Each the SEC and defendant Daniel Pacheco have had their motions for abstract judgment denied.

Each events sought to get the higher hand through the filings, made in July 2021.

As per an April 4th order, the court docket discovered;

Though the SEC presents a robust case, a displaying has not been made that the problems are purely authorized and determinable on abstract judgment.

Pacheco’s movement was filed on the idea iPro Community and its Professional Foreign money funding scheme wasn’t a securities providing.

Pacheco argued in opposition that PRO Foreign money was not an funding contract as a result of it was given freely as a reward when clients purchased “actual merchandise with actual worth”.

The court docket disagreed.

Materials reality disputes exist as as to if Professional Foreign money or the I-Professional Community constituted securities.

Wanting ahead, ought to the case progress to trial we’ll have the  “bundling a services or products to our Ponzi scheme makes it not a Ponzi scheme” ruse put earlier than a jury.

I truthfully don’t see that occuring, because it’s virtually a assured loss for Pacheco (proper).

Whether or not shoppers have been motivated by the PRO Foreign money or the tutorial supplies must be a factual query reserved for a jury.

Pacheco additionally argued that buyers have been motivated by the I Professional Mall, which, although admittedly by no means truly was accessible to shoppers, purportedly was set to incorporate $4 million price of merchandise that might be exchanged for the “reward” PRO Foreign money.

Lastly, Pacheco asserted that there was a rising listing of over 200 distributors that had curiosity in accepting PRO Foreign money as tender.

Whereas the SEC has sturdy and persuasive arguments, the one strategy to tackle the fabric disputes of reality is to delve far into the actual particulars of the chronology of occasions and to low cost Pacheco’s declarations, each of which don’t appear to be questions of legislation to be addressed on abstract judgment.

Put extra merely, although the SEC’s case seems well-supported and logical, it doesn’t seem that the triable points of fabric reality have crossed the road from factual into authorized such {that a} grant of abstract judgment is acceptable right here.

Whereas it won’t be appropriate for abstract judgment, Howey Take a look at case legislation with respect to funding contracts and securities is fairly established.

Pacheco’s arguments about “services” are simply demolished by ringing up how many individuals invested in PROC outdoors of the MLM alternative.

The reply is 0%, as a result of PROC wasn’t out there by way of iPro Community outdoors of the connected Ponzi/pyramid scheme.

As per an order made again in January, the iPro Community trial is scheduled for August ninth, 2022.