URGENT >> BULLETIN >> MOVING: (15th Update 4:43 p.m. EDT U.S.A.) The SEC has gone to federal court in Massachusetts, charging DFRF Enterprises and alleged operator Daniel Fernandes Rojo Filho with operating a combined pyramid- and Ponzi scheme targeted at “Spanish and Portuguese-speaking communities in Massachusetts, Florida, and elsewhere in the U.S.”
Six alleged promoters also were charged.
In its complaint, the SEC ties Filho to Sann Rodrigues, a figure in the TelexFree Ponzi- and pyramid-scheme case filed by the agency last year in Massachusetts.
A stunning allegation from the SEC complaint (italics added/light editing performed):
. . . Filho has caused DFRF to pay more than $310,000 for the benefit of Sanderley Rodrigues de Vasconcelos (“Rodrigues”). Rodrigues is the subject of a 2007 consent judgment in a Commission enforcement action concerning the “Universo Foneclub” pyramid scheme, and he is a defendant in the Commission’s pending enforcement action concerning the “TelexFree” pyramid scheme. On March 21, 2015, Filho caused DFRF to pay $50,000 to a business belonging to Rodrigues. (The payment was made less than one month after Filho publicly denied any link between DFRF and TelexFree.)
On March 30, 2015, Filho caused DFRF to pay $100,000 to the same business. On April 2, 2015, Filho caused DFRF to supply more than $160,000 so that another business belonging to Rodrigues could purchase a 2008 Lamborghini sports car. There is no evidence that Rodrigues provided any services or other benefit to DFRF.
All in all, according to the SEC, Rodrigues received more than $310,000 from DFRF’s fraud scheme. He has claimed he received at least $3 million from TelexFree.
After Rodrigues was arrested in the United States in May on charges of immigration fraud, he asserted his current income was $80,000 a year, according to court filings. He also claimed to own two homes — one in Massachusetts and one in Florida — free and clear.
The PP Blog reported on June 30 that a wanted notice on INTERPOL’s website said Rodrigues was being sought by Brazil for “Tax Evasion and not obey[ing] a Judicial Order.” Though granted conditional bail in the immigration case, Rodrigues now is being held in the United States on Brazil’s warrant.
He also is implicated in a scheme known as IFreeX, the subject of a warning by the Massachusetts Securities Division last year.
The British Columbia Securities Commission issued a fraud warning against DFRF in May.
In the SEC complaint filed under seal June 30 and made public today, the agency described DFRF as an ongoing offering fraud and Filho as a thief who had siphoned investors’ outlays from the scheme.
“Filho has also used the investors’ money for his personal benefit,” the SEC charged in its 22-page complaint. “Since June 2014, he has siphoned more than $6 million out of DFRF — approximately 40% of the total received from investors. This includes more than $1.8 million in cash withdrawals, approximately $1.8 million for personal expenses (including $500,000 for travel), and almost $2.5 million to acquire a fleet of luxury automobiles.”
The scheme allegedly gathered about $15 million, the SEC charged.
“DFRF and its operators falsely claimed that they were running a lucrative gold mining business when in reality they were operating a Ponzi and pyramid scheme that preyed on investors in particular ethnic communities who stand to lose millions of dollars,” said John T. Dugan, associate regional director of the SEC’s Boston Regional Office. “Investors were not given the full story about the true value and security of their investments.”
Charged promoters include Wanderley M. Dalman of Revere, Mass.; Gaspar C. Jesus of Malden, Mass.; Eduardo N. Da Silva of Orlando, Fla.; Heriberto C. Perez Valdes of Miami; Jeffrey A. Feldman of Boca Raton; and Romildo Da Cunha of Brazil.
On Jan. 19, 2015, the PP Blog reported that DFRF was the apparent sponsor of an event in Florida that featured an appearance by Brazilian racing legend Emerson Fittipaldi. Sann Rodrigues — now jailed in the United States on a warrant from Brazil — also was seen with Fittipaldi.
Like Rodrigues, Filho is a Brazilian who has conducted business in the United States. He previously was linked to the noxious Evolution Market Group/Finanzas Forex case in 2010. The PP Blog first wrote about Filho more than five years ago, in May 2010.
A federal judge has approved an asset freeze in the DFRF case, the SEC said.
BehindMLM.com reported in May 2015 that DFRF had dropped the names of the SEC and the FBI in a YouTube sales pitch uploaded in December 2014.
From a statement today by the SEC (italics added):
The SEC alleges that DFRF Enterprises, named for its founder Daniel Fernandes Rojo Filho, claimed to operate more than 50 gold mines in Brazil and Africa, but the company’s revenues came solely from selling membership interests to investors and not from mining gold. With the help of several promoters, they lured investors with such false promises as their money would be fully insured, DFRF has a line of credit with a Swiss private bank, and one-quarter of DFRF’s profits are used for charitable work in Africa. The scheme raised more than $15 million from at least 1,400 investors by recruiting new members in pyramid scheme fashion to keep the fraud afloat, and commissions were paid to earlier investors in Ponzi-like fashion for their recruitment efforts.
Rodrigues is not listed as a codefendant in the SEC’s case against Filho and the other defendants.
But the agency alleged that DFRF also had paid those defendants. Since June 2014: “approximately $521,000 to Valdes, $252,000 to Feldman, $221,000 to Silva, $56,000 to Jesus, $51,000 to Dalman, and $33,000 to Cunha.”
As was the case with TelexFree, some investors paid their sponsors directly, instead of paying DFRF, the SEC alleged.
“The amount of checks and cash that the individual defendants collected directly from investors is currently unknown,” the agency said.
Included among a “a fleet of luxury automobiles” acquired by Filho from investors’ money were a 2014 Rolls Royce, a 2015 Lamborghini, a 2014 Lamborghini, a 2012 Ferrari, a 2006 Ferrari, a 2013 Mercedes, a 2015 Cadillac and a 2014 Cadillac, the SEC charged.
Read the SEC’s DFRF complaint.
