An alleged bogus trading operation offering 8% weekly returns linking cryptocurrency and medical marijuana was hit by a Texas regulator Thursday.
The Texas Securities Board filed a cease and desist order against Mark Moncher for allegedly trying to sell unregistered securities through his Financial Freedom Club, also known as Millionaire Mentor University.
But hours after the order was issued, it was still online.
In its order, the Texas regulator cites wording from the website saying its investors are getting an 8% return on their money weekly.
Their money would buy cryptocurrency, which in turn would be loaned to a medical marijuana operation in California.
In its boasts, www.millionairementoruniversity.com says it has the resources to give investors financial independence in 30 to 60 to 90 to 120 days.
“Never work hard again,” the site advertises.
The Board claimed the cryptocurrency trading scheme encouraged investors to commit felony offenses in connection with an initial $2,000 investment in the trading program.
Investors were told they would get an “invoice of a product matching your initial payment for your protection,” to hide the true use of the funds according to the cease and desist order.
That product was for a gold Seiko watch the investors would never get.
The Texas Securities Board accused Moncher of hiding from investors the fact he was sentenced to 57 months in prison in 2010 by a federal court in Florida for a mortgage fraud scheme.
Moncher, who plead guilty to commit mail and wire fraud, was also ordered to pay $1.9 million in restitution from defrauded financial institutions.
The Texas State Securities Board is probably the most active state regulator in combating cryptocurrency fraud.