Beware of Uulala & Batched – Review

Both Uulala and its new version, Batched, have failed.

Affiliate investors can’t log in, so they can’t get their money out.

There’s some history about Uulala that hasn’t been told yet, so let’s quickly go over how we got to this point.

Uulala started up in 2017 as a cryptocurrency scam that used UULA and EUULA tokens.

The SEC sued Uulala and its founders Oscar Garcia (right) and Matthew Loughran in August 2021.

Throughout their offering of UULA, Uulala, Garcia, and Loughran told investors things that were materially false and misleading. For example, they said that their app had “patent pending” technology and that it used a proprietary algorithm to give users credit scores.

Uulala, Garcia, and Loughran all paid civil fines of $300,000, $192,768 and $50,000, respectively, to end the lawsuit.

Garcia didn’t stop stealing money from investors, so he doubled down and relaunched Uulala as a “validation node” Ponzi scheme.

Uulala validation node investment positions cost $1100. Affiliates had to sign in every day and click a button to earn points.

These points were locked up in Uulala until they decided to let affiliates cash them out (subsequently invested funds).

In October 2021, BehindMLM put out its review of Uulala. By the end of 2021, Uulala had given up on its website.

The “validation node” Ponzi scheme from Uulala had been merged into Batched, but the website for Batched wouldn’t show this until early to mid-2022.

Before the merger, Garcia had been running Batched, a payment processor, for a long time.

The fact that Uulala kept going through Batched seems to show that, even though the pyramid part of the business was paying out, most of the node points stayed in the system.

In a YouTube video from June 2022, Jeremy from Flip My BTC talks about how Batched was doing in the middle of last year:

At the moment, the only people making money with this program are those who tell other people about it.

I’ve got 40,000 points in this bag. That means I’ve been coming here, clicking the start button, and doing everything I’m supposed to do, but I still haven’t made any money.

Here’s how much money I’ve actually made, if you want to know… Since I joined in 2021, I’ve made $4.

I bought two nodes for a total of $1800.

Comments left on Flip In the video for My BTC, investors complain that they haven’t been able to get their money out since 2021.

On January 19, BehindMLM reader Ray said that things with Batched have gotten worse since then.

As of January 2022 (confirmed typo, should be 2023), many people who bought Nodes with Batched (formerly known as Uulala) can’t log in and click “start” to run their node and earn points because the 2-Factor verification won’t work.

The email with the code never comes, so you can’t log in to click “start.”

Also, Oscar’s right-hand person, Kathy, ran a telegram group where everyone could post and reply. About a week ago, Kathy blocked everyone and is now the only one who can post and reply.

She said that there was too much bad news (which I get) and she didn’t have time to keep up.

Oscar Garcia is said to have said in a recent Batched Zoom that the way Batched is right now is “a mountain of shit.”

In short, Oscar’s partner, the COO, is said to have changed the financials, taken some of the technology for himself, and sold the company.

The technology and software used by Batch are their own, so they will try to change the company and keep all of their partners.

They are going to court right now.

Frank DiCrisi is or was the COO of both Uulala and Batched (right).

When I heard about a court case, I went to Pacer. I didn’t find anything at the federal level, but that doesn’t mean that there hasn’t been a lawsuit at the state level.

I’m not likely to give Batched or Garcia the benefit of the doubt, though, because their business model is a scam. As far as I know, this is not a court case.

Investors in Uulala/Batched have been locked out of their accounts, making it impossible for them to withdraw money.

Here is where things get really interesting. When I looked up lawsuits about Uulala and Batched, I did find confirmation of an SEC investigation.

Oscar Garcia filed a motion in California on November 9, 2022. With the motion, Garcia tried to:

a court order that says the government can’t look at his financial records.

The agency that wants access is the Securities and Exchange Commission of the United States.

Before Garcia’s filing in September, the SEC sent a subpoena to Mechanics Bank to get its financial records. In a statement filed with Garcia, we can find out that the SEC is looking into Batched.

I, Oscar Garcia, am a customer of Mechanics [sic] Bank, and the United States Securities and Exchange Commission wants to see my records.

The financial records that the U.S. Securities and Exchange Commission asked for don’t have anything to do with the legitimate law enforcement inquiry that was stated in the Customer Notice that was sent to me, or they shouldn’t be released because the Right to Financial Privacy Act of 1978 hasn’t been followed very well, or they shouldn’t be released because of the other legal reasons below:

The government’s request is too broad, too strict, and not specific enough. The request isn’t limited to documents that have something to do with the “In the Matter of Batched LLC, LA-05313” investigation.

The subpoena asks the bank for all of my personal financial records from “October 1, 2021, or the earliest time for which records exist, whichever is earlier, and continuing to the present, unless otherwise specified.”

Since the beginning of when the account was opened, there has been no proof that any of my financial documents are important.

None of the money from the licenses sold by Batched was sent to my Merchants Bank account.

The SEC Subpoena is just an attempt by the SEC to “fish” for information.

I think that “Batched LLC, LA-05313” is the SEC’s internal investigation number, but I’m not sure.

I also put in bold Garcia’s claim that no funds from Batches were sent to his Mechanics Bank account. We’ll talk about that again soon.

The SEC’s Batched subpoena was sent out on September 30, 2022, which was a few months before Garcia’s motion.

The SEC sent its response to Garcia’s motion on December 2.

The SEC sent the subpoena to the Mechanics Bank (“Mechanics”) to get Garcia’s bank records.

Garcia is trying to get rid of the subpoena by using the customer challenge provisions of the Right to Financial Privacy Act of 1978 (“RFPA”), 12 U.S.C. 3401 et seq.

This Court should say no to the motion and carry out the subpoena because the documents that were subpoenaed are important to a legal investigation.

The SEC then confirms that its investigation is looking into “whether Batched, LLC broke federal securities laws.” We also know that the SEC’s official investigation started on September 19.

On September 19, 2022, the SEC issued an order called In the Matter of Batched, LLC, LA-05313, Directing a Private Investigation and Designating Officers to Take Testimony.

The Formal Order found that “Batched, LLC, its officers, directors, employees, partners, subsidiaries, and/or affiliates, and/or other [related] persons or entities” may have done things that broke the Securities Act of 1933 and the Securities Exchange Act of 1934.

The Formal Order gives permission for “a private investigation” to find out if any people or organizations have broken or are about to break federal securities laws.

The SEC’s objection also mentions Garcia’s 2021 settlement for securities fraud and says;

The SEC has found signs that Garcia and Uulala may not have followed the court’s order against them.

The SEC’s Enforcement Division Staff (“Staff”) has proof that Garcia is using Batch to sell “validation node licenses.”

Staff thinks that these licenses may be investment contracts that fall under the Exchange Act’s definition of “securities.” This means that Garcia may be using Batched to do another unregistered offering of securities, which would likely be against federal securities laws and the court’s order from August 19, 2021.

The Staff has also found evidence that Batched and Garcia may be misleading investors about important facts when they offer these licenses.

Some of the things that Batched got wrong were the nature of its business, how it planned to use investors’ money, and the likely return on investment that investors could expect.

The SEC said that the documents that were subpoenaed from Mechanics Bank were important to their investigation.

The SEC is allowed to get the records it has subpoenaed because the Staff has a “reasonable belief that the records are relevant” to their investigation of how Batched spends investor money.

The subpoenaed records could help find the people who may have broken the law, find any investor money that was wrongly spent, and find out if Garcia got any of that money.

The SEC thinks that Garcia has only been a customer of Mechanics since October 2021, so documents from when the account was opened are important.

The Staff has reason to think that money has been moving from Batched to Garcia’s personal account at Mechanics since the fall of 2021.

The SEC is not required to believe Garcia’s claim that “funds from licenses sold by Batched were not transferred to my Merchants Bank account.”

In fact, the Staff has information that seems to show that funds from Batches have been sent to Garcia’s account at Mechanics.

So, contrary to what Garcia said, the SEC is not going on an illegal fishing trip. It wants documents that it has a good reason to think are important to an ongoing investigation by law enforcement.

On December 9, Magistrate Judge Pym gave a report on Garcia’s motion and made a suggestion.

Magistrate Judge Pym found that the SEC’s investigation was “part of a legitimate law enforcement inquiry” and that the regulator had

adequately shown that there is a reason to think that the bank records the subpoena asks for are relevant to a real police investigation.

Because of these conclusions;

The court says that Garcia’s request should be turned down and that the government’s subpoena should be carried out.

The court agreed with Magistrate Judge Pym’s report and suggestions on January 10, 2023.

So, the mover’s request to get rid of the subpoena in question under the Right to Financial Privacy Act of 1978’s customer challenge provisions is denied.

This case has been closed because it was only about Garcia’s attempts to stop the SEC from looking into Batched.

Since federal regulatory investigations are private, I probably won’t be able to give any more updates until the SEC takes action.

I think that will be the case by the end of 2023.

During our review of Uulala in October 2021, BehindMLM found an unregistered securities offering. I agree with that study.

Coming back to the fact that Batched affiliate investors can’t log in to their accounts and get their money out, I think this is because the SEC is still investigating.

If there are any more changes, we’ll let you know.

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