Texas and Alabama security agencies announced a cease and desist orders against Lance Angus Jerrad and some other South African Financial institutions.
Jerrard and the firms accusations were based on fraud. Throughout the pandemic, they promoted a commodity known as the Liquidity on media channels including on-air promotions convincing investors to invest and get immediate returns during the lockdown. They publicized that investors will get a debit card issued by Mastercard, which operates the same way as a traditional debit card.
In the Advertisement, the firms mentioned that this commodity would enable cardholders to evade taxes by receiving and spending profits as stablecoins as well as PAX Coin (PAX) TrueUSD Coin (TUSD), USD Coin (USDC).
Joe Rotunda, the enforcement director at TSSB says, the hope of a monthly income which is guaranteed may look like a dream come true during this period of economic disaster.
The report revealed that the promotion which was expected to onboard 8 million card owners in 3 years was meant to begin in October.
The plan was to employ new people and make them invest in Liquidity's global project partnership.
The firm supposedly assured investors that $1516.72 per portion monthly might be received after 18 months and $5,008.62 monthly after two years. It corresponds to the sequence that the firms are giving these investors a 100% written money-back assurance, and these assertions are said to be fraudulent based on the cease and desist order.
Jerrard and the three liquidity firms are not authorized to sell securities in Texas. These firms had prevented prospective cardholders from seeing the threats associated with the plan by hiding vital information. However, they would be given a month to object the cease and desist order.
Source: Cointelegraph
