Secretary of State Warns Investors to Beware of Investment Scheme Targeting Minorities
SoS Ross Miller encourages Nevadans to thoroughly research multi-level marketing program before investing
FOR IMMEDIATE RELEASE
Contact: Catherine Lu, Public Information Officer
(702) 486-6982 / 334-7953
(Carson City, Nev.; October 23, 2014) – Secretary of State Ross Miller warns Nevadans to beware of a possibly fraudulent investment scheme targeting minority communities, specifically Spanish and Portuguese. Wings Network is a multi-level marketing program that is advertising online, and being sold door-to-door or through friends and relatives.
Wings Network offers investors various packages ranging from $49 to $1,499. The “Elite” package purportedly requires an investor to purchase the package for $1,499, pay an activation fee of $49, and recruit two additional people to buy the package. The seller then allegedly promises that the investor is guaranteed to receive a minimum of $750 per month for one year afterward.
Investors may be told that Wings Network is associated with smartphone applications compatible with Google Play and Apple. Individuals who purchase the “Elite” package gain access to the Wings Network website, which provides them with information related to their purchase. Wings Network is allegedly associated with Tropikgadget FZE located in the United Arab Emirates.
The Secretary of State’s Securities Division believes Wings Network’s proposed business opportunity is an investment contract and a security that should be, but isn’t, registered with the State of Nevada. Some multi-level marketing programs may be structured in such a way that they constitute a security and should be registered as such. Miller cautions individuals not to buy or sell packages from Wings Network without conducting thorough research and seeking independent legal advice.
“It is vital that every investor conduct the most thorough due diligence possible when making an investment,” said Miller. “Investing is a complicated and risky process. Even the initial receipt of interest payments or distributions paid to some investors, or an investment sold by someone you know, doesn’t guarantee that an investment is legitimate. A Ponzi scheme may have similar attributes. Potential investors just can’t be careful enough. And always remember that if it sounds too good to be true, it probably is.”
Nevada residents with any information pertaining to Wings Network are encouraged to contact the Secretary of State’s Securities Division by calling (702) 486-2440. To file a complaint, visit the “Securities Center” on the Secretary of State’s website, www.nvsos.gov, or by clicking here.
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