November 10, 2021. Securities Commissioner Travis J. Iles entered an emergency cease and desist order against Treasure Growth LLC aka Treasure Growth Investments, a cryptocurrency cloud mining firm that claims to be organized in Oregon and located in Florida. The order also names Juliet Gilbert, its Chief Investment Officer, and sales agents Charles Koehler from North Carolina and Katherine Chen from California.
According to the order, Treasure Growth has been soliciting Texans to invest in various cryptocurrency cloud mining programs through public advertisements and online platforms accessible at www.treasuregrowthinvestment.com and treasuregrowthinvestment.web.app. It is allegedly claiming these cryptocurrency cloud mining investments generate lucrative returns over very short terms—one plan purportedly promises returns of 10% over a term of 30 days and another plan purportedly promises returns of 80% over a term of 120 days.
According to the order, Treasure Growth is also offering a bonus to clients investing more than $1 million—it will provide a return of 65% over a term of 25 days and, as an incentive, a 2020 Ford F-150 truck.
Although Treasure Growth is accused of offering these cryptocurrency cloud mining investments, the order alleges it is not directing investors to send their principal to Treasure Growth. Instead, Treasure Growth is reportedly telling investors to send their principal to bank accounts held in the name of one of four different businesses—(1) Amz Uno Company Corp., (2) Inportrade LLC, (3) Lot of Magic LLC, and (4) Conair Corporation. Treasure Growth is allegedly concealing material information about these payees, including the identity of their owners and principals, the manner in which the payees will use the principal and, ultimately, the actual reason for sending the principal to these payees instead of Treasure Growth.
Nevertheless, Treasure Growth is reportedly characterizing itself as a legitimate business, claiming it is both licensed and certified. The order also accuses Treasure Growth of telling potential investors it is compliant with federal securities laws—these statements are deceptive, according to the order. Treasure Growth is not registered to offer securities in Texas, and Gilbert, Koehler, and Chen are not registered with the Securities Commissioner as agents of Treasure Growth.
According to the order, Treasure Growth is also recruiting referral specialists through LinkedIn and encouraging investors to act as its sales agents - promising the payment of commissions for recruiting new investors. Treasure Growth is also allegedly touting the success of this referral program, claiming it now has more than 62,000 members and the majority of its investors are affiliates of existing clients. Its statements are deceptive, according to the order—persons who offer the cryptocurrency cloud mining investments offered by Treasure Growth in Texas will violate Section 7 of the Securities Act by offering unregistered securities. Additionally, persons offering these investments who are not registered as dealers or agents and who do not qualify for an exemption will violate Section 12 of the Securities Act.
The order also alleges Treasure Growth is concealing other material information, such as the identity of its principals and owners of Treasure Growth, information about the cryptocurrency mining facilities, and the risks associated with investments tied to cryptocurrencies and cryptocurrency cloud mining. Treasure Growth is also accused of using stock photographs to falsely portray investors providing testimonials.