BOSTON (Legal Newsline) – An online and mobile marketing company is being sued over allegations it conducted a pyramid scheme to get new investors to give money to the company.
Viviane Rodrigues filed the lawsuit on Jan. 21 against Wings Network, claiming the company’s main business was to get more investors and not offer online and mobile marketing services. Co-defendant Wells Fargo removed the case to U.S. District Court for the District of Massachusetts on March 9.
John Joseph Moakley U.S. Courthouse
The lawsuit said executives from the company were hit with a complaint from the Massachusetts Secretary of State in May, claiming its principals were targeting minority communities in the state.
“The principals offered a multilevel marketing business opportunity called ‘Wings,’ which is a multilevel marketing scheme to target minority communities,” the lawsuit said.
Wings raised more than $12.5 million from about 8,914 Massachusetts investors within five months of starting its operations. The company allegedly offered services for technologically advanced and innovative mobile marketing platforms for a fee. However, the lawsuit claims the product was “ancillary” to the actual business of “recruiting other investors.”
“The marketing materials, online selling presentations an assertions by the principals make it clear that the primary purpose of Wings is to recruit additional members,” the lawsuit said. “Wings is a multilevel marketing business opportunity, which is actually a thinly veiled pyramid scheme.
Memberships started at about $49, but additional packages could be purchased for $299, $749 and $1,499.
Rodrigues said she invested about $20,000, and also invested about $175,000 for other Wings’ investors. She is seeking class status for Massachusetts investors in the company.
Rodrigues is represented by Evans J. Carter of Evans J. Carter, P.C. in Framingham, Mass.
U.S. District Court for the District of Massachusetts case number 1:15-cv-10733
