TrageTech securities fraud warning from Texas (+GSPartners)
TrageTech has received a securities fraud warning from the Texas State Securities Board (TSSB).
TSSB’s October 10th enforcement order also cites promoter Eric Ture Muhammad, cited as a GSPartners and Billionico promoter.
Named respondents in TSSB’s October 10th fraud enforcement order are:
- Trage Technologies Limited, a Marshall Islands shell company
- Graeme Gary Hearn, registered agent of Trage Technologies Limited
- Michael “Mike” Holloway, registered agent of Trage Technologies Limited
- Kingdom Wealth Group LLC aka Kingdom Wealth Creators LLC
Darrell Porter (right), a Texas resident and founder and CEO of Kingdom Wealth Group- Eric Ture Muhammad, a Georgia resident
As put forth as “findings of fact” by the TSSB;
Darrell Porter is a Minister from Killeen, Texas, and the founder of Kingdom Wealth Group LLC. Eric Ture Muhammad is a self-described Wealth Minister from Fairburn, Georgia. Porter, Kingdom Wealth and Muhammad have been leveraging affinity and faith-based relations when promoting numerous multilevel marketing schemes.
Porter, Kingdom Wealth, Muhammad and various other multilevel marketers are now promoting Trage Technologies Limited in or from Texas.
The firm began operating in early 2024 and is now offering investments in an automated cryptocurrency arbitrage trading program that purportedly pays generous commissions and allows clients to double their money every three months.
TrageTech is a Boris CEO trading bot Ponzi, fronted by fictional CEO Michael Hearn (played by UK national Daniel Poole).
As of September 2024, SimilarWeb tracked 1.1 million monthly visits to TrageTech’s website. 63% of TrageTech’s website traffic originates from the US, followed by 22% from Canada.
As of October 2024, TSSB has tracked over $6.4 million invested into TrageTech being stashed in a single crypto wallet.
In connection with the offer of the Crypto Arbitrage Investments, Respondents Trage Technologies, Holloway and Hearn are intentionally failing to disclose that Respondent Trage Technologies is not using assets deposited by clients to conduct arbitrage trading consistent with representations to investors, and this information constitutes a material fact.
One of TrageTech’s marketing points is that it is registered with the SEC.
As noted by TSSB, this is a misrepresentation of a sole filed Form D exemption.
Trage Technologies Limited and its principals, Graeme Gary Hearn and Michael “Mike” Holloway, are touting the legitimacy of Trage Technologies Limited by claiming it is registered with the United States Securities and Exchange Commission.
In truth and in fact, Trage Technologies Limited is not registered with the United States Securities and Exchange Commission.
Instead, on February 22, 2024, Respondents Trage Technologies and Hearn filed a Form D for Respondent Trage Technologies with the SEC.
On June 4, 2024, Respondents Trage Technologies amended the Form D.
The Forms D claim safe harbor for securities issued by Respondent Trage Technologies pursuant to Regulation D, Rule 506(c).
This federal regulation serves as a basis for preempting the Texas State Securities Board from administering state laws that protect investors by requiring the registration of securities.
Issuers qualify for safe harbor pursuant to Regulation D, Rule 506(c), when they limit sales to accredited investors and take reasonable steps to verify purchasers are, in fact, accredited investors.
Respondent Trage Technologies is not limiting sales to accredited investors and it is not taking reasonable steps to verify purchasers are, in fact, accredited investors.
Therefore, Respondent Trage Technologies does not qualify for safe harbor pursuant to Regulation D, Rule 506(c).
Moreover, the Forms D do not relate to the Crypto Arbitrage Investments.
The Forms D were filed to claim safe harbor for equity securities … Respondent Trage Technologies is not offering or selling equity securities.
Respondent Trage Technologies is not registered with the SEC and does not qualify for safe harbor pursuant to Regulation D, Rule 506(c),
With respect to Darrel Porter and Eric Ture Muhammed, TSSB notes TrageTech is promoted as a GSPartners follow up;
Respondents Kingdom Wealth and Porter are touting Respondent Porter’s ability to “get double digit returns using a blockchain ecosystem, where companies work for you to increase your wealth” and representing that Respondent Porter has “chosen GS Partners as my vehicle for God to use to bring this to pass.”
GS Partners refers to GSB Gold Standard Bank LTD dba GS Partners, a firm named as a respondent in Order No. ENF-23-CDO-1879, entered by the Securities Commissioner on November 16, 2023. It is no long[er] in business.
Respondents Kingdom Wealth and Porter are now promoting Respondent Trage Technologies and its investments in digital asset trading in and from Texas.
Respondents Kingdom Wealth and Porter are publishing content in social media that claims Respondent Trage Technologies is registered with the SEC.
Although Respondent Trage Technologies is not registered with the SEC and does not qualify for safe harbor pursuant to Regulation D, Rule 506(c), Respondents Kingdom Wealth and Porter are representing Respondent Trage Technologies is compliant with laws regulating the securities industry.
For example, Respondents Kingdom Wealth and Porter are claiming Respondent Trage Technologies is “SEC Compliant and doing things the right way” and that “these guys have done what they needed to do to do business in this country.”
Respondent Muhammad purports to be “The Wealth Minister” and a “Wealthbuilding Coach” affiliated with unincorporated marketing and wealth-building organizations known as WealthBuildersWorldwide aka Wealth Builders Worldwide and TeamBelieve aka Team Believe.
Respondent Muhammad and/or Wealth Builders Worldwide were subject to the following recent enforcement actions filed by state securities regulators:
A. Respondent Muhammad and Wealth Builders Worldwide were named as respondents in Order No. ENSC-241162, entered on January 22, 2024, by the Commissioner of Securities of the State of Georgia, and
B. Wealth Builders Worldwide was named as a respondent in Order No. CD-2023- 0-21, entered on November 16, 2023, by the Alabama Securities Commission.
Respondent Muhammad is also a multilevel marketer that has promoted the following investments allegedly issued by the following:
A. GSB Gold Standard Bank LTD dba GS Partners, a firm named as a respondent in Order No. ENF-23-CDO-1879, entered by the Securities Commissioner on November 16, 2023. It is no longer in business.
B. Billionico Academy aka Billionico, an organization named as a respondent in Order No. ENF-24-1882.
Respondent Muhammad is now promoting Respondent Trage Technologies through Wealth Builders Worldwide and Team Believe.
Respondent Muhammad is also representing Respondent Trage Technologies is “SEC Compliant and doing things the right way.”
He is further representing that clients can “[t]rust in a platform that is fully registered with the SEC” because its registration is “ensuring compliance and transparency.”
GSPartners was a fraudulent investment scheme run by convicted criminal Josip Heit (right).
Coinciding with an avalanche of regulatory fraud warnings and enforcement actions across North America, GSPartners collapsed in December 2023.
Billionico is a GSPartners spinoff also believed to be run by Heit. TSSB issued a Billionico fraud warning in April 2024.
With TrageTech not being registered with the SEC or qualifying for a Form D safe harbor, TSSB is alleging securities fraud in Texas.
Respondent Trage Technologies has not been registered as a dealer with the Securities Commissioner.
The Crypto Arbitrage Investments have not been registered by qualification, notification or coordination and no permit has been granted for their sale in Texas at any time material hereto.
Respondent Kingdom Wealth is acting as a dealer or an agent of Respondent Trage Technologies but it has not been registered as a dealer or agent with the Securities Commissioner.
Respondent Porter is acting as an agent of Respondent Trage Technologies but he has not been registered as an agent with the Securities Commissioner.
Respondent Muhammad is acting as an agent of Respondent Trage Technologies but he has not been registered as an agent with the Securities Commissioner.
Parties offering the Crypto Arbitrage Investment in Texas are offering unregistered securities in violation of Section 4003.001 of the Securities Act.
Parties offering the Crypto Arbitrage Investment in Texas are offering securities in violation of Section 4004.051 of the Securities Act unless the parties are registered as dealers or agents in Texas.
Citing TrageTech’s, Porter’s and Muhammad’s conduct as “fraud and deceit”, TSSB has issued an emergency cease and desist order.
The Crypto Arbitrage Investments are securities as that term is defined in Section 4001.068 of the Securities Act.
Respondents are engaging in fraud in connection with the offer for sale of securities.
Respondents are making offers containing statements that are materially misleading or otherwise likely to deceive the public.
Respondents’ conduct, acts, and practices threaten immediate and irreparable public harm.
It is therefore ORDERED that Respondents immediately CEASE AND DESIST from offering for sale any security in Texas until the security is registered with the Securities Commissioner or is offered for sale pursuant to an exemption from registration under the Texas Securities Act.
It is further ORDERED that Respondents immediately CEASE AND DESIST from acting as securities dealers, agents, investment advisers, or investment adviser representatives in Texas until they are registered with the Securities Commissioner or are acting pursuant to an exemption from registration under the Texas Securities Act.
It is further ORDERED that Respondents immediately CEASE AND DESIST from engaging in any fraud in connection with the offer for sale of any security in Texas.
It is further ORDERED that Respondents immediately CEASE AND DESIST from offering securities in Texas through an offer containing a statement that is materially misleading or otherwise likely to deceive the public.
Failing to adhere to TSSB’s order is a criminal offense as per Texas law.
You are advised under Section 4007.206 of the Securities Act that any knowing violation of an order issued by the Securities Commissioner under the authority of Section 4007.104 of the Securities Act is a criminal offense punishable by a fine of not more than $10,000.00, or imprisonment in the penitentiary for two to ten years, or by both such fine and imprisonment.
TrageTech, Porter and Muhammad have 31 days to request a hearing to challenge TSSB’s findings.
Update 30th October 2024 – TrageTech has collapsed. As at the time of this update TrageTech’s website is no longer accessible.
Update 26th November 2024 – Joe Rotunda, Enforcement Director at the TSSB, has provided an update on the TSSB’s TrageTech securities fraud warning.
As of November 25th, TrageTech had failed to file a challenge to the other. This means that the order is now permanent.
Rotunda directs TrageTech victims to file complaints with the SEC and state securities regulators.
RIP that guy from yesterday who put in an SEC TrageTech public documents request…
What does it mean by safe harbor?
Rule 506(c) provides a “safe harbor” from the registration requirement. I.e. you don’t have to register a securities offering), but only if you actually qualify for the exemption.
this is a serious matter and should be thoroughly investigated for the sake of investors hard earned money.
Is there any way to get your money back if they dont resolve this and is actually a fraud scheme?
By the time you accept an obvious Ponzi is a “fraud scheme”, it’ll be too late.
You can’t resolve investment fraud. Well, at least not in the way you’re thinking.
Resolution of investment fraud = sorry for your loss.
The website is gone, the main wallets in the TEXAS C&D order have been drained of all funds, and panic is starting to set in for everyone as there are two excuses being spread at the moment.
They have a memo going around saying that one of the servers was seized as two governments are investigating with one of the governments bring the USA. Myself and Danny De Hek were the only people on YouTube telling everyone that Trage Tech is a scam.
This is a message from one of the so-called “leaders” of Trage Tech that is conflicting with the memo that has been shared everywhere:
Welp, that’s a wrap then. Thanks for the update.
Not going to publish a separate article because everything after the website going down is BS (regulators!/hackers! exit-scam).
Not even company updates for us to have a laugh over. Just bullshit from the uplines to stop the people they recruited pitchforking them.
I also uploaded a Short YouTube video last night showing that the wallets of Trage Tech had been drained.
The panic is really starting to set in with many people. No one knows where the updates are coming from, but scamfluencers will lie until the very end while they also make their escapes.
Sean Tillery held a zoom meeting last night promoting Trage Tech even while the website was down and had missed the deadline to return. I estimate between $7 million to $15 million dollars were lost.
Peaple like me who put their money in Trage Tech made a mistake and will lost their money for ever !! Trust me !
Looking for the sign in/ on site. Has disappeared. How do we get our money out. I the site still up and they have just changed the name?
You don’t get your money out. You invested into a Ponzi scheme and your money is gone.
Sorry for your loss.