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California has issued a securities fraud cease and desist order to Fundz.

According to the order issued by the Department of Financial Protection and Innovation on November 22nd;

Fundsz began offering and selling securities in the form of investment contracts in California through broad solicitations on its website as early as 2022.

These investment contracts were referred to as “Staking Plans” by Fundsz.

The Staking Plans offered by Fundsz and Valcarce were neither qualified nor excluded from the CSL’s qualifying criterion.

Fundsz’s Chairman of the Board and presumed owner is Juan Pablo Valcarce (right), a Florida native.

The Department has not issued Fundsz or Valcarce with a permit or other form of qualification to sell these securities in California.

Fundsz and Juan Pablo Valcarce are hereby ordered to cease and desist from further offering or sale of securities in California, including but not limited to investment contracts known as Staking Plans, unless and until the qualification is met.

Fundsz was evaluated by BehindMLM in June 2022. Fundsz’s “staking plans” were identified as a securities offering, implying that Fundz is a Ponzi scheme.

Fundsz’s business model is classified as a HYIP by DFPI.

Fundsz was recruiting investors into a High Yield Investment Program (HYIP). HYIPs are unregistered investments that are often managed by unlicensed persons and are frequently fraudulent.

HYIP is MLM jargon meaning “Ponzi scheme.”

In practice, state securities legislation in California is identical to the federal Securities and Exchange Act. When state regulators in the United States issue fraud warnings, the SEC is usually not far behind.

Between September and October 2022, SimilarWeb predicts a 50% drop in Fundsz website traffic.

In October, 41% of Fundsz’s 64,000 website visits came from Russia, while 13% came from the United States.

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