Funds have been told to stop committing securities fraud by the state of California.

As per the November 22nd order from the Department of Financial Protection and Innovation;

At least as early as 2022, Fundsz used its website to ask people in California to buy and sell securities in the form of investment contracts.

These contracts for investments were called “Staking Plans” by Fundsz.

The Staking Plans that Fundsz and Valcarce sold were neither qualified nor exempt from the CSL’s requirement that securities be qualified.

Juan Pablo Valcarce , who lives in Florida, is the Chairman of the Board and is thought to be the owner of Fundsz.

Fundsz or Valcarce can’t sell these securities in California because the Department hasn’t given them a permit or other kind of qualification that lets them do so.

By Corporations Code section 25532, Fundsz and Juan Pablo Valcarce are ordered to stop offering or selling securities in California, including, but not limited to, investment contracts called “Staking Plans,” until and unless they meet certain requirements.

BehindMLM reviewed Fundsz in June 2022. We found that Fundsz’s “staking plans” were a way to sell securities. This made it more likely that Fundsz was a Ponzi scheme.

DFPI says that the way Fundsz does business is like an HYIP.

Fundsz was trying to get people to invest in what is called a “High Yield Investment Program” (HYIP). HYIPs are investments that aren’t registered and are usually run by people who don’t have licenses. They are often scams.

“Ponzi scheme” is what “HYIP” means in the MLM underworld.

In most ways, California’s state securities law is the same as the Securities and Exchange Act at the federal level. When US state regulators start to warn about fraud, the SEC usually doesn’t take long to follow.

Between September and October 2022, the number of people visiting the Fundsz website will drop by 50%, according to SimilarWeb.

41% of the 64,000 people who went to the Fundsz website in October were from Russia, and 13% were from the US.

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