$10 Million Judgment Secured Against Texas Couple Who Ran ‘Black-Only’ Pyramid Scheme During Pandemic

Texas Attorney General Ken Paxton speaks at CPAC at the Hilton Anatole in Dallas, Texas, on July 11, 2021. Brandon Bell/Getty Images

The Texas Office of the Attorney General (OAG) secured a $10.76 million final judgment against a North Texas couple who ran a pyramid scheme defrauding tens of millions of dollars from unsuspecting consumers during the COVID-19 pandemic.

Marlon Moore, known as DJ ASAP, and his wife LaShonda Moore, “deceptively” operated their multi-level marketing company “Blessings in No Time” (BINT) as a “faith-based wealth-building” company for black people only.

The couple, who are also Black, falsely promised contributors they would receive a “blessing” of eight times their initial investment, the Texas attorney general’s office said in a press release on July 26.

“[BINT] was presented as a Godly, ALL-Black, socially conscious gifting community...” wrote one of the victims in the court documents (pdf).

The Moores used their appearance on the Oprah Winfrey Network’s “Family or Fiancé” reality show to “enhance the appearance of credibility,” the OAG said.

Members were required to pay an initial fee of $1,400 (later increased to $1,425) and to recruit two members in order to receive their “blessing” payment of $11,200 on the original $1,400 investment. Some members paid up to $50,000, the FTC said.

Mr. and Ms. Moore scammed more than $40 million dollars from nearly 8,000 black consumers across the country in 2020, according to the lawsuit. They operated the organization out of their home in Collin County, about 35 miles north of Dallas.

The Operation of BINT's Blessing Loom. FTC

Contributors who wanted to leave the organization were guaranteed the right to a full refund at any time, but they had to promise to “conceal the truth about the business on social media and the internet,” according to a press release announcing the initial lawsuit filed by AG Ken Paxton in June 2021.

“BINT scammed Texans out of money by exploiting their deeply held religious faith during a national crisis. This is despicable behavior, and BINT will be prosecuted to the full extent of the law,” Mr. Paxton said.

At the time of the initial lawsuit, the state had received nearly 200 complaints from consumers alleging losses of over $700,000 in contributions to BINT.

The judgment, filed jointly by the state of Texas and the defendants, requires the couple to pay up to $2.5 million, but not less than $450,000, for a state-administered assistance fund for the victims of the BINT scheme (pdf).

Pyramid schemes are illegal and considered a type of investment fraud. Under Texas law, the crime is a state jail felony that holds a penalty of up to two years behind bars and a fine of up to $10,000.

The Federal Trade Commission and the State of Arkansas were also involved in the enforcement actions against the Moores. The couple is also banned from the business of multi-level marketing.

“The FTC’s settlement permanently ends an illegal pyramid scheme that targeted Black communities with false promises of no risk substantial income,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a news release. “While defendants guaranteed wealth, they delivered only losses for almost all participants. This settlement stops defendants from perpetuation such a scheme ever again.”

During the second quarter of 2020, “reports of multi-level marketing companies and pyramid schemes — including blessing circles and gifting schemes” — were up fivefold, FTC data showed.

Earlier this year, Mr. and Ms. Moore were featured on CNBC’s “American Greed” in an episode dubbed “Preaching Pyramid Schemes.”  The show dives into the tactics the Moores used to lure innocent people into their illegal pyramid scheme.