recruiting individuals who are not registered with the Security Commissioner to act as its agents.”
The letter from the Texas Securities Board ends by citing the “misleading and deceptive statements” that have been made about the identities of people that are associated with LeadInvest. The cease and desist letter also refers to the statements on the website that promise that investors are following the laws and regulations.
Following the order, the company has to cease all activities that are related to selling securities. LeadInvest also has to stop acting as a securities dealer and fraudulently offering securities.
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