A California based operator was conducting a pyramid scheme. He was able to raise a whopping amount of $26 million with this scheme. The US Securities and Exchange Commission has filed a case against this operator named Daniel Pacheco.
Daniel Pacheco is a 45-year-old resident from San Clemente, California. He was charged for two accusations- selling unregistered securities and cryptocurrency pyramid scheme. This pyramid scheme involves some millions of money.
SEC released a press release highlighting the scams done by Pacheco. He owns two companies named IPro Solutions LLC and IPro Network LLC. Using these two companies, Pacheco started selling the unregistered securities between January 2017 and March 2018.
He used to sell IPro packages for the foreigners. These packages consist of the tutorials regarding how to set an online commerce store and how adding more members into the scheme helps people earn money. The points that a person gains in the scheme are converted into Pro cryptocurrency. He earned more than $26 million by selling these IPro packages.
Pacheco made people believe that he will create an eco-system which will provide an option for the users to buy anything in eCommerce store with the cryptocurrencies that they own. The IPro customers should pay an annual fee of $50 to be an active member of the scheme.
SEC has released the complaint stating that in the span of 14 months, nearly 20,000 members joined in this IPro pyramid scheme.
Pacheco started living a luxury life with the money that he earned in this pyramid scheme. The mismanagement of the funds led to the downfall of this scheme. The Pro currency present in CoinMarketCap with the name of PROC has the same logo that of IPro. The value of this coin declined continuously since January 2018.