Citibank has settled with the Profit Connect Receiver for $65,000.

Profit Connect
was an MLM Ponzi scheme the defrauded 880 consumers out of $24.6 million.

The SEC
sued Profit Connect and owners Brent Carson and Irene Kovar
(mother and son) in 2021. The SEC’s Profit Connect lawsuit saw the appointing of a Profit Connect Receiver.

As part of its fraudulent business operations, Profit Connect paid Citibank $125,786 for credit cards it issued to investors.

In line with his court-appointed duty to pursue clawback actions, the Profit Connect Receiver put Citibank on notice for the amount paid.

Following settlement negotiations, the parties agreed Citibank would turn over $65,000 to the receiver. This represents just under half of the amount paid.

Following a hearing on the settlement, the court approved the Profit Connect Citibank settlement on November 4th.

As per a November 1st filed Status Report, the Profit Connect Receivership is sitting on $10.2 million in cash and $17.2 million in total equity.

A Profit Connect victim claim portal was
established last year
. The Receiver has submitted an interim distribution plan but the SEC is holding up approval.

As per a Minute Entry for the November 4th hearing;

Based on the update by counsel for the SEC, the court continues the status check Motion to 12/19/2024.

Stay tuned as BehindMLM continues to track the SEC’s Profit Connect case.

🤖 Quick Answer

What was the Citibank settlement amount with the Profit Connect Receiver?
Citibank agreed to pay $65,000 to the court-appointed Profit Connect Receiver following settlement negotiations. This amount represents approximately half of the $125,786 that Profit Connect had originally paid to Citibank for credit cards issued to investors during the operation of the fraudulent scheme.

What was Profit Connect and why was it shut down?
Profit Connect was a multi-level marketing Ponzi scheme that defrauded approximately 880 consumers out of $24.6 million. The U.S. Securities and Exchange Commission filed a lawsuit against Profit Connect and its owners, Brent Carson and Irene Kovar (mother and son), in 2021, leading to the appointment of a Receiver.

**Why did the Profit Connect Receiver pursue Citibank for cl

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