OakSmart has received a securities fraud desist and refrain order from California’s Department of Financial Protection and Innovation (DFPI).

As per DFPI’s December 2nd issued order;

Beginning at least as early as March 2024, OakSmart offered and sold securities in the form of investment contracts in California through general solicitations on its website.

The Packages offered by OakSmart are securities that are neither qualified nor exempt from the qualification requirement under the CSL.

The Department has not issued a permit or other form of qualification authorizing OakSmart to sell these securities in California.

Pursuant to Corporations Code section 25532, OAK Smart Investment Ltd. d/b/a OakSmart is hereby ordered to desist and refrain from the further offer or sale of securities in California.

OakSmart is an MLM crypto Ponzi scheme fronted by a Boris CEO (technically CMO).

As part of its effort to defraud consumers, OakSmart holds out its shell company registration with FinCen as having legal significance.

On October 10th OakSmart uploaded a marketing video to its official YouTube channel, titled “Your Legally Compliant Global Financial Planner“:

The video is hosted by Tristan (aka TR), OakSmart’s purported CMO. In the video, Tristan trots out a number of lies, including claims that

  • “OakSmart has been funded in the United States”;
  • OakSmart’s shell company MSB, acquired through FinCen, means investor funds are “safe” and “protected”; and
  • FinCen vetted and approved OakSmart as a company.

Tristan, on behalf of OakSmart, effectively substitutes FinCen in the typical role of the SEC and/or CFTC- neither of which OakSmart is registered with.

Note that while filing of audited financial reports with the SEC and/or CFTC would allow consumers to verify OakSmart is generating external revenue via trading, it does not guarantee the safety of investor funds.

OakSmart’s deception regarding FinCen is specifically addressed in DFPI’s order;

OakSmart is registered with the Financial Crimes Enforcement Network (FinCEN) as a money services business (MSB).

Information contained in FinCEN’s database of MSB registrants is provided by the MSB registrants. FinCEN does not verify information submitted by the MSBs.

The inclusion of a business on the MSB Registrant Search web page is not a recommendation, certification of legitimacy, or endorsement of the business by any government agency.

Despite this fact, OakSmart prominently and misleadingly advertises its FinCEN MSB registration as a reason why investors should trust that their funds are safe with OakSmart.

In an effort to appear legitimate, regulated, and fully compliant with relevant laws, OakSmart made a variety of false claims and
misrepresentations about its FinCEN MSB registration to investors and prospective investors.

As confirmed by DFPI, OakSmart’s failure to register with financial regulators in the US constitutes securities fraud.

Unregistered trading of commodities, fictional or otherwise, further constitutes commodities fraud (failure to register with the CFTC).

DFPI’s OakSmart securities fraud order is accompanied by a YouTube video of it own, in which OakSmart is cited “as an identified scam”.

BehindMLM’s own research into OakSmart leads us to believe it is run by Russian and Chinese scammers operating out of Thailand and/or Vietnam.

 

Update 11th December 2024 – OakSmart has initiated an Oak Coin exit-scam.