Wings Network Charged With Fraud In Mass.
BOSTON (CBS) - The Portuguese and Spanish-speaking communities in Massachusetts were apparently the target of yet another pyramid scheme, which is now in the sights of state and federal officials.
The Secretary of State's office has filed fraud charges against three people who ran Wings Network, offering get-rich-quick internet products.
Secretary Bill Galvin calls it a scam.
"They're offering a product, supposedly a high-tech product, when in point of fact it's really nothing more than a scheme to lure investors in," according to Galvin.
"They appear to have only begun operating here in Massachusetts in late December. By their admission, they've already collected over $12 million from over 8,000 Massachusetts investors."
Galvin says Wings Network quickly attracted investors from the minority community.
"We're just very concerned that these immigrant groups, many of whom are hardworking, are going to be scammed by this," he says.
"We're alleging that a significant amount of the funds were sent to Portugal and the United Arab Emirates."
Wings Network posted the following on their website:
"You may be aware that the Massachusetts authorities recently filed a request of information to understand WINGS NETWORK operations e our company is fully cooperating with those authorities presenting all the requested and comprehensive information.
No wrong doing has been alleged. We want to inform you that WINGS NETWORK is fully committed to operating legally in this country and is itself conducting its own internal investigation in a pro active effort to ensure full compliant with all state and federal laws in the USA.
We want to inform you that WINGS NETWORK has decided to suspend operations in the USA for the time being. It's important to note that this action has been taken by WINGS NETWORK itself, not imposed by the regulatory authorities.
WINGS NETWORKS looks forward to operating a prosperous, legal and ethical business in the USA for years to come. We know that you will have many questions about this decision and we pledge to provide more details in the coming days. In the meantime the products you have previously purchased will continue available for your usage.
We recommend for all members within the United States to postpone all further meetings until advised otherwise. In addition it will be necessary to temporarily suspend the registration of new members in the United States.
We will be providing more information to you very soon.
Counsel department WINGS NETWORK.
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