The Texas Securities Board see USI-Tech as a “bitcoin promoter” offering an investment opportunity.

Following an internal investigation into USI-Tech and two US promoters, the board presented gathered evidence of securities fraud to the Securities Commissioner.

In an attempt to stop promotion of the USI-Tech Ponzi scheme throughout Texas, the Securities Commissioner issued an emergency cease and desist on December 20th.

The emergency cease and desist targets two US USI-Tech promoters, Clifford Thomas and Michael Rivera (right).

In addition to USI-Tech, Rivera is also promoting the
BitConnect Ponzi scheme
.

According to the Texas Securities Board
, USI-Tech is

an overseas firm that is promising low-risk, triple-digit returns from investments tied to Bitcoin mining.

Neither USI-Tech nor the sales agents, Clifford Thomas of Suitland, Md., and Michael Rivera of Los Angeles, are registered to sell securities in Texas.

The investment also is not registered in Texas.

The common response to this by USI-Tech affiliates is that securities law doesn’t apply to bitcoin investment.

To this end USI-Tech affiliates claim the company’s mining contract investment opportunity is
‘a “certified legal product in the USA per the FTC.”’

According to the Securities Board that’s baloney, and the Securities Commissioner is having none of it.

The Federal Trade Commission, however, has no role in regulating registration of the mining investment as a security in Texas.

The State Securities Board regulates the registration of the mining investment as a security in Texas, the registration of dealers and agents offering and selling the product, and the disclosure of material facts to investors.

Despite claims that USI-Tech’s owners are “transparent”, the Securities Board points out that the company is anything but.

Disclosure violations include:

Information about the facilities used to mine bitcoins, the costs of mining bitcoins, and whether they have successfully mined bitcoins;

The terms of the contracts and an explanation of USI-Tech’s “non-exclusive interest” in mining contracts; and

Information about whether the company’s financial condition is strong enough to provide a 1% daily return.

The Securities Board also calls out
USI-Tech’s “deceptive” legal opinion
.

Sales agents are attempting to deceive the public by claiming that USI-Tech has a “binding legal opinion” from a law firm stating the company is “a legal business in good standing.”

The
emergency cease and desist order
identifies Clifford Thomas and Michael Rivera as promoters of
USI-Tech’s BTC Packs
.

The order identifies USI-Tech’s BTC Packs as a securities offering, requiring both the company and its affiliates to be registered with the Texas Securities Board.

Allegations leveled at USI-Tech, Thomas and Rivera in the order  include:

violations of the Texas Securities Act by offering securities in Texas at a time when the securities are not registered with the Securities Commissioner

🤖 Quick Answer

What action did the Texas Securities Board take against USI-Tech?
The Texas Securities Board issued an emergency cease and desist order on December 20th targeting USI-Tech and two US promoters, Clifford Thomas and Michael Rivera, following an internal investigation that revealed securities fraud evidence presented to the Securities Commissioner.

How did the Texas Securities Board characterize USI-Tech's business model?
The Texas Securities Board identified USI-Tech as a bitcoin promoter operating as an overseas firm offering investment opportunities promising low-risk, triple-digit returns from investments connected to Bitcoin mining operations.

Which other fraudulent scheme was Michael Rivera promoting?
In addition to promoting USI-Tech, promoter Michael Rivera was also actively promoting the BitConnect Ponzi scheme, demonstrating involvement in multiple fraudulent investment operations.

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