Mirror Trading International Securities Fraud Cease and Desist in Texas
Texas regulators shut down Mirror Trading International this week, issuing an emergency cease and desist order against the company and five people tied to the scheme.
The order targets Mirror Trading International PTY LTD and its owner Cornelius Johannes "Johann" Steynberg, along with three U.S. promoters: Michael Aaron Cullison of Nevada, Steve Herceg of California, and Brian D. Knott of Nevada.
The Texas State Securities Board describes MTI as an "international multilevel marketing scheme tied to investments in a cryptocurrency forex trading pool." None of these defendants are registered to offer securities in Texas, making their sales illegal.
MTI's marketing pitch was aggressive. The company promised investors who deposited as little as $100 could make an average of 10% per month. Promoters told people to "just sit back and watch your money grow." The investments supposedly generated "daily trade income" with compound interest, produced positive gains for more than 200 consecutive days, and executed 600 to 800 trades daily without a single loss in nearly a year.
These claims are almost certainly false. The numbers don't add up. A 10% monthly return compounds to more than 200% annually—returns that legitimate traders rarely achieve, let alone consistently.
Herceg took the pitch further. He specifically targeted economically vulnerable people, urging them to invest their stimulus checks and COVID relief payments into MTI.
What the promoters didn't tell investors is that all three have bankruptcy on their records. Cullison filed for Chapter 7 bankruptcy four times: in 1999, 2006, 2011, and 2015. Knott filed twice, in 2010 and 2019. Herceg filed in 2017. Securities law requires promoters to disclose previous bankruptcies to potential investors. They didn't.
MTI also withheld critical information about Steynberg's background. Investors never learned about his business qualifications, experience, or reputation. The company similarly hid details about the "digital software" and "artificial intelligence" supposedly conducting the forex trades—material facts any reasonable investor would want to know.
This opacity is typical of Ponzi schemes. They work as long as new money flows in to pay earlier investors. Once recruitment slows, the whole structure collapses. Steynberg and his promoters made money through recruitment, not through any legitimate trading operation.
The cease and desist order prohibits all five respondents from operating or promoting Mirror Trading International in Texas. Whether the SEC has opened a federal investigation remains unknown.
🤖 Quick Answer
What is Mirror Trading International and why did Texas regulators take action?Mirror Trading International is an international multilevel marketing scheme involving cryptocurrency forex trading pools. Texas State Securities Board issued an emergency cease and desist order against the company, its owner Cornelius Steynberg, and three U.S. promoters for operating without proper securities registration and making illegal investment sales.
Who are the defendants named in the Texas cease and desist order?
The order targets Mirror Trading International PTY LTD owner Cornelius Johannes Steynberg, Michael Aaron Cullison from Nevada, Steve Herceg from California, and Brian D. Knott from Nevada. None held valid securities registration in Texas, rendering their promotional activities and sales legally non-compliant.
What regulatory violations did MTI commit in Texas?
Mirror Trading International violated Texas securities regulations by operating an unregistered multilevel marketing investment scheme without proper authorization. The
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