Ash Mufareh has set the stage for a biblically epic showdown with the SEC.

In a webinar held on Saturday August 12th, Mufareh declared “only God can stop OnPassive”.

When the SEC began investigating OnPassive is unclear. In August 2022 however, Mufareh inferred he and OnPassive were under investigation.

The good news for OnPassive victims is that Mufareh claims to have provided the SEC with plenty of incriminating evidence.

[0:44] We are disappointed by the SEC’s behavior and that they have decided to file this Complaint.

We had full compliance and cooperation, productively with them over the years. Literally for years.

We’ve been always transparent and uh supportive uh, we understood their uh curiosity and their reasons to investigate, and we’ve been all along open.

The SEC has charged Mufareh with multiple violations of the Securities and Exchange Act, including:

  • unregistered offers and sale of securities;
  • fraud;
  • fraud in connection with the purchase or sale of securities; and
  • violation of the Securities and Exchange Act as a “control person”

Ignoring the charges and evidence presented in the SEC’s Complaint, Mufareh claims the regulator filed suit because OnPassive made them “discomfortable”.

[1:24] We understand some people are probably discomfortable … with OnPassive changing the game. They’re not used to such a clean and pure thing.

So they’re doing everything they could and they have been. I just want you to understand this is not a new thing.

They (the SEC) have been doing everything in their power to undermine OnPassive, to diminish it, the reputation of Ash Mufareh and all of that.

I just want you to know that this (the SEC’s lawsuit) is not going to change the facts. Okay? It’s all just pointless allegations.

We strongly disagree with the allegations in all. And they’ve contained y’know, just some uh, ridiculous uh points. And I personally look forward to our day in court.

[2:45] OnPassive is the future of the internet, that’s not gonna change … and we are not gonna get into the nonsense.

Mufareh goes on to explain the reason the SEC sued him was for “fame and lame popularity”.

[4:25] On the other side, most of (the) people are just in it for their pockets or some fame, or lame popularity at any cost.

I don’t care about that. I’m gonna remain loyal and bold. I’m gonna do it or die.

Not caring about his pockets is a bold statement to make, considering Mufareh stands accused of soliciting $108 million from consumers.

According to the SEC, Mufareh and his wife Asmahan spent OnPassive member’s funds on “online retail purchases, upscale dining, TV subscriptions, groceries, salon and spa visits, … martial arts lessons, jewelry purchases … and the purchase of stocks.”

[4:55] [The] disappointing allegations are, y’know uh, I would say uh, (are) pathetic.

[5:28] You probably see something because it’s now turning under the light. To you probably something new.

Just want you to relax because to us, this has been going on, and other things, and other people, that is a part of the game.

When you’re someone, when you’re going against the flow, when you’re really doing something clean, it’s gonna shake up all the corruption.

And I will say again, OnPassive is the only correction to the corruption.

[7:55] It’s very pathetic to think OnPassive is after the money or doing anything that is not uh, y’know, good for humanity with the money.

One of the major points in the SEC’s lawsuit was OnPassive’s perennial promise of products.

Having chiefly focused on recruiting investors rather than the development of the purported AI applications, Mufareh and ONPASSIVE continuously delayed any “launch” of the purported AI applications while claiming that they were being developed.

Between August 2019 and at least December 2021, the number of computer applications the Defendants claimed they would launch increased from approximately 20 to over 50.

As of June 30, 2023, ONPASSIVE had not yet launched any product for a fee or paid any commissions to investors.

In his Saturday webinar, Mufareh doubled down on OnPassive’s non-existent products.

[2:55] (The SEC’s lawsuit) is not gonna change the fact that OnPassive is producing and has produced some of the finest technologies.

That was our promise in 2018. And we will only bring you the finest technologies, the finest products and services, that finally we are uh witnessing a new transparent, clean company to uh serve the public.

OnPassive has taken a great role in that. We are committed to uh, the uh, human and behave in a very humane uh, way, to our customers and humanity in general.

[4:42] We’re just about to roll out life-changing products. That is not gonna change.

With the SEC’s lawsuit having only been filed on Friday, we obviously don’t know how it’s going to play out yet.

Nonetheless Mufareh’s statements hint that, should the SEC prevail, he has no intention of complying with court orders.

[3:49] I have to tell you, I always said, only God can stop OnPassive.

No one is yet born, to have the ability to stop OnPassive. Alright? Only God.

And no man and no woman are born yet to stop OnPassive, because it is for the people. It is because of people, that is the only good hope that we have.

[5:15] Millions of people know who we are, what we do and we’re not ashamed of it. We are so proud of what we do.

And we will continue doing it. We’re not slowing down. Business is as usual.

While we don’t know who is representing OnPassive against the SEC yet, Mufareh claims

[6:10] We have an amazing legal team. Couldn’t ask for a better team. So strong, so powerful (and) experienced.

And they’re so passionate about defending you, defending OnPassive. And they will settle this one way or another.

With respect to the SEC’s OnPassive lawsuit, Mufareh has instructed OnPassive investors to “not to be bothered” and “not to give that a lot of attention”.

[10:05] If you choose to be with OnPassive and win, and go to the top with us, then please do not give an ear to the losers.

OnPassive’s case docket is expected to become publicly available over the next 24 hours. Stay tuned for updates.

 

Update 14th August 2023 – The SEC v. OnPassive et al. case docket is now public.

As at the time of this update, there have been no further filings beyond the SEC’s initial Complaint.

A Civil Cover Sheet accompanying the SEC’s Complaint reveals OnPassive and Ash Mufareh are represented by Christopher Garcia of the firm Latham Watkins LLP.