Forcount founder Francisley Valdevino Da Silva (aka Francis Silva), has been sued by the SEC.
The SEC has additionally filed civil fraud costs in opposition to three US-based promoters.
Francis Da Silva (proper), refers to himself because the “Cryptocurrency Sheik” and “boss of the pyramid scammers”.
Da Silva, a Brazilian nationwide, is the founding father of Forcount and different MLM crypto Ponzis.
Presumably upon studying he was underneath investigation, Da Silva fled the US for Brazil in January 2022.
As a part of an investigation into an $800 million Ponzi empire, Da Silva was arrested by Brazilian authorities on November third.
Juan Antonio Tacuri Fajardo is a high Forcount promoter and resident of Florida. Fajardo was arrested by US authorities on December 14th, 2022.
Each Da Silva and Tacuri have been indicted in parallel felony costs pertaining to Forcount.
Ramon Antonio Perez Arias and Jose Ramiro Coronado Reyes dodged felony costs, however have been sued by the SEC as high Forcount promoters.
Each Perez and Reyes are residents of Florida and shared a high Forcount investor account.
Of their December 14th filed criticism, the SEC identifies Forcount as “a faux crypto asset buying and selling and mining firm.”
Forcount claimed that investments via Forcount would end in returns from “every day commerce via our calibrated robots to generate every day earns!”
Forcount additionally claimed buyers would obtain returns from Forcount’s use of “clever mining system” with “10,000 machines” that “routinely mine” such crypto belongings.
Regardless of Defendants guarantees of returns primarily based on Forcount’s buying and selling and mining, in addition to the referral program, Forcount had no actual income aside from funds obtained from buyers.
Forcount’s web site displayed fictitious returns primarily based on the required quantities and varieties of crypto belongings that buyers appeared to carry of their Forcount accounts.
Defendants had no foundation for the promised returns, and funds obtained from later buyers had been used to make Ponzi-type funds to
earlier buyers.
This confirms BehindMLM’s Forcount assessment, revealed in Could 2018.
Along with being a Ponzi scheme, the MLM facet of Forcount operated as a pyramid scheme.
Forcount didn’t promote any actual services or products to retail clients throughout the related time interval, and had no obvious income aside from funds obtained from buyers.
Defendants aggressively pushed buyers to take part within the referral program and to solicit household and mates to speculate.
Defendants promised buyers that they might earn extra from the referral program than they did from their membership “returns.”
Though not coated in our assessment, Da Silva hid his involvement in Forcount via a Boris CEO.
“Salvador Molina” was performed by Spanish actor Nestor Nunez.
The SEC cites Nunez as an older, extra mature wanting actor who lived in Spain”.
Regardless of being offered as Forcount’s CEO, Molina “had no management over Forcount, and no related crypto asset experience”.
According to having a Boris CEO, Da Silva integrated Forcount as a Panamanian shell firm.
Supposed Forcount workplaces in Brazil had been, as one investor who travelled there described, “had been dressed as much as seem like Forcount’s workplace however had been faux.”
Forcount started to break down in mid 2019. This prompted a reboot a Weltsys and Mindex shitcoin exit-scam.
Da Silva exercised full management over compensation for the referral program. It modified incessantly at Da Silva’s course—with various ranges, bonuses, and prizes.
On a number of events, Da Silva blocked promoters from incomes extra factors or took away factors, and switched the crypto belongings that factors had been purportedly incomes.
Da Silva additionally recurrently modified the fee construction, making it unpredictable.
All in all Forcount took in over $8.4 million. Like each MLM Ponzi scheme, nearly all of invested funds was misappropriated by Da Silva and promoters, who spent it on “houses, dozens of vehicles, and luxurious items”.
Forcount advertising movies showcased Da Silva’s ill-gotten belongings in Brazil and Florida.
Da Silva took movies showcasing his extravagant spending and belongings throughout this time interval, together with, all in Brazil: two non-public jets, two helicopters, dozens of luxurious autos, and a seaside mansion with a heliport, in addition to, in Florida, one other mansion.
In a single video from Could 2019, (Da Silva) sarcastically “thanked” Forcount buyers — who had been advised Forcount would contribute some portion of its income to a charity — for contributing to a “charitable fund” that had allowed him to purchase a Lamborghini.
At Forcount advertising occasions, extra luxurious vehicles had been rented and used to lure new buyers in.
At numerous occasions held in 2018, Tacuri, Perez, and Coronado every confirmed off borrowed, leased, or rented vehicles that they falsely claimed to have bought with funding proceeds generated from their memberships, together with from the referral program.
On the course of Coronado and Perez, certainly one of their Forcount downline was instructed to lie about how a lot they had been making every month.
In or round mid-2018, Coronado and Perez requested one downline promoter (“Promoter 1”) to offer a testimonial at an in-person occasion, and directed her to state she was making upwards of $20,000 per thirty days.
From then on, Promoter 1 gave testimonials roughly each different month, and Coronado and Perez recurrently launched her as making over $20,000 per thirty days. Coronado and Perez knew these statements about Promoter 1 had been false.
Additionally, in late 2018, Coronado took a video of Promoter 1’s house, and confirmed this video at promotional occasions, claiming that Promoter 1 had been in a position to buy it along with her Forcount compensation.
Coronado knew that Promoter 1 didn’t personal the property and was renting the home and that these statements had been false.
Ticketed raffles at Forcount occasions had been additionally rigged;
At a promotional occasion in Cancun, Mexico, in or round October 2019, Da Silva offered raffle tickets for a automotive.
When Da Silva was unable to promote sufficient raffle tickets, he determined to attract a fictitious quantity in order that he might maintain the proceeds.
“Promoter-1” isn’t named however is believed to have cooperated with the SEC as a part of their investigation. At one level Perez disclosed to Promoter-1 that Forcount was in reality a Ponzi scheme.
By the top of 2019, Promoter 1 famous to Da Silva, Tacuri, and Perez that Promoter 1 was receiving many complaints from their downline buyers who had been unable to make withdrawals.
Perez advised Promoter 1 to take new buyers to an upcoming Forcount occasion deliberate for January 2020.
Perez stated that with the cash raised from new buyers, Da Silva might pay the sooner buyers.
By means of providing passive returns to buyers…
When selling Forcount memberships, promoters, together with Perez, Tacuri, and Coronado, advised buyers that they may count on their funding to double in six to eight months.
Tacuri’s “guidelines” for investing in Forcount (had been) “create a free account, make investments, invite mates, double up, and repeat the method.”
…Forcount’s funding alternative constituted a securities providing.
The Forcount memberships had been funding contracts and subsequently securities, as a result of buyers made an funding of cash in a standard enterprise with an affordable expectation of income from the efforts of Defendants or third events.
Defendants supplied and offered these securities with out registering their provides or gross sales with the Fee or qualifying for an exemption from registration.
Neither Forcount, Da Silva or any of Forcount’s promoters had been registered with the SEC.
As such the Forcount defendants have been charged with securities fraud violations of the Securities and Trade Act throughout three counts.
Of the ~$8.4 million Forcount took in
- Francisley Valdevino Da Silva is alleged to have misappropriated $4.9 million;
- Juan Antonio Tacuri Fajardo is alleged to have misappropriated $1.3 million; and
- Ramon Antonio Perez Arias and Jose Ramiro Coronado Reyes are alleged to have misappropriated $1 million, which they cut up equally.
I can’t converse to Perez however after Forcount and Weltsys, Jose Coronado continued to defraud customers via MLM crypto Ponzi schemes.
In April 2021 BehindMLM inadvertently tied Jose Coronado to the BNB Revenue Ponzi scheme.
Coronado re-partnered up with Juan Tacuri to proceed defrauding customers via the OmegaPro Ponzi scheme.
The SEC is looking for a everlasting injunction in opposition to the Forcount defendants, in addition to disgorgement of ill-gotten good points and a civil financial penalty.
Whereas the SEC’s litigation in opposition to Forcount’s high promoter’s appears easy, how the case in opposition to Da Silva will progress is unclear.
Da Silva is believed to be in custody in Brazil. He’s accused of defrauding Brazilians out of at the least $800 million via numerous cryptocurrency schemes.
Regardless of being indicted within the US on associated felony costs, Da Silva being a Brazilian nationwide means he received’t be extradited.
