The Alabama Securities Commission (ASC) and Texas State Securities Board (TSSB) issued cease and desist orders against FIRST CLASS WEALTH PRESERVATION, directing it to shut down illegal operations in Alabama and Texas.
The ASC order and TSSB order accuse First Class Wealth Preservation of illegally soliciting a fraudulent precious metals advisory scheme. According to the orders, First Class Wealth Preservation was sending unsolicited advertisements by electronic mail – and several advertisements were actually sent to public ASC and TSSB email accounts, including at least one account used to report suspected exploitation of elderly and vulnerable clients. The company was also allegedly soliciting new clients through social media via Facebook.
According to the orders, First Class Wealth Preservation is controlled by Mitchell Kane Malizio aka Mitchell Kane. Malizio was recently accused of attacking his ex-fiancée, pushing her to the ground, hitting and kicking her, holding a gun to her head, and threatening to kill her. He was prosecuted for aggravated assault with a firearm, domestic battery, and criminal mischief. Malizio pleaded guilty to the charges and is currently serving felony probation.
Malizio founded First Class Wealth Preservation in 2019. Malizio and First Class Wealth Preservation, along with sales agent Jason Shaw, are accused of encouraging investors to liquidate securities holdings and use the proceeds to purchase precious metals through self-directed individual retirement accounts. Although they are claiming these investments are safe, trust records allegedly show the fair market value of investor-acquired coins is significantly less than the purchase price.
First Class Wealth Preservation, Malizio and Shaw are not registered or notice-filed to render investment advice in Alabama or Texas. Moreover, the parties are accused of falsely claiming First Class Wealth Preservation is an authorized dealer with the Numismatic Guaranty Corporation, a privately-owned, international coin certification service based in Sarasota, Florida.
Investors can contact the ASC at firstname.lastname@example.org and visit its website at https://asc.alabama.gov/ and they can contact the TSSB at email@example.com and visit its website at https://www.ssb.texas.gov/.