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Litigation Release No. 23548 / May 27, 2016

Securities and Exchange Commission v. Tropikgadget FZE, et al., Civil Action No. 1:15-cv-10543 (D. Mass.)

SEC Obtains Final Judgment Against Massachusetts-Based Promoter of Pyramid Scheme Targeting Latino Communities

The Securities and Exchange Commission today announced that the federal district court in Boston, Massachusetts entered a final judgment by consent against defendant Simonia de Cassia Silva of Gloucester, Massachusetts, a defendant in a previously-filed enforcement action. In February 2015, the SEC charged two Portuguese companies operating under the name Wings Network, plus three company officers and 12 promoters of Wings Network, including Silva, with perpetrating an international pyramid scheme targeting Latino communities in the U.S.

In settling the SEC's charges, Silva admitted the facts alleged in the Commission's complaint, namely that she was a promoter of defendants Tropikgadget Unipessoal LDA and Tropikgadget FZE, which operated under the name Wings Network; rented an office space for a Wings Network "training center" in Pompano Beach, Florida, where she and defendant Vinicius Aguiar promoted Wings Network to prospective investors; and earned commissions from the sale of Wings Network membership packs.

Silva consented to the entry of the judgment, which permanently restrains and enjoins her from violating Sections 5(a) and 5(c) of the Securities Act of 1933. The judgment also permanently restrains and enjoins her from offering, operating, or participating in any marketing or sales program in which a participant is compensated or promised compensation solely or primarily (1) for inducing another person to become a participant in the program, or (2) if such induced person induces another to become a participant in the program. Finally, the judgment orders Silva to pay a total of $141,307.86 for disgorgement and prejudgment interest but provides a waiver of payment except for $123.86 based on her financial condition.

The SEC's litigation in this matter continues against the Tropikgadget officers and the remaining promoters of the Wings network pyramid scheme.

The SEC's investigation was conducted by Scott R. Stanley, Dawn Edick, John McCann, Deena Bernstein, and Amy Gwiazda of the SEC's Boston Regional Office. The SEC's litigation is being led by Ms. Bernstein and David London.

For further information, see Litigation Release Nos. 23209 (Feb. 27, 2015); 23351 (Sept. 17, 2015); and 23407 (Nov. 13, 2015).



Modified: 05/27/2016