Texas Securities Regulator Accuses Mirror Trading of Fraud

In particular, Commissioner Travis J. Iles claims the company is a multilevel marketing scheme.

Texas Securities Commissioner Travis J. Iles entered an emergency action this week to stop Mirror Trading International PTY LTD, which the Commission states is a South African international, multilevel marketing get-rich-quick scheme.

In the action from Iles, the Commissioner also cites four of Mirror Trading International’s multilevel marketing agents, which Iles accused of illegally soliciting investors from Texas.

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In particular, the order alleges that Mirror Trading is recruiting multilevel marketers to illegally sell fraudulent investments in a bitcoin and foreign exchange (forex) pool. The company is said to be controlled by Cornelius Johannes “Johan” Steynberg

The order claims that Mirror Trading International advertises that it pools bitcoin received from investors and then transfers them to unidentified FX brokers. The bitcoin is then supposedly traded on the FX market using artificial intelligence, and make an average of 10 per cent per month in profits.

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Quick to profit schemes use smoke and mirrors

Commenting on the scheme, Commissioner Iles said in a statement from the Texas State Securities Board: “These quick-to-profits schemes rely on a little bit of smoke and the shine of mirrors. Investors are often promised safe, lucrative returns; but promoters often fail to provide basic, required information to fully inform their prospective investors and satisfy their legal obligations.” 

Furthermore, the order alleges that Mirror Trading has been concealing material information from potential investors, such as who its forex brokers are, how it handles cryptocurrencies and the artificial intelligence it uses.

The order from Commissioner Iles accuses Mirror Trading of committing fraud through an illegal multilevel marketing program and recruiting unregistered securities salespersons.

In the order, Commission Iles names four multilevel marketers in the order: ForexAndBitcoin.com, Michael Cullison, Steve Herceg and Brian Knott. He accuses them of violating state law, which requires the registration of securities and sellers of securities.

“This may just be the tip of the iceberg,” said Joe Rotunda, the agency’s director of enforcement, in the statement.  “Fraudulent multilevel marketing get-rich-quick schemes gain momentum and spread like wildfire through the internet. We brought this action to quickly stop the illegal scheme before it irreparably harms Texans.”

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