The Missouri Secretary of State, Securities Division ordered Cryotherm USA, Inc., John (Jianxin) Wang, and Dennis R. Di Ricco to cease and desist after allegedly issuing more than $2 million in unregistered, non-exempt promissory notes.
Between December 1, 2015, and October 31, 2020, the Florida-based Cryotherm USA allegedly sold the promissory notes through a Las Vegas, Nevada-based unregistered broker-dealer, Retire Happy, LLC.
The securities were sold to investors across the country, including one in Rolla, Missouri.
Following the sale of notes to investors, those accused engaged in a fraudulent scheme over a period of more than two years, during which the company generated no business revenue, circulated investors’ funds back to investors in the form of bogus monthly interest payments, and misappropriated a majority of the remaining funds for their own personal benefit.
On October 19, 2020, after the division had opened an investigation into Cryotherm and engaged respondents, the accused paid the full amount of principal and interest owed to the Missouri investor.
The division seeks $125,000 in civil penalties plus costs of the investigation.
“Missouri law states that every security product offered for sale must be registered or qualify for an exemption from registration,” Securities Commissioner David Minnick said. “Always look into anyone who solicits investment opportunities before parting with your hard-earned money.”
Ashcroft urges investors to call the toll-free investor protection hotline at 800-721-7996 or visit this link for more information or to file a complaint.