A man by the name of Ash Mufareh also referred to as a Florida man, and his organization, Onpassive LLC, are currently under investigation by the U.S. Securities and Exchange Commission (SEC) due to allegations of operating a deceptive pyramid scheme.
Ash Mufareh had purported that he was growing AI computer program solicitations and provided individuals the chance to purchase a position within an MLM scamming structure for a fee of $97.
Hence, individuals who secured an initial position as Founders were offered the pledge of greater returns and given priority within the hierarchical scheme.
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According to the SEC, Ash Mufareh and his company i.e. Onpassive had made false and misleading claims regarding the timing of the product launch, potential earnings, and the legality of their operations.
Despite promising “passive income payments,” Onpassive has reportedly failed to commercially initiate any solicitation or provide commission payments.
The complaint further alleges that Ash Mufareh utilized investor funds to support the pyramid scheme as well as for personal expenses, including transferring money to his wife and investing in cryptocurrency assets.
However, the SEC is seeking various forms of relief against Ash Mufareh, such as injunctive measures, recovery of unlawfully obtained gains, civil penalties, and an order to prevent him from acting as an officer and director.
Curious About Ash Mufareh? Discover the Intriguing Story Behind His Success
AshMax and TelexFree: Ash Mufareh’s Involvement in MLM Scams
In 2010, Ash Mufareh founded AshMax, an MLM that quickly failed. Later, he became associated with TelexFree, which turned out to be a notorious scam.
AshMax by Ash Mufareh: A Failed MLM Venture
Ash Mufareh launched AshMax in 2010, an MLM company that failed soon after its inception. Limited information is available about the specifics of the collapse, but the venture’s quick demise indicates its failure to sustain itself in the market.
TelexFree by Ash Mufareh: The Infamous Internet Phone Service Scam
Ash Mufareh’s association with TelexFree further tarnished his reputation. TelexFree, an internet phone service provider, was exposed as a massive fraud often referred to as the “largest fraud of all time.” It operated as a Ponzi scheme, deceiving individuals with false promises and ultimately stealing their money.
The SEC has Pressed Charges Against Ash Mufareh for an Unregistered Securities Offering Valued at $100M
According to Carlson and Associates, P.A., the report said that the SEC has charged Ash Mufareh belongs to Central Florida with an investment scam. Mr. Ash owned and controlled the organization called ONPASSIVE LLC, which was found to have exceptionally grown at least $100 million by fraud from over 800,000 investors.
Claims: ONEPASSIVE LLC of Ash Mufareh is a Ponzi Scheme
According to the SEC’s civil complaint, Mr. Mufareh elevated around $108 million from around 800,000 investors worldwide. The agency claims that ONPASSIVE LLC operated as a pyramid scheme.
It is claimed that the organization warned AI-based activities to entice individuals into an MLM scheme, promising them passive income from ensuing individuals’ endowments. However, no solicitations were launched, and no extra charges were paid.
In addition, the SEC asserted that the company i.e. ONPASSIVE Inc. sold unregistered securities, which goes against federal securities laws. The agency is seeking appropriate remedies, indulging instant injunctive consolation against Mr. Mufareh and his organization.
The SEC also aims to obtain full disgorgement of the profits obtained through these fraudulent activities. To read more about his fraudulent activity, you may read out from this link: Mr. Mufareh.
Furthermore, the Mufarehs unscrupulously transformed a significant proportion of investor funds into cryptocurrencies, which they maintained under their sole control.
These converted funds were subsequently utilized for personal indulgences, encompassing online shopping, extravagant dining, television subscriptions, grocery expenses, visits to high-end salons and spas, acquisition of martial arts lessons, purchases of jewelry, and investments in stocks.
It is important to note that Mufareh, ONPASSIVE, and Asmahan Mufareh have received these ill-gotten funds, and their entitlement to these funds lacks legitimacy.
Deciphering Investment Fraud: Unraveling the Pyramid Scheme Concept
Unfortunately, investment fraud remains a persistent problem that poses a serious risk to unsuspecting investors. Many people are tricked by dishonest individuals who use deceitful schemes to take advantage of their hard-earned money. One well-known type of fraudulent investment is the pyramid scheme.
A pyramid scheme which is adopted by Ash Mufareh in his business mainly used to trick investors with the promise of high returns. The scheme works by using money from new investors to pay off earlier investors. However, only a small amount of the money is actually from legitimate business activities. The scheme is not sustainable and will eventually collapse.
As the pyramid scheme continues, it relies more and more on bringing new people on board to keep paying its original investors. Eventually, the scam falls apart when there aren’t enough new investors to support everyone else. The whole idea behind a pyramid scheme is that it’s all about recruitment, not running a real business.
There’s no real profit being made, no real work being done and it’s all about getting more and more people to put in money so that others can get paid. That’s why pyramid schemes are incredibly dangerous and should be avoided at all costs.
Ash Mufareh: Case Study
SEC VS. Ash Mufareh and ONEPASSIVE LLC
Ash Mufareh and ONPASSIVE have also implemented a multi-level marketing (MLM) structure to encourage individuals to recruit as many new participants as possible. They have claimed that these recruits would be placed under the participant and would serve as sources of commissions, which would be paid to the participant.
Instead of primarily utilizing investor funds for the development and commercialization of the alleged software applications, Ash Mufareh has diverted these funds towards promoting the pyramid scheme and for his personal use, as well as for the benefit of his spouse. More specifically, Mufareh has transferred investors’ funds to his wife, Asmahan Mufareh. These transfers have been made to bank accounts that are either jointly held by the Mufarehs or solely in Asmahan Mufareh’s name, or for which Asmahan Mufareh has the authority.
In addition, Ash Mufareh is alleged to have had significant control over the operations and management of ONPASSIVE at the time the company violated securities laws. As the co-founder, co-owner, and Chief Executive Officer of ONPASSIVE, Mufareh had the power to direct or influence the company’s policies and actions. Therefore, he should be held liable along with ONPASSIVE for the violation of Section 10(b) of the Exchange Act.
Ash Mufareh, who resides in Orlando, Florida, and is 48 years old, played a central role in ONPASSIVE’s activities during the Relevant Period. He had complete control over all operations and had ultimate authority over the company’s activities, including the conduct that was alleged to be violative.
ONPASSIVE, which was established in November 2018, started soliciting investors by presenting itself as a legitimate multi-level marketing program. They claimed that the shared profits would come from monthly subscription fees for the use of online software applications, which were not fully developed or commercially available at that time.
Retention of Juridistions
Furthermore, the SEC respectfully requests that the Court maintains jurisdiction over this case and the Defendants. This is to ensure the proper implementation and enforcement of any orders or decrees that may be issued, as well as to consider any additional relief that the SEC may seek within the Court’s jurisdiction.
About Ash Mufareh
Ash Mufareh, a seasoned professional in business and technology, has introduced a groundbreaking innovation known as AI technology to the corporate world. With his extensive experience, he has successfully developed disruptive technology aimed at revolutionizing the business landscape.
ONPASSIVE, an organization championed by Mufareh, specializes in creating and providing AI-based products to aspiring entrepreneurs worldwide. By leveraging this advanced technology, entrepreneurs can harness its potential to automate their business operations and drive success.
However, he is involved in a pyramid scheme and commits fraud to make money from investors. If you want to know more about his involvement in pyramid scams, you may click the link: Ash.
Ash Mufareh and his company, Onpassive LLC, have been accused by the SEC of running a fraudulent pyramid scheme. Mufareh allegedly raised $108 million from investors by promising high returns through an artificial intelligence development company.
The SEC claims that Mufareh misled investors about the timing of the product launch and the potential income to be earned. As of June 2023, no applications had been launched and no commissions had been paid. The SEC has charged Mufareh and ONPASSIVE with violations of securities laws. If you want to discover more information about Mr. Ash, you may follow the link: Mr. Murafeh.