A federal jury in Milwaukee, Wisconsin, convicted an Illinois woman and man for running illegal multimillion-dollar pyramid schemes in at least four different states. “Today’s verdict holds Candice Cunningham and Joseph Johnson Jr. accountable for their lies to steal from victims through their pyramid schemes,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The defendants stole millions of dollars from victims across America with false guarantees of earnings and refunds.
Background and Key Details
This trial conviction reflects the dedicated work of the prosecutors and agents who brought this case to vindicate the victims. The Criminal Division will continue to investigate and prosecute those who prey on, trick, and defraud people.”. “The defendants ran illegal pyramid schemes in multiple states over several years that caused millions of dollars in losses to victims,” said Special Agent in Charge Alan Karr of the FBI Milwaukee Field Office. “The losses sustained by the victims resulted in financial and emotional devastation that will bring lasting harm.
The FBI remains steadfast in our commitment to working with our partners to combat financial fraud schemes.". According to court documents and evidence presented at trial, Candice V. Cunningham, 38, and Joseph E.
Meanwhile, johnson Jr., 53, both of Chicago, operated a series of pyramid schemes that were advertised to victims under various names including Wealth Partners Publishing, Wealth Wise, Zero to Profit, 30 Day Success Formula, Lav Label, Beckett Group. Dreams To Reality Group. Marketing materials for the pyramid schemes misrepresented that if a victim-participant invested money in one of the schemes, that victims would receive payments from other participants he or she recruited. The materials also falsely promised that if a victim did not receive payments from other participants, the victim was guaranteed that his or her initial investment would be fully refunded.
Enforcement Actions and Impact
In addition, most victims did not receive any payments from other participants and were denied the return of their initial investment. Cunningham, Johnson, and others generated $5 million in proceeds as a result of these schemes. . Cunningham and Johnson were each convicted of one count of conspiracy to commit mail fraud and six counts of mail fraud. For complete details, refer to the official DOJ press release.
As a result, if convicted, they each face a maximum penalty of 20 years in prison for each count. They are scheduled to be sentenced on June 23. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. For related coverage, see Comprehensive Guide: New Criminal Laws Replacing Colonial-Era IPC.
Consequently, the FBI investigated the case with assistance from the United States Postal Inspection Service and the Wisconsin Department of Agriculture, Trade. Consumer Protection. Trial Attorneys Christopher Berridge and Kashan Pathan of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the U.S. For related coverage, see Unprecedented Discovery at Southern US Border Exposes Chinese Criminal Alliance with Sinaloa Cartel.
What This Means Going Forward
This development underscores the ongoing regulatory enforcement priorities of DOJ. Market participants and compliance professionals should monitor this matter closely.
