TDCI Imposes Securities Penalty on Fraudulent Operator of HUGEROI.COM
NASHVILLE –The Tennessee Department of Commerce & Insurance (TDCI) Securities Division announces disciplinary action against an online “private investment club” found in violation of the state’s securities law. Shelby County resident Clifton Alexander, who operated the website HUGEROI.COM, faces civil penalties for the unlicensed and fraudulent sale of a security to an investor.
In promotions for HUGEROI.COM, Alexander told potential investors that the club would connect members with stable and lucrative investment opportunities, promising that its proven investment opportunities had earned some members up to a 20 percent monthly return on investment. Based on the recommendations and representations, a Duluth, Ga. consumer invested in the private investment club by wiring money to HUGEROI.COM. Bank records indicate that Alexander fraudulently used that investment to pay for his own personal expenses.
Additionally, the investments offered on HUGEROI.COM were not registered securities in Tennessee and Alexander was not registered with the Tennessee Securities Division to engage in the offering and selling of securities from or in Tennessee. Both violations break state law.
“We remind investors that it is unlawful for any person to transact business from or in this state as a broker-dealer, agent, investment advisor or investment advisor representative unless that person is properly registered as such,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “These security laws are in place to protect the public and the investors in the state of Tennessee.”
An Initial Order, effective March 31, 2016, permanently bars Alexander from participation in the securities industry in Tennessee and imposes a total of $20,000 in civil penalties: $7,500 for the sale of the unregistered security; $7,500 for not being registered to offer or sell securities at the time of the sale; and $5,000 for committing securities fraud.
The order between TDCI and HUGEROI.COM can be found on the TDCI website. Tennesseans are encouraged to visit the Department’s website where they can inspect disciplinary actions and verify licenses of security and insurance professionals.
If you suspect that you might be a victim of securities or insurance fraud, or if you would like to file a complaint or speak with an investigator, please contact the Tennessee Securities Division – Financial Services Investigations Unit at (615) 741-5900. To file a complaint online, visit https://tn.gov/commerce/article/securities-file-a-complaint.