Federal officials have taken legal action to shut down an alleged Colorado-based pyramid scheme said to have defrauded investors of more than $3.8 million since April.
The U.S. Securities and Exchange Commission announced the complaint on Wednesday, saying the operators of Work With Troy Barnes Inc.’s “The Achieve Community” promised returns of 700 percent and assured their investors the program was not a pyramid scheme.
The complaint was filed in Denver’s federal court against Kristine Johnson, of Aurora, and Troy Barnes, of Riverview, Mich.
“In Internet videos and other web promotions, investors were pitched ‘You and anyone you know can make as much money as you want’ by purchasing positions that cost $50 each,” the SEC said in a news release.
Investors were told “as they progress through the matrix” they would receive a $400 payout on each position within three to six months, the release said.
“Their company had no legitimate business operations and they are merely paying purported investment returns to earlier investors as they receive funds from new investors,” according to the SEC complaint.
Johnson and Barnes are accused of using investor’s money for their own use, including buying a new car and paying off credit card bills.
The duo face fraud charges and their assets have been frozen, federal officials said.
Jesse Paul: 303-954-1733, jpaul@denverpost.com or
