Texas Securities Commission has issued a “cease and desist” order to Bitcoin Pope and its affiliate company, Forex Birds, warning them of their fraudulent investment scheme and demanding them to stop their operations.
Alleged Fraudulent Scheme
Both Bitcoin Pope and Forex Birds are being accused of promoting false and misleading claims about their Forex trading services. Bitcoin Pope has been promoting and advertising Forex Birds trading platform, allowing clients to trade with the “prop trading” system. However, according to the Texas Securities Commission, Forex Birds does not offer their clients a real investment opportunity and is instead running a fraudulent scheme with false claims.
Illegal Selling of Unregistered Securities
The Texas Securities Commission has also found that Bitcoin Pope and Forex Birds have been illegally offering and selling unregistered securities in the US. Both companies have failed to register with the commission, and this is a violation of Texas securities act.
Penalties
According to the cease and desist order, Bitcoin Pope and Forex Birds must fully comply with the law and cease all investment operations. The companies can also face serious civil and criminal penalties, including monetary fines and imprisonment if they fail to comply with the law.
How to Spot Investment Scams
Investors should always be aware of potential scams and frauds when considering an investment opportunity. Here are a few key warning signs to watch out for:
- Unrealistic Returns: If a company is promising an unrealistic return on investments, it is likely to be a scam.
- Unregistered Securities: Be wary of companies offering unregistered securities as they are likely to be operating illegally.
- High Pressure Tactics: Any company that is using high pressure tactics to get you to invest is likely to be a fraudulent scheme.
In conclusion, the cease and desist order issued against Bitcoin Pope and Forex Birds highlights the importance of being vigilant for potential investment scams. Investors should always do their due diligence before investing to ensure that they are not falling prey to a fraudulent scheme.