2021
Securities Commissioner Travis J. Iles filed an emergency cease and desist order against Immortal Assets and its owner, Michael Wichkoski. The parties, purportedly operating from Plantersville, Texas, are accused of promoting an illegal cryptocurrency trading program.
The order accuses respondents of promising lucrative returns over short terms – as much as 15% returns over terms as short as 30 days. However, according to the order, the parties are not providing investors with key information – including material information about the risks associated with cryptocurrencies and the trading strategies. Instead, according the order, the parties are simply telling investors the program carries limited risk yet generates consistent lucrative monthly returns.
“All investments have some degree of risk,” said TSSB Enforcement Director Joe Rotunda. “The magnitude of the risk typically correlates with the amount of anticipated returns. This rule applies equally to traditional investments, such as stocks and promissory notes, as well as alternative investment products, such as products tied to cryptocurrencies and other digital assets.”
The Enforcement Division attempted to resolve this matter absent the filing of the formal enforcement action. Earlier, it notified the parties the investments in the cryptocurrency trading program are regulated as securities. The Enforcement Division also directed the parties to immediately cease and desist any violations of the Securities Act. Nevertheless, although warned, the parties allegedly continued to illegally offer the investments. After determining the continued offering threatens immediate public harm, Commissioner Iles entered the formal order against the parties.
“This is yet another example of the Enforcement Division’s efforts to bring an investment promoter into compliance with the laws protecting Texas investors. These efforts fell on deaf ears and required today’s enforcement action,” said Commissioner Iles.
Immortal Assets and Wichkoski are not registered to offer securities in or from Texas and the investments in the cryptocurrency trading program have not been registered or permitted for sale in Texas. Also, Immortal Assets is not registered or organized with the Texas Secretary of State and is not authorized to transact business as a domestic or foreign entity.
Contact – Joe Rotunda, TSSB Enforcement Director, at jrotunda@ssb.texas.gov or 512-305-8392 for additional information.