SEC sues DollarMonster matrix cycler Ponzi admin
Unexpected regulatory action today with the news that the SEC has sued James Evans, admin of the Ponzi scheme DollarMonster.
Operating from the domain “cashflowbot.com”, DollarMonster launched in late 2010 and saw affiliates invest $2 on the promise of an advertise $4 ROI.
When you invest $2.00, your payment is entered into our system, when someone else makes a spend, you’ll receive $4.00 back. Your $2.00 will always be in the system until it is paid.
Since we don’t promise to pay you 200-300% a day, this site won’t disappear overnight like 95% of other sites.
DollarMonster collapsed shortly after launch, with Evans relaunching the scheme in 2012 as a multi-line cycler.
Subsequent reboots of the scheme would collapse even faster, with DollarMonster relaunching in late 2013 and again in again early 2014.
It was these relaunches that caught the interest of the SEC, with the agency alleging the DollarMonster took in $1.15 million dollars.
The ruse behind DollarMonster was that funds invested were deposited with ‘a hedge fund that purchased stocks on behalf of investors
in the fund‘.
Beginning m late 2013, the DollarMonster website misrepresented to investors that DollarMonster was a “financial advisor” with more than 120 management teams and $3 8 million in assets under management.
A later iteration of the website misrepresented to investors that DollarMonster was a “private Holding Company” that invested in assets such as gold, silver, real estate, stocks and bonds.
The reality however was a story we’re all too familiar with;
Between January 2012 and April 2014, Defendant Evans operated Dollar Monster as a Ponzi scheme.
The underlying mechanics of the DollarMonster scheme were simple: investors deposited funds into their Solid Trust accounts and then transferred those funds to a Solid Trust account controlled by Defendant Evans.
Defendant Evans then transferred a portion of the funds to his personal bank account, and also redistributed funds to investors’ Solid Trust accounts as purported investment returns.
All that crap about hedge funds, management teams, gold, silver, real estate, stocks and bonds?
Just the typical Ponzi smoke and mirrors we see day in and day out here at BehindMLM.
The DollarMonster website did not disclose anywhere that if investors stopped placing funds into the “Investment Pool,” the scheme would collapse and investors could suffer a complete loss of investment.
To the contrary, the website misrepresented that operators ofDollarMonster would keep the system going by contributing their own associated profits, stating that DollarMonster “invests its own profits in the program in order to keep the fund/system going.”
Those profits were purportedly represented to be James Evan’s own funds, however that appears to have been misrepresentation.
Of the $1.13 million dollars Evan took in from DollarMonster investors, he skimmed only $30,000 or so off the top.
The last relaunch of DollarMonster took place in February of 2014, with the SEC issuing Evans a subpoena in July of that same year.
The subpoena formed part of the SEC’s investigation into the DollarMonster, with Evans pulling the plug on the scheme shortly after becoming aware he was the subject of a regulatory investigation.
That wasn’t the end of Evan’s career in scamming people though.
Shortly after Defendant Evans shut down the DollarMonster website, his home address was used anonymously with the same domain registrar to establish a new website using the domain name Theinvestorsexchange.com.
Theinvestorsexchange purports to match investors looking for an investment return with individuals and companies that need capital.
One of the advertisements is linked to Defendant Evans, and reads as follows:
“I am seeking serious investors only for a new business venture I am working on.
I am working on a new club (i own a few already) in New York, NY. And I am looking for investors for this. Serious only please [sic].”
For his operation of the DollarMonster Ponzi scheme and ongoing engagement in scamming investors, the SEC have now charged with five counts of fraud. These counts include violations of the Securities Act (4 counts) and Exchange Act (1 count).
The SEC have also asked the court to
- find Evans guilty of the five counts of fraud leveled against him
- expedite discovery for the purpose of ascertaining whether or not Evans is still actively engaged in investment fraud
- issue a permanent injunction against Evans prohibiting from committing any further acts of securities fraud
- provide detailed accounting as to the funds Evan fraudulently obtained
- order Evans to return all funds he illegally obtained through securities fraud and
- impose a civil penalty against Evans, to be determined at a later date
Like I said at the start of this review, didn’t see this one coming but it’s good to see another Ponzi scammer bite the dust.
Who knows what else might be coming down the pipeline…