US authorities have convicted two men and a woman for conspiring to commit mail fraud and securities fraud. One of the two men has also been convicted of money laundering and attempted tax evasion.
The convicts were involved in the sale of positions in Infinity 2 Global (I2G), a pyramid scheme masquerading as a multi-level marketing company. The convicts further sold $5,000 Emperor positions in I2G as passive income. One of the convicted men also committed money laundering and tax evasion involving over $3.2 million in I2G funds.
In this manner, I2G generated over $30 million in revenue over a period of 15 months. A large proportion of this revenue was used to pay commissions to the promoters at the top of the pyramid structure. Notably, more than 90% of the people who bought a membership in I2G lost money.
Source: US Department of Justice
