Texas Cracking Down on Illegal Trading Programs

Photo via norrismclaughlin.com

The Texas State Securities Board (TSSB) is tired of scammers impersonating investment and trading programs to unsuspecting Texans.  

Riek Capital is the latest “company” to catch the eye of the securities board for its alleged activities in luring investors to invest in cryptocurrency schemes.  

Securities Commissioner Travis J. Iles entered an emergency cease and desist order to stop Riek Capital from illegally promoting fraudulent investments in trading programs.  

The order accuses Riek Capital of engaging in an impersonation scheme. It alleges the company is misappropriating the identity of a registered person and using its credentials to claim legitimacy falsely.  

“Scammers are continuing to impersonate registered parties,” said TSSB Enforcement Director Joe Rotunda. “Investors must remain vigilant and conduct thorough due diligence to ensure they know whom they’re really dealing with.” 

Riek Capital is believed to be operating from the U.K and has advertised with Dealstrream, the online marketplace. In its advertisements, Riek Capital allegedly promotes “lucrative investments in trading programs tied to binary options, forex, and cryptocurrencies,” reports the securities board. 

According to the TSSB, “Riek Capital allegedly claims a principal investment of $21,000 in its Gold Plan, purportedly pays as much as 6% per week, and a principal investment of $100,000 in the same program purportedly pays as much as 0.93% per day.” 

Furthermore, Riek Capital “claims the returns are guaranteed regardless of the actual profitability of the underlying trading activities.” 

Riek Capital is not registered to sell securities with Texas. However, Riek Capital is accused of “misappropriating the identity” of a registered person in Texas.  

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