HotNews No. 130: OnPassive — SEC Settlement Shows Justice is Achievable

After years of investigation and numerous victims, Ash Mufareh, the owner of OnPassive, has reached a $32 million settlement with the U.S. Securities and Exchange Commission (SEC) over fraud charges.

What the settlement entails:
Under the terms of the settlement, Mufareh is permanently prohibited from:

• committing further violations of the Securities Exchange Act;
• defrauding consumers;
• making untrue statements or omitting material facts that could mislead consumers;
• engaging in fraudulent business practices;
• personally handling investments or securities.

Additionally, for eight years, Mufareh is barred from acting as an officer or director of any issuer of securities.

Financial consequences:

• $26.2 million in disgorgement;
• $1.2 million in prejudgment interest;
• $4 million civil penalty.

These amounts represent funds personally misappropriated by Mufareh and his wife, Asmahan. Following the settlement, SEC’s claim of unjust enrichment against Asmahan was dismissed.

Victim restitution:
The settlement allows the SEC to propose a plan to distribute funds to victims, subject to court approval, providing a tangible path for compensation to those harmed by the scheme.

Important note:
OnPassive was a classic MLM pyramid with securities elements, promising unrealistic profits while repeatedly delaying service launches. This settlement demonstrates that, despite the complexity and international scope of such schemes, justice can be achieved.

Conclusion:
Victims of fraud can take heart — settlements and penalties against scheme operators confirm that the system can protect consumers and recover part of the lost funds. Always exercise caution with similar offers and thoroughly verify any investment opportunity.

Your legal support team is here to inform and protect you.

Your DefendMe Team