U.S. Citizen Charged for Multimillion-Dollar Pyramid Scheme

tamir
Sat, 13 Jan 2024 09:11:56 +0000
Investment Schemes, Ponzi, US DOJ, 8 Figure Dream Lifestyle, 8FDL, Alex Dee, Alex Dowlatshahi, Brian Kaplan, Jerrold Maurer

The U.S. Department of Justice (DOJ) recently announced an indictment against Alex Dee, a U.S. citizen residing in Canada, for orchestrating a multimillion-dollar pyramid scheme through 8 Figure Dream Lifestyle LLC (8FDL). Additionally, the co-founders Brian Kaplan, 52, of Fort Collins, Colorado, and Jerrold Maurer, 58, have pleaded guilty to one count of conspiracy to commit wire fraud, facing a maximum of five years in prison.

Details of the Scheme

Alex Dee, 49, whose former name is Alex Dowlatshahi and resides in Maple Ridge, British Columbia, is alleged to be the co-founder of 8FDL. His co-founders, Brian Kaplan, 52, from Fort Collins, Colorado, and Jerrold Maurer, 58, from North Bellmore, New York, are also implicated in the operation of the pyramid scheme.

From January 2017 to June 2019, 8FDL, led by Dee and his associates, was accused of running a pyramid scheme. The group reportedly recruited members through various means, including emails, robocalls, promotional videos, and webinars. They falsely represented 8FDL as a legitimate business, misleading potential members about the profitability and operational costs. Claims were made that typical members could earn significant amounts in a short period despite most members not making any profit.

Arrest and Charges

Dee was apprehended at the U.S.-Canada border while attempting to enter Washington state and has made an initial court appearance in the Western District of Washington. He faces one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted, Dee could face a maximum penalty of 20 years in prison for each count.

Official Announcement

The announcement of these charges and the progress of the case was made by Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group.

This case underscores the ongoing efforts by U.S. authorities to combat financial fraud and protect consumers from deceptive investment schemes. The outcome of these proceedings will be determined by the judicial system, considering all legal and statutory factors.