Trucker, Ex-Con’s Crypto and Pot Schemes Targeted by Texas

By Lydia Beyoud

A California trucking company, an ex-convict and several online get-rich-quick investment companies allegedly touting cryptocurrency and medical marijuana investment schemes are the latest group facing an enforcement action by Texas securities regulators.

The Texas State Securities Board filed an emergency cease-and-desist order April 5 against three individuals and four companies.

One of the respondents advertised that it would bill investors for a “gold Seiko watch” so they could do a chargeback to their credit card company if investors lost money in the crypto trading program, according to the order.

While the individuals and companies don’t appear to be directly related, they all advertised the same medical marijuana or cryptocurrency investment schemes on an online classifieds site for the Austin, Texas area, Joseph Rotunda, Enforcement Director for the TSSB, told Bloomberg Law.

The board alleged the respondents committed multiple counts of fraud and securities violations by advertising their investment ventures to Texas residents.

Texas Nexus

The respondents are Estrada Trucking, Inc. of Palmdale, Calif., its principal Caleb Estrada Vasquez; Capital Cash, whose principals aren’t named; Financial Freedom Club, also known as “Millionaire Mentor University”, its principal Mark J. Moncher of Whitefish Bay, Wis.; 911MoneyStore, and its principal Frank Dalotto of Jericho, New York.

Vasquez told Bloomberg Law he was not involved in the activity alleged in the order. “I don’t see why we would be brought up into something in that, I don’t live in Texas,” Vasquez said.

The person who answered the phone for Capital Cash told Bloomberg Law he didn’t know about the enforcement order and hung up the phone. An email to the company was bounced back.

The other respondents didn’t immediately respond to calls or emails requesting comment.

To contact the reporter on this story: Lydia Beyoud in Washington at lbeyoud@bloomberglaw.com

To contact the editor responsible for this story: Michael Ferullo at mferullo@bloomberglaw.com

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