John Brian McLane Jr., founder of Mindset 24 Global, admitted to evading $417,000 in federal taxes in 2019. That year, McLane earned over $1 million from various ventures including a male enhancement product business, an identity protection scheme, and gambling. He failed to report any of this income to the IRS.
Investigators found McLane systematically underreported his income on tax returns filed between 2014 and 2019. The IRS brought charges in June 2022. McLane pleaded guilty to tax evasion on July 22nd.
A judge ordered McLane to serve five years of probation, including one year of home confinement with electronic monitoring. He must also pay $1.2 million in restitution and complete 100 hours of community service. This financial penalty followed separate action by the Securities and Exchange Commission.
Regulators sued McLane in 2021, alleging his company Mindset 24 Global operated as a Ponzi scheme that defrauded investors of over $1 million. He settled those charges last month. The settlement requires McLane to return $135,200 to victims, plus $17,770 in prejudgment interest and a $60,000 civil penalty. His total payment to the SEC amounts to $212,970.
McLane’s businesses operated in similar fashion. Safe ID Trust was a multi-level marketing company before it closed. Testculin sold male enhancement pills. His subsequent venture, Mindset 24 Global, followed the same pattern. McLane extracted funds from investors instead of building genuine value. He used the money for personal expenses, including plane tickets, rent, tuition for his children, cars, and shopping.
The tax evasion conviction concludes a decade of financial misconduct. McLane had opportunities to file amended returns or cooperate with authorities. He chose instead to continue spending and concealing his income. The terms of his probation require him to remain in his home for a year under electronic surveillance. He also faces a seven-figure bill to compensate victims.