Three individuals were sentenced for founding and operating an illegal pyramid scheme that caused $23.5 million in losses to victims, according to an announcement made Monday by the Justice Department.
Alex Dee, 50, of Fate, Texas, received 36 months in prison and was ordered to pay $1,845,600 in forfeiture. Brian Kaplan, 53, of Fort Collins, Colorado, and Jerrold Mauer, 58, of North Bellmore, New York, were each sentenced to 22 months in prison. Kaplan must forfeit $2,838,700, and Mauer was ordered to forfeit $1,545,500.
Court documents state that between January 2017 and March 2019, Dee, Kaplan, and Mauer founded 8 Figure Dream Lifestyle (8FDL), a Wyoming corporation marketed as an online business promising members substantial earnings. The defendants claimed individuals could earn more than $10,000 within 60 to 90 days by selling memberships into the company, regardless of prior skills or experience.
8FDL purported to offer digital videos featuring self-help lessons and online marketing content, but the materials held minimal value and primarily served to make the scheme appear legitimate. The business’s primary focus was recruiting new members and selling additional memberships. Despite the defendants’ promises, most of the more than 2,800 members never made a sale.
Dee pleaded guilty in July to one count of conspiracy to commit wire fraud. Kaplan and Mauer pleaded guilty in November 2023 to the same charge.
The case was investigated by the U.S. Postal Inspection Service (USPIS). Principal Deputy Assistant Attorney General Nicole M. Argentieri and USPIS Inspector in Charge Eric Shen announced the sentences.
Trial Attorneys Brandon Burkart and Andrew Jaco of the Justice Department’s Fraud Section prosecuted the case.
