Three men have been jailed for operating an illegal pyramid scheme that caused millions in losses to victims.
The sentencing took place on December 16, following guilty pleas earlier this year.
- Alex Dee, 50, of Fate, Texas:
- Sentenced to 36 months in prison
- Ordered to pay $1,845,600 in forfeiture
- Brian Kaplan, 53, of Fort Collins, Colorado:
- Sentenced to 22 months in prison
- Ordered to pay $2,838,700 in forfeiture
- Jerrold Mauer, 58, of North Bellmore, New York:
- Sentenced to 22 months in prison
- Ordered to pay $1,545,500 in forfeiture
The Illegal Operation: 8 Figure Dream Lifestyle
According to court documents, between January 2017 and March 2019, Dee, Kaplan, and Mauer founded and ran a fraudulent business named 8 Figure Dream Lifestyle (8FDL).
The company, registered in Wyoming, was disguised as an online marketing opportunity but functioned as a pyramid scheme.
Looking for a job? Visit whatjobs.com today
How 8FDL Operated
- Membership Sales: 8FDL sold memberships that supposedly provided access to online marketing and self-help videos.
- Recruitment Model: Members were promised substantial earnings by recruiting others and selling additional memberships.
- False Promises: The founders claimed members with no experience could earn over $10,000 within 60-90 days.
- Lack of Value: The videos offered had minimal value and were mainly used to make the scheme appear legitimate.
Despite the promises, most members never made a sale. In total, 2,800 victims joined 8FDL, leading to $23.5 million in losses.
False Claims and Victim Losses
Dee, Kaplan, and Mauer misled potential members by advertising quick and easy income opportunities. The vast majority of members earned nothing, while the founders pocketed substantial amounts.
To lure victims, they:
- Promoted false claims of financial success
- Targeted individuals with no prior skills or experience
- Advertised unrealistic earnings in short timeframes
The investigation revealed that these claims were designed to induce individuals to join the pyramid scheme. The primary focus of 8FDL was recruitment, not selling legitimate products.
Hiring? Post jobs for free with WhatJobs
Pleas and Sentences
The defendants each pleaded guilty to one count of conspiracy to commit wire fraud:
- November 2023: Kaplan and Mauer admitted guilt.
- July 2023: Dee also pleaded guilty.
The sentencing reflects the scale of the fraud and the significant harm caused to victims nationwide.
Officials Respond
Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Inspector Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The case was investigated by USPIS and prosecuted by Trial Attorneys Brandon Burkart and Andrew Jaco of the Criminal Division’s Fraud Section.
Lessons Learned: Protecting Yourself from Pyramid Schemes
Pyramid schemes often appear as lucrative opportunities but are designed to benefit a select few. Warning signs include:
- Heavy emphasis on recruiting new members
- Promises of quick, guaranteed profits
- Products or services with little to no real value
If an offer seems too good to be true, it likely is.
Need Career Advice? Get employment skills advice at all levels of your career
A Costly Lesson in False Promises
The sentencing of Dee, Kaplan, and Mauer highlights the consequences of exploiting individuals through pyramid schemes and other frauds.
With millions in losses and prison time imposed, this case serves as a warning to both fraudsters and those tempted by get-rich-quick schemes.
