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The North Dakota Securities Department has ordered a Bismarck man to stop selling cryptocurrency investments.

Harlan Lee Ellis was representing investment in the cryptocurrency Cachecoine Corp. as a “chance of a lifetime,” when a resident filed a complaint in September with the Securities Department, said Deputy Commissioner Michael Daley.

In this, Ellis is alleged to have sold unregistered securities and to have misrepresented the product.

The department is aware of one successful sale and one solicited sale, Daley said.

Daley said the department has been unable to substantiate Ellis’ alleged claims that Cachecoine Tokens were supported by “millions of dollars of commodities and precious metals.” It also has been unable to find any other people associated with the company, aside from Ellis, who identifies himself as chairman of the board of directors and CEO of Cachecoine.

Daley said the company appears to be a shell corporation out of Delaware, with no physical location either there or in North Dakota. The associated address is a P.O. Box at a UPS store.

Investigators from the Securities Department searched Ellis’s home and storage units, Daley said, and are in the process of going through the boxes of documents. Anyone else who has invested with Ellis of Cachecoine is encouraged to contact the department.

Of all the six cryptocurrency-related investments the agency has ordered to cease operations, none have been referred for criminal charges to date, Daley said.

In an unrelated case, Ellis is facing class A felony theft by deception charges in South Central District Court, filed in January 2017. The alleged theft is in excess of $50,000 and is set to go to trial on Nov. 14.

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Reach Jessica Holdman at 701-250-8261 or jessica.holdman@bismarcktribune.com

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Business Reporter