SEC Halts Fraudulent Global Pyramid Scheme Preying On Hispanic Community

by louabbott on December 11, 2007

December 11, 2007

The Securities and Exchange Commission (SEC) announced that on December 6, 2007, it won an asset freeze and other emergency relief to halt a massive pyramid scheme with as many as 70,000 victims in 64 countries. The scheme involving the purported sale of English and Spanish language tutorials particularly preyed on Hispanic communities in Orlando, Fla., and Puerto Rico.

The SEC charged Robert Lane, Wealth Pools International, Inc., and Recruit For Wealth, Inc. with the fraudulent offer and sale of unregistered securities in the form of “Associate” memberships in an enterprise called Wealth Pools. The fraudulent offering began in 2005 and the defendants claim to have raised over $132 million in 2007 alone, according to the SEC’s complaint.

Wealth Pools purports to be a multi-level marketing company primarily selling an English and Spanish language tutorial DVD called Talk-N-Tutor through a network of sales Associates around the world, the SEC alleges in its complaint. The DVD is, in reality, a front for Wealth Pools’s true product – an investment in one or more “pools” that offer investors an opportunity to receive passive income through the efforts of others to recruit new investors, according to the complaint. The SEC further alleges that investors do not profit from the sale of DVDs to consumers, but from the recruitment of new investors termed “Associates.”

Read the entire article at the SEC

Also, read our company overview:  Wealth Pool Facts, News and Review

Be Sociable, Share!

{ 0 comments… add one now }

Leave a Comment

Thoughtful and constructive comments that benefit network marketing professionals and the industry will be accepted and published after review.
We will not publish rude or insulting comments, plugs for your company or product, or generally non-helpful or self-promoting content.

Previous post:

Next post: