MONTGOMERY, ALABAMA AND AUSTIN, TEXAS (August 14, 2020) - The Texas State Securities Board (TSSB) and the Alabama Securities Commission (ASC) issued emergency cease and desist orders simultaneously to Liquid Gold Trust, Liquidity Card Solution LLC, Liquidity Global Card Solution and Lance Angus Jerrard. The orders state that the respondents are attempting to defraud Texas and Alabama investors, the respondents engaged in dishonest business practices and the investments offered are not registered as required by Alabama and Texas law. Investors from these states should avoid doing business with Liquid Gold Trust, Liquidity Card Solution LLC, Liquidity Global Card Solution and Lance Angus Jerrard.
In numerous advertisements, Liquid Gold Trust, Liquidity Card Solution LLC, Liquidity Global Card Solution and Jerrard falsely claim that by investing in cryptocurrency debit cards investors can avoid financial stress caused by the COVID-19 pandemic and make money while staying home. Further, Liquid Gold Trust fraudulently offers guaranteed investments they claim will earn $10,000 per month on their website www.lgtmap.com.
ASC Director Joseph Borg said, “A guaranteed investment with astronomical pay off’s is like finding a pot of gold at the end of a rainbow shining in the sky over your back yard. Also, the characters in this outrageous offer are not legally registered to conduct business in the states of Texas or Alabama. We would like to extend a special thank you to the Texas State Securities Board for working together to investigate and place cease and desist orders to thwart those who would cheat our citizens.”
“Blockchain technology and cryptocurrencies such as stablecoins provide exciting new commercial opportunities,” said TSSB Commissioner Travis J. Iles. “The excitement also empowers bad actors, as they can craft fraudulent schemes to capitalize on the enthusiasm and promote a false sense of legitimacy. Schemers have weaponized current uncertainties resulting from the pandemic and other economic disruption placing Texas investors in jeopardy. Since March, the profluence of fraudulent schemes has been unprecedented.”
“The prospect of guaranteed monthly income may seem like a dream come true during times of economic uncertainty,” said TSSB Enforcement Director Joe Rotunda. “Unfortunately, cryptocurrency scams typically fail to support promises of prosperity with facts and evidence. In the end, it’s often smoke and mirrors, with a technological twist.”
The TSSB and the ASC caution all investors to thoroughly research investments. The vital first step when researching a financial professional or product is calling the TSSB or ASC to confirm their registration. Contact your state’s securities regulator to report suspected fraud and inappropriate securities business practices. Free investor education materials can be found on the ASC website at www.asc.alabama.gov or TSSB website at www.ssb.texas.gov/investors. If you are not located in Texas or Alabama, you can locate the regulator dedicated to protecting your investing interests - https://www.nasaa.org/contact-your-regulator/.
In Texas for further information on this matter please contact Joe Rotunda, Director of Enforcement at firstname.lastname@example.org or 512-305-8392.
Texas State Securities Board
Thomas Jefferson Rusk State Office Building
208 East 10th Street, Room 610
Austin, Texas 78701-2407
In Alabama for further information contact Dan Lord, Education and Public Affairs Manager, 334-353-4858.
Alabama Securities Commission
Post Office Box 304700
Montgomery, Alabama 36130-4700
Telephone: (334) 242-2984 or 1-800-222-1253 Fax: (334) 242-0240
Email: email@example.com Website: www.asc.alabama.gov