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Pyramid Scheme Mastermind Caught in Colorado
Alex Dee, 49, a U.S. citizen residing in Canada, has been charged with orchestrating a multimillion-dollar pyramid scheme under the name 8 Figure Dream Lifestyle LLC (8FDL). The indictment, unsealed yesterday, reveals his co-conspirators’ guilty pleas.
According to court documents, Dee, formerly known as Alex Dowlatshahi, allegedly co-founded 8FDL with Brian Kaplan, 52, of Fort Collins, Colorado, and Jerrold Maurer, 58, of North Bellmore, New York. The scheme, which ran from January 2017 to June 2019, lured participants through emails, robocalls, promotional videos, and webinars.
Dee and his conspirators allegedly deceived consumers about the legitimacy of 8FDL, claiming it was a real business with products and lying about potential earnings. For instance, Dee sent mass-marketing emails stating that members could earn between $5,000 and $10,000 in 10 to 14 days, with most averaging two to three sales within 30-45 days. However, the majority of participants never made any money.
Dee was arrested at the U.S.-Canada border on February 28, 2023 while attempting to enter Washington state from British Columbia. He made his initial appearance before a magistrate judge in the Western District of Washington on March 1, 2023.
Dee faces one count of conspiracy to commit wire fraud and four counts of wire fraud, each carrying a maximum penalty of 20 years in prison. Kaplan and Maurer pleaded guilty to conspiracy to commit wire fraud and await sentencing, facing a maximum penalty of five years in prison.
The U.S. Postal Inspection Service (USPIS) is investigating the case. Trial Attorneys Brandon Burkart and Andrew Jaco, along with Assistant Chief William Johnston, are prosecuting the case, receiving assistance from the Federal Trade Commission.
If you believe you are a victim of this scheme, contact the Fraud Section’s Victim Witness Unit at (888) 549-3945 or victimassistance.fraud@usdoj.gov for assistance.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Key Facts
- State: Colorado
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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