Securities Commissioner Tung Chan in Colorado is cracking down on two companies, Joyce Dunbar Management and Fluxia Capital Management, over suspicions of fraudulent activities and deceptive location representation. Commissioner Chan has enforced cease-and-desist orders to halt their business proceedings pending a thorough investigation.
Sandy Ressler, Co-owner and Managing Director of Essential Edge Compliance Outsourcing, unearthed the alleged misconduct. Both companies now face a final cease-and-desist order for unauthorized investment advising activity and have a limited period to present their defenses. The outcome may result in strict sanctions, including financial penalties and reputational damage.
Fluxia was discovered to have falsely claimed its licensing status on its now-deleted website. It had applied for a license in Colorado but did not receive one.
Colorado regulator confronts deceptive firms
Potential investors were wrongly informed about this fact, risking their financial security. The company also failed to register with the correct regulatory entities, rendering its filing status non-compliant.
Joyce Dunbar Management, similarly to Fluxia, provided attractive Bitcoin investment proposals without seeking operational approval. Despite carrying positive testimonials, Dunbar displayed no evidence of being licensed for securities. These issues have led to suspicions about the legitimacy of Dunbar’s operations.
Attempts to establish contact with both firms have been largely unsuccessful. Despite the lack of response, the effort to engage these companies in constructive dialogue will continue.
Ressler has expressed concern about the growing difficulty in spotting such fraudulent operations due to complex cover-up tactics. He called for more training, increased alertness, and expansive legislation to combat these sophisticated evasion strategies.
