SEC Obtains Final Judgement Against The Wings Network Scam
I have reported on the the Wings Network scam in the past. The Wings Network was promoted to people all around the world including the United States. The Wings Network was a multi-level marketing program that was advertised online, and was being sold door-to-door or through friends and relatives. This is what they said about themselves:
With Wings, you can work and have fun anytime, anywhere.
Mission, Vision and Values Mission
Build a solid, sustainable and accessible business model to all. Participate and contribute with social and economic progress.
Build society based on quality of life, bringing the individual potentials to a level of excellence.
Attitude, Ethics, Professionalism and Social Responsibility.
Here is one of the warnings that was issued about the Wings Network:
Nevada Secretary of State Ross Miller Warning About Wings Network
October 23, 2014 – Secretary of State Ross Miller warns Nevadans to beware of a possibly fraudulent investment scheme targeting minority communities, specifically Spanish and Portuguese. Wings Network is a multi-level marketing program that is advertising online, and being sold door-to-door or through friends and relatives.
Wings Network offers investors various packages ranging from $49 to $1,499. The “Elite” package purportedly requires an investor to purchase the package for $1,499, pay an activation fee of $49, and recruit two additional people to buy the package. The seller then allegedly promises that the investor is guaranteed to receive a minimum of $750 per month for one year afterward.
Investors may be told that Wings Network is associated with smartphone applications compatible with Google Play and Apple. Individuals who purchase the “Elite” package gain access to the Wings Network website, which provides them with information related to their purchase. Wings Network is allegedly associated with Tropikgadget FZE located in the United Arab Emirates. – Source Nvsos.gov
The owners of the Wings Network are finally paying the price for running this scam:
The Securities and Exchange Commission announced at the end of February 2017 at a federal court in Boston final judgments against defendant Andrew Arrambide of Sandy, Utah, and relief defendants Uninvest Financial Services, Corp. (“Uninvest”), RST5 Investments LLC (“RST5”), Parkway Real Estate LLC (“Parkway”) of Florida, and Paulo Hideki Koga of Brazil, in a previously-filed enforcement action. In February 2015, the Commission charged two Portuguese companies operating under the name Wings Network, plus three company officers and 12 promoters, including Arrambide, with perpetrating an international pyramid scheme targeting Latino communities in the U.S..
The Commission alleged that Arrambide was a promoter of defendants Tropikgadget Unipessoal LDA and Tropikgadget FZE (collectively “Tropikgadget”), which operated under the name Wings Network. Arrambide appeared in many promotional videos and online conferences for Wings Network on the internet, traveled to several states, including Florida and Massachusetts, during 2014 to present at Wings Network promotional events, and promoted Wings Network on social media and on his personal website on the internet. The Commission also alleged that Uninvest, RST5, Parkway and Koga received wire transfers from Tropikgadget consisting of illicit proceeds of the alleged pyramid scheme.
The court entered summary judgment against Arrambide which permanently restrains and enjoins him from violating the unregistered securities offering provisions of Section 5 of the Securities Act of 1933. The judgment also permanently restrains and enjoins him from offering, operating, or participating in any marketing or sales program in which a participant is compensated or promised compensation solely or primarily (1) for inducing another person to become a participant in the program, or (2) if such induced person induces another to become a participant in the program. In addition, the judgment ordered Arrambide to pay a total of $106,568.50 in disgorgement of ill-gotten gains, prejudgment interest, and a civil penalty, and the judgements against the relief defendants ordered Uninvest to pay a total of $4,815,892, RST5 to pay a total of $2,018,765, Parkway to pay a total of $312,185, and Koga to pay a total of $528,344 in disgorgement plus prejudgment interest. The court’s entry of the final judgments concludes the SEC’s litigation of this matter in its entirety. – Source SEC