Colorado Cracks Down on Imposter Investment Firms
From the desk of Jim Eccleston at Eccleston Law
Colorado Securities Commissioner Tung Chan recently took action against two fraudulent investment firms, Joyce Dunbar Management, and Fluxia Capital Management, accusing them of deceptive practices. Both firms falsely claimed to have offices in the same building as the Colorado Department of Regulatory Agencies, a move intended to lend credibility to their operations.
According to WealthManagement.com, the state's Division of Securities alleged that the firms employed misleading statements on their websites to attract unsuspecting victims seeking investment advisory services. While the coincidence of both firms claiming the same false address raises suspicion, it is a common tactic among scam artists to operate under multiple identities.
Fluxia, also known as Fluxia Group Investment LTD, had a website hosted by GoDaddy, which investigators found was owned by an individual in China and was taken down in December. As reported by WealthManagement.com, the site contained false claims about licensing, registrations, and a purported "robust super trading system." Although registered with the SEC in March 2023, its registration was withdrawn in August.
Similarly, Joyce Dunbar's website used deceptive tactics, including false testimonials and promises of high returns on bitcoin investments. Despite claims of being a fiduciary financial advisor, there's no evidence of Dunbar holding a securities license.
While instances of such fraudulent activity are becoming rarer, the diligence of state and federal agencies remains crucial in safeguarding investors from such schemes. The swift action by Colorado authorities underscores the ongoing efforts to combat financial fraud and protect investors from deceptive practices.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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