USI-Tech & Hart David Carson continue Texas cease & desist deception
While it’s common for the rhetoric coming out of the MLM underbelly to be at odds with reality, the lenghts USI-Tech and the law firm Hart David Carson are going to misrepresent US authorities stance on securities is mind-boggling.
A few days ago USI-Tech co-founder Horst Jicha announced the company’s intention to defy regulators and reopen USI-Tech in the US.
In the same interview Jicha mentioned a “legal statement”, which he claimed “points out loud and clear that we never had an issue, we as a company, in terms of unlegal [sic] securities”.
Drafted by Hart David Carson, USI-Tech’s legal letter was provided to affiliates a few hours ago.
Accompanying the letter was a communication from Jicha himself, which declared
USI-Tech customers in (the US and Canada) will now be able to buy BTC packages and continue to enjoy the benefits of our product.
We are also working closely with our corporate lawyers to look at ways of resuming commission payments and continuing the referral commission for our partners in North America.
The Texas cease and desist, which is the only known US regulatory action taken against USI-Tech, does not differentiate between affiliate and customer ROI payments.
As per the order, which identified USI-Tech’s Bitcoin Packages as a security, the company was ordered to “immediately cease and desist from offering for sale any security in Texas until the security is registered”.
I think we can all agree the Texas cease and desist was issued in plain English and the prohibition of USI-Tech from offering unregistered securities was abundantly clear.
So how on Earth do we go from that to Jicha declaring
USI-Tech never had a problem in the USA and Canada, the authorities have been active solely through misconduct, false statements and unauthorized marketing activities of local distributors.
Not only is Horst Jicha blatantly lying about the Texas cease and desist, the attached legal statement from Hart David Carson is full of even more rubbish.
As you are aware, USI is actively involved in ongoing regulatory matters in the following states: Minnesota, Washington, Texas, and Hawaii.
I don’t think anyone was aware of regulatory action against USI-Tech beyond Texas but thanks, good to know.
Counsel at HDC is actively engaged with each of the aforementioned states and is working to identify the principal state-based issue, resolve said issue accordingly, and pursue/attain any and all necessary state-based qualifications and/or licensure.
As the Texas cease and desist spelled out, the issue with USI-Tech is the offering of unregistered securities and failure to provide adequate disclosures.
This isn’t a “state-based issue”, it’s a federal issue as the offering of unregistered securities is illegal in every US state and territory.
How does one resolve the issue? By registering your securities offering with the appropriate authorities.
Despite Texas firing the first shot and issuing their cease and desist thirty-six days ago, USI-Tech has thus far failed to register its securities offering anywhere in the US.
Hart David Carson meanwhile would have you believe there’s some deep negotiations going on between USI-Tech and US regulators.
So why then did the Texas Securities Board confirm a few days ago that USI-Tech completely failed to respond to their cease and desist, and that with the thirty-one day deadline passing have forfeit their right to challenge the notice?
Also notice how there’s nothing about affiliates in the Texas Securities Board’s response?
This being said, it can be stated without equivocation that the primary objection posited by each state revolves around the marketing techniques employed by USI members when holding public demonstrations and/or marketing USI over the internet via video or blog.
Additionally, it appears to be a widely held stances among the various states that, but for the marketing techniques of USA and Canada-based USI members, USI could develop a pathway to full regulatory acceptance without tremendous issue.
This being said, the issue of regulating and monitoring USI members marketing techniques remains an outstanding matter that must be addressed prior to any consideration of reentry
into the US market.
USI-Tech can police their affiliates all they want, but as long as the company is offering unregistered securities in the US, the company is operating illegally.
At this point I’d seriously question the professional capacity of Hart David Carson, but then I’m reminded these are the same clowns that declared USI-Tech unregistered securities offering weren’t a problem in the first place.
Honestly, could the cavernous divide between reality and the blatant lies coming out of USI-Tech headquarters be any larger?
Pretty much every MLM Ponzi lawsuit I’ve ever covered quotes affiliate marketing in one way or another. It’s cited by regulators because how the business is marketed showcases the intent behind the business.
Two USI-Tech affiliates are referenced in the Texas cease and desist, but that doesn’t negate USI-Tech’s own liability.
USI-Tech as a company was named as an independent respondent in the Texas cease and desist.
There’s been no other public regulatory action taken against USI-Tech, so attempting to deconstruct what may or may not have happened in other states is pointless.
What we do know is that USI-Tech is now illegal in Texas, and there’s probably federal action not too far behind.
If USI-Tech were to ignore the cease and desist and resume offering unregistered securities in the US, even if they excluded Texas it probably wouldn’t take long for other states to take action.
USI-Tech is on the US regulatory radar and there’s no coming back from that.
Money has been invested and paid out in a Ponzi scheme and even if Bitcoin Packages were dropped tomorrow, the damage has been done.
Would it be too much for the Texas Securities Board to issue a statement of their own? If for nothing else than to put a stop to the nonsense USI-Tech is pushing out.
Gullible idiots on Facebook are falling for this crap, because apparently a law firm’s header is all you need to completely disconnect from reality.
no matter how many times you pound this at usi tech affiliates, these mad hatters are all over social media blaming US/canada affiliates for the shutdown.
they are in complete denial, while horst jicha and his paid ‘accessory/accomplices to the crime’ lawyers are hammering this lie further down their affiliates throats with their updates and legal opinions.
horst jicha is sitting safe in the ‘no/difficult extradition to the US’ jurisdiction of brazil, so maybe the SEC should talk to his lawyers hart david carson in the US.
pursuant to jicha’s announcement that BTC packages are available for sale again in the US, many affiliates are running around FB claiming to have bought more packages.
this idiotic mindboggling behavior of affiliates in the face of usi tech not responding to the texas C&D, invited this rather humorous comment from an observer:
haha.
Its time for the SEC to step in and throw the book at that phony legal firm.
Bear in mind there was no mention of when affiliates might be able to withdraw. The stupidity is off the charts on this one.
Hart David Carson have easily matched Gerry Nehra legal negligence levels with their handling of USI-Tech as a client.
A more interesting question: is HDC licensed to practice in all the states they claim to be responding to?
If four states have at least questioned USI about compliance, you can be sure that SEC is aware of the case. The problem is SEC’s jurisdiction is limited and there isn’t much SEC can freeze in the US or whatever.
I suspect SEC may be talking with Europol and arranging something they can’t announce yet.
On what charge? 50% of lawyers are always wrong. In every legal dispute both sides get a lawyer, and only one of them can be right. If it was illegal for a lawyer to talk bullshit, every single law firm and lawyer would be out of business within a year.
Negligence would be for Hart David Carson to tell everyone “actually this is totally a Ponzi scheme” after taking their client’s money. They would be failing in their duty to represent their client’s interests.
Look at the date of the letter. Error or was it really a year ago.
Lol, can confirm: January 22nd, 2017.
The copyright in the footer at the bottom of the letter also states 2017.
Find it odd that the legal statement USI are using from their lawyers is dated January 2017 and talks about the current situation.
I wish I knew people like that. Should be able to provide me with the lottery winning numbers for the next 12 months.
Isn’t every statement from USI odd?
Just to clarify.. per the lawyers letter, it’s not just Texas.
Plus of course many Canadian Provinces.
Treating mention of the other US states as suspect until we see something public.
@Malthusian For that lawyer to say its okay to sell packages after the Texas order is a clear breach of that order.
If the letter was written before that order, it is incumbent on them to issue a clarifying public statement or else they are complicit in the deception.
there’s guys like this one, hoping usi tech is not a ponzi and all this hullabaloo is for nothing, because he’s hoping he can withdraw his invested money and returns:
and these^^ are the kind of victims who will keep re-buying packs and watch bitcoin numbers grow on their screens in the hope of making it out of despair.
when you see the photos of horst jicha galavanting around on his yacht, think of this guy. he paid for that yacht too.
Yup, these guys are little better (actually no better) than thieves in my opinion.
I make a modest living, but at least it’s a honest one. Someone who gets rich by conning the vulnerable is worthy only of contempt, not respect, no matter how many status symbols they may have.
Burn!!!! Cease and desist from Canada!!!
saskatchewan.ca/government/news-and-media/2018/january/26/cease-trade-order
I sent them the back in Canada and USA statement
That certainly didn’t last long lol. More provinces to follow!!!!!
Thanks for the heads up!
Where is this new written “legal position” by HDC? Can anyone post a link?
Was in the affiliate back-office. No external PDF link AFAIK.
So it was something like text on a screen, with USI Tech claiming it to be a legal position from HDC?
Would be interesting to see what it says, but even if it is really from a a lawyer, it is beside the point. Federal and state law enforcement are not going to stop their investigations just because one lawyer in Chicago thinks USI Tech is not a Ponzi scheme.
The Jicha message was text in the backoffice, with an attached legal opinion from HDC in PDF.
Pretty much.
attorney Joshua R. Kotter who has been inviting usi tech victim claims purportedly to represent them, has posted a new youtube video on 27th, jan, 2018.
– at around 22:00 mins he shows a mail received from the texas state securities office which clearly states that it’s not just the two affiliates or usi tech’s marketing methods that are under notice, but usi tech is itself under notice for not registering it’s sale of securities.
the mail also re-confirms that usi tech has not responded to the texas C&D.
this mail was received AFTER the usi tech backoffice announcement of re-opening the US/canada for business and the hart david carson legal opinion.
– at around 26:00 mins kotter talks about having contacted the securities regulators of the sates where usi tech has claimed it is in trouble.
the ‘compliance’ division of the hawai securities regulator replied to state that it has no record of any contact with usi tech. kotter hence assumes that the hawai securities ‘enforcement’ division may have received complaints about usi tech, but usi tech has not addressed them via any compliance effort.
– at around 32:00 mins kotter discusses usi tech’s ethereum mining disappearing from 16th jan onwards and how no other matching mining wallet has appeared, so this flies in the face of horst jicha claiming that – ethereum mining was going on as before.
– at around 41:00 mins kotter discusses how jicha’s claims that the ‘reserve funds’ of usi tech are now damaged is BS, because it’s a reversal of his own previous claims.
he refers to a video in which jicha is plainly boasting about how much returns usi tech makes via its mining/ /trading and would never be short of money to pay out.
usi tech affiliates should listen in, if they’re still in doubt about usi tech being legal/illegal.
meanwhile, inspite of jicha’s claims that the US is now open, this is the bare fact of it:
FB, a few hours ago:
with US/canada affiliates being in denial and still starry eyed about usi tech, horst jicha probably wants to collect some more money from them before the truth sinks in.
kotter’s video:
youtube.com/watch?v=BgxSiKLP2KM&feature=youtu.be
top usi tech affiliate mike klinger of the US who has been posting videos in support of the company seems to be changing his tune.
in a recent youtube video posted on 28th jan, 2018, klinger now expresses doubts about usi tech’s legality in the US/canada.
he’s also started making excuses for bringing people into usi tech by claiming he’s a net loser himself [i’m a victim too!] and he was pushing usi tech so hard because he needs money for a medical problem he has [i’m not only a victim but deserve extra sympathy from you because sob! i’m sick!].
in short, he’s absolving himself of all responsibility for causing losses to his downlines and wants them to cry for him instead of kicking his butt.
ignoring all the waffle and self victimization, at around 11:00 mins into the video, klinger claims one of his downlines in washington state received a subpoena and cease&desist from the securities commission of the state.
he says these communications from washington state securities commission had nothing to say about his downline’s marketing methods but addressed the issue of usi tech selling securities.
so, this may confirm that washington state is also involved in the investigation into usi tech.
youtube.com/watch?v=ZKqeROHgahQ
Wonder why the authiorities aren’t going after the Hunt types in this sordid saga. Making them spend money on legal defence fees would seem worthwhile.
I’m seeing a lot of facebook chatter about people’s USI wallet bitcoin balances being converted into 100% package rebuys against affiliates will.
Not only would it appear that USI instituted an unannounced 100% reinvestment lack of option but they also cheerfully inform people that for the foreseeable future they will not be paying commissions on reinvestments.
All your BTC are belong to USI.
here’s an example:
allegedly some affiliates called usi tech support who told them that till the new wallets are turned on they cannot stop the rebuy’s.
with affiliate balances gone into forced rebuys, some are feeling the pinch:
the legal letter was signed by jonathan herpy, a shareholder attorney of HDC.
so naturally, the guy/s who are making those funny ponzi show videos have released a new one aptly called:
youtube.com/watch?v=iD9sXrYgeBM
while usi tech is delaying payments, making selective payments, automatically rebuying packs for members and making the usual ‘run out of money’ ponzi moves, top leaders in the UK [sharon james, john smith, tak mano etc] are lining up lots of recruitment meetings in various hotels all over the country.
scam watchers who are trying to stem the growth of usi tech in the UK are now contacting these hotels and informing them that they are about to host a ponzi scheme and requesting them to cancel events.
they are encouraging people to post poor reviews of these hotels online, if they continue to host ponzi recruitment events inspite of being warned.
here is an example of someone contacting hotel hilton maidstone where a usi tech event is scheduled:
facebook.com/photo.php?fbid=10160086175245604&set=p.10160086175245604&type=3&theater
IIRC this methodology was used with some success when MAPs [my advertising pays] was running amok in the UK with events everywhere? some hotels cancelled events and promoters [simon stepsys etc] started keeping venues secret which in turn affected their event turnout.
anyway, this is a good idea and i hope the hotels want good star ratings online!
if they host ponzi’s – they pay with their reputation. fair enough.
hmm, some UK hotel venues are starting to smart under the one star ratings attack:
facebook.com/photo.php?fbid=697843717270946&set=p.697843717270946&type=3&theater
it will be interesting to see if any hotels cancel the usi tech events.
There’s a major event planned in Brighton at the Amex Stadium on the 15th Feb, wonder if this will actually go ahead?
A few friends are involved in USI, I cannot understand how blind they are to what is going on, they still have absolute faith in the company.
the mercure haydock hotel, UK, has caved and assured that it wont be hosting usi tech events in the future.
there were 6 usi tech events lined up for mercure haydock, so this is a nice solid buttkick to the ponzi promoters.
maybe they’ll have to run recruitment events from their homes with tea and cookies and be so seriously professional talking about the top 10 bitcoin mining pool of the world 😉
facebook.com/photo.php?fbid=185687325497679&set=p.185687325497679&type=3&theater&ifg=1
Hi Anjali
I’m familiar with that Hotel – presumably the former venue for top North West Ponzi scammer Sharon James? I’ll see?
I have had my “reviewing” powers taken away by FB….. hopfully soon restored.
The Poms aren’t too bright if they fall for USI at this late stage in the game. Actually, they probably aren’t that bright.
not only did the mercure haydock hotel make an assurance that future usi tech meets would not be hosted there, they even cancelled the meeting that was supposed to be held yesterday:
facebook.com/photo.php?fbid=2046769915335732&set=p.2046769915335732&type=3&theater&ifg=1
sharon james took down her post about the meeting at the mercure haddock, so that further points to the event being cancelled at the last moment.
the usi tech events website is also down!
and with hotels cancelling events, usi tech promoters are making laughable excuses for shifting their venues – we needed a bigger room! [reminds me of MAPs again!]:
facebook.com/photo.php?fbid=10101426232098270&set=p.10101426232098270&type=3&theater&ifg=1
hahaha well done one-star raters! your idea is working great!
i’m going to start posting some one-star reviews too. the more one-star raters the merrier!
“These hotels can’t handle us. They’re jealous and see USI-Tech as a threat to their business!”
I’ve one starred the bigger room place too lol.
here’s a list of UK hotels which are regularly hosting usi tech recruitment meetings:
eventbrite.co.uk/o/usi-tech-events-8303993890
the mercure haydock hotel, UK, has mentioned sharon james by name in their announcement cancelling all usi tech events:
shame, shame, sharon james! you’re getting thrown out of decent places who don’t want charlatans like you near their businesses or their customers.
the hilton maidstone hotel has also responded saying:
hope they do the right thing too!
without commenting about her butt being kicked from mercure haydock where she holds her regular usi tech recruitment meetings, sharon james posted a few hours ago:
hmmm, i guess with her hotel meeting venue lost, sharon james had to go house to house recruiting people into usi tech.
no wonder the poor old thing had to work for 13 hours nonstop!
while all her scamming has yet to cause her conscience to raise issues with her, she seems to be having some gender identity issues? 🙂
She’s working her butt off to earn a one way pass to the slammer.
What I dont get is USI has been issued a C & D by Texas SEC, it’s defying it so clearly trading illegally so why havn’t Texas SEC shut them down?
How ???
They can’t operate in Texas, and aren’t registered in Texas.
It will be good ti hear from people around the globe on the status of withdrawals. Here in Australia, there hasn’t been any in over 2 weeks.
If this is repeating all over the world it must be “All over Red Rover”.