In response to a cease and desist issued by the Texas State Securities Board (TSSB), E-Estate and its promoters have doubled down on fraud.

E-Estate is an MLM crypto Ponzi built around a bogus real-estate investment ruse. Several top E-Estate promoters are US residents, prompting TSSB to confirm securities fraud and issue a cease and desist on June 1st.

To hide fraud taking place in Texas and elsewhere, one of the first things E-Estate did after the Texas C&D was issued was delete a list of “Agent” promoters on its website.

BehindMLM took a screenshot of E-Estate’s website featured “Agent” promoters as they appeared on June 2nd;

E-Estate then sent out an investor communication on June 3rd, advising it would not abandon its commitment to fraud.

In the communication, E-Estate stated;

  • it does not agree with Texas state securities law (note Texas state securities law is materially the same as US federal securities law);
  • it will provide TSSB with “additional documentation” to “clarify the facts” and “challenge certain conclusions”;
  • no investor funds had been “frozen, restricted, suspended or removed”

E-Estate further claimed, again despite Texas ordering it to cease committing securities fraud, that it remained “fully operational”.

What E-Estate didn’t address in its response was:

  1. how securities fraud is legal in the US; and
  2. why it had not filed audited financial reports with regulators proving real-estate derived revenue as claimed.

Seemingly emboldened by E-Estate’s announcement, US resident promoters have also renewed their commitment to fraud.

After initially disabling his FaceBook account, Darrell Porter, a named respondent in TSSB’s cease and desist, re-enabled his account:

As above, Porter’s last May 31st FaceBook post celebrated ten days of E-Estate fraud in Florida.

Chelsi Leers, aka Chelsi Ostergard, a Florida resident, is promoting an upcoming E-Estate Ponzi marketing event in Washington D.C.:

Anthony DeLoatch, a North Carolina resident, is celebrating his wife, Sharlrita Joyce DeLoatch, defrauding consumers as an E-Estate level 6 Agent promoter:

And Brandon Ivey, a California resident, is still hosting E-Estate Ponzi marketing events:

Any compensation Ivey is receiving for running E-Estate marketing events is not disclosed.

E-Estate’s Washington D.C. event is scheduled for June 13th at the Watergate Hotel.

Eric Thomas, a Michigan resident, is pitched as a “featured speaker”.

Whether Watergate Hotel is aware it will be hosting a Ponzi marketing event is unclear. Securities in Washington D.C. are regulated by the Securities Bureau in the Department of Insurance, Securities and Banking (DISB).

With respect to E-Estate’s remaining top Ponzi promoters:

  • Darrell Porter – already a named respondent in Texas State Securities Board cease and desist
  • Chelsi Leers – securities in Florida are regulated by the Division of Securities in the Florida Office of Financial Regulation (OFR)
  • Anthony DeLoatch – securities in North Carolina are regulated by the Securities Division of the North Carolina Department of the Secretary of State
  • Brandon Ivey – securities in California are regulated by California’s Department of Financial Protection and Innovation (DFPI)

At the federal level securities fraud is regulated by the SEC (civil) and Department of Justice (criminal).

It should be noted that, even if E-Estate’s June 13th Washington D.C. event goes ahead, securities fraud remains illegal across the US. This includes promotion of unregistered securities offerings.