LeadInvest’s Claims That Team Included a Supreme Court Justice Earns It a Cease-and-Desist Order
As the crypto space grows, so have the incredibly brazen efforts carried out by bad actors who are determined to capitalize on it by running fraudulent financial schemes.
One of the craziest efforts to date entailed a photo of a U.S. Supreme Court Justice being flaunted to suggest she supported an outfit promoting its crypto endeavors.
Upon learning of this company, called LeadInvest, the Texas State Securities Board swooped in and shut it down by serving it with a cease and desist order.
High Court Justice has a knack for cryptos?
LeadInvest had boasted offering three programs, including two investment programs tied to cryptocurrency.
It attempted to portray U.S. Supreme Court Justice Ruth Bader Ginsburg, and former Solicitors General Theodore Olson, Paul Clement and Seth Waxman as not just supporters of cryptocurrencies, but also as members of its management and legal team!
LeadInvest is accused of using stock photographs of these people and flaunting them about on the LeadInvest website under tab "the team behind LeadInvest."
Not having it
When the Texas Securities Board took a closer look, it found many issues. So unsettling was the information that the board on Monday filed for an emergency cease-and-desist order against the outfit.
Joseph Rotunda, Director of the Enforcement Division for the Texas State Securities Board, said some of the images were images from unrelated websites that depict an attorney licensed to practice in Texas. He said they also depicted an attorney licensed to practice in North Carolina, and a law firm based in California.
Other photos were mere stock photographs of models sold on the internet.
About his board’s response to this brazen behavior, Rotunda said:
“The order is a reminder the Internet provides a means for bad actors to conceal their identity or, perhaps even worse, use the identity of others. Now more than ever, investors need to conduct thorough due diligence to verify the identity of promoters of online investment programs and determine whether they are telling the truth about their operations.”
Not its first rodeo
Texas has become somewhat of a standout in the U.S. for its aggressive stance when it comes to crypto-related fraud.
The emergency order against LeadInvest is its fifth in two months. Wetold you about how Texas is determined to weed out unsavory crypto players, and has been serving up cease-and-desist orders left and right.
Others who’ve received emergency cease-and-desist orders from the state include BitConnect, DavorCoin, and USI-Tech Limited.
It also shut down an Asian -based company selling a coin called r2b. This outfit claimed its token would eventually be the world’s most valuable.