Michael Shannon Sims, recognized within the MLM business as Mike Sims, has consented to a preliminary injunction.
The injunction pertains to commodities fraud fees introduced by the CFTC.
The CFTC’s January 2023 filed fees are in relation to a collection of Ponzi schemes run by Sims (under), Todd Brisco (Sims’ brother in regulation), Tin Tran, Francisco Story and Frederick Safranko (aka Ted Safranko).
By way of their interconnected Yas Castellum Ponzi schemes, Sims and his co-defendants allegedly defrauded shoppers out of a minimum of ~$145 million.
Sims’ function inside the Yas Castellum Ponzi schemes scams was on the cash laundering aspect of issues.
Brisco transferred many of the Pool Participant funds to the Tran Swimming pools and a small portion to a different agency.
Brisco did so on the path and with the help of Mike Sims, his brother-in-law and the purported CEO of the agency that was alleged to commerce on behalf of Yas Castellum LLC.
Sims instructed Brisco to disguise the transfers as funds for “companies” so the scheme wouldn’t be found.
On February sixth, the CFTC was awarded a Statutory Restraining Order (SRO) towards the Yas Castellum defendants.
The SRO successfully froze funds hooked up to the Yas Castellum Ponzi schemes, together with associated belongings and funds below the management of the Defendants.
On the idea the CFTC had demonstrated violations of the Commodity Trade Act, was more likely to prevail at trial, and there being “an affordable probability that Defendants will switch or dissipate belongings or destroy data”, the court docket additional granted the CFTC entry to the Defendants’ monetary data.
As per a March thirtieth consent order Sims has agreed to transform the SRO, because it pertains to him, right into a preliminary injunction.
As per the phrases of the consented preliminary injunction, Sims is preliminary restrained from
- committing additional violations of the Commodities Trade Act;
- buying and selling on any registered entity;
- getting into into any transactions involving commodity pursuits (together with any buying and selling finished on Sims’ behalf);
- controlling or directing buying and selling for or on behalf of some other individual or entity;
- soliciting funds for the aim of buying or promoting commodity pursuits;
- making use of for registration with the CFTC (consists of making use of for exemptions);
- opening or accessing any secure deposit bins;
Sims is additional ordered to
- protect proof and supply the CFTC with open entry to “paper paperwork, ESI, tape recordings and laptop discs” he has entry to;
- present the CFTC with passwords for any encrypted knowledge and/or gadgets;
- present the CFTC with a “detailed and full” catalog of his digital gadgets, for the aim of imaging saved knowledge;
- present the CFTC with a full accounting of his monetary data inside and out of doors of the US (together with funds, securities, belongings, futures, foreign exchange, gold, commodity curiosity transactions, “some other buying and selling” and cryptocurrency);
- present the CFTC with “the names and final recognized addresses, cellphone numbers and electronic mail addresses” for every of his purchasers (backdated to April 2020); and
- present the CFTC with the identical private info of anybody holding any funds, securities, commodities pursuits, belongings “or different property” tied to Sims
Any third-parties controlling belongings and/or funds tied to Sims has additionally been instructed mentioned belongings/funds are frozen. That is backdated to cowl asset/funds acquired from April 2020.
The beforehand appointed Yas Castellum Momentary Receiver has been upgraded to Receiver, with respect to Sims’ belongings and enterprise pursuits ties to the Yas Castellum Ponzi schemes.
Sims will “proceed to cooperate totally with and help” the Yas Castellum Momentary Receiver. This consists of granting permission for the Receiver to acquire info associated to Sims “enterprise actions and enterprise and private funds” on his behalf.
Sims is the primary Yas Castellum defendant to consent to a preliminary injunction. Proceedings towards the remaining defendants continues.
Following in depth analysis on the matter, BehindMLM believes Sims is on the middle of a a lot wider conspiracy to launder proceeds from a number of collapsed MLM Ponzi schemes.
This conspiracy extends to well-known MLM figures Holton Buggs, Travis Bott and Eric Worre.
Essentially the most notable Ponzi scheme as a part of Sims prolonged fraud empire is OmegaPro.
Sims co-founded OmegaPro with Dubai-based scammers Andreas Szakacs (Sweden) and Dilawar Singh (Germany) in late 2018.
OmegaPro pitched a 200% ROI over 16 months. Following withdrawal issues working into late 2022, BehindMLM known as OmegaPro’s collapse in November 2022.
The court docket authorized Sims’ consented to preliminary injunction on March thirtieth, the identical day the stipulation was filed.
Whereas I can’t definitively verify something, Sims’ consented to preliminary injunction gives potential perception into what’s brewing.
(Sims) consents to the entry of this Order and to the usage of of this Order on this continuing and the events agree that it has no collateral estoppel impact in any parallel state or federal felony proceedings, i.e. entry of this Order is only for these proceedings and shouldn’t prejudice or impair (Sim’s) constitutional civil rights in any parallel felony proceedings.
Keep tuned…