Eaconomy co-founder Candace Ross has sued Hassan Mahmoud.

Ross, who is also Mahmoud’s ex-wife, has accused him of “fraud and mismanagement”.

Ross and Mahmoud launched Eaconomy back in 2019. From Ross’ January 24th filed Complaint;

Eaconomy’s original members included Ross and Mahmoud, as well as a third member that left the company in or about 2020.

In or about March 16, 2021, Ross and Mahmoud executed a separate operating agreement for the Company (the “2021 OA”).

Per the 2021 OA, Ross and Mahmoud each held a 50% membership interest in Eaconomy.

Eaconomy was a reboot of Silverstar Live, a fraudulent investment scheme the CFTC fined Ross and Mahmoud $75,000 over.

The first iteration of Eaconomy collapsed in early 2020. About a year later Mahmoud rebooted Eaconony through Beyond.

Later that same year BehindMLM reviewed Eaconomy’s third reboot, noting various ongoing compliance issues.

The third Eaconomy reboot appears to have relied heavily on Michael Talento (right).

In 2022, one of Eaconomy’s key leaders and trading consultants, Michael Talento, indicated he would be leaving the Company.

In an attempt to dissuade him from doing so, Ross and Mahmoud agreed to transfer to Talento a 33.33% membership interest in the Company.

On June 12, 2022, Mahmoud messaged Talento via Telegram stating,

“Check your emails. Operating Agreement is done… Also [counsel] said somebody had to get 0.01 because 33.33 x 3 is 99.99 so I just threw it on mine but it doesn’t mean anything.

Go ahead and sign. Lets get fucking rich.”

After persuading Talento to stay, Mahmoud then set about getting rid of Ross.

In June 2022, Ross and Mahmoud decided to move to Portland, Oregon.

Mahmoud informed Ross to move first and that he would pack their belongings and meet her there.

However, once Ross arrived in Portland, Mahmoud indicated he was not coming, that he no longer wanted to be married, and he had moved in with another woman.

Ross and Mahmoud ended their marriage in August 2022.

It is after detailing the divorce that Ross gets into Mahmoud’s alleged Eaconomy fraud;

Despite Ross’ co-management rights, Mahmoud egregiously mismanaged the Company without her participation or consent.

For instance, in addition to failing to pay affiliate commissions, Mahmoud had been making excessive payments to certain affiliates using Company funds via what he referred to as “override deals.”

These payments totaled well in excess of seven figures, and were made without Ross’ approval or consent.

And then there’s the signed Eaconomy ownership agreement with Talento;

Talento indicates he never received a K-1 for his purported interest in Eaconomy.

In 2023, Talento contacted Mahmoud to inquire about the status of his K-1. Per Talento, Mahmoud responded by stating Eaconomy was just “backed up” on its tax filings.

Mahmoud has recently claimed in a conversation with Ross there was in fact no transfer to Talento, the written consent was merely a fake document he created to induce Talento to remain with the Company, and the transfer was not “real.”

And while that’s what Mahmoud’s alleged to have told Ross, she claims he recently told Eaconomy leaders “he bought out Talento’s interest for $1,000,000.”

This claim is not only demonstrably false, it contradicts Mahmoud’s own statements that Talento never held an interest.

After learning of Mahmoud “fraudulently” securing a Small Business Association loan, Ross claims she confronted Mahmoud about his “ongoing mismanagement” of Eaconomy in January 2023.

In response, Mahmoud indicated he would resign but falsely claimed he needed to do so because he was terminally ill.

Ross then became CEO of the Company via approval and appointment by MacroXell.

MacroXell refers to “MacroXell Management Services”, the appointed Eaconomy company manager Ross claims she and Mahmoud each hold a 50% stake in.

Despite his purported resignation, Mahmoud refused to provide Ross with critical information necessary to operate the business or correct his mismanagement.

Mahmoud also had secret conversations with certain affiliates to undermine Ross’ authority and ensure they remained loyal to him.

After Ross repeatedly informed Mahmoud that she could not operate as CEO without full transparency and access to Company information and operations, Mahmoud threatened and extorted her.

On numerous occasions, in breach of his fiduciary duties, he indicated if she did not follow his directives he would simply “shut down” the Company and move on.

He further coordinated with numerous affiliates that confirmed their objective per Mahmoud was to “Force her out.”

In addition, on numerous occasions, Mahmoud threatened to take Ross’ son from her as a further method to exert Company control.

Ross maintains that despite still being a co-owner of MacroXell;

Mahmoud and his counsel prevented Ross from accessing Company information, revoked her bank access, and directed its CPA not to communicate with her.

In addition, his attorneys refused to return or respond to her emails, messages, and calls.

Citing a “toxic environment”, Ross claimed she sold 23.33% of her interest in Eaconomy to Mahmoud in April 2023. The agreed on purchase amount was $5 million.

As per the terms of the sale agreement, if Mahmoud defaulted Ross would retain her original ownership stake.

After executing the agreement, Ross alleges

Mahmoud made only one payment then defaulted under the agreement, failed to make any additional installment payments, and the interest reverted to Ross as of September 8, 2023.

After that we fast-forward to January 2024;

In January 2024, Mahmoud entered into an agreement to sell a 5% economic interest in the Company to an investor at a substantial purchase price.

Ross claims, despite still being a part-owner, she wasn’t consulted or even informed. Ross claims she only learned of the agreement after Mahmoud’s attorneys sent her a bill for drafting it.

On information and belief, as a result of Mahmouds further mismanagement, the Company is in breach of the agreement in the amount of approximately $1,000,000.

Further, while the agreement references yet another Company operating agreement dated January 17, 2024 as an attachment, the operating agreement is not attached and Mahmoud’s attorneys claim it does not exist.

On information and belief, after Mahmoud materially breached his obligations to purchase Ross’ membership interest per the 2023 Sale Agreement, he devised a scheme to misappropriate her interest without paying any of the agreed upon purchase price.

Ross claims that, since “at least April, 2024”, Mahmoud has been referencing a “false” document that has

been altered to remove Ross as a member altogether and to instead identify Mahmoud as the sole owner of Eaconomy.

On information and belief, Mahmoud has been using the False Written Consent in representing to third parties that he is the sole owner of Eaconomy and to misappropriate Ross’ rights, knowing full well that those representations are false.

Denied or not, Ross claims her ownership stake in Eaconomy hasn’t done her any good over the past few years.

While raiding the Company and using it for his own financial gain, Mahmoud has not paid Ross any Company distributions for years, he has not provided her with any K-1s, he has excluded her from all management decisions, he has provided her with little to no access to Company information, and he has disavowed the 2021 OA and 2021 Written Consent by attempting to steal her membership interest in Eaconomy.

In conclusion, Ross alleges;

Mahmoud has falsified documents to fraudulently misappropriate Ross’ membership interest in the Company.

Further, on information and belief, Mahmoud is continuing to mismanage the Company and misappropriate its funds by paying family members and entities he controls, while claiming those payees constitute “employees” and legitimate service providers.

At the same time, he has not paid a critical vendor and back-office software provider that is integral in timely paying affiliate commissions.

Similarly, on information and belief, Talento has received no distributions, no K-1s and Mahmoud denied in early January 2025 that Talento has any interest in the Company.

Ross and Talento appear to have had enough by late 2024, prompting them to approach My Daily Choice owner Josh Zwagil (right).

Knowing Zwagil is a highly reputable operator in the direct sales industry, they inquired about a potential buyout of their interests and assistance with turning the Company around.

This led to a purported sale of Ross’ and Talento’s respective Eaconomy ownership stakes to Zwagil on January 5th, 2025.

Zwagil, who through Creative Brands LLC is also a Plaintiff, alleges;

Plaintiffs discovered that under Mahmoud’s mismanagement, the Company failed to pay a critical back-office software provider resulting in a substantial outstanding balance and a notice of imminent disconnection.

Plaintiffs also had concerns that Mahmoud would misappropriate the nominal funds remaining in the Company’s bank account.

Although Mahmoud disavowed the 2021 OA for the reasons stated above, Mahmoud now claims Creative Brands acquired an economic interest in the Company under the 2021 OA.

To be honest beyond confirming his latest “I am the sole owner of Eaconomy” representations are fraudulent, I’m not sure what the significance of Mahmoud re-recognizing the 2021 ownership agreement is.

In any event, failure to make supplier payments saw Eaconomy’s bank place a hold on the company’s account.

Creative Brands proposed a joint resolution to unfreeze the account and restore Company access.

Rather than proceeding with the resolution, Mahmoud used the opportunity to falsely claim Creative Brands is responsible for the Company’s failure to pay commissions and has misappropriated genealogy reports.

Creative Brands and Ross claim Mahmoud

has re-routed all merchant accounts to a new bank account with the Company’s revenues deposited therein.

Thus, contrary to Mahmoud’s claims, the account is not the cause of his failure to pay commissions.

Rather, his failure is either a result of his own mismanagement or his choice.

And so, with Eaconomy’s official account frozen, Mahmoud allegedly siphoning off money through newly created accounts and Eaconomy’s suppliers not getting paid;

On January 12, 2025, Mahmoud and his brother Mohammed travelled from California to Ross’ home in Portland, Oregan. Mahmoud did so without providing any advance notice to Ross whatsoever and arrived unannounced.

Mahmoud and his brother refused to leave unless and until Ross let them in her home and provided access to her young son.

Ross refused and called the police. On information and belief, Mahmoud engaged in this tactic in a final desperate attempt to control Ross and coerce her cooperation.

Causes of action raised against Mahmoud in the California Complaint are:

  • breach of fiduciary duty (Ross against Mahmoud);
  • derivative action for breach of fiduciary duty (Ross on behalf of Eaconomy against Mahmoud);
  • fraudulent representation and nondisclosure (Ross against Mahmoud);
  • breach of contract with respect to the MacroXell ownership agreement (Ross against Mahmoud);
  • breach of contract with respect to the 2021 ownership agreement (Ross against Mahmoud);
  • unjust enrichment (Ross and Creative Brands against Mahmoud)
  • accounting (Ross and Creative Brands against Mahmoud)
  • declaratory relief (Ross and Creative Brands against Mahmoud)
  • access to company books and records (Ross against Mahmoud)

The sought after declaratory relief pertains to Mahmoud’s claimed ownership stake in Eaconomy, which is alleged to frequently fluctuate;

On January 8, 2025, Mahmoud claimed through counsel that Ross owned a 50% interest in Eaconomy before the dispute arose.

However, just days later, Mahmoud changed his position and now claims he holds a majority interest of 56.67% in the Company.

This again reflects nothing more than a desperate effort to retain power and control, as he failed to comply with his obligations under the 2023 Sales Agreement, as Mahmoud himself has conceded in communications with Ross.

In addition, his ever-changing positions contradict his prior representations under oath that he is the sole/100% owner of the Company, and confirm Mahmoud will make whatever claims are necessary to suit his immediate needs and interests.

An actual controversy has arisen and now exists between Plaintiffs and Defendant with respect to their respective rights and interests in the Company.

Defendant has asserted various claims ranging from owning 100% of the Company, to owning 50% of the Company. Plaintiffs refute these claims and contend Mahmoud holds no such rights, and he has falsified Company records to assert his claims.

Plaintiffs desire a determination by the Court of their rights and interests in the Company and resolution of the issues and controversy described above.

Judgment, damages, injunctive relief, restitution, pre and post-judgment interest and legal costs are also sought.

At time of publication no ownership or executive information is provided on Eaconomy’s website.

SimilarWeb tracked ~46,900 monthly visits to Eaconomy’s website for December 2024, up from just ~3300 in November.

New Eaconomy recruitment appears to have spiked in Poland (27%), the US (16%) and the UK (11%).

The spike follows Eaconomy regulatory fraud warnings from Norway, New Zealand and Slovakia in October 2024, and the UK and Czechia in November 2024.

Stay tuned for updates as BehindMLM continues to track the Eaconomy ownership dispute case.