Crypto General News

A start-up associated with cryptocurrencies taken down by the Texas Securities Board

On Friday, April 6th, the Texas State Securities Board issued an order against a fraudulent start-up claiming to offer  8{500c8cf8dace8cda8a572d0723319db30d7ae9c572e69fb9e7726ed8fdae7ee9} weekly returns on cryptocurrency and medical marijuana, this happens to be another move against crypto-related financial crimes by U.S. regulators.

A cease-and-desist order (CDO) was filed by the Board against Mark Moncher, for reportedly attempting to sell unregistered securities through his “Financial Freedom Club,” also known as “Millionaire Mentor University,” which according to Moncher can provide investors financial independence in just a month.

In the order, Texas regulators highlighted wording from the website that claims its investors would receive an 8{500c8cf8dace8cda8a572d0723319db30d7ae9c572e69fb9e7726ed8fdae7ee9} return on their money every week. The site also claims that the money generated shall be utilized to purchase cryptocurrency, which would then be loaned to a project related to medical marijuana in California.

“Never work hard again,” these are the wordings displayed on the website.

The Millionaire Mentor University

According to the CDO, it states that investors were given the information that in exchange for a $2,000 initial investment, they would obtain an “invoice of a product similar to your initial payment for your own safety,” to fleece the true purpose of the funds. Now reports have emerged which reveal that the product was meant to be a gold watch that would not really be given to investors, this gives further evidence that this operation was attempting to deliberately skirt the law.

Moncher has also been accused by The Board for not providing investors correct information, of the fact that a federal court in Florida had given him a sentence of 57 months in prison back in 2010 for a mortgage fraud scheme and committing mail and wire fraud.

Texas Securities Commissioner, Travis J. Iles explained the intentions of Moncher and his co-conspirator Frank Dalotto by stating:

“Moncher and his organization are putting together a cryptocurrency trading program with 911MoneyStore Inc wherein, they would be offering sale investments.”

911MoneyStore Inc has two workplaces listed in New York state.

Dalotto is the principle of 911MoneyStore, which is also in talks of working with ‘a broker with astounding outcomes,’ yet he isn’t unveiling the name of the trader or the procedure used to create 8{500c8cf8dace8cda8a572d0723319db30d7ae9c572e69fb9e7726ed8fdae7ee9} week after week returns. The request asserts that Dalotto is advising potential investors to maintain a strategic distance from securities laws, he and 911MoneyStore ‘truly would prefer not to depict this as an interest in crypto’ and will allude to the profit payments as a ‘commission.’

The Texas State Securities Board amongst the most active state regulating agencies. Under Iles, it has been scooping up corrupt players in the digital currency market for many months.

Back in February, The Board ordered the closure of DavorCoin following suspicions that the company was operating a scam, and ordered it to stop selling unregistered securities while marketing its company with statements like “substantially deceptive or otherwise likely to deceive the public.”

LeadInvest was also taken down by the Board in February, as they believed that the start-up created its own management group and wrongfully requested investors for a cryptocurrency mining activity and loaning program.

About the author

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Safdarali Rizvi

Safdarali Rizvi – The Tech Geek, possessing some extraordinary coding and web designing skills, he is the man behind the development of Bittflex. He never fails, right from solving web errors to updating content regularly. He is the backbone of this project always available to us 24 hours a day, 7 days a week. A true workaholic.

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