Orlando company accused of fraudulent $108 million MLM scheme

ORLANDO, Fla. — Editor’s note: This story is available as a result of a content partnership between WFTV and the Orlando Business Journal.

The Securities and Exchange Commission has accused an Orlando man and his company of allegedly perpetrating a fraudulent multi-level marketing scheme and unregistered offering.

Read: Florida pastor, wife, mother arrested after $1.4M in goods stolen from Home Depot stores, police say

The SEC in a release announced a civil case against Ashraf Mufareh and his company, Onpassive LLC, on Aug.11 in the U.S. District Court Middle District of Florida Orlando Division. The SEC alleges that since 2018, Murfareh and his company “fraudulently raised over $108 million from over 800,000 investors across the globe” with a company that was said to develop computer applications using artificial intelligence.

In the complaint, the SEC said the company allegedly sold investors a position in a multi-level marketing arrangement for $97, where investors would earn passive income from subscription fees paid by later investors into the company. The SEC alleged the company said the fees would be used for the start of the commercial rollout of computer applications, but as of June 2023 the company allegedly had not launched any applications or started paying commissions.

Click here to read the full story on the Orlando Business Journal’s website.

Click here to download our free mews, weather and smart TV apps. And click here to stream Channel 9 Eyewitness News live.

©2023 Cox Media Group