Secretary of State Brad Raffensperger, Georgia’s commissioner of securities, has issued a cease and desist order against Trage Technologies Limited after an investigation alleging unregistered securities offerings and fraudulent investment schemes.
The order was issued aginst Trage and its principals Graeme Gary Hearn, Michael Holloway and Georgia resident Eric Ture Muhammad on Wednesday, Dec. 18, for multiple alleged violations of the Georgia Uniform Securities Act of 2008. The allegations specifically involve cryptocurrency trading programs that “misled investors and threatened immediate harm to the public,” according to state officials.
Raffensperger’s investigation led to allegations that Muhammad “marketed an automated cryptocurrency trading program to Georgia investors,” accusing Muhammad of “claiming registration” with the U.S. Securities and Exchange Commission (SEC), though officials now say Trage “has never been registered” with the SEC nor the Georgia Secretary of State’s Office.
“This Emergency Order reflects our commitment to protect Georgia’s investors from fraudulent and unregistered securities schemes,” Raffensperger said. “These individuals have jeopardized the financial well-being of Georgians and lied to the public. We urge anyone affected to come forward and seek assistance.”
Raffensperger’s office said Trage and its principals used “aggressive marketing tactics” and “allegedly boasted unrealistic returns” – including daily profits of $120 and annual returns of $43,800 on a $10,000 investment, potentially “misleading investors into believing the program was a fail-safe investment.”
The investigation also “supported allegations” that investor assets exceeding $79 million were misappropriated and transferred to undisclosed recipients, according to state officials, raising suspicions of fraud.
Officials say Muhammad, the subject of an active Emergency Cease and Desist Order issued on January 22, continued to “promote unregistered investment schemes,” despite being barred from broker-dealer activities in Georgia.
According to Raffensperger’s investigation, Muhammad also made “false claims” regarding regulatory settlements and continued to mislead investors.
“This emergency order reflects our commitment to protect Georgia’s investors from fraudulent and unregistered securities schemes,” Raffensperger said. “These individuals have jeopardized the financial well-being of Georgians and lied to the public. We urge anyone affected to come forward and seek assistance.”
