CryptoProgram has obtained a fraud desist and chorus order from California’s Division of Monetary Safety and Innovation.
The DFPI claims “Grasp Affiliate” Edward Anthony Zimbardi is operating a Ponzi scheme.
CryptoProgram and Zimbardi described the Packages as being safer than different crypto funding alternatives as a result of CryptoProgram purportedly didn’t have interaction in buying and selling exercise of any variety.
In quite a few funding pitches to potential buyers, Zimbardi repeatedly emphasised that investor funds would solely be used for buying internet advertising and wouldn’t be used for dangerous buying and selling exercise.
In actuality, many of the funds that CryptoProgram obtained from buyers had been used to pay different buyers, within the method of a Ponzi scheme.
That is consistent with BehindMLM’s January 2023 CryptoProgram assessment.
As an alternative of buying promoting, Zimbardi laundered invested CryptoProgram funds by “a foreign exchange dealer based mostly in Saint Vincent and the Grenadines.”
CryptoProgram and Zimbardi falsely represented to potential buyers that investor funds could be used solely for buying internet advertising.
In truth, Zimbardi explicitly informed potential buyers that CryptoProgram “has nothing to do with buying and selling, it has nothing to do with commodities, has nothing to do with risky markets, which is another excuse why it’s very sustainable.”
CryptoProgram’s lack of disclosures to buyers was additionally a regulatory difficulty.
Zimbardi represented that the people managing CryptoProgram had been his “good associates” and had been very skilled and educated about internet advertising.
Nevertheless, Zimbardi refused to confide in potential buyers the identities of the nameless people that he claimed had been managing and working CryptoProgram.
And naturally central to CryptoProgram’s regulatory issues is securities fraud.
The Packages supplied by CryptoProgram had been securities that had been neither certified nor exempt from the qualification requirement below the CSL.
The Division has not issued a allow or different type of qualification authorizing CryptoProgram to promote these securities in California.
On account of CryptoProgram being a Ponzi scheme and Zimbardi committing securities fraud, DFPI has
ordered (them) to desist and chorus from providing or promoting or shopping for or providing to purchase any safety in California.
DFPI’s order was issued on June twenty eighth.
Zimbardi, who has beforehand been convicted of felony theft and served time in jail, is a resident of Georgia.
Not too long ago, Zimbardi hosted a CryptoProgram advertising occasion for US residents on the Chateau Elan Vineyard & Resort.
To the perfect of my information Zimbardi has not publicly addressed DFPI’s securities fraud desist and chorus order.
Whether or not Georgia’s Securities Division and/or the SEC take motion stays to be seen.
As of Could 2023, SimilarWeb tracked 73% of CryptoProgram’s web site site visitors as originating from the US.
Following related securities fraud issues, CryptoProgram and Zimbardi had been ordered to stop buying and selling in British Columbia in Could 2023.
