Federal Trade Commission and state sue pyramid scheme
The Federal Trade Commission filed a federal complaint in Little Rock as well as the State of Arkansas regarding a pyramid scheme targeting African Americans struggling during the pandemic.
The FTC said Texas operators of Blessings in no time (BINT) promised high returns for investments of a low of $ 1,400 to $ 62,700, although most participants lost money.
The scheme is said to have defrauded tens of millions of thousands of people. The press release said:
The lawsuit names the operators of BINT, Texas-based BINT Operations LLC, and its two co-founders, LaShonda Moore and her husband Marlon Moore, as defendants.
The Moores began promoting BINT in early June 2020, according to the complaint. Like most blessing looms, BINT reportedly coordinated payments (called “blessings”) between members using game boards of different levels. The complaint alleges that in one version of the defendants’ plan, BINT’s game board had four levels with 15 seats. The members of the second level were tasked with recruiting new participants to join their game board at the first level. Once a board had been filled with new recruits and those recruits paid the individual in the center of the game board, the individual in the middle of the original board was deleted. The board would then be split into two new boards, and all remaining members would move up one level to the center of the board, where they would then receive payments from the new hires. Complaint alleges this process would repeat itself indefinitely