Senator Tommy Morrison has issued a statement regarding his involvement with the collapsed cryptocurrency operation USI-Tech, shifting blame to company affiliates and conspicuously omitting any mention of fraud. The statement, posted to Facebook, follows accusations that Morrison promoted the scheme to over 300 Guam residents.
Morrison’s remarks mirror USI-Tech’s own defense, which has focused on blaming its promoters. The senator advised investors to "educate themselves" and expressed support for future regulations, implying that a lack of rules, rather than direct violations, caused the problem. The Securities and Exchange Act, however, has been in place since 1933, establishing clear requirements for investment offerings that USI-Tech disregarded.
The senator served as an administrator for a private Facebook group that actively recruited investors for USI-Tech. He was also an investor himself, and Guam residents now face potential losses totaling hundreds of thousands of dollars. When questioned about his role in recruiting investors, Morrison declined to comment before releasing his prepared statement.
USI-Tech has aggressively distanced itself from responsibility. The company announced its withdrawal from the US and Canadian markets and threatened legal action against the very affiliates it had enlisted to build its operations. This week, USI-Tech suspended all affiliate withdrawals, effectively freezing investor assets.
Comments on Morrison’s Facebook post included support from individuals identified as USI-Tech affiliates in Guam. None of these comments acknowledged the illegal nature of USI-Tech’s operations or Morrison’s role in bringing investors into an unregistered securities offering.
Morrison's statement avoided critical language. He did not use the terms "unregistered securities" or acknowledge regulatory findings that USI-Tech was operating unlawfully. He also failed to address his direct involvement in recruiting Guam residents through his administrative position in the Facebook group.
For a sitting lawmaker, association with the upper echelons of an investor recruitment chain for a scheme resembling a Ponzi operation could be career-ending. Morrison’s response suggests an awareness of this peril, as he sidesteps direct accountability in favor of generalized comments about innovation and regulation.
Meanwhile, Guam residents who invested based on their trust in the senator are facing the evaporation of their savings. The collapse of USI-Tech and the subsequent fallout underscore the persistent risks associated with unregistered investment schemes, particularly when promoted with the veneer of legitimacy.
The U.S. Securities and Exchange Commission (SEC) has a long history of pursuing cases against companies like USI-Tech that offer unregistered securities. These actions are typically initiated to protect investors from potential fraud and ensure market integrity. Investors who have lost money in such schemes are often advised to consult with legal counsel and report their experiences to regulatory bodies.