URGENT >> BULLETIN >> MOVING: ‘Wings Network’ And Alleged Promoters Charged

wingsnetworkmasscomplaintURGENT >> BULLETIN >> MOVING: (16th Update 12:27 p.m. EDT U.S.A.) “Wings Network,” an MLM “program” in part targeted at TelexFree participants, has been charged in Massachusetts with operating a pyramid scheme and selling unregistered securities as investment contracts as part of a securities-fraud scheme.

Several individual promoters or alleged recipients of fraud-scheme proceeds were named in the civil complaint.

The allegations were brought by the office of Massachusetts Commonwealth Secretary William Galvin, who oversees the Massachusetts Securities Division. Galvin’s office earlier brought fraud charges against TelexFree and banned a similar “program” known as WCM777 from the state. The SEC later sued both TelexFree and WCM777.

“This case is another example of unscrupulous operators preying on vulnerable immigrant communities with promises of great riches, in this instance a bogus means of downloading electronic content,” Galvin said. “In reality, these operators only sought to rope more participants into their scheme.”

In a statement moments ago, Galvin’s office said three individuals in Central Massachusetts had been charged as promoters.

“Within five months, Wings Network collected $12,546,226 from 8,914 Massachusetts investors,” Galvin’s office said, citing the complaint.

Named respondents include Priscila and Geovani Bento of Auburn, and Vinicius Aguiar of Marlborough.

Some of the money was “wire transferred” to Sergio Tanaka of Florida and Tropikgadget, Tanaka’s company based in the United Arab Emirates and Portugal,” Galvin’s office said.

“Tanaka and his company are respondents in the complaint,” Galvin’s office said.

Aguiar, Galvin’s office said, conducted transactions as BRAZUSA Communication Company, Eagle Team, Grupo Aguiar, and Grupo Internacional.

Carlos Barbosa of Madeira, Portugal, is a party referenced in the complaint. Barbosa purportedly is the CEO of Wings Network.

“Respondent Barbosa was videotaped in April, 2014 giving a Wings Network presentation to over 960 Massachusetts investors,” Galvin’s office said.

From a statement by Galvin’s office (italics/carriage returns added):

Wings Network purported to sell mobile marketing platforms that allow consumers to download electronic content for a fee, the complaint stated, but added, “The marketing materials, online selling presentations and assertions by the individual respondents make it clear that the primary purpose of Wings Network is to recruit additional members.”

Of the sales pitches for this “thinly veiled pyramid scheme,” the complaint says, “The use of trendy internet terms combined with meaningless high technology buzzwords and slick websites are all devices to dazzle prospective investors and induce them to purchase their way into the Wings Network scheme.”

“The product itself is redundant because it is not necessary to use any product including Respondents’ product, to download electronic content,” the complaint charges, “The true purpose of the program was to recruit additional participants into the Wings Network and investors were told that recruitment was how the investor was going to make any significant money.”

The complaint seeks a cease and desist order, and a requirement that the respondents offer to compensate investors who suffered losses through the alleged wrongdoing.

A message on the Wings Network website today claims “no wrong doing has been alleged.”

Based on today’s complaint by Galvin’s office, the message on the website appears not to reflect the current reality.

Read the complaint.

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One Response to “URGENT >> BULLETIN >> MOVING: ‘Wings Network’ And Alleged Promoters Charged”

  1. Boston Globe story:
    http://www.bostonglobe.com/business/other/2014/05/15/galvin-charges-wings-network-with-fraud/DHVhYdDCz3Tu44tvaElUjO/story.html

    “This case is another example of unscrupulous operators preying on vulnerable immigrant communities with promises of great riches, in this instance a bogus means of downloading electronic content,” Galvin said. “In reality, these operators only sought to rope more participants into their scheme.”

      (Quote)

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