Citibank has settled with the Profit Connect Receiver for $65,000.

Profit Connect was an MLM Ponzi scheme the defrauded 880 consumers out of $24.6 million.

The SEC sued Profit Connect and owners Brent Carson and Irene Kovar (mother and son) in 2021. The SEC’s Profit Connect lawsuit saw the appointing of a Profit Connect Receiver.

As part of its fraudulent business operations, Profit Connect paid Citibank $125,786 for credit cards it issued to investors.

In line with his court-appointed duty to pursue clawback actions, the Profit Connect Receiver put Citibank on notice for the amount paid.

Following settlement negotiations, the parties agreed Citibank would turn over $65,000 to the receiver. This represents just under half of the amount paid.

Following a hearing on the settlement, the court approved the Profit Connect Citibank settlement on November 4th.

As per a November 1st filed Status Report, the Profit Connect Receivership is sitting on $10.2 million in cash and $17.2 million in total equity.

A Profit Connect victim claim portal was established last year. The Receiver has submitted an interim distribution plan but the SEC is holding up approval.

As per a Minute Entry for the November 4th hearing;

Based on the update by counsel for the SEC, the court continues the status check Motion to 12/19/2024.

Stay tuned as BehindMLM continues to track the SEC’s Profit Connect case.