SEC v. OnPassive fraud case referred to mediation
An October 11th court order has referred the SEC’s fraud case against OnPassive to mediation.
The same day the order was filed, the court noted that the parties had “yet to agree on a mediator”. The parties were directed to select a mediator and mediation date within fourteen days.
A settlement through mediation would avoid the SEC’s case going to trial, currently scheduled for June 2025.
The other update to note is a Motion to Dismiss filed by OnPassive on October 16th.
Among other things, in its motion OnPassive argues
the Complaint should also be dismissed because the allegations concerning the OnPassive business model describe nothing other
than the type of multi-level marketing program that courts routinely find to be lawful.
OnPassive has and at no time during its operation had any retail customers during its operation. This is the very definition of an MLM pyramid scheme.
There’s no timeline for a decision on OnPassive’s Motion to Dismiss. We’ll keep an eye on the docket for an order.
Update 28th October 2023 – A mediator has been agreed on and a mediation date has been scheduled for May 10th, 2024.
Update 26th June 2024 – The May 10th mediation went ahead as scheduled. A settlement wasn’t reached but mediation proceedings will continue at an unspecified date (not later than 10 days prior to the scheduled trial in June 2025).
Maybe the mediator should be God, so He can call Ash’s bluff and stop OnPassive. (I’m joking obviously.)
Article updated with 2024 mediation date.
The onpassive payment processors have been offline for weeks now. Crypto payments are also unavailable. There is no money coming in and out of the scam.
Their flagship product “O-Connect” is a broken buffering mess. But the faithful founders continue to sing the praises of their saviour and santa claus, Ash Mufareh.
I am one of the founders and payed my $97. Yes, I watched all of the praise of future star wars out of space future business coming soon and to date, as of Dec 2023, I have not made a DIME.
It has been over 3 years. Wow! No I won’t get my $97 back but I sit back and watch all the drama and laugh.
I have been in other MLM companies that went bellied up and sued by the US SEC but nothing like this. Oh I was told I would get my $97 credited toward O-Connect. It would be $110. HA HA HA HA HA….in my back office it was (10) OKCOINs.
I am going to follow another yellow brick road. I hope all 1.4 million founders read this.
Oh! the 10 OKCOINS = $1.00. What I am I going to do with $1.00?
I paid the OConnect subscription for 3 months and they extended another 1 month Free. I paid 143 USDT (tether) So my next payment is on Jan 7.
I didn’t get any Passive commission as what they told before even you don’t do any marketing you get paid.
So is there any update on mediation?
No.
Article updated with latest on SEC v. OnPassive mediation.
Update from The Recovering Hunbot showing since OnPassive entered into negotations with the SEC, most of OnPassive’s systems are disabled.
youtube.com/watch?v=5fbyWz0idz4&t=189s
We believe that Onpassive will be succeed. Because this company’s mission & Vision is very clear. At the beginning time Onpassive may not be fulfilling the SEC rules & Regulations.Now this company will run as per SEC system.
For this response, CEO, Mr. Ash Mufarah is bringing change on as required of court or SEC.
Be patienenc, Thanks to All.
The SEC hasn’t asked for change, the SEC has sued Mufareh alleging $110 million in securities fraud.
Fine if you don’t understand the case or civil fraud charges but stop running around spreading misinformation.
So it is an allegation by SEC and is before the Court?
What is this allegation of $110 million in securities fraud? Please break it down further.
We know, an allegation does not mean someone is wrong until proven guilty.
The great thing about securities fraud is it’s black and white. Sure, allegations have to be filed in a Complaint but the underlying fraud is easy enough to prove. This is established law dating back almost a hundred years.
BehindMLM covered the SEC’s OnPassive lawsuit here:
https://behindmlm.com/companies/onpassive/sec-sues-onpassive-ash-mufareh-for-108-million-in-fraud/