Aiscend sees Dan Putnam violate SEC fraud injunction?
Aiscend’s first red flag is failure to disclose ownership or executive information on its website.
Aiscend’s website domain (“aiscend.io”), was privately registered on July 25th, 2023.
In researching Aiscend I kept coming across references to B-Epic. This saw me return to Aiscend’s website, where I found mention of B-Epic in its Terms and Conditions:
Use of the “aiscend” and “BEPIC” company name is NOT permitted in Brand Influencer email addresses or third-party marketing websites.
And in Aiscend’s website Privacy Policy;
At aiscend Worldwide, we respect and are committed to protecting your privacy and personal information.
Please read the following to learn more about what type of information is gathered, how the information is used and for what purposes, how or when we disclose the information and how we safeguard your personal information.
B-Epic Privacy Policy covers the collection, use, and disclosure of personal information that may be collected anytime you interact with B-Epic, such as when you visit our website, when you purchase our products and services, or when you contact our Member Support representatives.
B-Epic may update its privacy policy from time to time. When we change the policy in a material way, a notice will be posted on our website along with the updated privacy policy.
B-Epic is an MLM company owned and operated by Dan Putnam. Why this isn’t openly disclosed on Aiscend’s website is unclear.
Having identified Putnam as the owner of Aiscend, things got confusing when I came across an official August 2023 marketing video citing Ali Saleh as CEO of the company.
As of January 2023, Saleh was still promoting Aiscend. In an Instagram video published four days ago however, Saleh mentioned he’d found a “new platform” he’d moved on to.
No idea what the story is there but it seems Saleh is no longer involved in Aiscend.
It should be noted that Saleh is likely desperate to start recruiting people into something new. Earlier this week BehindMLM noted Saleh was unable (or unwilling) to pay legal fees in relation to his Eaconomy legal case.
Looking at Aiscend’s compensation plan, it’s identical to B-Epic’s. As far as I can tell, Aiscend is essentially a product offered within B-Epic.
Why Aiscend then has its own website is unclear.
I was ready to just add an update noting Aiscend on BehindMLM’s B-Epic review, when “Trade Buddy” caught my eye.
At Aiscend, we bring the power of financial literacy to your fingertips. From Trade Buddy delivering high-accuracy Forex signals to hands-free trading technology, we’ve got you covered.
I originally noted Aiscend offered trading signals. Anything automated though would constitute a securities offering.
Under the Howey Test;
An investment contract exists if there is an “investment of money in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.”
Automated trading would see customers give Aiscend (a “common enterprise”) control of invested funds through a trading bot (“investment into a common enterprise”). with a reasonable expectation of profit”).
This is done on the expectation Aiscend’s trading bot will generate investors a return (“a reasonable expectation of profit … derived from the efforts of others”), thus satisfying all four prongs of the Howey Test.
Aiscend’s passive returns trading bot is called “Neabula”. Through Neabula, Aiscend pitches investors on passive returns of 8% to 10% a month.
Access to Aiscend’s Neabula passive returns trading bot is $120 a month (I’ve also seen $150 and then $99 a month), which Aiscend frames as an “investment in your financial future”.
Another Trade Buddy marketing slide, from Saleh’s January 2024 presentation, claims Trade Buddy “automates signal execution” while a customer is at “work or sleeping”.
In the same marketing presentation, Saleh offers up “win-rate” marketing in an attempt to prove Aiscend’s ROI performance.
Marketing like this of course doesn’t mean anything. Legally Aiscend and B-Epic are required to be registered with the SEC and filing period audited financial reports.
Said audited reports can then be used to verify Saleh’s Aiscend win-rate marketing figures.
Heading over to the SEC’s public EDGAR database, I was able to confirm that neither Aiscend, B-Epic, Dan Putnam or Ali Saleh are registered with the SEC.
With Aiscend’s Neabula passive returns provided through forex trading, registration with the CFTC is also required. Once again neither Aiscend, B-Epic, Dan Putnam or Ali Saleh are registered with the CFTC.
All said and done, with Aiscend B-Epic appears to have branched out into securities and commodities fraud.
Whereas this might be Ali Saleh’s first rodeo as an executive, Dan Putnam is no stranger to SEC enforcement of US securities laws.
The SEC sued Putnam, his father and two accomplices for $12 million in securities fraud back in 2020.
The SEC’s charges related to Putnam defrauding investors through multiple MLM crypto Ponzi schemes.
Putnam settled the SEC’s fraud charges in January 2023. As part of the settlement, an injunction prohibited Putnam from committing further violations of US securities law.
Aiscend’s Neabula automated trading bot would appear to violate the terms of Putnam’s SEC settlement. Notwithstanding additional commodities fraud violations.
Whether the SEC or CFTC takes any action remains to be seen. Seemingly without a CEO, Aiscend might be dead in the water.
Presently there is no mention of Aiscend on B-Epic’s website. And as of February 2024, traffic to Aiscend’s website was so low SimilarWeb didn’t track it.
Not expecting any but pending any further updates, we’ll keep you posted.