BitSports has been issued an emergency stop and desist order from the Texas State Securities Board (TSSB).
TSSB issued the November ninth order after confirming BitSports is committing securities fraud.
As reviewed right here on BehindMLM in Could, BitSports was an AI bot Dubai-based Ponzi scheme.
BitSports collapsed final month, which is famous in TSSB’s order;
BitSports.ai not too long ago introduced it was the sufferer of a cybersecurity incident impacting practically 55,000 of its purchasers. It claims the malicious actor stole digital property from its wallets.
The agency suspended shopper withdrawals after which suspended its operations.
Along with naming BitSports’ CEO Hugo Rodriguez and executives Carlos Sarmiento and Denissa Salas…
…TSSB additionally names promoters Josh Berman and Sean Kelly.
Collectively, Berman and Kelly promoted BitSports by way of their firm Berman Funding Group (BIG).
Along with having a web site, BIG additionally has a corresponding YouTube channel. On the Berman Funding Group YouTube channel, a number of fraudulent MLM funding scams are promoted:
Incomation, Daisy AI, iX International, NovaTech FX and Automated Capital are all fraudulent MLM funding schemes.
Different schemes TSSB tie to BIG’s promotional efforts embody Mirror Buying and selling Worldwide (a collapsed $1.7 billion Ponzi) and GSPartners (a Dubai Ponzi beneath investigation by the CFTC and SEC).
Following their very own investigation into BitSports, TSSB concluded the corporate’s funding scheme has
not been registered with the Securities Fee as sellers or brokers at any time materials hereto.
Events providing (BitSports’) Arbitrage Memberships in or from Texas are providing unregistered securities in violation of Part 4003.001 of the Securities Act.
Events providing (BitSports’) Arbitrage Memberships in or from Texas are providing securities in violation of Part 4004.051 of the Securities Act except the events registered as sellers or brokers.
A number of disclosure failings associated to BitSports’ purported enterprise operations are additionally cited.
With respect to the Berman Funding Group, Josh Berman and Sean Kelly, TSSB cites disclosure failures associated to
- the enterprise reputation and {qualifications} of BIG, Berman and Kelly;
- the expertise and success of BIG, Berman and Kelly;
- MLM commissions earned by Berman and Kelly for recruiting shoppers into fraudulent funding schemes; and
- the “standards used to establish, analyze, and decide whether or not to advertise investments”
TSSB goes on to order BitSports, its executives, Berman, Kelly and BIG to
instantly CEASE AND DESIST from providing on the market any safety in Texas till the safety is registered with the Securities Commissioner or is obtainable on the market pursuant to an exemption from registration beneath the Texas Securities Act.
It’s additional ORDERED that Respondents instantly CEASE AND DESIST from appearing as securities sellers, brokers, funding advisers, or funding adviser representatives in Texas till they’re registered with the Securities Commissioner
or are appearing pursuant to an exemption from registration beneath the Texas Securities Act.It’s additional ORDERED that Respondents instantly CEASE AND DESIST from participating in any fraud in reference to the supply on the market of any safety in Texas.
It’s additional ORDERED that Respondents instantly CEASE AND DESIST from providing securities in Texas by way of a proposal containing a press release that’s materially deceptive or in any other case more likely to deceive the general public.
BitSports’ web site continues to be accessible despite the fact that the Ponzi scheme has collapsed.
BIG’s web site and YouTube channel have been each accessible at time of publication. BIG additionally has a personal corresponding FaceBook web page, at the moment sitting at over 1,200 members.
Admins of the group embody Josh Berman, Raphael Peter, Scot Craycraft, Brandon Roberts, Deitt Journey III, Melissa Berman and Shante Parris.