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USI-Tech faced increasing pressure to prove it wasn’t a Ponzi scheme following a securities fraud cease and desist issued in Texas last month.

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In a move that is unlikely to have surprised anybody, USI-Tech has severed ties with the US and Canada.

Rather than operate legally in the US and Canada and register with the appropriate regulatory bodies, USI-Tech has instead elected to abandon its legal obligations and focus on scamming investors elsewhere in the world.

A preliminary injunction is something the SEC would file.

At the time of publication I’m unaware of an SEC investigation into USI-Tech.

Unfortunately, this also has a direct consequence for you as a sales partner since the cessation of our marketing operations means that we are forced to immediately terminate our contractual relationship with you.

US and Canadian affiliates have purportedly been blocked from their USI-Tech backoffices.Now to make it clear right off the bat, while the Texas cease and desist did target two investors with respect to promotion of USI-Tech, it also demanded USI-Tech register its securities offering and provide evidence it was not operating as a Ponzi scheme.This is something USI-Tech does not address in its “blame the affiliates” termination letter.In the past we’ve seen preliminary injunctions filed against MLM Ponzi schemes under seal, as it gives authorities time to freeze invested funds while the operators of the scams are none the wiser.It’s not until bank accounts and assets are frozen that targets of a preliminary injunction filed under seal realized the gig is up.We cannot subject our company or our reputable sales partners to this danger.

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