Michael Shannon Sims, identified within the MLM trade as Mike Sims, has consented to a preliminary injunction.
The injunction pertains to commodities fraud fees introduced by the CFTC.
The CFTC’s January 2023 filed fees are in relation to a sequence of Ponzi schemes run by Sims (under), Todd Brisco (Sims’ brother in legislation), Tin Tran, Francisco Story and Frederick Safranko (aka Ted Safranko).
Via their interconnected Yas Castellum Ponzi schemes, Sims and his co-defendants allegedly defrauded customers out of a minimum of ~$145 million.
Sims’ function throughout the Yas Castellum Ponzi schemes scams was on the cash laundering facet of issues.
Brisco transferred many of the Pool Participant funds to the Tran Swimming pools and a small portion to a different agency.
Brisco did so on the course and with the help of Mike Sims, his brother-in-law and the purported CEO of the agency that was imagined to commerce on behalf of Yas Castellum LLC.
Sims instructed Brisco to disguise the transfers as funds for “providers” so the scheme wouldn’t be found.
On February sixth, the CFTC was awarded a Statutory Restraining Order (SRO) towards the Yas Castellum defendants.
The SRO successfully froze funds connected to the Yas Castellum Ponzi schemes, together with associated property and funds beneath the management of the Defendants.
On the idea the CFTC had demonstrated violations of the Commodity Change Act, was prone to prevail at trial, and there being “an affordable probability that Defendants will switch or dissipate property or destroy information”, the court docket additional granted the CFTC entry to the Defendants’ monetary information.
As per a March thirtieth consent order Sims has agreed to transform the SRO, because it pertains to him, right into a preliminary injunction.
As per the phrases of the consented preliminary injunction, Sims is preliminary restrained from
- committing additional violations of the Commodities Change Act;
- buying and selling on any registered entity;
- coming into into any transactions involving commodity pursuits (together with any buying and selling completed on Sims’ behalf);
- controlling or directing buying and selling for or on behalf of every other individual or entity;
- soliciting funds for the aim of buying or promoting commodity pursuits;
- making use of for registration with the CFTC (contains making use of for exemptions);
- opening or accessing any secure deposit packing containers;
Sims is additional ordered to
- protect proof and supply the CFTC with open entry to “paper paperwork, ESI, tape recordings and laptop discs” he has entry to;
- present the CFTC with passwords for any encrypted knowledge and/or gadgets;
- present the CFTC with a “detailed and full” catalog of his digital gadgets, for the aim of imaging saved knowledge;
- present the CFTC with a full accounting of his monetary information inside and out of doors of the US (together with funds, securities, property, futures, foreign exchange, gold, commodity curiosity transactions, “every other buying and selling” and cryptocurrency);
- present the CFTC with “the names and final identified addresses, cellphone numbers and e mail addresses” for every of his shoppers (backdated to April 2020); and
- present the CFTC with the identical private info of anybody holding any funds, securities, commodities pursuits, property “or different property” tied to Sims
Any third-parties controlling property and/or funds tied to Sims has additionally been instructed stated property/funds are frozen. That is backdated to cowl asset/funds acquired from April 2020.
The beforehand appointed Yas Castellum Short-term Receiver has been upgraded to Receiver, with respect to Sims’ property and enterprise pursuits ties to the Yas Castellum Ponzi schemes.
Sims will “proceed to cooperate totally with and help” the Yas Castellum Short-term Receiver. This contains granting permission for the Receiver to acquire info associated to Sims “enterprise actions and enterprise and private funds” on his behalf.
Sims is the primary Yas Castellum defendant to consent to a preliminary injunction. Proceedings towards the remaining defendants continues.
Following in depth analysis on the matter, BehindMLM believes Sims is on the middle of a a lot wider conspiracy to launder proceeds from a number of collapsed MLM Ponzi schemes.
This conspiracy extends to well-known MLM figures Holton Buggs, Travis Bott and Eric Worre.
Probably the most notable Ponzi scheme as a part of Sims prolonged fraud empire is OmegaPro.
Sims co-founded OmegaPro with Dubai-based scammers Andreas Szakacs (Sweden) and Dilawar Singh (Germany) in late 2018.
OmegaPro pitched a 200% ROI over 16 months. Following withdrawal issues operating into late 2022, BehindMLM referred to as OmegaPro’s collapse in November 2022.
The court docket authorised Sims’ consented to preliminary injunction on March thirtieth, the identical day the stipulation was filed.
Whereas I can’t definitively verify something, Sims’ consented to preliminary injunction supplies potential perception into what’s brewing.
(Sims) consents to the entry of this Order and to using of this Order on this continuing and the events agree that it has no collateral estoppel impact in any parallel state or federal prison proceedings, i.e. entry of this Order is only for these proceedings and shouldn’t prejudice or impair (Sim’s) constitutional civil rights in any parallel prison proceedings.
Keep tuned…