Date: 12-17-2024

Case Style:

United States of America v. Alex Dee; Brian Kaplan; Jerrold Mauer

Case Number:

Judge:

Court: The United States District Court for the Office of Public Affairs

Plaintiff's Attorney: The States United Attorney’s Office for Washington, DC

Defendant's Attorney:

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Description:

Washington, DC criminal defense lawyer represented the Defendant charged with Fraud That Caused Over $23M in Losses to Victims
Founders of Illegal Pyramid Scheme Sentenced for Roles in Fraud That Caused Over $23M in Losses to Victims

Three individuals were sentenced yesterday for their roles in founding and operating an illegal pyramid scheme. Alex Dee, 50, of Fate, Texas, was sentenced to 36 months in prison and ordered to pay $1,845,600 in forfeiture; Brian Kaplan, 53, of Fort Collins, Colorado, was sentenced to 22 months in prison and ordered to pay $2,838,700 in forfeiture; and Jerrold Mauer, 58, of North Bellmore, New York, was sentenced to 22 months in prison and ordered to pay $1,545,500 in forfeiture.

According to court documents, from approximately January 2017 through March 2019, Dee, Kaplan and Maurer founded and operated 8 Figure Dream Lifestyle (8FDL), a Wyoming corporation, as an illegal pyramid scheme. Dee, Kaplan, and Maurer advertised 8FDL as an online marketing business that allowed members to easily earn millions of dollars by selling memberships into 8FDL. The business purportedly allowed its members to access various digital videos, mostly related to online marketing and self-help lessons, but the videos had nominal value and served merely as a vehicle for the company to appear legitimate. The main purpose of the company, however, was to allow members to make money by recruiting new members and selling additional memberships. In marketing the 8FDL memberships, Dee, Kaplan, and Maurer falsely represented to the public that typical members with no prior skills or experience would make substantial sums in a short period of time, including earning more than $10,000 within 60-90 days. In fact, the vast majority of 8FDL members never made a single sale, and Dee, Kaplan, and Maurer made these false statements to induce others to join 8FDL. In total, more than 2,800 individuals joined 8FDL, which resulted in approximately $23.5 million in losses to victim members.

In November 2023, both Kaplan and Maurer pleaded guilty to one count of conspiracy to commit wire fraud.

In July, Dee pleaded guilty to one count of conspiracy to commit wire fraud.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.

USPIS investigated the case.

Trial Attorneys Brandon Burkart and Andrew Jaco of the Criminal Division’s Fraud Section prosecuted the case.

Outcome:

Defendants were found guilty and Alex Dee of Fate, Texas, was sentenced to 36 months in prison and ordered to pay $1,845,600 in forfeiture

Brian Kaplan was sentenced to 22 months in prison and ordered to pay $2,838,700 in forfeiture

Jerrold Mauer was sentenced to 22 months in prison and ordered to pay $1,545,500 in forfeiture.

Plaintiff's Experts:

Defendant's Experts:

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