Earlier right now I revealed an article protecting a civil fraud case filed by the SEC. The case was filed towards two AirBit Membership promoters.
That was good to listen to however it left me questioning why the the SEC hadn’t pursued the Ponzi scheme’s creators, Renato Rodriguez and Gutemberg Dos Santos.
Seems the DOJ is dealing with that facet of issues, as revealed in fraud and cash laundering indictments unsealed right now.
Defendants within the DOJ’s legal case embody:
- Renato Rodriguez, AirBit Membership co-owner;
- Gutemberg Dos Santos, AirBit Membership co-owner;
- Scott Hughes, a disgraced Californian legal professional who served as an confederate;
- Cecilia Millan, AirBit Membership Grasp Council promoter; and
- Jackie Aguilar, AirBit Membership Nationwide Entrepreneur promoter
All 5 defendants have been arrested. Rodriguez and Hughes are in custody in California. Millan is in custody in North Carolina and Aguilar is in custody in Texas.
Dos Santos has been arrested in Panama and is awaiting extradition to the US.
As per a joint investigation by the DOJ and Homeland Safety, AirBit Membership was
a modern-day spin on an age-old funding rip-off, promising extraordinary charges of assured return on phantom investments in cryptocurrencies.
It’s alleged the defendants stole “not less than $20 million” from AirBit Membership victims. That cash was spent on “luxurious vehicles, jewellery, and houses.”
These alleged fraudsters pulled out all of the stops to promote their scheme to their victims with engaging recruitment occasions, then shamelessly used proceeds of their scheme to recruit further victims by way of much more aggressive and lavish advertising and marketing pitches.
As put forth by BehindMLM again in 2016,
no Bitcoin mining or buying and selling on behalf of Victims in truth passed off (inside AirBit Membership).
As a substitute, RODRIGUEZ, DOS SANTOS, MILLAN, and AGUILAR enriched themselves, and spent Sufferer cash on vehicles, jewellery, and luxurious properties, and financed extra extravagant expos to recruit extra Victims.
Scott Hughes (proper), assisted Rodriguez and Dos Santos by laundering cash and ‘serving to to take away detrimental details about AirBit Membership and Vizinova from the web.’
AirBit Membership funds had been laundered by way of “a number of home and international financial institution accounts, together with an legal professional belief account managed by HUGHES”.
The Hughes Belief Account was ostensibly supposed to take care of custody of HUGHES’s legislation follow’s consumer funds.
As a substitute, the Hughes Belief Account was utilized by RODRIGUEZ, DOS SANTOS, HUGHES, and MILLAN to hide the character and origin of the AirBit Membership Scheme’s illicit proceeds.
Via that account, HUGHES directed Sufferer funds to the private bills of RODRIGUEZ, DOS SANTOS, MILLAN, and himself, and funded promotional occasions and sponsorships designed to additional promote the AirBit Membership Scheme.
BehindMLM obtained authorized threats from Hughes, on behalf of Renato Rodriguez, in Might 2016.
Hughes demanded we take away our reporting of Rodriguez’s Ponzi previous. Underneath risk of litigation, we didn’t comply.
As revealed by the DOJ, Highes was paid $3000 for every hyperlink vital of AirBit Membership he was capable of take away.
Hyperlinks in query included YouTube movies and “roughly 15 totally different web sites calling AirBit Membership a “rip-off”, and detailing the prior Vizinova motion.
In line with the DOJ, AirBit Membership affiliate buyers have been experiencing withdrawal delays way back to 2016.
Victims who tried to withdraw cash from the AirBit Membership On-line Portal and complained to a Promoter had been met with excuses, delays, and hidden charges amounting to greater than 50% of the Sufferer’s requested withdrawal, in the event that they had been capable of make any withdrawal in any respect.
In a single occasion, AGUILAR instructed one Sufferer of the AirBit Membership Scheme who was complaining about her lack of ability to withdraw AirBit Membership returns that she ought to “deliver new blood” into the AirBit Membership Scheme with a view to obtain her returns.
In April 2020, one AirBit Membership affiliate had their account closed with no prior discover. The said motive for the closure was “execution of economic sustainability reserve coverage”.
Different AirBit Membership victims had their accounts terminated upon informing their uplines they’d notified authorities.
For his or her efforts in working the AirBit Membership Ponzi scheme over the previous 4 years;
- Renato Rodriguez, Gutemberg Dos Santos and Cecilia Millan are dealing with one rely of conspiracy to commit wire fraud, one rely of conspiracy to commit financial institution fraud and one rely of conspiracy to commit cash laundering
- Scott Hughes is dealing with one rely of conspiracy to commit financial institution fraud and one rely of conspiracy to commit cash laundering
- Jackie Aguilar is dealing with one rely of conspiracy to commit wire fraud
The wire fraud conspiracy and cash laundering conspiracy prices every carry a most time period of 20 years in jail, and the financial institution fraud conspiracy cost carries a most time period of 30 years in jail.
The DOJ’s indictment of AirBit Membership promoters is critical, because it marks the primary legal proceedings we’ve seen towards promoters of Ponzi schemes.
Beforehand MLM Ponzi promoters have solely confronted civil prices filed by the SEC.
Replace 14th November 2020 – Renato Rodriguez was arraigned on November tenth and has pled not responsible.
A Standing Convention has been scheduled for November nineteenth.
Replace 2nd December 2020 – Gutemberg Dos Santos was extradited from Panama on November twenty fifth.