USI-Tech fails to respond to Texas cease & desist, vows to reopen US
In the wake of US regulators cracking down on USI-Tech, the company has scrambled to contain fallout from disgruntled investors.
A big part of that has been silence on the part of USI-Tech management, who all but went into hiding after Texas issued a cease and desist last month.
Following the suspension of US and Canadian affiliate withdrawals, USI-Tech co-founder Horst Jicha has signaled an intention to defy US regulators and resume business operations.
As opposed to organizing a time USI-Tech management can address affiliates from a professional environment, Jicha calls into an affiliate webinar from a dentist appointment.
Jicha reveals he is currently hiding out in Brazil and has just seen a “private dentist”.
Fun fact: Brazil has no extradition treaty with the United States.
After dispensing pleasantries with host John Smith, Horst echoes the official company line since the US shutdown.
Essentially Jicha blames affiliates for USI-Tech’s failure to register its BTC Package securities offering in the US.
Amusingly, Jicha doesn’t cite the Texas cease and desist as the reason for USI-Tech’s departure.
Yup… Jicha blames USI-Tech affiliates for that as well.
[8:15] We realized in December there was an out of the system error in our system and huge abuse in our system from a lot of partners.
And finally that was the reason why we decided to switch off USA and Canada; in order to stop the wrong communication in the market, one thing, and stop the abuse as well.
As per the Texas cease and desist issued on December 20th, USI-Tech had ten days to request an emergency hearing on the matter.
This deadline came and went, with no response to the cease and desist from USI-Tech corporate.
From December 20th, USI-Tech had thirty-one days to provide the Texas Securities Board with the requested disclosures.
Primarily proof of external ROI revenue and specific details about their purported mining operations.
Jicha states that USI-Tech is preparing a “legal statement”.
[12:10] We are working since (US and Canadian withdrawals were suspended) on a legal statement, and we are almost there where we believe we can switch USI-Tech in the USA and Canada on again.
[12:36] Today I got the latest draft of our … legal statement (that we’re) going to make officially.
(It) points out loud and clear that we never had an issue, we as a company, in terms of unlegal [sic] activities.
But we have to discipline the marketing and sales activities. That’s also a part that we have to fulfill by coming out with a clear marketing and sales communication.
Jicha also tells USI-Tech affiliates that the company
[11:41] never did anything in terms of illegal things in the USA.
Which is a blatant lie.
USI-Tech was named as a respondent in the Texas cease and desist.
Two USI-Tech affiliates and the company itself were ordered to cease promoting its Bitcoin Package unregistered securities offering statewide.
USI-Tech was also ordered to provide requested disclosures to the Texas Securities Board by January 20th, which brings us to our next point.
What a “legal statement” issued by USI-Tech has to do with the Texas cease and desist is unclear.
John Smith’s interview with Jicha was streamed live on January 23rd, two days after the thirty-one day cease and desist deadline – and remember, Jicha states the legal statement is not yet ready.
As far as the Texas cease and desist goes, failure to respond will mean the Securities Board will deem USI-Tech as a company illegal in Texas.
That includes both operation as a company and promotion by US residents in Texas.
Yesterday Rory Highside reached out to the Texas Securities Board and confirmed USI-Tech failed to respond to the cease and desist order.
The time window to which the Order may be challenged has expired.
USI Tech can no longer exercise their right to challenge.
As per the email from the Texas State Securities Board above, the details of any ongoing investigation into USI-Tech are confidential.
This is on par with the SEC at a federal level, who also do not confirm or deny a regulatory investigation unless they proceed with litigation.
Jicha goes onto detail USI-Tech’s purported bitcoin and ethereum mining operations, including the recent disappearance of USI-Tech from the ethereum mining pool.
Jicha states this is because he asked their supplier to change the ethereum wallet the pool was attached to.
[22:19] I changed the wallet for security reasons, because the old wallet was not secure enough or whatever reasons, takes to long to explain that…
So I asked our supplier to change the wallet. He changed the wallet and finally the transparency was gone.
I said, “So where is out transparency?”
He said, “You asked us to change the wallet. Once you change the wallet the transparency is not connected to the wallet anymore. You can’t see it anymore.”
I’m by no means a cryptocurrency expert but this explanation makes little sense. What is publicly tracked are the largest ethereum mining pools.
What wallet they’re attached to shouldn’t affect a large mining pool appearing on the public ethereum blockchain.
Despite confirmation USI-Tech did not respond to the Texas cease and desist, Jicha provides specific plans to reopen USI-Tech in the US.
[15:17] We gunna continue to let people withdraw their return of BTC Packages, which is their money they have invested into our company.
But … we gunna do that in a controlled form, because I’m a bit afraid that that’s gunna be, once we switch it on again it’s gunna be like a bank robbery.
Everybody (will) think he has to take out or pull out as much as possible, because maybe it’s uh just for a short timeframe or whatever.
So it has to be in a controlled way in order to make sure that we protect the company.
If USI-Tech were indeed mining bitcoin and generating external ROI revenue as they represent to affiliates, investors withdrawing money they’ve already been paid wouldn’t be an issue.
What Jicha described above however is commonly known as a run on the bank, and is typically what happens in a Ponzi scheme when investors lose confidence in the scheme.
With new investment the only or primary source of ROI revenue, this naturally causes a prompt collapse.
This is evidently what Jicha fears most about letting US and Canadian USI-Tech affiliates withdraw again.
What that says about USI-Tech’s business model I’ll leave up to you.
From the Texas Securities Board Cease and Desist order:
CONCLUSIONS OF LAW
4. Respondent USIT is engaging in fraud in connection with the offer of sale of securities
Nothing illegal, Eh, Horst ???
Dave Marshall made a post in the USI SCAM FB page, and I quote him:
Back to you Horst & John.
USI have moved to a 5 day payout schedule. That is a 5 day Ralf Gold schedule – coming soon, coming soon. See ya suckers. How the hell could you morons believe the absolute twaddle I was speaking. I hope you learnt an important lesson in life. Never give a thief your money
Who wants to bet that the “legal statement” would be “we realized we cannot comply with US laws, therefore sayonara, suckers”?
This is why government come across as repeatedly incompetent and why, despite having an order to stop operations the ponzi owners are just laughing in their faces.
Good to see our tax dollars are spent so wisely 😛
I’m looking forward to some good Ponzi Show episodes!
I feel sorry for any law firm that puts their name on the legal statement. We all saws what happened to that last law firm lol.
That John Smith guy also keeps telling everyone that the bitfinex hotwallet is USITECHs. What baloney. Its labeled FFS….
Founder Ralf, running down the aisle!
If people do not complain to the authorities, the authorities cannot take action. Only a handful of US members are finally waking up and realizing all the lies they have been told.
You have people who are afraid to file a complaint because they will lose their account and lose it all. They don’t realize that they have already lost it all.
Had anyone did any real due diligence they would never have joined this Ponzi in the first place. When are the people joining these Ponzi’s going to take the responsibility for their own actions instead of relying solely on the government to do it for them?
Without complaints law enforcement and the SEC does not know what is going on.
The Tech Coin counter hasn’t moved in 48 hours. The rats have abandoned the ship. I think its cactus with all the thieves in Brasil.
USI Tech promises to issue a “legal statement” is laughable. So what?
An opinion letter from USI Tech or a law firm they hire is pointless. It’s not going to stop the Texas Securities Board from calling the Texas Attorney General, who will sic the Texas Rangers on any of the USI Tech principals dumb enough to set foot in the state.
I hear the frustration of folks wanting the authorities to take some action. But if USI Tech and its principals have no money in the state (or in a U.S. bank account, in the SEC’s case) and all the bad guys are in Brazil, their options are limited. Follow the money.
Oh god their latest release is so bad. I copied and pasted it right into an email to every provincial regulator in Canada. They are so Ballsy in their lies.
their law firm hart david carson is back in action, basically writing all that horst jicha said in his latest video in legalese.
usi tech IS NOT starting ANYTIME in the US/canada so affiliates better stop celebrating.
here’s what HDC ‘legal’ statement says [main points IMO]:
so, horst paid his lawyers to put^^ the blame for usi tech running away from the US/canada squarely on affiliates. a lawyer is saying it – so it must be true!
if the counsel at HDC is ‘actively engaged with each of the aforementioned states’ how come they didn’t respond to the texas C&D? what crock!
this legal statement is just nothing but horst hiding behind his lawyers and raising his palms – it’s not my or usi tech’s fault at all. you guys are the problem. even the lawyers say so!
you’re cooked and done US/canada affiliates. stew in your tears or get a class action ready like bitconnect affiliates.
They released the statement?
Damnit I thought I was done for the day 🙁
Bonus content!
(Ozedit: video 404 as of March 2020)
boss, never think of getting lazy, the ponzi underbelly will kick your butt into action! 🙂
along with this^ we have horst jicha concurrently announcing:
what in hell does this mean?
US/canada affiliates can buy more packages and get a ‘controlled payout’?
how can usi tech pay ROI on the BTC packages without answering the texas C&D first, which asked for proof of their externally generated revenue with which they pay this ROI?
or is horst just trying to get US/canada affiliates to pour more money into usi tech by giving them ‘hope’ of a restart soon?
these ponzi criminal minds are too complex and cunning to fathom!
facebook.com/digitaltycoon/posts/2059598757604731
rory highside, a US citizen, who has been following the usi tech ponzi actively, posted on FB a few minutes ago:
people in the US who are planning to hand over more money to horst jicha to fuel his yacht off majorca and hide in brazil, pay heed.
Here’s what the SEC & CFTC said on Wednesday in the Wall Street Journal editorial they wrote:
Wanna bet this action now comes sooner rather than later with USI giving the Texas Securities Commissioner the finger and thumbing their nose at them.
I am not joining USI tech I don’t want a criminal record. The company will collapse.
Those who have positive reviews for USI-TECH don’t know #%%^^ fro a hole in the ground.
I believe in network of both types MLM and multi tiered affiliate marketing. USI-TECH is neither it is a stupid Ponzi scheme.
I was bugged to join that scam so many times I was tempted to throw my computer I didn’t however.