Exposed: Georgia Man's Role in Deceptive Crypto Marketing Scheme

Overview

A Fairburn man, previously banned from selling investments in Georgia, has been linked to a multilevel marketing scheme that promised investors massive returns. This revelation comes from state regulators who are cracking down on such fraudulent activities.

Regulatory Actions

The Georgia Secretary of State, Brad Raffensperger, issued a cease-and-desist order against Eric Ture Muhammad, who had faced similar allegations earlier this year. Muhammad, who brands himself as “The Wealth Minister” on LinkedIn, has been fined $500,000 for his actions and has reportedly not paid penalties from previous orders.

Trage Technologies

The latest order focuses on Muhammad’s promotion of Trage Technologies, a company based in Panama and registered in the Marshall Islands, which has been marketing cryptocurrency investments. According to regulators, Trage promised to quadruple investors’ money within a year using a claimed crypto-trading algorithm. Investors were encouraged to recruit others, creating a multilevel marketing program.

Investor Concerns

Recently, Trage has been accused of pulling down its website and locking investors out of their accounts, effectively freezing their assets. Furthermore, since its operations began earlier this year, Trage allegedly transferred around $79 million to unidentified accounts, raising significant fraud concerns. California regulators have labeled the company a “crypto scam” and a “fraudulent pyramid and Ponzi scheme.”

Investigation Insights

Georgia investigators questioned Muhammad about his promotional activities in June, but he refused to answer questions regarding investor deposits. When confronted with allegations of using investor funds for personal expenses, he abruptly ended communication. Regulators note that both Trage and Muhammad falsely claimed to operate within legal boundaries.

Misleading Claims

Muhammad allegedly misled investors during a webinar, asserting he was no longer subject to a cease-and-desist order, which was incorrect. He had previously been banned from the securities industry in Georgia due to unregistered marketing activities. Investigators have connected him to multiple pyramid and Ponzi schemes since then.

Defiance and Falsehoods

During a call with investors, Muhammad reportedly bragged about his disregard for authorities, stating, “It will be a good day in hell before you get anything out of me so much as a dime or so little as a penny.” This claim has been labeled a lie by the Secretary of State’s Office.