Texas Securities Commissioner Stops Illegal Bank Leveraged Forex Program
Texas State Securities Board
TEXAS ( News Release) - Securities Commissioner Travis J. Iles entered an emergency cease and desist order to stop Graco Commercial Capital, LLC, and Raymond V. Grant from illegally offering investments in a bank leveraged forex trading program.
Grant and Graco Commercial, operating from Greeley, Colorado, are accused of telling potential investors their funds will be deposited and held in a bank account. The bank reportedly places a “block” on the funds and creates a line of credit worth nine times the principal, and an unidentified trader then uses the line of credit to trade forex. Grant has been allegedly telling investors they will receive a guaranteed 25% rate of return per month – but that actual returns may be as much as 100% per month.
“The order also alleges Grant is claiming the investment is ‘100 percent safe,’” said TSSB Enforcement Director Joe Rotunda. “This is misleading. All investments carry some degree of risk, and investors need to be aware that forex trading carries material risks that may result in the loss of some or all principal.” The order accuses the parties of concealing these risks from potential investors.
Also, according to the order, Grant and Graco Commercial claim to have a professional affiliation with the Better Business Bureau (the “BBB”). However, Graco Commercial is not accredited by the BBB. In fact, Respondent Grant does not own a business that is actually BBB accredited.
Grant is allegedly concealing the fact he filed for Chapter 7 bankruptcy. Neither he nor Graco Commercial are registered to sell securities in Texas, and Graco Commercial has not obtained a permit or registration to offer its securities in Texas.
The Enforcement Division earlier learned Grant and Graco Commercial were illegally soliciting the investments in Texas. It afforded the parties the opportunity to become compliant with the Securities Act, and Grant agreed to comply with the law. The order alleges the agreement was a sham. According to the order, after promising to comply with the law, Grant continued to illegally offer the investments in Texas. Commissioner Iles therefore entered the emergency order to stop the ongoing violations.
“Creating a level playing field for businesses interested in raising capital to grow their businesses requires these same businesses to make a good faith effort to comply with their legal responsibilities. It is our practice to both trust and also verify assurances made by promoters of investment opportunities,” said Commissioner Iles.