OnPassive owner Ash Mufareh has settled fraud charges with the SEC for $32 million.
Under the terms of the
OnPassive settlement
, Mufareh (right) is is subject to an injunction that permanently prohibits him from
committing further violations of the Securities Exchange Act;
defrauding consumers;
making untrue statements, omitting material facts and misleading consumers;
engaging in fraudulent business practices through deception; and
personally having anything to do with investments and securities.
For eight years from the date of the settlement, Mufareh is also prohibited from acting as an officer of director of an issuer of securities.
On the money side of things, Mufareh is subject to
$26.2 million in disgorgement;
$1.2 million in prejudgment interest; and
a $4 million civil penalty
The disgorgement amount represents what Mufareh and wife Asmahan, a named relief defendant, personally misappropriated through OnPassive.
In light of the OnPassive settlement stripping Mufareh’s wife of funds misappropriated through OnPassive, the SEC’s claim of unjust enrichment against her was dismissed.
With respect to victim restitution, the OnPassive settlement states;
The Commission may propose a plan to distribute the Fund subject to the Court’s approval.
OnPassive
was an MLM pyramid scheme with securities elements that launched in late 2018.
The original OnPassive ruse saw Mufareh, a former
TelexFree
Ponzi promoter, sell $25 to $500 matrix position purchases through GoFounders.
The OnPassive ruse eventually morphed into a promise of riches, tied to a perpetually delayed launch of copycat online services.
Over time Mufareh’s promises to investors became more and more fantastical. In February 2022 Mufareh claimed OnPassive was
working with the US government
. In March 2022 Mufareh threatened anyone critical of OnPassive with
“criminal defamation”
.
A large number of OnPassive victims are believed to be Indian residents. In the US and UK, ringleaders like Richard Redfern (aka Red Redfern, below) mostly targeted other middle-aged individuals.
As of a few hours ago, Redfern (bottom right) is still publishing OnPassive marketing webinars to his YouTube channel:
The SEC
filed suit against Mufareh and wife Asmahan
in August 2023. The SEC alleged the Mufarehs, through OnPassive, defrauded consumers out of $108 million.
Vowing to defend the SEC’s fraud allegations, Mufareh’s
immediate response
was “only God can stop OnPassive.”
No one is yet born, to have the ability to stop OnPassive. Alright? Only God.
And no man and no woman are born yet to stop OnPassive, because it is for the people. It is because of people, that is the only good hope that we have.
Millions of people know who we are, what we do and we’re not ashamed of it. We are so proud of what we do.
And we will continue doing it. We’re not slowing down. Business is as usual.
Two years later to the month, here we are.
🤖 Quick Answer
What fraud charges did Ash Mufareh settle with the SEC regarding OnPassive?Ash Mufareh, founder and owner of OnPassive, settled fraud charges brought by the U.S. Securities and Exchange Commission. The settlement totaled approximately $32 million, comprising $26.2 million in disgorgement, $1.2 million in prejudgment interest, and a $4 million civil penalty for violations of the Securities Exchange Act.
What restrictions were imposed on Ash Mufareh under the OnPassive SEC settlement?
The settlement permanently prohibits Mufareh from committing further Securities Exchange Act violations, defrauding consumers, making untrue or misleading statements, omitting material facts, and engaging in fraudulent business practices. He is also barred from personally participating in any investment or securities-related activities going forward.
**Is Ash Mufareh allowed to
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