(NewsNation) — Three people are facing felony wire fraud charges after prosecutors allege they orchestrated a multimillion-dollar pyramid scheme by using emails, robocalls and webinars to dupe consumers.
Indictments unsealed last week accuse Alex Dee, formerly Alex Dowlatshahi, 49, of Maple Ridge, British Columbia; Brian Kaplan, 52, of Fort Collins, Colorado; and Jerrold Maurer, 58, of North Bellmore, New York, of operating the scheme.
Prosecutors allege Dee, a U.S. citizen living in Canada, co-founded 8 Figure Dream Lifestyle (8FDL) and told prospective members they could make $5,000 to $10,000 within 14 days of joining the program.
“In fact, the vast majority of people who joined 8FDL never made any money,” the Justice Department said in a news release.
Prosecutors allege he lied about how much money people could make, how much other members had made and the ongoing costs associated with being a member.
Dee was arrested at the U.S.-Canada border while trying to enter Washington state and made an initial court appearance last week, prosecutors said. He is charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. He faces a maximum of 20 years in prison on each charged count.
Kaplan and Maurer already pleaded guilty to one count of conspiracy to commit wire fraud, prosecutors said. Each faces a maximum penalty of five years in prison.