Fraudulent Investment Promoted Through Reddit
Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order to stop a fraudulent scheme promoted through Reddit, a popular social media platform.
Press Release
Securities Commissioner Travis J. Iles entered an Emergency Cease and Desist Order to stop a fraudulent scheme promoted through Reddit, a popular social media platform. Reddit permits users to share links, text posts, and images, and to correspond through private messages. It is one of the most visited websites in the United States, according to many reports.
The order names Cryptobase, also known as Crypt-Base, and Aaron Maxwell. It alleges that Maxwell is soliciting persons participating in r/stocks, a forum of reddit generally referred to as a subreddit, dedicated to the discussion of stocks. According to the order, Maxwell is sending private messages to these users, offering them the opportunity to participate in a forex trading program through Cryptobase.
The parties claim the forex trading program generates lucrative returns paid on a weekly or monthly basis. Maxwell is telling users the investments are guaranteed, and investors will receive 300, 400 or even 500 percent on a weekly basis. These statements are fraudulent, according to the order.
“Scammers are continuing to tap the power of social media,” said Commissioner Iles. “They can use online marketing tools to quickly reach may potential victims. Investors should be wary whenever an unknown person approaches them through the internet, promising untold wealth and income.”
Cryptobase and Maxwell are not registered with the Securities Board, and the investments in the forex trading program are not registered with the Securities Commissioner.
Enforcement Director Joe Rotunda encouraged investors to thoroughly investigate investments before sending money. “People work hard to accumulate savings over the course of years, or over the course of a lifetime. We encourage the public to take the time to conduct due diligence before parting with their savings.”
Investors can begin conducting due diligence by contacting their state securities regulator. Texans can access the Texas State Securities Board through its internet website at www.ssb.texas.gov, and they can send an inquiry to its Enforcement Division by email at enforceinfo@ssb.texas.gov.
Enforcement Actions Against 15 Online Investment Scammers
Commissioner Announces Series of Sweeping Actions Against Fifteen Online Crypto, Forex and Binary Options Investment Scammers.
Press Release
Securities Commissioner Travis J. Iles announced a series of enforcement actions against fifteen fraudulent online investment scammers.
The first emergency cease and desist order names ten internet investment platforms and links one individual - James Blundell - to the scheme to broadly promote fraudulent investments. Blundell, purportedly a resident of Seabrook, Texas, is accused of using numerous social media accounts – including at least three Instagram accounts, seven Facebook websites and one Linkedin profile – to recruit victims. . . more
The second emergency action names three online platforms - Binary Trade Forex, FX Trades and IQTrade – and accuses them of falsely purporting to operate from Valentine, Texas. These three online platforms are allegedly recruiting investors by illegally promoting investments in forex, binary options and cryptocurrency pay lucrative rates of return. The order alleges they are fraudulently claiming these investments are guaranteed and using fake testimonials add credibility to their schemes. . . more
The third order names GenuisPlanFxPro, a cryptocurrency, binary option and forex investment platform falsely claiming it operates from Austin, Texas – just several miles from the agency’s offices. It alleges GenuisPlanFxPro is also falsely claiming its investment is regulated as e-gaming and licensed and regulated by the Isle of Man Gambling Supervision Commission. Moreover, GenuisPlanFXPro is also attempting to add additional legitimacy to its scheme by falsely claiming to be regulated by the Financial Conduct Authority and the Cyprus Securities and Exchange Commission. . . more
Commissioner Brings New Action to Stop Family from Continuing Fraud
Despite the prior regulatory, civil and criminal actions, Brian and Kristi Alfaro didn’t stop. In April 2020 – while Brian Alfaro was under house arrest awaiting criminal sentencing - they allegedly began perpetrating a new securities scheme.
Press Release
On November 10, Brian Keith Alfaro, from San Antonio, was sentenced to serve 121 months in federal prison. The sentence follows a jury finding him guilty of seven counts of mail fraud in connection with defrauding investors in an oil and gas investment scheme. The evidence showed Brian Alfaro used their funds to further an extravagant lifestyle – including the purchase of a Lamborghini and season tickets for the San Antonio Spurs.
Brian Alfaro has a long history of misconduct and fraudulent investment schemes. FINRA, the Texas State Securities Board and other state regulators previously brought enforcement actions against him and his companies. After being expelled from the industry, he was sued by defrauded investors and later put his oil investment company in bankruptcy. Despite the bankruptcy filing, the victims later won a judgment of approximately $8 million against him. The Bankruptcy Court appointed a Receiver, and the Receiver successfully recovered money after suing Brian Alfaro and Kristi Alfaro, his wife, for fraudulently transferring property.
Despite the prior regulatory, civil and criminal actions, Brian and Kristi Alfaro didn’t stop. In April 2020 – while Brian Alfaro was under house arrest awaiting criminal sentencing - they allegedly began perpetrating a new securities scheme. Brian and Kristi Alfaro allegedly began contacting potential investors – including elderly persons – and encouraging them to invest in a fraudulent wildlife breeding and development program.
On November 9, 2020, Commissioner Iles entered an Emergency Cease and Desist Order to stop Brian Alfaro and Kristi Alfaro from perpetrating the scheme. The scheme is being promoted by ARCA Wildlife Development and Conservation, LLC – an entity recently organized by Kristi Alfaro. Together, ARCA Wildlife and Brian and Kristi Alfaro are marketing units issued by Texas Savanna Partners, LLC. They are allegedly telling potential clients that ARCA Wildlife will use the proceeds of the sales of units to acquire livestock, improve property and manage a wildlife breeding scheme in Zavala County, Texas. more