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Tag: affinity fraud

U.S. Marshals Service Allegedly Seizes Gun From Accused USFIA Pyramid-Schemer

“Initially, Defendant Steve Chen aka Li Chen (“Chen”) was not present at the Company Offices. Shortly after the Receiver arrived and the U.S. Marshals secured the Company Offices, Chen arrived. He was wearing a security guard uniform and carried a loaded gun, which was not concealed. The U.S. Marshals seized the weapon and also found…

Nov 20, 2015
EDITORIAL: Creeping Up On MLM Perdition

EDITOR’S NOTE: The MLM “program” known as Wings Network is alleged to have operated through two business entities that used the name “Tropikgadget.” The SEC’s case, announced Friday, is filed in U.S. District Court for the District of Massachusetts. That’s the same venue in which the agency’s epic TelexFree case was filed last year. There…

Mar 3, 2015
MILESTONE: The PP Blog’s 2,500th Post: Pennies For Our Thoughts

EDITOR’S NOTE: This post originally was published at 12:40 a.m. ET on Nov. 3. It will continue to appear at the top of the PP Blog for a while, but new stories will appear below it . . . Dear Readers, What a long, strange, occasionally exhilarating and sometimes frightening ride it has been. This…

Nov 13, 2014
NEW ENGLAND PUBLIC RADIO: Secretary Galvin Talks TelexFree, Sann Rodrigues And ‘IFreeX,’ Tells Station Accused Huckster’s ‘Current Whereabouts . . . Unknown’

UPDATED 8 A.M. EDT U.S.A. New England Public Radio has a minute-long audio report on TelexFree, iFreeX and Sann Rodrigues, including comments from Massachusetts Commonwealth Secretary William Galvin. An NEPR text report is available here. Look under the byline of Kari Njiiri for a link to the audio report. Rodrigues, accused in April 2014 by…

Oct 3, 2014
Small Sampling Of TelexFree ‘Net Losers’ Paints Picture Of Massive Cash Losses And Potentially Horrifying Loss Of Future Purchasing Power

UPDATED 3:33 P.M. EDT SEPT. 22 U.S.A. A small subset of data from 95 self-identified “net losers” in the TelexFree MLM scheme shows that they lost a whopping average of $27,578 each, according to an analysis by the PP Blog of court filings in the TelexFree bankruptcy case. The average could be higher because investment…

Sep 21, 2014
BULLETIN: Federal Judge Freezes At Least 54 Bank/Vendor Accounts Linked By SEC To Alleged WCM777 Ponzi/Pyramid That Targeted Asians And Latinos; Court Authorizes Saturday Depositions And Orders Protection Of Records And Assets To Be Repatriated

BULLETIN: What happens if it is alleged by law enforcement that you’re a Ponzi schemer/affinity fraudster, a business associate of a Ponzi schemer/affinity fraudster or a vendor of a Ponzi schemer/affinity fraudster? A federal judge has frozen at least 54 bank or financial accounts the SEC has linked to WCM777, an alleged $65 million Ponzi-…

Mar 29, 2014
TelexFree, WCM777 (Etc.) — In Pictures

California-based WCM777, an MLM “program,” got booted out of Massachusetts in November 2013, amid allegations of securities fraud and affinity fraud targeted at the Brazilian community through hotel pitchfests. WCM777, purportedly operated by Ming Xu and recruiting affiliates to conduct business over the Internet, later got booted out of California. In addition to the Brazilian…

Mar 22, 2014
UPDATE: Promoters May Be Lobbying TelexFree To Keep Ponzi Scheme Intact

Updated 8:36 a.m. ET (Feb. 26, U.S.A.) Some TelexFree promoters may be lobbying the company and Brazil-based executive Carlos Costa to keep its original Ponzi scheme intact, according to a Blog post (in Portuguese) observed by the PP Blog this morning. BehindMLM.com reported on Feb. 19 that TelexFree may be in the process of changing…

Feb 25, 2014
URGENT >> BULLETIN >> MOVING: SEC Charges 3 Executives, 8 Promoters Of Alleged ‘Worldwide’ Pyramid Scheme Operating From Hong Kong, Canada And British Virgin Islands; ‘CKB’ And ‘CKB168’ Fraudsters Allegedly Targeted Asian-American Community, Agency Says

URGENT >> BULLETIN >> MOVING: 3RD UPDATE 5:46 P.M. EDT (U.S.A.) The SEC says it has gained an asset freeze and charged three executives and eight promoters of a worldwide pyramid scheme operating through five entities from Hong Kong, Canada and the British Virgin Islands. Promoters of the scheme, which “purportedly” sells Internet-based children’s educational…

Oct 17, 2013
BULLETIN: Florida Woman Sued Civilly, Charged Criminally In Alleged Ponzi- And Affinity-Fraud Scheme Targeted At Colombian-Americans

BULLETIN: The SEC has sued a Florida woman, amid allegations she swindled Colombian-Americans and other Colombians in a $4 million Ponzi scheme that duped investors into believing her purported “immigration bail bonds” program was backed by the FDIC and an “investment broker” later blamed for payout delays. The woman — Jenny E. Coplan of Tamarac…

Sep 30, 2013
REPORT: ‘Women’s Circle’ Cash-Gifting Pyramid Scheme ‘Making Its Rounds’ In Canada’s Province Of British Columbia

The Castlegar Source, a publication in British Columbia, is reporting that the Nelson Police Department has issued a warning on a purported “women’s circle” gifting “program” making its way around the area. A similar scheme operating in the United States resulted in criminal charges being filed against Connecticut-based pitchwomen and subsequent convictions — with jail…

Sep 11, 2013