The Texas State Securities Board has taken action to close down a digital gold storage service. They argue that it’s not just a regular service but an illegal MLM scheme operating internationally. This enforcement action was recently announced on their website.
Securities Commissioner Travis J. Iles has issued an Emergency Cease and Desist Order to halt an international MLM scheme that was enticing Texans to invest in a digital gold vault. The order emphasizes that this scheme, operated by Billionico Academy, falsely portrayed itself initially as an educational platform selling learning modules. However, on April 19, 2024, the company shifted its focus to promoting investments in a digital gold vault issued by Auratus, a precious metals company supposedly based in Hong Kong.
The order claims that the investments are being offered unlawfully and dishonestly in Texas, posing an immediate and serious risk to the public. According to the order, Frank Deyle, CEO of Billionico Academy, previously worked as a marketing advisor and advisory board member for Swiss Valorem Bank Ltd. He also promoted investments from GSB Gold Standard Bank, Ltd, also known as GS Partners. However, the Securities Board highlighted that none of this information was disclosed to Billionico Academy’s clients.
Recently, the Securities Commissioner issued an Emergency Cease and Desist Order, No. ENF-23-CDO-1879, against Swiss Valorem Bank Ltd and GS Partners. They’re accused of unlawfully and dishonestly offering investments related to digital assets.
The order says that Auratus has been offering investments in digital gold vaults to clients of Billionico Academy. These investments start from 150 euros for a vault holding 4.285g of digital gold, and go up to 10,000 euros for a vault with 285.714g capacity. Once investors buy the product, they’re supposed to wait in line. Once they’re in, they’re supposed to get a share of the profit made by the digital gold vault.The investment period can be anywhere from 12 to 60 weeks.
Commissioner Iles mentioned, “While many companies are using new technologies to improve their business or make things easier, some are trying to take advantage of people’s interest in these technologies to cheat them. If you’re thinking about investing in something related to new, complicated, or groundbreaking technologies, make sure you understand what you’re investing in, the risks involved, and how you’ll make money. It’s also important to know who you’re giving your money to.
The order claims that Billionico Academy used a multilevel marketing strategy to bring in clients, who are then able to buy investments offered by Auratus. Additionally, it suggests that Auratus is using a similar multilevel marketing approach to reward clients of Billionico Academy who recruit new investors for the digital gold vault investments.
Enforcement Director Joe Rotunda emphasized, “Ordinary investors depend on salespeople to explain products clearly, provide accurate information, and answer their questions. Unlike registered sales agents, unregistered multilevel marketers don’t go through a background check by the state, don’t have to pass exams, and aren’t supervised by a registered dealer. The rules that usually protect regular investors just don’t apply to unregistered multilevel marketers.
Enforcement Director Rotunda said he tried to talk to Billionico Academy’s Sales Director, Christian Cruz Riander, before taking action. But Riander apparently refused to discuss his work, saying he was too busy at the moment.
Even though Texas is cracking down on Billionico Academy for their illegal digital gold vault business, the state is actually one of the friendliest places in the US for investing in gold.
The state of Texas runs its own gold storage facility and encourages people to buy and keep their gold there. They say it’s the only vaulting facility in the country that’s run and checked by a state government.
This place, called the Texas Bullion Depository, offers the same kind of flexibility as big gold trading markets like COMEX. It also provides 100% insurance against any kind of risk through Lloyd’s of London. The main aim of setting up this depository was to reduce the chances of any problems with people’s gold investments in Texas. It’s situated on a 10-acre piece of land in Leander, Texas, just north of the state capital, Austin.
