R Network committing securities fraud thru “stock ownership”

R Network is selling stock to its salespeople—and nobody involved is legally allowed to.

In a June 2020 marketing video, R Network Master Distributor Jon Holbrook and presenter Jeremy Jenkins pitched what they called "common stock ownership" to prospective affiliates. The catch: neither R Network nor any of its executives are registered with the Securities and Exchange Commission. That makes the entire scheme illegal securities fraud.

The video was part of R Network's "90 day awareness campaign." Jenkins laid out the terms clearly. Affiliates who personally recruited ten people by June 30th would receive 1,000 shares of R Network stock. The company was going public in late 2020, Jenkins explained, and this was a limited-time offer extended to let more people participate.

"If by the end of July you have enrolled ten people, you will get that stock package," Jenkins said at the 24:55 mark of the presentation.

Here's the problem: offering stock to the public requires SEC registration. R Network, R Net Holdings, founder Richard Smith, Holbrook, and Jenkins are none of them registered. Federal law doesn't care whether the company eventually goes public or what promises executives make. Selling unregistered securities is securities fraud, period.

R Network isn't new to regulatory trouble. The company first surfaced in April 2019 when founder Richard Smith was promoting RevvCard, a debit card that never actually launched. The company quietly abandoned that product and pivoted to marketing an ecommerce platform instead.

The current business model relies on affiliate recruitment. Members pay $25 to join, then $50 monthly. They earn commissions by recruiting others into the same subscription structure, distributed through a 3×10 matrix. R Network offers free membership options as window dressing, but Holbrook's and Jenkins's presentation made clear where the real money comes from: signing up new salespeople.

Jenkins mentioned the stock ownership scheme had "been extended," suggesting it had been running longer than the June announcement. By linking stock ownership to recruitment targets, R Network entangled the unregistered securities offering directly into its multi-level marketing operation. The message was unmistakable: recruit aggressively, and you get equity in the company.

The company is based in Utah. Whether the SEC decides to take action remains unclear.

Jeremy Jenkins removed the YouTube video from his channel in March 2021, the same month R Network merged into iX Global. The scrubbing of evidence suggests someone recognized the legal exposure, but deleting a video doesn't erase the fact that unregistered securities were offered to the public in violation of federal law.

🤖 Quick Answer

What securities fraud scheme did R Network allegedly operate through stock ownership?

Who were the key figures promoting R Network's illegal stock offering?
Master Distributor Jon Holbrook and presenter Jeremy Jenkins marketed the scheme during R Network's June 2020 awareness campaign. They pitched stock ownership directly to prospective affiliates without disclosing regulatory violations or licensing requirements necessary for securities distribution.

Why does R Network's stock distribution constitute illegal activity?
Neither R Network nor its executives maintained SEC registration required for selling securities. Distributing shares to employees and affiliates without proper regulatory compliance violates federal securities laws, classifying the arrangement as

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