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Texas Securities Commissioner Flags Illegal Forex Trader Operating in Dallas – Cryptovibes.com – Daily Cryptocurrency and FX News

Travis J. Iles, the Securities Commissioner for Texas, has issued a cease and desist order against David A. Grissom and Premier Concepts. The securities commissioner accused the two parties of illegally operating an unlicensed forex investment scheme in Texas.

The cease and desist order claims that Grissom and Premier Concepts advertised the forex investment scheme on Craiglist, in which it targeted people living in Dallas. According to the advertisement, those who invested in the scheme would earn returns of up to 8% monthly.

Misguiding Investors

The commissioner also stated that the two parties misinformed interested individuals that the scheme was safe and lucrative. Besides the 8% monthly returns, they also claimed to offer guaranteed total returns of 80%. The returns were purported to be paid regardless of the profitability of the forex trading activity.

Grissom and Premier Concepts raised around $700,000 from the public in the forex scheme. According to Commissioner Iles, “representations that an investment is safe with guaranteed returns are investment characteristics requiring the utmost scrutiny by investors. These types of representations are a central component of myriad investment opportunities later found to be fraudulent.”

Not Officially Registered

Despite claiming that their investment scheme was successful, Grissom and Premier Concepts did not seek the necessary registration from the Commodity Futures Trading Commission or the National Futures Association. The two also failed to seek registration to offer securities in Texas.

The Enforcement Director, Joe Rotunda, advised investors to do due diligence before investing with firms or individuals that are not registered.

The Enforcement Division of the Texas State Securities Board recently stated that both Grissom and Premier Concepts had been warned against their offerings. After the board urged the firms to comply with the Securities Act, the two parties agreed to remove their advertisement until the legal processes were followed.

However, the two did not do as promised but rather continued with their illegal offerings. Despite the warning, they continued to solicit funds from investors in the forex scheme fraudulently.

The cease and desist order accused parties of fraudulently misguiding investors to invest in the scheme. The two promised investors of lucrative returns and did not disclose any financial information such as assets and liabilities that showed how these returns would be generated.

In addition, Grissom and Premier Concepts claimed that the forex trading investment scheme was safe, but they did not disclose the true risks investors were taking by venturing into the scheme.

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