Texas authorities stop illegal Forex scheme Premier Concepts
Texas Securities Commissioner Travis J. Iles has entered an emergency cease and desist order against David A. Grissom and Premier Concepts, accusing them of illegally operating an unregistered Forex investment scheme.
According to the order, Grissom and Premier Concepts advertised the investments in a craigslist forum that targets residents of Dallas. The advertisement allegedly touted a passive investment opportunity that generates returns of up to 8% per month.
The parties have also been pitching the investment as safe and lucrative. According to the order, they are claiming to pay not only 8% per month but also a total return of 80%. The returns are purportedly guaranteed – meaning the parties are promising to pay investors regardless of the profitability of their underlying trading activity.
Grissom and Premier Concepts have been touting the success of this investment program. According to the order, they are representing they have already raised approximately $700,000 from the public.
Despite their claims of success, Grissom and Premier Concepts have not been registered with the Commodity Futures Trading Commission or the National Futures Association. They are also not registered to offer securities in Texas.
The Enforcement Division of the Texas State Securities Board recently informed Premier Concepts and Grissom they may have been offering or selling securities without complying with the Securities Act. According to the order, the parties thereafter acknowledged the applicability of the securities laws and agreed to remove their advertisement.
Their acknowledgement was a sham. Although the parties appeared to cooperate and comply with the law, Grissom and Premier Concepts allegedly continued to illegally and fraudulently solicit investments in the forex trading program.
The order accuses the parties of using fraudulent, misleading and deceptive practices to recruit new investors.
The parties are also allegedly claiming the forex trading investment is safe. However, according to the order, they are not providing investors with important information that reflects the true risks associated with forex investments – such as the material risks associated with foreign currency.
The parties have 30 days to challenge the order.