It’s Solely 5 and proprietor Elton Potts have acquired a $10,000 securities fraud stop and desist from Michigan.
As per the Company, Securities and Business Licensing Bureau nineteenth April discover;
ItsOnly5.com is a publicly accessible web site that’s not registered in any capability and has not registered any securities choices beneath the Securities Act in Michigan.
It’s owned and operated by Elton Potts, a person final identified to be a resident of the State of Michigan.
The CSCL cite It’s Solely 5 as being related to the businesses AACHEN AUTO Okay E B, INC. and TFN Group INC.
The CSCL go on to advise they opened an investigation into It’s Solely 5 after receiving a client grievance.
Proof collected by Bureau employees reveals that Respondent publicly solicited funds via its web site, ItsOnly5.com, and promised of income to buyers based mostly on a “compelled matrix” operated by Respondent and its employees.
Buyers might however weren’t required to recruit different buyers to take part within the scheme and needed to exert no efforts to appreciate the purported funding returns.
That is in keeping with BehindMLM’s printed August 2022 It’s Solely 5 overview. Following our personal analysis, we recognized It’s Solely 5 as a matrix cycler Ponzi.
Respondent’s gives and gross sales of those funding alternatives constituted funding contract securities that weren’t registered beneath the Securities Act, and Respondent and Potts have failed to assert an exemption, exception, preemption, or
exclusion justifying the failure to register the securities.
Because of It’s Solely 5 and Potts committing securities fraud, the CSCL went on to problem a stop and desist.
The regulator has additionally issued a $10,000 nice;
In a Last Order, the Administrator intends to impose civil fines of $10,000.00 in opposition to Respondent beneath MCL 451.2604(4).
The $10,000 nice kicks in if It’s Solely 5 and Potts don’t request a listening to inside 30 days of the C&D discover being issued.
That deadline handed on Might twenty fourth. I used to be unable to search out any proof It’s Solely 5 or Potts requested a listening to.
Having declined to request a listening to to clarify themselves, It’s Solely 5 and Potts have 60 days from Might twenty fourth to pay the $10,000 nice.
Along with Elton Potts, It’s Solely 5 was fronted by:
- Sarah Potts – credited as an It’s Solely 5 co-founder
- John and Lisa Arnold – credited as It’s Solely 5 co-founders
- Reem Shehadeh – credited as It’s Solely 5’s Public Relations Supervisor and
- Guillermo Joya – credited as It’s Solely 5’s Gross sales & Coaching Supervisor
In BehindMLM’s It’s Solely 5 Assessment, we famous {that a} month previous to the CSCL’s discover It’s Solely 5 started deleting web site and advertising video proof.
Seems to be like It’s Solely 5 has collapsed or is on the breaking point. It’s Solely 5 web site content material and advertising movies are being deleted and/or marked as personal.
A go to to It’s Solely 5’s web site right this moment reveals the scheme has been shut down because of “unexpected circumstances”.
I’m not fairly clear on how an MLM committing committing securities fraud getting busted for securities fraud is an “unexpected circumstance”.
A go to to Elton Potts FaceBook web page reveals he’s at present selling My Automotive Membership:
My Automotive Membership is a advertising funnel for the Dubai-based NextGen Academy Ponzi scheme.
Pursuant to part 508 of the Securities Act, MCL 451.2508, an individual that willfully violates the Securities Act, or an order issued beneath the Securities Act, is responsible of a felony punishable by imprisonment for no more than 10 years or a nice of not
greater than $500,000.00 for every violation, or each.
Whether or not the CSCL takes additional motion in opposition to Potts for persevering with to commit securities fraud stays to be seen.
