Massachusetts Secretary of State William F. Galvin's office issued subpoenas to Wings Network, prompted by concerns from investors previously involved in the $1 billion TelexFree Ponzi scheme. Officials cited a new wave of reload scams targeting these individuals.
Secretary Galvin stated his office attended Wings Network events. His team heard from investors, now wary after TelexFree, and found the business model concerning.
TelexFree, a $1 billion Ponzi scheme, was recently shut down by both the SEC and the Massachusetts Securities Division. Its collapse heightened scrutiny of similar operations.
Wings Network affiliates pay between $299 and $1499 to join the scheme. They qualify for commissions after recruiting two new participants who also purchase packages within that price range. Earnings increase with the amount spent on an affiliate package and the number of new sign-ups. The company claims to operate from Portugal, but ownership details remain unclear.
Wings Network's attorney confirmed the company received subpoenas from Secretary Galvin. Lawyers for Wings Network met with the Securities Division last week. Regulators now seek a meeting with company executives.
No official word exists on SEC involvement. But the Securities Division and SEC often collaborate on such cases, as seen with TelexFree where both agencies filed complaints on the same day.
Attorney D.J. Poyfair responded to media inquiries about the investigation. He stated Wings Network is cooperating with the state and conducting an internal review. Poyfair added the company intends to "address quickly any problems it discovers." He also suggested Wings might suspend operations if significant issues emerge.
Dozens of individuals contacted The Globe, reporting that some former TelexFree participants are now joining Wings Network. The scheme appears popular among Portuguese-speaking Brazilian immigrants, much like TelexFree.
The Wings Network business model lacks retail sales, relying on new affiliate money to pay existing members based on recruitment. This structure suggests the Securities Division investigation will likely lead to further action against the company.