- Utah residents are warned about BG Wealth Sharing's suspected cryptocurrency fraud.
- Robert Cummings, director of Utah's Division of Securities, calls it an international fraud.
- U.S. law enforcement seized the BG Wealth Sharing website; authorities around the world have issued warnings.
WEST JORDAN — A Utah woman thought she found a perfect investment opportunity that would help her make some side money. But after putting in thousands of dollars for herself, her husband and her daughter, she said she fears all that money is now gone.
"It wasn't because … I wanted to be rich, or I wanted a nice car. I wanted this because I wanted to help my family," she told KSL.
A big 'to-do'
Shan, who asked that her full name not be used, was among the hundreds of people who attended an event put on BG Wealth Sharing, Ltd. this past month at the Mountain America Expo Center. It wasn't exactly a quiet financial seminar.
"They gave away a Tesla," Shan said. "They gave away iPhones, several of them, cash – you name it. It was a pretty big to-do."
Many of the attendees had bought into BG Wealth Sharing's sales pitch. They invested money that Shan said would be day-traded in the Bitcoin cryptocurrency market with the promise of big returns.
She said people came to the event from out-of-state. Besides the prizes, there was dinner, dancing and testimonials.
"People telling their stories about how much ... it changed their lives," she said.
The event even included a field trip to a West Jordan office complex for a ribbon cutting on BG Wealth Trading's new space in Utah.
"You felt like you were a part of something big," Shan said. "I mean, why would you not?"
Someone she knew brought the investment opportunity to her. And Shan said she was pushed hard to bring in others.
"It's like, share this with people you love that you know that they need to have a leg up because you know that they're struggling," she recalled.
After several months, Shan said her online wallet with BG Wealth Sharing showed that it had grown to about $15,000.
But then came the catch. To access that money, Shan said she was told she'd have to pay more money, 12% of that total balance, out of pocket. That was roughly $1,800 that she didn't have.
"You can see it," she said. "You just can't touch it."
That's when she asked KSL to investigate.
The KSL Investigators went to the West Jordan office where the ribbon cutting was held in April. On the locked door, just below the BG Wealth Sharing sign was posted a handwritten note saying they were waiting for their business license to be approved by the city of West Jordan. The note also thanked members for their understanding.
KSL contacted the building's landlord who confirmed BG Wealth Sharing did indeed rent space, but they said they could not provide us with any additional information.
West Jordan confirmed that someone did indeed apply for a business license. And state records show BG Wealth Sharing also filed a certificate of organization with the Utah's Commerce Department. The registered agent, organizer and manager listed in that certificate is Richard Chea.
Multiple attempts to contact Chea were not successful.
'An international fraud'
KSL reached out to state regulators, who are very familiar with the organization.
"BG Wealth was and is an international fraud," said Robert Cummings, director of Utah's Division of Securities.
In March, the division issued an investor alert for BG Wealth Sharing, Ltd. That alert warned that "there is no record" of the company being registered to sell securities or provide investment advice in Utah. They also "falsely claim to be licensed by the Securities and Exchange Commission," according to the alert.
In April, U.S. law enforcement seized the BG Wealth Sharing website.
Authorities in Hawaii, Washington state, Alaska and Louisiana have also issued warnings. So have authorities in New Zealand, Tonga, Samoa, the Philippines and the United Kingdom.
Cease-and-desist
Just this week, the Alberta Securities Commission in Canada issued a cease-and-desist order against BG Wealth Trading, Ltd.
"Members were shown account balances with high returns, but these are believed to be fake and intended to increase confidence in the platform," read the commission's news release about the order. "To date, there is no evidence that any legitimate trading occurred."
Cummings said folks who gave money to BG Wealth should report it to the Utah Securities Division. Stop sending money. And don't pay anything to unlock access to your account. He called the 12% payment request a classic advance-fee scam – a final squeeze.
"As that fraud's collapsing, it goes to an advanced fee scheme, saying, 'If you give me 12%, I can get money out of your account and send it to you,'" he said. "It's a large scheme pivoting to a new one trying to extract more gains before it all falls apart."
"I'm pissed off," Cummings said. "You have hard-working Utahns, in a very tough economic time where every single dollar matters and they are being bilked for 401Ks, their mortgage payments, money to feed their kids."
'You believed it'
"You believed it. That's the thing – that you believed," said Shan. "If you go online right now, you can see that so many people still believe."
She said she now believes she will never get her money back.
"What I want is truth. Not just for myself, but for the people I love."
This is not the end of this story. Cummings said the FBI, the U.S. Department of Justice as well as securities regulators across the U.S., Canada and other countries are now trying to track down the money sent to BG Wealth Sharing, Ltd.
The KSL Investigators made several attempts to contact the individual who identified himself to the state as the manager and organizer of the BG Wealth Sharing office in West Jordan, but he has not responded our inquiry.
If you invested money in BG Wealth Sharing, the Utah Division of Securities wants to hear from you. You can report your experience on their website. Not only should you not send any more money to them, but authorities also advise not to send funds to anyone who claims they can help you recover your money.
