Daniel Pacheco and the other people charged with fraud in the iPro Network case have reached a deal with the SEC.
A Notice of Proposed Settlement was filed on December 12;
The SEC’s lawyers and Pacheco’s lawyers have agreed on the important parts of a proposed settlement.
In May 2019, the SEC sued Pacheco (right) for fraud with the iPro Network.
The SEC said in its complaint that iPro Network was a $26 million pyramid scheme.
Back in March 2017, BehindMLM looked at iPro Network and correctly said that it was a pyramid scheme.
Every MLM altcoin’s Achilles’ heel is whether or not the coin can be used outside of the income opportunity.
The only people who buy Pro Coin and, by extension, use it, are affiliate investors who bet thousands of dollars on a chance. For no other reason than that, they hope to get a return on their investment (ROI) later.
This won’t bring in legitimate merchants who accept Pro coin directly, so no one other than affiliates will use the coin.
Retail customers who aren’t part of the company won’t touch it.
Once all of the pyramid recruitment commissions have been paid out, iPro Network affiliates will be left with yet another worthless MLM altcoin, unless the coin’s issuer continues to rig the system.
Details will be made public once the SEC Commissioners agree to the iPro Network settlement. “About 60 days” is how long this process is expected to take.
In the meantime, the January 17 trial for iPro Network has been canceled.
Plaintiff Securities and Exchange Commission (“SEC”), by and through its counsel of record, Daniel O. Blau, and defendants Daniel Pacheco and Relief Defendant EProfit Systems LLC (together, “Pacheco” or “Defendants”), by and through their counsel of record, Scott Wellman and Chris Wellman, notify the Court of their proposed settlement and agree to cancel the remaining pretrial and trial dates if the Court agrees.
The firm Wellman & Warren, where Scott and Chris Wellman work, helped iPro Network market itself.
Wellman & Warren wrote Pacheco’s original response to the SEC’s case, which you should read.
Pacheco said, among other things, that the SEC couldn’t sue him because “the SEC didn’t lose anything.”
Scott Wellman got to promote his book “Schemes and Scams” at iPro Network events in exchange for giving iPro Network a pass on their fraud.
It’s not clear why the author of “Schemes and Scams” wasn’t able to spot a $26 million pyramid scheme.