The Federal Trade Commission and the state of Arkansas have sued the operators of a “Blessing Loom” investment program, alleging that the program is actually an illegal pyramid scheme.
In a joint complaint, the FTC and State allege that the operators of “Blessings in No Time” (“BINT”) lured people into the program by promising returns as high as 800 percent. But instead, the pyramid scheme bilked investors out of tens of millions of dollars.
The complaint named BINT Operations, LLC and its two co-founders – LaShonda Moore and husband, Marlon Moore – as defendants.
According to an FTC news release:
“The Moores began promoting BINT as early June 2020, according to the complaint. Like most blessing looms, BINT allegedly has coordinated payments (called “blessings”) between members using playing boards with different levels. The complaint alleges that, in one version of the defendants’ scheme, BINT’s playing board had four levels with 15 spots. Members on the second level were tasked with recruiting new participants to join their playing board on the first level. Once a board had been filled with new recruits and those recruits had paid the individual at the center of the playing board, the individual in the middle of the original board would be removed. The board would then be split into two new boards, and all remaining members would move up one level toward the center of the board, where they would then receive payments from new recruits.”
“The operators of BINT have required a minimum of $1,400 to participate in the program, but told members that they could earn greater revenue by contributing more money and recruiting additional members, the complaint states.”
“In reality, the complaint alleges, BINT is structured as a pyramid scheme. The supposed investment returns BINT has promised to participants were merely funds paid by other members. BINT’s pyramid structure requires that it grow perpetually and exponentially because, for every member who received the promised payout, eight additional members had to pay into the scheme. No matter how many members receive the promised payout, many more members would necessarily lose money, the complaint notes.”
If you have suffered losses in an investment scheme like Blessing Loom, Fishman Haygood’s Securities Lawyers may be able to help. Contact us for a free evaluation of your potential claims.