Operators of Illegal Pyramid Scheme Sentenced in $23M Fraud Case

The Office of Public Affairs of the U.S. Department of Justice has announced the sentencing of three individuals for their roles in founding and operating an illegal pyramid scheme.

Alex Dee, 50, of Texas, was sentenced to 36 months in prison and ordered to pay $1,845,600 in forfeiture. Brian Kaplan, 53, of Colorado, received a 22-month prison sentence and was ordered to forfeit $2,838,700. Jerrold Maurer, 58, of New York, was also sentenced to 22 months in prison and ordered to forfeit $1,545,500.

From January 2017 through March 2019, Dee, Kaplan, and Maurer ran 8 Figure Dream Lifestyle (8FDL), a Wyoming corporation, as an illegal pyramid scheme. The trio advertised 8FDL as an online marketing business promising members millions of dollars by selling memberships into 8FDL. The company claimed to offer digital videos related to online marketing and self-help lessons, but these had nominal value and served only to make the business appear legitimate.

The primary purpose was to generate revenue by recruiting new members and selling additional memberships. Dee, Kaplan, and Maurer falsely claimed that typical members with no prior skills or experience would earn substantial sums quickly, including more than $10,000 within 60-90 days. In reality, the vast majority of 8FDL members never made a single sale. These false representations were made to induce others to join 8FDL.

More than 2,800 individuals joined 8FDL, resulting in approximately $23.5 million in losses to victim members.

In November 2023, Kaplan and Maurer both pleaded guilty to one count of conspiracy to commit wire fraud. Dee pleaded guilty to the same charge in July.