iX World, its CEO and a number of other promoters have been sued for securities fraud by the SEC.
Between iX World and its Debt Field ruse, the SEC’s July twenty sixth filed Grievance names eighteen defendants.
iX World launched in 2020 and is headed up by US nationwide Joe Martinez.
Previous to launching IX World, Martinez was a promoter of Investview’s fraudulent Kuvera World funding scheme. iX World’s high promoters and earners are additionally former Kuvera World promoters.
Investview rebranded Kuvera World as iGenius after the CFTC filed fraud costs in 2018.
iX World’s authentic enterprise mannequin mixed a private growth platform and an AI buying and selling bot funding scheme.
At the least two different MLM firms had been fed into iX World since its launch.
In 2021 Richard Smith dumped what was left of his failed R Community MLM firm into iX World.
In March 2023 Cory Kromray did the identical with Pushed Buying and selling.
Neither Smith or Kromray are named defendants within the SEC’s iX World lawsuit.
In 2022 iX World partnered up with Debt Field. This partnership noticed iX World traders spend money on “x-node” positions.
X-node positions purportedly generated passive income for iX World traders by crypto mining and numerous ruses.
Defendants have represented that the worth of every crypto asset is tied to earnings generated by numerous underlying companies performing, inter alia, gold mining, oil drilling, satellite tv for pc scanning, beverage gross sales, and different so-called “commodity initiatives.”
The SEC alleges iX World’s x-node positions had been an “unregistered fraudulent providing”.
The SEC’s July twenty sixth Grievance, filed in Utah, names eighteen defendants:
- Digital Licensing Inc (dba Debt Field) – Wyoming registered firm
- Western Oil Exploration Firm – Nevada registered firm, owned by James Franklin
- iX World – MLM firm providing fraudulent funding contracts
- B&B Funding Group (dba Core 1 Crypto) – Utah registered firm, owned by Benjamin Daniels and Mark Schuler
- BW Holdings LLC (dba The Truthful Undertaking) – Utah registered firm, owned by Alton Parker, Benjamin Daniels and Mark Schuler
- Jason R. Anderson – co-owner Debt Field, Utah resident
- Jacob S. Anderson – co-owner Debt Field, Utah resident
- Schad E. Brannon – co-owner and President of Debt Field, California resident
- Roydon B. Nelson – co-owner, Director and Treasurer of Debt Field, Utah resident
- James E. Franklin – founder and President of Western Oil Exploration Firm, additionally sued by the SEC twice for fraud up to now
- Ryan Bowen – promoter of Debt Field, Utah resident
- Joseph Anthony Martinez – founder and CEO of iX World, Utah resident
- Benjamin Frank Daniels – iX World promoter and high earner, Utah resident
- Mark W. Schuler (aka Billy Seaside) – iX World promoter and high earner, Utah resident
- Travis A. Flaherty – iX World promoter and high earner, Arizona resident
- Alton O. Parker – Debt Field promoter, Utah resident
- Brendan J. Stangis – Debt Field promoter, Michigan resident
- Matthew D. Fritzsche – Debt Field promoter, Utah resident
An extra ten aid defendants are additionally named:
- Archer Drilling LLC – Wyoming registered firm, owned by James Franklin and recipient of $1.6 million in investor funds
- Enterprise Funding Options LLC – Utah registered firm, owned by Jason Anderson and recepient of $11.9 million in investor funds
- Blox Lending LLC – Utah registered firm, owned by Jason Anderson, owned by Jason Anderson and recipient of $4.7 million in investor funds
- Calmfritz Holdings LLC – Utah registered firm, owned by Matthew Fritzsche and recipient of $12.7 million in investor funds
- Calmes & Co Inc – Utah registered company and recipient of $300,000 in investor funds
- Flaherty Enterprises LLC – Arizona registered firm, owned by Travis Flaherty and recipient of $260,000 in investor funds
- IX Ventures FZCO – Abu Dhabi shell firm, owned by Jason Anderson and Jacob Anderson and recipient of $1.3 million in investor funds
- Purdy Oil LLC – Nebraska registered firm, owned by James Franklin and recipient of $2.6 million in investor funds
- The Gold Collective LLC – Utah registered firm, owned by Roydon Nelson and recipient of $3.9 million in investor funds
- UIU Holdings LLC – Delaware registered firm, owned by Jason Anderson and recipient of $200 million in investor funds
The SEC backdates IX World’s alleged fraudulent conduct to “a minimum of March 2021”. For reference, BehindMLM reviewed and appropriately recognized iX World’s fraud in February 2021.
Not surprisingly, iX World’s Debt Field x-nodes had been bogus. Tokens hooked up to the funding scheme had been of the BEP-20 selection, which iX World created on demand as wanted.
The eleven digital asset tokens purportedly being “mined” by the node software program licenses can’t be mined and by no means had been mined.
Every of the eleven DEBT Field tokens is a BEP-20 token created on the Binance Blockchain (“BNB Chain”), which—as right here—permits a person to immediately create a specified variety of tokens.
Every of the eleven classes of DEBT Field crypto belongings had been generated instantaneously by DEBT Field on the outset of the tokens’ creation; the tokens had been by no means generated by “mining” performed by, or validated by, a “node” or “node license.”
As to the ruses iX World claimed offered worth to their x-node shit tokens, the SEC claims they had been “a sham”.
The “actual initiatives” and “actual belongings” Defendants tout as supporting the worth of those tokens are a sham.
Defendants have made quite a few representations relating to the underlying companies purportedly propping up the tokens’ worth, and people representations are false: the companies merely didn’t and do not need the capabilities or revenues Defendants repeatedly represented to traders.
One instance was Lazy Magnolia.
Starting in or round December 2022 and persevering with to current, in promotional movies and social media posts, DEBT Field and the members of the DEBT Council have claimed that Lazy Magnolia secured “multi-million-dollar” bottling contracts, together with with retailers similar to “7-11, Aldis, Meals Lion, Sam’s Membership and extra” which might be at present producing over “12 million {dollars} a month in income.”
As lately as January 15, 2023, Jason Anderson, Jake Anderson, Brannon, Nelson, and Bowen continued to assert that its bottling companions are producing hundreds of thousands in month-to-month income, and that DEBT Field’s share of those can be proportionally allotted amongst BEV token holders.
At no level did Lazy Magnolia or every other purported DEBT Field associate have contracts with “7-11, Aldis, Meals Lion, Sam’s Membership,” or every other bottling distributors or retailers.
Nor has Lazy Magnolia generated over “12 million {dollars} a month in income” at any level throughout the related time interval. Certainly,
Lazy Magnolia’s internet earnings in 2022 was solely about $100,000.
One other instance, Fleet House Applied sciences, is cited by the SEC as a definitive instance of iX World and Debt Field concealing fraud.
DEBT Field claimed that it had elevated the effectiveness of its “proprietary” expertise by a partnership with an Australian mining exploration firm named Fleet House Applied sciences (“Fleet House”).
At no level did DEBT Field have a partnership with Fleet House or entry to its expertise and merchandise.
Nor has Fleet House ever surveyed or in any other case offered companies in reference to oil wells owned by Western Oil or DEBT Field.
Certainly, in or round January 31, 2023, Fleet House despatched an e mail to Brannon demanding that Brannon and DEBT Field stop utilizing Fleet House’s promotional supplies.
In or round January 31, 2023, Jason Anderson, Jake Anderson, Brannon, and Nelson realized that traders had contacted Fleet House relating to the corporate’s purported partnership with DEBT Field.
Moderately than disclosing to traders that DEBT Field by no means had a partnership with Fleet House, DEBT Field introduced in a February 10, 2023 message to traders that it had “terminated” its partnership with Fleet House.
To hide their prior misstatements about Fleet House, Brannon and every of the members of the DEBT Council claimed that its relationship with Fleet House was terminated as a consequence of “harassment” of Fleet House by opponents and different third events.
Since a minimum of February 10, 2023, members of the DEBT Council have discouraged customers from contacting firms to confirm DEBT Field’s claims that these entities have partnered with DEBT Field.
Since February 10, 2023, Jason Anderson, Jake Anderson, Brannon, and Nelson have hid the names of supposed enterprise partnerships.
In response to questions from traders about these partnerships, the DEBT Council members have described their partnership agreements as “proprietary” and, at different occasions, have claimed that sure companions have requested DEBT Field hold the connection confidential.
If we settle for that neither iX World or Debt Field had been producing exterior income income to cowl investor withdrawals, we’re left with a typical MLM shitcoin Ponzi scheme.
That in flip lends itself to iX World and Debt Field executives and promoters
misappropriat(ing) the funds for their very own private achieve—shopping for luxurious autos and houses, taking lavish holidays, and showering themselves and their associates with money.
In submitting their Grievance, the SEC acknowledges that iX World was gearing as much as additional defraud customers with a brand new spherical of bogus funding contracts.
Defendants have lately introduced they are going to be providing a minimum of two new node software program licenses backed by new, presumably illusory, companies. As well as, sure defendants lately launched a spin-off providing, the FAIR Undertaking, differing from DEBT Field solely in identify.
The SEC additionally notes that, presumably upon studying they had been underneath investigation, iX World and Debt Field executives and promoters initiated plans to flee to Dubai.
iX World’s promotional efforts within the UAE and India are headed up by “high earnings earner” Viraj Patil.
In submitting their July twenty sixth Grievance, filed underneath seal, the SEC accuses the iX World and Debt Field defendants of misappropriating a minimum of $49 million by securities fraud.
The Fee brings this motion to halt Defendant’s ongoing violations of the federal securities legal guidelines, forestall additional hurt to traders, and to hunt disgorgement and civil penalties stemming from Defendants’ wrongdoing, amongst different treatments.
The identical day the Grievance was filed, the SEC additionally sought a TRO towards iX World and Debt Field, in addition to the appointment of a Receiver.
The TRO was granted on July twenty seventh.
As per the phrases of the granted TRO, the iX World and Debt Field defendants are required to
- instantly stop any additional fraudulent conduct and
- instantly stop and enterprise associated buying and selling, buy and/or sale of securities or funds (together with cryptocurrency)
The defendants’ financial institution accounts and belongings have additionally been frozen, together with
- 5 Utah properties owned by Jason Anderson
- two Utah properties owned by Jacob Anderson
- two California properties owned by Schad Brannon
- 4 Utah properties owned by Roydon Nelson
- twenty Utah properties owned by Ryan Bowen
- one Utah property owned by Joseph Martinez
- 5 Utah properties owned by Benjamin Daniels
- three Utah properties owned by Mark Schuler
- 4 Arizona properties and one Utah property owned by Travis Flaherty
- one Utah property and two Wyoming properties owned by Alton Parker
- one Utah property owned by BW Holdings LLC
- two Utah properties owned by Matthew Fritzsche
- a 2022 Maserati Levante Base
- a 2021 Lamborghini Urus
- a 2018 Jeep Wrangler Limitless Sahara
- a 2017 Ferrari California
- a 2017 Ferrari 488 Spider
- a 2020 Chevrolet Corvette Stingray
- a Toyota Sequoia SR5
- a 2021 Cadillac XT5 Sport
- a 2019 Toyota Tacoma Double Cab
- a 2016 Toyota Prius
- a 2003 Dodge Ram 3500
- a 1995 Dodge Ram 2500
- a 1994 Ford F150
- a 1991 Ford F150
- a 2014 Honda Accord EXL
- a 2022 Cadillac Escalade Sport
- a 2022 Lamborghini Urus
- a 2018 Polaris RZR XP
- a 2013 Ford F150 Supercrew
- a 2022 Chevrolet Corvette Stingray
- a 2022 Tesla Mannequin X
- a 2018 Land Rover Vary Rover Sport SVR
- a 2012 Toyota Tacoma
- a 2023 Mercedes Benz S Class
- a 2021 Cadillac Escalade ESV
- a 2015 Mercedes Benz S Class
- a 2005 Mercedes Benz E Class
- a 2018 Porsche 911 GT3
- a 2015 Porsche 911
- a 2017 Lexus RX 350
- a 2022 Ford F250 Tremendous Responsibility
- a Can-Am Outlander Max XT 850 ATV
- a 2021 Porsche Taycan Cross Turismo and
- a 2020 Ford F150 Raptor
On July twenty eighth, the court docket appointed a Debt Field and iX World Non permanent Receiver. This removes management of Debt Field and iX World from their homeowners.
The granted TRO is in impact for 10 days, after which it will likely be renewed pending any opposition.
Trying ahead, until the iX World and Debt Field Defendants are profitable in overturning the TRO and Receivership (unlikely), the TRO will stay in place and a preliminary injunction shall be granted in some unspecified time in the future.
Exterior of the US, Sailesh Pandey was arrested in India in late 2022.
Pandey was arrested on costs associated to iX World cash laundering. Since Pandey’s arrest final October there have been no additional updates on his case.
Whether or not felony costs are pending towards any of the iX World and Debt Field Defendants is unknown.
