|SEC Charges 11 People in $300 Million Ponzi Scheme
Helena, Mont.- In March 2021, the Montana Commissioner of Securities and Insurance, Troy Downing, ordered Forsage to cease and desist operating a pyramid scheme in Montana. Forsage, a web-based platform that operates using a cryptocurrency called Ethereum, is believed to have violated the Montana Securities Act. The Office of the Commissioner of Securities and Insurance (CSI) received multiple complaints from Montanans related to Forsage, leading to the Commissioner’s order.
On Monday, the Securities and Exchange Commission charged 11 people for promoting a pyramid scheme that raised over $300 million from investors across the country, including many from Montana. The complaint filed by the SEC states, “Forsage is a textbook pyramid and Ponzi scheme. It did not sell or purport to sell any actual, consumable product to bona fide retail customers during the relevant time period and had no apparent source of revenue other than funds received from investors. The primary way for investors to make money from Forsage was to recruit others into the scheme.”
“Montana was the first state in the nation to accuse Forsage of perpetrating an illegal scheme. Our team is highly skilled and diligent, showing we are proactive and committed to protecting not only Montanans, but also all Americans against investment fraud.” Commissioner Downing continues, “The primary charge of our agency is to protect consumers. We do this by holding bad actors accountable.”
For questions or to report fraud, Montana consumers can contact the CSI by calling 406-444-2040 or by going to www.CSIMT.gov.
Troy Downing is the Commissioner of Securities and Insurance, Montana State Auditor. Commissioner Downing is a two-tour combat veteran, businessman, and entrepreneur.