MLM @ BehindMLM

The SEC’s EmpiresX civil fraud case has been reopened. Last October both the SEC’s and CFTC’s parallel EmpiresX civil proceedings were stayed, pending Hague service on co-founder defendants Emerson Pires and Flavio Goncalves.

Today on April 10th, 2023, BehindMLM turned thirteen. For too many years I’ve been wanting to put out an annual post discussing where the MLM industry is at. I last did this in 2015 but since then one thing or another has come up around this time of year. Typically, if there’s no news to [Continue reading…]

Validus has received a second securities fraud warning from New Zealand. The warning follows the Financial Markets Authority ordering Validus to cease operations nationwide back in February.

Trust Your Universe has received a securities fraud warning from Germany’s Federal Financial Supervisory Authority (BaFin).

Trust Your Universe has received a securities fraud warning from Austria’s Financial Market Authority.

InCruises has received a pyramid scheme fraud warning from Poland’s Office of Competition and Consumer Protection (UOKIK).

Gayle Toloff has been added as a relief defendant in the FTC’s ongoing Financial Education Services fraud case. Gayle Toloff is the wife of FES co-founder Mike Toloff.

The DOJ has stayed SEC civil proceedings against Forsage executives and promoters.

Default judgment has been granted against Forsage executive Mikhail Sergeev. The SEC alleges Forsage is a $300+ million Ponzi scheme. Sergeev, a Russian national, worked as Forsage’s Development Director.

Michael Shannon Sims, known in the MLM industry as Mike Sims, has consented to a preliminary injunction. The injunction pertains to commodities fraud charges brought by the CFTC. The CFTC’s January 2023 filed charges are in relation to a series of Ponzi schemes run by Sims (below), Todd Brisco (Sims’ brother in law), Tin Tran, [Continue reading…]