Federal Prosecutors Charge Three Individuals For Operating A Multimillion-Dollar Pyramid Scheme

multimillion-dollar pyramid schemeFederal prosecutors in the Western District of Washington have indicted a U.S. citizen residing in Canada. 

They claim Alex Dee aka Alex Dowlatshahi orchestrated a multimillion-dollar pyramid scheme under the name 8 Figure Dream Lifestyle LLC (8FDL).

Federal authorities have also unsealed guilty pleas from his co-conspirators Brian Kaplan of Fort Collins, Colorado and Jerrold Maurer of North Bellmore, New York.

Court documents state Alex Dee allegedly was the co-founder of 8FDL. Documents also show Kaplan and Maurer participated in the scheme.

The US DOJ say Dee ran 8FDL as a pyramid scheme from January 2017 through June 2019. Dee and his co-conspirators allegedly recruited participants through emails and robocalls. In addition, he recruited people with promotional videos and webinars.

They allegedly told consumers that 8FDL was a legitimate business with real products. They also lied to prospective members about how much money they could make. The also lied about how much others who had joined 8FDL had made. In addition, they misled people about the ongoing costs associated with the business.

Dee allegedly wrote and sent mass-marketing emails claiming people could easily earn between $5,000 and $10,000 in 10 to 14 days after joining the program. In fact, the vast majority of people who joined 8FDL never made any money. 

The Feds Arrest Dee

Federal authorities arrested Dee at the U.S.-Canada border last week. He was trying to enter Washington state from British Columbia. 

Federal prosecutors have charged Dee with one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison on each of the charged counts.

The Feds have charged Kaplan and Maurer with one count of conspiracy to commit wire fraud. The two men both pleaded guilty. The court has not sentenced them. They each face a maximum penalty of five years in prison. 

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945.

Read More About Financial Fraudsters On MFI-Miami.com.

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