USI Tech Limited (also known as United Software Intelligence, or stylised as USI-TECH) was a

Dubai Dubai (, ; ar, دبي, translit=Dubayy, , ) is the most populous city in the United Arab Emirates (UAE) and the capital of the Emirate of Dubai, the most populated of the 7 emirates of the United Arab Emirates.The Government and Politics of ...

-based

cryptocurrency A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It i ...

and forex platform trading provider, suspected to be a

high-yield investment program A high-yield investment program (HYIP) is a type of Ponzi scheme, an investment scam that promises unsustainably high return on investment by paying previous investors with the money invested by new investors. Mechanics Operators generally set ...

and a

Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...

. Prior to going offline with its users' funds, USI-Tech moved its website from a

.com The domain name .com is a top-level domain (TLD) in the Domain Name System (DNS) of the Internet. Added at the beginning of 1985, its name is derived from the word ''commercial'', indicating its original intended purpose for domains registere ...

top-level domain A top-level domain (TLD) is one of the domains at the highest level in the hierarchical Domain Name System of the Internet after the root domain. The top-level domain names are installed in the root zone of the name space. For all domains in ...

, to a .io domain, while also appearing on a number of mirror domains. Joseph Rotunda, Director of the Enforcement Division at the

Texas State Securities Board The Texas State Securities Board is a Texas state agency headquartered in Austin, Texas. The Board enforces the Texas Securities Act (TEX. REV. CIV. STAT. ANN. art. 581-1) and maintains programs for enforcement, registration of securities, regist ...

, estimates that the scammers were able to extract hundreds of millions of

dollars Dollar is the name of more than 20 currencies. They include the Australian dollar, Brunei dollar, Canadian dollar, Hong Kong dollar, Jamaican dollar, Liberian dollar, Namibian dollar, New Taiwan dollar, New Zealand dollar, Singapore dollar, Un ...

from all over the world.

Promoters

Based on reports from

Engadget ''Engadget'' ( ) is a multilingual technology blog network with daily coverage of gadgets and consumer electronics. ''Engadget'' manages ten blogs four of which are written in English and six have international versions with independent editori ...

, USI was initially promoted by Lee Oakey, Kerry Stockton, Rodney Burton, and Michael Faust. Oakey and Stockton are British, and currently live in Australia. Burton (49, in 2018), also known as "Bitcoin Rodney", was known for purchasing a $350,000

Lamborghini Huracan Automobili Lamborghini S.p.A. () is an Italian brand and manufacturer of luxury sports cars and SUVs based in Sant'Agata Bolognese. The company is owned by the Volkswagen Group through its subsidiary Audi. Ferruccio Lamborghini (1916–1993), ...

from Lamborghini Newport Beach in Costa Mesa,

California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...

, using

Bitcoin Bitcoin ( abbreviation: BTC; sign: ₿) is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distr ...

. Burton was released from jail in 2010 after serving five years for

drug dealing The illegal drug trade or drug trafficking is a global black market dedicated to the cultivation, manufacture, distribution and sale of prohibited drugs. Most jurisdictions prohibit trade, except under license, of many types of drugs throug ...

. Dan Putnam, who identifies as the CEO of R&D Global, a suspected USI parent company, was also seen boasting that a mere $40 investment can grow to US$10 million in just 18 months at Eyeline Trading. Eyeline's homepage was redirected to USI Tech for a brief period, before also going offline. R&D Global is registered as a limited liability company in Putnam's home state of Utah under the name of Richard Theodore Putnam.

Related companies

Eyeline Trading

As of March 2019, a domain belonging to USI Tech was redirected to Eyeline Trading, another company claiming to be a

and forex platform trading provider. The redirect suggests that the owners of the original website have relaunched the

ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...

through Eyeline Trading, following USI Tech's exposure to law enforcement.

Wealthboss

Eyeline Trading collapsed following non-payment, and was subsequently rebranded to WealthBoss after

British Columbia Securities Commission The British Columbia Securities Commission (BCSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of British Columbia. See also * Canadian securities regulation * Securities Commission * Ca ...

issued a cautionary notice against dealing with Eyeline.

R&D Global

According to Engadget, both Eyeline and WealthBoss listed R&D Global as a parent company.

History

* On 20 December 2017, the

issued an emergency

cease and desist A cease and desist letter is a document sent to an individual or business to stop alleged illegal activity. The phrase "cease and desist" is a legal doublet, made up of two near-synonyms. The letter may warn that, if the recipient does not dis ...

order as neither USI-Tech nor the sales agents, Clifford Thomas and Michael Rivera, were registered to sell securities in Texas. * On 21 December 2017, the

Government of New Brunswick The Government of New Brunswick (french: Gouvernement du Nouveau-Brunswick) refers to the provincial government of the province of New Brunswick. Its powers and structure are set out in the Constitution Act, 1867. The Provinces and territories of ...

issued a consumer alert against investing at USI-Tech, and advised consumers to contact the Commission if approached about investing in the company. * On 12 January 2018, the Attorney General of

Guam Guam (; ch, Guåhan ) is an organized, unincorporated territory of the United States in the Micronesia subregion of the western Pacific Ocean. It is the westernmost point and territory of the United States (reckoned from the geographic cent ...

issued a statement advising people to exercise caution when investing at USI Tech. * On 26 January 2018, the

Government of Saskatchewan The Government of Saskatchewan (french: Gouvernement de la Saskatchewan) refers to the provincial government of the province of Saskatchewan. Its powers and structure are set out in the Constitution Act, 1867. In modern Canadian use, the term "g ...

issued a Cease Trade Order, and requested anyone contacted by USI-TECH to inform the Financial and Consumer Affairs Authority of Saskatchewan. * On 9 April 2018, the Spanish financial regulator

Comisión Nacional del Mercado de Valores The National Securities Market Commission () (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of E ...

added USI-Tech to its warning list of unauthorised firms and entities. * On 16 August 2018, the Financial Markets Authority of New Zealand updated its warning list to include USI Tech on basis that it is offering financial services and products to residents of New Zealand without authorization, while also warning that the operators have the characteristics of a scam.

References

External links

* {{Company-stub Crypto Ponzi schemes Cryptocurrency scams