The Texas State Securities Board (TSSB) issued a cease and desist order on Tuesday against ‘TradeGo Forex Exchange’ and three individuals involved in a phoney FX trading scheme.
Texas Securities Commissioner ordered TradeGo to shut down operations on charges that its principals, Ronald Ameral, David Nielson, and Brandon Newbern, defrauded people by soliciting unauthorised investments.
In its charge sheet, TSSB alleges that TradeGo Forex Exchange is operating under various names, such as TradeGo Forex Global Wealth Group and Forex Global Wealth Group.
Ameral, who also goes by various aliases such as Greg Ronald, advertised on the craigslist.org site for touting profitability of a trading program tied to forex, commodities and stocks. The fraudulent scheme pooled money from investors through bank accounts personally owned by Ameral and Newbern.
Their most recent Craigslist ad claims that FX is a low-risk trading activity, and it falsely promises that with a minimum investment, potential clients could reap a 500% profit in just one day.
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According to a non-appealable cease and desist order, the Texan regulator investigated compliance with the registration requirements of the federal securities laws. The order further states that the operatives of TradeGo Forex Exchange are not registered with the federal or state regulators as dealers. Therefore, they are engaged in fraud in connection with the sale of the securities to Texans.
Texas Shuts Down 15 Brands
The news comes shortly after TSSB ordered 15 FX, binary options and cryptocurrency brands to cease operations immediately, alleging that the investment fraudsters are basically operating double-your money scams.
Last week, ten brands were named in the first order: Proactive Expert Trading, Reliable Miners, BitcoinFX Options, Sure Trade Earnings, CryptoTradeFXWay, Proactive ExpertTrade, ReliableFX Internal Trade, MaxFX Internal Trade, AntPoolTop Mining and ExpertTrades247.
Additionally, a second emergency action names three online platforms that the regulator says were soliciting investments in FX and crypto trading schemes. Binary Trade Forex, FX Trades and IQTrade brands were accused of falsely claiming a Texan authorisation, as well as promoting too-good-to-be true cashflow for their investments, with a 100% written money-back guarantee.