AI Investment Scams are Here and You’re the Target!
As AI investing grows in popularity, scammers are exploiting the technology to create deceptive schemes, prompting experts to advise caution and verify the authenticity of platforms. Learn more about AI investment scams and how to protect yourself.
The DFPI provides a free and easy way for consumers to file complaints against financial institutions, fostering communication for resolution, and helping identify systemic issues for broader consumer protection.
The U.S. Department of Education's Federal Student Aid office has updated its Public Service Loan Forgiveness (PSLF) process to accept digital signatures. This aims to streamline the process, minimize form rejections due to technical errors, and expedite the department's processing of student loan forgiveness requests and PSLF payment counting.
CalMoneySmart Applications Open! The Application portal is open until this Friday, May 26, 2023. For details, visit the CalMoneySmart website or email calmoneysmart@dfpi.ca.gov. Mark your calendar for a Live Q&A on Tuesday, May 23, 2023, at 2:30 pm (PST) to get answers to your questions. All recordings are available on the CalMoneySmart landing page. Start your application journey today!
Report on Silicon Valley Bank: The DFPI has recently released its much-anticipated Internal Review Report on Silicon Valley Bank. This detailed report provides a comprehensive examination of the bank's operations, offering invaluable insights into its compliance practices and financial health.
Red Rock Metals: The DFPI has filed a lawsuit against Red Rock Secured, a precious metals dealer, accusing it of a $60 million fraudulent scheme. The alleged scheme involved misleading customers, offering unlicensed investment advice, and using scare tactics to sell overpriced metals.
AI Enforcement Actions: The DFPI has issued desist and refrain orders against five entities, including Maxpread Technologies, Harvest Keeper, Visque Capital, Coinbot, and QuantFund, for fraudulent investment schemes leveraging artificial intelligence (AI) and cryptocurrency trading.
First Republic Bank: The DFPI has taken possession of First Republic Bank, appointing the Federal Deposit Insurance Corporation (FDIC) as receiver, which subsequently accepted a bid from JPMorgan Chase Bank to acquire First Republic Bank's assets and assume all deposits.
CONSUMER ALERTS & ENFORCEMENT ACTIONS
Maxpread Technologies and Jan Gregory Cerato allegedly offered unqualified securities, misrepresented expected profits and risk of loss, used investor funds to pay others in a Ponzi-like scheme, and deceitfully presented a fake, AI-generated avatar as the CEO while falsely promising daily investor returns of at least 0.6% through supposed AI-powered crypto trading.
Harvest Keeper, under the guise of AI crypto trading with a daily 4.81% return, allegedly ran a scam, offering unqualified securities, falsely promising loss prevention and continual fund access, and hiring an actor to portray a fictitious CEO.
Visque Capitalallegedly misled investors, offering unqualified securities, falsely claiming AI crypto trading with 2% daily returns, and misrepresenting its ownership while using funds to pay other investors.
Coinbot allegedly offered unqualified securities, misrepresented AI crypto trading promising 1.5% daily returns, but used investor funds to pay others.
QuantFund allegedly misled investors, offering unqualified securities and falsely promising AI crypto trading with a 1% daily return and non-existent loss prevention insurance.
This May, celebrate Older Californians Month with the California Department of Aging (CDA). Their ASK (Aging Service Kit) CA campaign, honors seniors and provides vital resources for aging gracefully and safely. Local senior centers have hosted events this month to highlight these resources and share protection measures.
CLOTHILDE V. HEWLETT Commissioner of Financial Protection and Innovation
California Department of Financial Protection and Innovation, 2101 Arena Blvd, Sacramento, California, 95834-2306
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