Yesterday, an immediate cease and desist was ordered by the Texas State Securities Board to the website leadinvest.net. The board is citing that the company has failed to disclose the appropriate information in regards to its cryptocurrency mining, and it’s cryptocurrency specialists in the company. The company is also being accused of selling fraudulent unlicensed securities. You can view the full order here: Cease and Desist Order
The order against Leadinvest.net is primarily focused on the website’s management team and the photos that represent the team on its website.
The report reads:
“The LeadInvest Website represents Simone Roger is responsible for business development, marketing, and operations. The LeadInvest Website provides a photograph that purports to portray Simone Roger. The photograph that purports to portray Simone Rogers is a photograph of a [name redacted], an attorney licensed to practice law in Texas that has no affiliation with Respondent LEADINVEST.”
As the letter progresses, it reads almost the same exact thing, citing that these staff photos are stock images or images taken of people that aren’t associated with the company.
The website is no longer active but this morning was redirecting to another crypto investing site. It remains unclear if the individuals running the website are trying to move their schemes elsewhere. When the website was up and running its data showed that it has more than 190,000 accounts made on the site and $177 million has been invested in their system. In the cease and desist the Texas State Securities Board states that LeadInvest had not disclosed the use of the funds that these investors had given.
This is the third cease and desist notice that the state of Texas has sent out to a cryptocurrency related site this year. Back in January, Texas’s board sent one to the Ponzi-scheme Bitconnect for selling unlicensed securities and the second to the alleged ‘crypto bank’ AriseBank, for not actually functioning as a bank. Although many have gotten away with scamming the unfortunate souls that don’t do enough research before investing, Texas isn’t backing down anytime soon.
Featured Image: RedHead