FOR IMMEDIATE RELEASE
The Commissioner of Securities Insurance (CSI) and Gallatin County Attorney charged four men with engaging in a conspiracy to defraud investors, farmers, and the State of Montana through various means, including a Ponzi scheme. “As the Gallatin County Attorney, I want to thank Commissioner Downing for his diligent efforts investigating fraud within our County and across Montana,” said Audrey Cromwell. “His team’s dedication ensures the integrity of our financial systems and the safety of our community. We stand by ready to assist the CSI as they work to hold people accountable for their actions.”
The charging documents allege that Michael Rabb and Byron Gruber (both Gallatin County residents), Jason Bradley Cross (a resident of Texas), and Eugene Elfrank (a resident of Washington) defrauded investors through their Texas-based company Isotex Health, LLC. The company purported to be engaged in hemp harvesting and isolation of CBD oil in Montana. The fraud involved more than $6 million over several years. Each of the defendants is charged with operating a pyramid promotional scheme, securities fraud, operating as a commodities dealer without a license, forgery, false claims to a public agency, theft, and conspiracy to commit these crimes.
“The CSI will vigorously pursue fraudsters who operate in Montana,” said Commissioner Troy Downing. “I would also like to thank the Gallatin County Attorney, Audrey Cromwell and her staff for working with the CSI to charge the case in Gallatin County.”
Click here to view documents.
Media inquiries: Laura Shirtliff 406.444.0903 or laura.shirtliff@mt.gov.
The Montana State Auditor, Commissioner of Securities and Insurance is the state regulator of the insurance and securities industries for the state of Montana. The State Auditor is also an ex officio member of the Montana Board of Land Commissioners. Troy Downing was elected State Auditor in 2020. CSI can be found online at: csimt.gov.
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