The SEC has filed a lawsuit against Francisley Valdevino Da Silva, also known as Francis Silva, who started Forcount.
The SEC has also charged three US-based promoters with civil fraud.
Francis Da Silva (right) calls himself the “Cryptocurrency Sheik” and the “boss of the pyramid scammers.”
Da Silva is from Brazil, and he started Forcount and other MLM crypto Ponzi schemes.
Da Silva probably left the US for Brazil in January 2022 when he found out he was being looked into.
On November 3, Brazilian police arrested Da Silva as part of an investigation into an $800 million Ponzi scheme.
Juan Antonio Tacuri Fajardo lives in Florida and is one of the best promoters for Forcount. The US government caught Fajardo on December 14, 2022.
Both Da Silva and Tacori have been charged with crimes related to Forcount, and the charges are the same.
Ramon Antonio Perez Arias and Jose Ramiro Coronado Reyes were not charged with a crime, but the SEC is suing them as top promoters of Forcount.
Both Perez and Reyes live in Florida, and they both had a top Forcount investor account under the same name.
In a complaint filed on December 14, the SEC calls Forcount “a fake company that trades and mines crypto assets.”
For count said that investments made through Forcount would lead to returns from “daily trade through our calibrated robots to generate daily earns!”
Forcount also said that investors would get their money back because it uses an “intelligent mining system” with “10,000 machines” that “mine” crypto assets automatically.
Even though the defendants said that Forcount’s trading, mining, and referral program would bring in money, Forcount’s only real source of income was the money it got from investors.
On the Forcount website, fake returns were shown based on the amounts and types of crypto assets that investors seemed to have in their Forcount accounts.
The defendants had no reason to promise the returns they did, and the money they got from later investors was used to pay earlier investors in a Ponzi scheme.
This backs up BehindMLM’s review of Forcount, which came out in May 2018.
The MLM part of Forcount was also a pyramid scheme, in addition to being a Ponzi scheme.
During the period in question, Forcount didn’t sell any real goods or services to retail customers, and it didn’t seem to have any other way to make money besides the money it got from investors.
The defendants pushed investors hard to take part in the referral program and to ask family and friends to invest as well.
The defendants told investors that the referral program would make them more money than their membership “returns.”
Even though we didn’t talk about it in our review, Da Silva used a Boris CEO to hide the fact that he was involved in Forcount.
Nestor Nunez, who is from Spain, played “Salvador Molina.”
The SEC says that Nunez was an actor who lived in Spain and looked older and more grown-up.
Even though Molina was presented as Forcount’s CEO, he “had no control over Forcount and didn’t know anything about crypto assets.”
Da Silva set up Forcount as a Panamanian “shell” company so that it could have a CEO named Boris.
One investor who went to Brazil said that the fake offices that looked like Forcount’s were “dressed up to look like Forcount’s office.”
In the middle of 2019, Forcount began to fall apart. This caused a reboot of a shitcoin exit scam by Weltsys and Mindex.
Da Silva had full control over how much money the referral program paid out. At Da Silva’s direction, it changed a lot, with different levels, bonuses, and prizes.
On more than one occasion, Da Silva stopped promoters from earning more points or took points away. He also changed the crypto assets that points were supposed to earn.
Da Silva also changed the way payments were made often, making them hard to predict.
Overall, Forcount made more than $8.4 million. Like every other MLM Ponzi scheme, Da Silva and his promoters stole most of the money put in and spent it on “homes, dozens of cars, and luxury goods.”
For count marketing videos showed Da Silva’s assets in Brazil and Florida that he got without paying for them.
During this time, Da Silva made videos that showed his lavish spending and assets. These included two private jets, two helicopters, dozens of luxury cars, a seaside mansion with a heliport, and another mansion in Florida. All of these things were in Brazil.
In a video from May 2019, (Da Silva) sarcastically “thanked” Forcount investors, who had been told that Forcount would give some of its profits to charity, for putting money into a “charitable fund” that helped him buy a Lamborghini.
At marketing events for Forcount, more luxury cars were rented to attract new investors.
At different events in 2018, Tacuri, Perez, and Coronado each showed off cars that they had borrowed, leased, or rented and said they had bought with investment money from their memberships, including the referral program.
One of Coronado and Perez’s Forcount downline members was told to lie about how much money they were making each month by Coronado and Perez.
Around the middle of 2018, Coronado and Perez asked one of their downline promoters, “Promoter 1,” to give a testimonial at a live event. They told her to say that she was making more than $20,000 a month.
From then on, Promoter 1 gave testimonials about every other month, and each time, Coronado and Perez said she was making more than $20,000 per month. Coronado and Perez knew that these things were not true about Promoter 1.
Also, at the end of 2018, Coronado took a video of Promoter 1’s house and showed it at promotional events, saying that Promoter 1 had bought it with the money she got from Forcount.
Coronado knew that Promoter 1 didn’t own the property and that the house was being rented out, so he knew that these claims were false.
At Forcount events, raffles with tickets were also set up to win;
In or around October 2019, Da Silva sold raffle tickets for a car at a marketing event in Cancun, Mexico.
Da Silva couldn’t sell enough raffle tickets, so he drew a number that didn’t exist so he could keep the money.
“Promoter-1” is not named, but it is thought that he or she helped the SEC in its investigation. Perez told Promoter-1 at one point that Forcount was a Ponzi scheme.
By the end of 2019, Promoter 1 told Da Silva, Tacori, and Perez that they were getting a lot of complaints from investors in their downline who couldn’t get their money out.
Perez told Promoter 1 to bring new investors to the January 2020 Forcount event.
Perez said that Da Silva could pay back the early investors with the money he got from new investors.
By letting investors earn money without doing anything…
Promoters of Forcount memberships, such as Perez, Tacuri, and Coronado, told investors that their money would double in six to eight months if they put it into Forcount.
“Create a free account, invest, invite friends, double up, and repeat,” were Tacuri’s “rules” for investing in Forcount.
…Forcount’s chance to invest was an offer to sell securities.
The Forecourt memberships were investment contracts and, therefore, securities, because investors put money into a shared business with the expectation that Defendants or third parties would make money from their work.
The defendants offered and sold these securities without telling the Commission or getting an exemption from having to do so.
The SEC did not have any records for Forcount, Da Silva, or any of Forcount’s promoters.
As a result, three counts of the Securities and Exchange Act have been used to charge the Forcount defendants with securities fraud.
Out of the $8.4 million that Forcount made,
Franchise Valdevino Da Silva is accused of stealing $4.9 million, Juan Antonio Tacuri Fajardo is accused of stealing $1.3 million, and Ramon Antonio Perez Arias and Jose Ramiro Coronado Reyes are both accused of stealing $1 million.
I can’t say anything about Perez, but after Forcount and Weltsys, Jose Coronado kept scamming people with MLM crypto Ponzi schemes.
In April 2021, BehindMLM linked Jose Coronado to the BNB Profit Ponzi scheme by accident.
Coronado teamed up with Juan Tacuri again so that the OmegaPro Ponzi scheme could keep scamming people.
The SEC wants a permanent injunction against the Forcount defendants, as well as the return of illegal gains and a civil monetary penalty.
The SEC’s case against Forcount’s top promoters seems clear, but it is not clear how the case against Da Silva will go.
Da Silva is likely being held in jail in Brazil. He is accused of taking at least $800 million from Brazilians through different cryptocurrency schemes.
Even though Da Silva has been charged with crimes in the US, he won’t be sent there because he is a Brazilian citizen.