CryptoProgram has acquired a fraud desist and chorus order from California’s Division of Monetary Safety and Innovation.
The DFPI claims “Grasp Affiliate” Edward Anthony Zimbardi is working a Ponzi scheme.
CryptoProgram and Zimbardi described the Packages as being safer than different crypto funding alternatives as a result of CryptoProgram purportedly didn’t interact in buying and selling exercise of any sort.
In quite a few funding pitches to potential buyers, Zimbardi repeatedly emphasised that investor funds would solely be used for buying internet marketing and wouldn’t be used for dangerous buying and selling exercise.
In actuality, many of the funds that CryptoProgram acquired from buyers have been used to pay different buyers, within the method of a Ponzi scheme.
That is according to BehindMLM’s January 2023 CryptoProgram evaluation.
As an alternative of buying promoting, Zimbardi laundered invested CryptoProgram funds by “a foreign exchange dealer primarily based in Saint Vincent and the Grenadines.”
CryptoProgram and Zimbardi falsely represented to potential buyers that investor funds could be used solely for buying internet marketing.
In reality, Zimbardi explicitly informed potential buyers that CryptoProgram “has nothing to do with buying and selling, it has nothing to do with commodities, has nothing to do with risky markets, which is one more reason why it’s very sustainable.”
CryptoProgram’s lack of disclosures to buyers was additionally a regulatory problem.
Zimbardi represented that the people managing CryptoProgram have been his “good buddies” and have been very skilled and educated about internet marketing.
Nevertheless, Zimbardi refused to open up to potential buyers the identities of the nameless people that he claimed have been managing and working CryptoProgram.
And naturally central to CryptoProgram’s regulatory issues is securities fraud.
The Packages supplied by CryptoProgram have been securities that have been neither certified nor exempt from the qualification requirement beneath the CSL.
The Division has not issued a allow or different type of qualification authorizing CryptoProgram to promote these securities in California.
Because of CryptoProgram being a Ponzi scheme and Zimbardi committing securities fraud, DFPI has
ordered (them) to desist and chorus from providing or promoting or shopping for or providing to purchase any safety in California.
DFPI’s order was issued on June twenty eighth.
Zimbardi, who has beforehand been convicted of felony theft and served time in jail, is a resident of Georgia.
Lately, Zimbardi hosted a CryptoProgram advertising occasion for US residents on the Chateau Elan Vineyard & Resort.
To one of the best of my information Zimbardi has not publicly addressed DFPI’s securities fraud desist and chorus order.
Whether or not Georgia’s Securities Division and/or the SEC take motion stays to be seen.
As of Might 2023, SimilarWeb tracked 73% of CryptoProgram’s web site site visitors as originating from the US.
Following related securities fraud issues, CryptoProgram and Zimbardi have been ordered to stop buying and selling in British Columbia in Might 2023.