In what is shaping up the be the latest MLM attorney blunder, the law firm Hart & David have purportedly put their stamp of approval on USI-Tech.

For those unfamiliar with the company,
USI-Tech
initially combined pyramid recruitment with an automated forex trading platform.

USI-Tech affiliates deposited €600 EUR on the promise of an entirely automated and passive ROI.

On or around May, 2017, USI-Tech expanded their offering to
include a bitcoin trading investment opportunity
.

In exchange for a €50 EUR deposit, USI-Tech affiliates are promised a 1% daily ROI for 140 days (140%).

With USI-Tech actively marketing in the US and this business model setting off alarm bells, the company felt the need to address compliance concerns.

On August 28th USI-Tech held a
“USA Kickoff meeting” event
.

At the event USI-Tech corporate got on stage and announced the law firm Hart & David.

For reasons not entirely clear, Hart & David’s paid legal opinion of USI-Tech begins with certification that the MT4 trading software

has been looked at, has been examined and is a legal product in the United States of America, according to the FTC and SEC.

This was met with applause and cheering from USI-Tech affiliates in attendance. Which is strange, because the issue with USI-Tech’s compliance was never whether forex trading software is legal or not.

Obviously forex trading is legal in the US. The compliance issue however is USI-Tech accept 600 EUR deposits in exchange for an automated and passive ROI.

Or in other words USI-Tech are clearly making a securities offering to their affiliates.

Not surprisingly,
this was not addressed
in USI-Tech corporate’s stage presentation of Hart & David’s legal opinion.

The next slide presented covered USI-Tech’s 140% ROI BTC package investment offer.

In what appears to be a direct challenge to the SEC’s securities regulation, USI-Tech management assert Hart & David claim the unregistered securities offering is a “legal product”.

It has been examined by our lawyers and in their legal opinion, it is a legal product.

It is legal to sell this product as a network marketing product in the United States of America.

Whereas MT4 trading software as software code is obviously legal (not so much what USI-Tech do with it), the 140% ROI BTC packages are stand-alone.

From a regulatory standpoint, certifying USI-Tech’s BTC packages as a securities offering is straight-forward.

Affiliates deposit 50 EUR and receive a passive 1% daily ROI, capped at 140%.

In the past the SEC has clarified that,
irrespective of what is or isn’t bundled with a ROI offering
, the fact remains that any MLM investment offer is a security.

Other than generally referencing “case law, regulatory notes, transcripts and petitions”, on what basis Hart & David are challenging the definition of a security in the Securities and Exchange Act is unclear.

USI-Tech meanwhile is not, nor has it ever to the best of my knowledge, registered with the SEC.

Despite H

🤖 Quick Answer

What business model does USI-Tech combine according to the legal opinion controversy?
USI-Tech combines pyramid recruitment schemes with automated trading platforms. Initially, the company operated a forex trading system requiring €600 deposits, promising passive returns. Subsequently, USI-Tech expanded to include bitcoin trading opportunities, offering 1% daily returns for 140 days in exchange for €50 deposits.

Why did USI-Tech seek legal approval from Hart & David law firm?
USI-Tech sought legal validation to address compliance concerns regarding their business operations in the United States market. The company's multilevel marketing structure combined with investment promises raised regulatory red flags, prompting management to organize a USA Kickoff meeting in August 2017 to establish legal legitimacy.

What regulatory concerns surround USI-Tech's investment offerings?
USI-Tech's structure raises concerns about unregistered securities trading and multilevel marketing compliance.

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