Eaconomy and co-owner Hassan Mahmoud has filed suit against My Daily Choice owner Josh Zwagil.

In a Nevada suit filed on January 21st, Mahmoud claims Zwagil’s company Creative Brands attempted a “hostile takeover” of Eaconomy.

Editor’s Note: For some reason Zwagil is incorrectly cited as “Zwigal” throughout Mahmoud’s suit. To keep things simple I’ve corrected this presumed spelling mistake in any quotations.

Both Zwagil and Creative Brands are named defendants in Mahmoud’s suit.

Eaconomy is an MLM company co-founded by Mahmoud and Candace Ross in 2019.

MacroXell Management Services LLC was creates as the sole Manager of Eaconomy, through which Mahmoud and Ross each shared a 50% ownership stake.

Mahmoud and Ross were married but divorced in August 2022 after Mahmoud, to quote Ross in a legal filing, “moved in with another woman”.

Ross filed her own lawsuit against Mahmoud on January 24th. Creative Brands is also a Plaintiff in the suit.

BehindMLM learned of Ross’ Complaint first, despite Mahmoud’s Complaint being filed a few days prior. We only learned of Mahmoud’s lawsuit post-publication of our Ross lawsuit article.

As there is significant overlap between the two cases, I’ll provide Ross’ version of events where applicable.

In June 2022, one month prior to Mahmoud’s and Ross’ divorce, Michael Talento was brought on as a part owner.

This resulted in the following ownership split:

  • Hassan Mahmoud – 33.34%
  • Michael Talento – 33.33%
  • Candace Ross – 33.33%

Fast-forward to April 2023 and, through a Sales Agreement, Ross sold 23.33% of her Eaconomy ownership stake to Mahmoud.

Writes Mahmoud;

Accordingly, as of April 13, 2023, Mahmoud owns 56.67% of Eaconomy.

In her lawsuit Ross disputes this claim. Under the terms of the 2023 Sales Agreement Mahmoud was to purchase the 23.33% ownership stake for $5 million.

Writes Ross;

Mahmoud made only one payment then defaulted under the agreement, failed to make any additional installment payments.

Under the terms of the 2023 Sales Agreement, if Mahmoud defaulted ownership reverted back to Ross. And as far as Ross is concerned, that’s what happened as of September 2023.

A copy of the 2023 Sales Agreement is exhibited by Mahmoud. As per the agreement;

The Buyer will accept the Goods and pay for the Goods with the sum of $5,000,000.00 (USD).

The Purchase Price will be paid in consecutive monthly installments commencing on June 7, 2023 and continuing on the 7th day of each following month.

Hassan Mahmoud will make monthly payments in the amount of $65,972.22 for 72 months. This will total $5,000,000.00.

If Hassan Mahmoud hasn’t paid his monthly payment in a consecutive 90 days (3 months) then he will have become delinquent and all shares “23.33%” will be returned to Candace Ross.

Mahmoud doesn’t confirm he adhered to the terms of the 2023 Sales Agreement in his suit. He simply states after the agreement was executed, he “owns 56.67% of Eaconomy.”

Mahmoud cites Creative Brands as an Eaconomy competitor. Mahmoud claims Josh Zwagil (right), through Creative Brands, initiated a hostile takeover of Eaconomy

with the goal of driving Eaconomy out of business and looting Eaconomy’s assets.

Mahmoud claims on January 8th, 2025, Zwagil’s attorney emailed Mahmoud to inform him Creative Brands had “acquired 66.66% of the Company’s equity and became the majority owner.”

As confirmed by Ross in her lawsuit, she and Talento sold their respective Eaconomy ownership stakes to Creative Brands on January 5th, 2025.

Creative Brands’ attorney further informed Mahmoud that McroXell had been removed as Eaconomy’s Manager, and that Mahmoud’s “administrative rights … were formally revoked”.

Again, without confirming he didn’t default on the 2023 Sales Agreement, Mahmoud claims

The January 8, 2025 Email incorrectly contended that “the only pre-existing governance document for the Company is a resolution signed by Mr. Mahmoud, Mike Talento, and Candace Ross.”

The Membership Interest Purchase Agreement between Ross and Creative Brands incorrectly sets forth that Ross owns 33.33% of Eaconomy.

Ross could not transfer 33.33% of the ownership interest in Eaconomy to Creative Brands because she already transferred a 23.33% of ownership interest in Eaconomy to Mahmoud and had just 10% of Eaconomy’s ownership interest left to ostensibly transfer.

Further, Ross is not permitted to transfer her remaining 10.00% of the ownership interest in Eaconomy because Mahmoud, pursuant to the Sales Agreement, owns a future interest in the remaining 10.00% ownership interest.

Mahmoud is the majority owner of Eaconomy because he, as of April 13, 2023, owns 56.67 % of Eaconomy.

Mahmoud has not voted or consented to make Creative Brands a member of Eaconomy.

Mahmoud goes on to complaint that, since January 8th, Zwagil has

fraudulently represented to Eaconomy’s vendors, clients, and affiliates that Creative Brands, owns, controls, and operates
Eaconomy.

In one such instance, Defendants fraudulently represented to Eaconomy’s bank that Creative Brands, owns, controls, and operates Eaconomy.

Eaconomy maintains several business banking accounts (the “Bank Accounts”).

Defendants seized control of Eaconomy’s Bank Accounts and within minutes, illegally wired all of Eaconomy’s funds held in the Bank Accounts, over $100,000, to an account owned by Creative Brands.

Based on Defendants’ fraudulent representations, the Bank Accounts have been frozen.

Because Eaconomy lacks access to its Bank Accounts, Eaconomy has been unable to pay its employees and affiliates.

Not only does Eaconomy not have access to funds held in the Bank Accounts, Eaconomy cannot accept funds into the accounts that would be used to pay Eaconomy’s affiliates and employees.

In addition, because Defendants have access to Eaconomy’s Bank Accounts, they have access to the confidential information held within the banking documents, including parties who are being paid by Eaconomy and who are transferring money to Eaconomy.

This information should not be in the possession of Eaconomy’s competitor.

Based on Defendants’ fraudulent representations regarding Defendants’ management authority over Eaconomy and Zwagil’s personal relationship with the owner of Exigo, Exigo improperly provided Defendants access to Eaconomy’s confidential business information.

Since Exigo provided access to Defendants (Eaconomy’s competitors), Defendants have been disclosing Eaconomy’s Confidential Information to third parties in an effort to damage Eaconomy.

Based on Defendants’ fraudulent representations, Exigo restricted Eaconomy and Mahmoud’s access to Exigo’s products and services.

Defendants have also fraudulently represented to Eaconomy’s vendors, clients, and Affiliates that Mahmoud has mismanaged Eaconomy, is a fraudster, a conman, and that he and Eaconomy lack the funds to continue operating Eaconomy.

Mahmoud’s Claims for relief against Zwagil and Creative Brands include:

  1. violation of the Defense of Trade Secret Act
  2. declaratory judgment and
  3. defamation (2 claims)

Defendants made false and defamatory statements regarding Eaconomy and its CEO, Mahmoud, including, but not limited to:

(1) Mahmoud is committing criminal fraud;

(2) Mahmoud is stealing funds from Eaconomy;

(3) Mahmoud is a scam artist; and

(4) Eaconomy does not have sufficient funds to stay in business.

It should be noted that under Mahmoud’s leadership, Eaconomy has received regulatory fraud warnings from Quebec, Norway, New Zealand, Slovakia, the UK and Czechia.

Mahmoud’s sough after declaratory judgment pertains to certification that Creative Brands doesn’t have an ownership stake in Eaconomy and its removal of MacroXell as Eaconomy’s Manager.

In addition to a declaratory judgment, Mahmoud is also seeking damages and legal costs.

Cutting through the legalese, the way I see it Mahmoud’s entire case rests on whether he adhered to the terms of the 2023 Sales Agreement.

We have Candace Ross on the record stating Mahmoud defaulted on payments. At time of publication Mahmoud has neither confirmed or denied whether he defaulted in legal filings.

Somebody is lying here.

The 2023 Sales Agreement is clear, if Mahmoud defaults, ownership reverts back to Ross. Mahmoud has exhibited a copy of the 2023 Sales Agreement with that exact wording, so arguing otherwise in court would seem really, really fucking stupid.

But here we are. Pending confirmation Mahmoud adhered to the 2023 Sales Agreement and is up to date with periodic payments to Ross as agreed, the outcome of both Mahmoud’s and Ross’ cases remain uncertain.

Stay tuned for updates as BehindMLM continues to track both cases.