Dallas-based Prestige Equity ordered to cease what state calls fraudulent investment scheme

Prestige Equity used Facebook to advertise to potential investors, guaranteeing 12% annual returns. For an experienced investor, that should have been the first of many red flags, according to state regulators and an investment expert. Returns can’t be guaranteed. The Dallas-based company also said on its website that it had been around for 20 years, while state records show it was incorporated in January 2021. The Texas State Securities Board last week ordered Prestige Equity to stop what the regulatory agency describes as a fraudulent securities offering. The state said the company claims to have sold investments to 10,000 investors who put in a combined $250 million, earning $30 million in interest.

The state agency said its emergency cease and desist order was necessary to “protect Texans from immediate and irreparable harm.” Those being served with the order include senior account manager Robert Clemmons, CEO Felix Crayborn, chief operating officer Grant Myers, CFO William Clark and chief marketing officer Miranda Shawns. The Dallas Morning News reached out to Prestige Equity via its principal email, as well as the emails and phone numbers for Clemmons and Crayborn. The voicemail for Clemmons indicated his number was created via Google Voice, a free service that gives you a number for texting, calling and voicemail. The number for Crayborn was created by TextNow, an app that gives you a phone number for texts and calls. All will be served at the address Prestige Equity lists on its website as its headquarters, 1910 Pacific Ave. There is no record of Prestige Equity having an office or headquarters at the address listed, according to the Dallas tax appraisal site and the state order.