E-Estate Group Halted After Alleged Fraudulent Real Estate Investment Scheme
Texas State Securities Board
AUSTIN, TEXAS (News Release) - The Texas State Securities Board ("TSSB") has entered Emergency Cease and Desist Order No. ENF-26-CDO-1896 against E-Estate Group Inc., its principals Brandon Stephenson, Mike Hamilton, and Karoll Peterson, and Texas resident Darrell Porter for allegedly offering and selling unregistered and fraudulent tokenized real estate investments to Texas investors.
The Order alleges the respondents are using websites, social media platforms, webinars, and a multi-level marketing network to solicit investors with promises of passive income, daily distributions, and long-term returns tied to digital assets known as EST Tokens.
Deputy Securities Commissioner Cristi Ramón Ochoa entered the Emergency Cease and Desist Order after finding that the respondents' conduct threatens immediate and irreparable public harm.
According to the Order, investors are being encouraged to purchase tokenized interests in purported real estate assets for as little as $10 and are being led to believe the investments will generate income through rental properties and other real estate-related activities.
The Texas State Securities Board alleges these investments constitute securities under Texas law and are being offered and sold in Texas without registration or a permit from the Securities Commissioner. The Order further alleges the respondents are acting as securities dealers and agents without the registrations required by law.
The Order also alleges that Texas resident Darrell Porter is continuing to offer and sell securities despite being subject to a prior Emergency Cease and Desist Order entered in 2024 involving a separate securities offering. According to the Order, Porter was previously ordered to cease offering unregistered securities and to cease acting as an unregistered securities dealer or agent in Texas.
"The use of blockchain technology, tokenization, or digital assets does not place an investment outside the reach of Texas securities laws," said Deputy Securities Commissioner Cristi Ramón Ochoa. “And we will continue to prioritize protecting investors by taking aggressive action against those who violate our securities laws.”
The Order alleges these respondents used modern marketing tools, social media platforms, and a multi-level marketing structure to raise money from investors while failing to provide the registrations and disclosures required by law. Texans should be especially cautious when they are promised passive income, capital protection, or significant returns through investments they do not control.
The Order further alleges E-Estate Group is operating a multi-level marketing compensation structure that rewards participants for both their own sales and the sales activity of individuals they recruit into the program. According to the allegations, Porter has actively participated in webinars, promotional events, and recruitment efforts despite not being registered to sell securities in Texas.
State securities regulators also allege E-Estate Group and its principals made materially misleading statements regarding properties represented as part of the company's real estate portfolio. One example identified in the Order involves a property known as the "Lake House" in Lakeside, Oregon.
According to the findings, E-Estate Group and its purported property management partner allegedly do not own the property, possess management rights to the property, or have rights to receive income generated by the property despite representations made to prospective investors.
The Order additionally alleges the respondents falsely represented that:
EST Tokens are backed by real estate assets;
Investor capital is protected through legal verification and expert evaluations;
The offering complies with applicable securities laws; and
Investors can reasonably expect income and returns derived from the efforts of others.
The Emergency Cease and Desist Order requires the respondents to immediately:
Stop offering securities in Texas unless properly registered or exempt from registration;
Stop acting as securities dealers, agents, investment advisers, or investment adviser representatives unless properly registered or exempt;
Stop engaging in fraudulent practices in connection with the offer or sale of securities; and
Stop making materially misleading statements or omissions to investors.
Investor Alert: Warning Signs of Investment Fraud
The Texas State Securities Board encourages investors to exercise caution when evaluating investment opportunities involving digital assets, tokenized real estate, or online investment programs.
Potential warning signs include:
Promises of passive income or unusually high returns;
Claims that investments are "backed" by assets without independent verification;
Compensation for recruiting additional investors;
Sales pitches conducted primarily through social media, messaging apps, or webinars;
Claims that an investment is exempt from securities regulation; and
Pressure to invest quickly before an opportunity expires.
Investors can verify the registration status of securities and investment professionals through the Texas State Securities Board before investing.
Investors who purchased E-Estate Group investments or who have information regarding the offering are encouraged to contact the Enforcement Division at enforceinfo@ssb.texas.gov.
About the Texas State Securities Board
The Texas State Securities Board protects Texas investors through registration, enforcement, and investor education. The agency investigates securities fraud, reviews investment offerings, and takes action against individuals and companies that violate the Texas Securities Act.
For additional information, visit www.ssb.texas.gov.
