Eaconomy co-founder Candace Ross has sued Hassan Mahmoud.

Ross, who is also Mahmoud’s ex-wife, has accused him of “fraud and mismanagement”.

Ross and Mahmoud launched
Eaconomy
back in 2019. From Ross’ January 24th filed Complaint;

Eaconomy’s original members included Ross and Mahmoud, as well as a third member that left the company in or about 2020.

In or about March 16, 2021, Ross and Mahmoud executed a separate operating agreement for the Company (the “2021 OA”).

Per the 2021 OA, Ross and Mahmoud each held a 50% membership interest in Eaconomy.

Eaconomy was a reboot of Silverstar Live, a fraudulent investment scheme the CFTC
fined Ross and Mahmoud $75,000 over
.

The first iteration of Eaconomy
collapsed
in early 2020. About a year later Mahmoud
rebooted Eaconony through Beyond
.

Later that same year
BehindMLM reviewed Eaconomy’s third reboot
, noting various ongoing compliance issues.

The third Eaconomy reboot appears to have relied heavily on Michael Talento (right).

In 2022, one of Eaconomy’s key leaders and trading consultants, Michael Talento, indicated he would be leaving the Company.

In an attempt to dissuade him from doing so, Ross and Mahmoud agreed to transfer to Talento a 33.33% membership interest in the Company.

On June 12, 2022, Mahmoud messaged Talento via Telegram stating,

“Check your emails. Operating Agreement is done… Also [counsel] said somebody had to get 0.01 because 33.33 x 3 is 99.99 so I just threw it on mine but it doesn’t mean anything.

Go ahead and sign. Lets get fucking rich.”

After persuading Talento to stay, Mahmoud then set about getting rid of Ross.

In June 2022, Ross and Mahmoud decided to move to Portland, Oregon.

Mahmoud informed Ross to move first and that he would pack their belongings and meet her there.

However, once Ross arrived in Portland, Mahmoud indicated he was not coming, that he no longer wanted to be married, and he had moved in with another woman.

Ross and Mahmoud ended their marriage in August 2022.

It is after detailing the divorce that Ross gets into Mahmoud’s alleged Eaconomy fraud;

Despite Ross’ co-management rights, Mahmoud egregiously mismanaged the Company without her participation or consent.

For instance, in addition to failing to pay affiliate commissions, Mahmoud had been making excessive payments to certain affiliates using Company funds via what he referred to as “override deals.”

These payments totaled well in excess of seven figures, and were made without Ross’ approval or consent.

And then there’s the signed Eaconomy ownership agreement with Talento;

Talento indicates he never received a K-1 for his purported interest in Eaconomy.

In 2023, Talento contacted Mahmoud to inquire about the status of his K-1. Per Talento, Mahmoud responded by stating Eaconomy was just “backed up” on its tax filings.

Mahmoud has recently claimed in a conversation with Ross there was in fact no transfer to Talento, the written consent was merely a fake document he crea

🤖 Quick Answer

What is the lawsuit filed by Eaconomy co-founder Candace Ross about?
Candace Ross, co-founder of Eaconomy and ex-wife of Hassan Mahmoud, filed a complaint on January 24th accusing Mahmoud of fraud and mismanagement. Both held equal 50% membership interests in Eaconomy under a 2021 operating agreement. The lawsuit concerns alleged misconduct in the management of the company.

What is the history of Eaconomy and its founders?
Eaconomy was launched in 2019 by Candace Ross and Hassan Mahmoud, along with a third member who departed around 2020. The company was a reboot of Silverstar Live, a fraudulent investment scheme for which both Ross and Mahmoud were fined $75,000 by the CFTC.

**What happened

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