The Texas State Securities Board ordered Erwin Darwin Balusek also known as “Bitcoin Pope” to stop offering an allegedly fraudulent cryptocurrency investment scheme that promises investors with a guaranteed profit of more than 100%.

The Emergency Cease-and-Desist-Order issued by Texas State Securities Commissioner Travis Iles against Balusek also included Forex Birds, Ltd., its director Kumar Babu Gondesi, and parent company Pek Universe.

In the Order, the Texas securities regulator alleged that the Bitcoin Pope and its fellow respondents allegedly published an advertisement on Craigslist luring Dallas residents to participate in their cryptocurrency trading programs.

The Bitcoin Pope and his fellow respondents’ alleged promise to investors

In their advertisement, the respondents allegedly claimed that they developed an “amazing avenue” to help people trade in cryptocurrency and foreign currency exchange (forex) and generate more than 100% profit guaranteed.

Balusek and his fellow respondents are allegedly offering for sale investments through Forex Birds’ cryptocurrency trading program.

Forex Birds claimed in its website that investors’ funds are covered by a $1 million insurance with no extra cost to them. The company also claimed that there is a low-level risk associated with their investment offerings.

The Bitcoin Pope allegedly promised investors 5% in profits after 24 hours for four days if they invest $500 in Forex Birds ECN Plan. He also promised a daily 7% profit for four days for an investment of $3,000 in the company’s Standard Plan.

Balusek promised a profit of 11% after 65 minutes to investors who will invest $6,000 in Forex Birds’ Premium Plan. He promised a daily profit of 15% for 30 days to investors who will invest $10,000 in the company’s Prime plan.

The Bitcoin Pope allegedly told investors that he charges a 20% commission on the total profits he generated for them.

Balusek and his fellow respondents’ allegedly made deceptive, false, and fraudulent claims

According to the Texas securities regulator, Balusek, Gondesi, Forex Birds, and Pek Universe are not registered agents or brokers to offer securities for sale in the state. The respondents engaged in fraud by offering unregistered cryptocurrency investments.

Additionally, the Texas securities regulators alleged that the respondents made deceptive and misleading statements about their cryptocurrency investment offerings, insurance policy, and the risk associated with it.

Texas State Securities Board says Forex Birds is a "fraud"

Forex Birds is a “fraud.” It not registered with the European and Australian Securities Investments Commissions as well as with the Saint Vincent Finance Service Authority (FSA), according to the Texas State Securities Board.

Furthermore, the Texas securities regulator alleged that Pek Universe deceived investors regarding the identity of its Chairman of the Board of Directors.

The “respondents’ conduct, acts, and practices threaten immediate and irreparable public harm,” the Texas securities regulator wrote in the order.

--------------------------------------------------

Have a story you want USA Herald to cover? Submit a tip here and if we think it's newsworthy, we'll follow up on it.

Want guaranteed coverage? We also offer contract journalism here.  Just be sure you're comfortable giving up editorial control because our journalists are dogged and will follow the story through to the conclusion. The story will be published to our exacting standards, without regard for your preferred slant.

Want to contribute a story? We also accept article submissions -- check out our writer's guidelines here.