Senator blames USI-Tech affiliates, doesn’t acknowledge securities
In politics a good test of leadership might be how a politician reacts in a crisis.
With Guam residents potentially facing hundreds of thousands of dollars in losses, Senator Tommy Morrison has all but hung them out to dry.
In a statement published to his official Senator Tommy Morrison Facebook profile, Morrison (right) echoed USI-Tech’s failure to address their illegal offering of unregistered securities.
Rather than take responsibility for not registering their securities offering, USI-Tech instead blamed affiliates for promoting USI-Tech as an investment scheme.
Rather than register itself with securities regulators, which would require USI-Tech to prove it wasn’t a Ponzi scheme, the company announced it was abandoning the US and Canada late last week.
In an effort to divert attention away from its continued failure to register with US securities regulators, USI-Tech threatened to sue its affiliates when it announced it was suspending affiliate withdrawals on Monday.
After yesterday refusing to comment on his role in USI-Tech investor recruitment across Guam, today Senator Tommy Morrison addressed the issue on Facebook.
Cryptocurrency and blockchain technology are innovative technologies and potential market disruptors that are accompanied by high risk due to the potential upside.
As a result, there are multiple investment opportunities, good and bad, that have emerged.
I would encourage all those who choose to invest to educate themselves thoroughly, to do research, and recognize the high risk that accompanies investments in new technology before investing.
From what I understand, owners of United Software Intelligence (USI-Tech) and their legal team are investigating the situation and have an ongoing audit- and will hold those who’ve violated the agreed upon terms and conditions accountable for their actions.
Finally, because the technology is new, regulation is behind, and will eventually catch up. I welcome any new regulations that protect consumers.
Here’s the thing though, regulations governing Ponzi scams like USI-Tech already exist. In fact the Securities and Exchange Act has been around since 1933.
What Senator Morrison failed to acknowledge in his response is that USI-Tech is an illegal unregistered securities offering.
That’s probably because, as a primary lawmaker for Guam, Senator Morrison’s involvement toward the top of the Guam investor recruitment chain is career-ending.
Prior to the revelation Senator Morrison was a USI-Tech investor, he was one of five admins of a private Guam USI-Tech Facebook group that boasted over 300 members.
Morrison’s shirking of responsibility has attracted several supportive comments from USI-Tech affiliates, presumed to be based in Guam.
Not one commenter addressed USI-Tech illegal unregistered securities offering or Senator Morrison’s offering of unregistered securities.
In a separate statement issued to the Guam Daily Post, Senator Morrison incorrectly asserted that USI-Tech was not under investigation.
Morrison stated only “certain affiliates” are under investigation, but the Texas securities board’s Dec. 20, 2017, emergency cease-and-desist order bans the entire USI-Tech organization from marketing and selling to the state’s residents.
“Like other USI-Tech customers on Guam and in the U.S. mainland, I’m very concerned about the allegations made recently against certain affiliates of the company.”
The Texas cease and desist named USI-Tech itself as a respondent. In addition to two Texas affiliates accused of promoting unregistered securities, USI-Tech was ordered to cease illegal offering unregistered securities to Texas residents.
Like Texas, USI-Tech is not registered to offer securities in Guam. Neither is Senator Morrison.
Meanwhile if those interviewed by the Guam Daily Post are anything to go by, there’s a distinct lack of understanding of federal US securities law among Guam’s residents.
Roy Gamboa, an affiliate of USI-Tech, explained the role of certain USI-Tech customers in a comment on a prior Post story.
Company officials have visited Guam and their product is advertised by certain businesses, but USI-Tech does not have a business license on island.
Gamboa explains why one is not necessary.
“We are all customers. We aren’t selling anything,” Gamboa stated.
“We merely introduce potentially interested individuals to a product.
The purchase is between the individual and USI-Tech, which does not occur on Guam. It occurs online.”
US securities law pertains to promotion of and to whom securities are offered to.
In the instance of recruitment of Guam USI-Tech affiliates, obviously the locale is Guam itself. Those illegally offering unregistered securities are top investors such as Senator Morrison.
“Online” isn’t some magical jurisdiction exempt from securities regulation.
The more astute of you will no doubt have latched on to Gamboa’s admission that USI-Tech affiliates aren’t selling anything.
The FTC has stated that MLM companies not selling a product or service to retail customers are undoubtedly scams.
The Guam Daily Post has reached out to the Guam Office of the Attorney General, who advised they are “aware of the issues surrounding USI-Tech”.
The FBI was also contacted, however as per standard procedure the federal agency would neither confirm or deny a USI-Tech investigation.
In the meantime a defiant Senator Morrison has declared that
Guamanians including myself continue to participate in the Bitcoin and Blockchain space.