A Texas couple who orchestrated a massive pyramid scheme during the height of the COVID-19 pandemic have been convicted of fraud after bilking more than 10,000 victims out of $25 million with promises of astronomical returns on investment.
LaShonda and Marlon Moore, founders of the ironically named “Blessings in No Time” (BINT) scheme, were found guilty by a federal jury in Sherman, Texas of conspiracy and wire fraud charges. The couple had targeted primarily African American communities with promises of 800% returns on investments — a claim that prosecutors successfully argued was both mathematically impossible and deliberately deceptive.
Pandemic Opportunism
“While many Americans struggled during the COVID-19 pandemic, LaShonda and Marlon Moore orchestrated a lucrative pyramid scheme with the sole aim of enriching themselves,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, according to a statement from the DOJ.
The scheme, which began operating in June 2020 as COVID-19 upended lives and livelihoods across America, required participants to invest a minimum of $1,400 to join what the Moores called a “blessing loom” structure. Some desperate participants invested as much as $67,700 in hopes of the promised returns.
How did they convince so many people to part with their money? The Justice Department’s victim information page explains that the Moores strategically positioned themselves and family members in key positions on the scheme’s playing boards to capture payments and fees. They also offered what they called “guaranteed” refunds — promises that ultimately went unfulfilled for most participants.
Community Targeting
What made the scheme particularly devastating was its deliberate targeting of tight-knit communities. Participants were encouraged to recruit friends, church members, and neighbors with promises of risk-free investments during a time of widespread financial instability.
The Federal Trade Commission, which joined with state attorneys general to pursue civil action against the Moores, characterized BINT as a “blessing loom” pyramid scheme that specifically preyed on Black communities and financially struggling individuals during the pandemic.
“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 release from the agency.
The human cost? Most participants lost every dollar they contributed.
Legal Consequences
Beyond the criminal convictions, the Moores have also faced civil penalties. Arkansas Attorney General Tim Griffin announced a $450,000 settlement related to the scheme, noting its devastating impact on consumers.
“LaShonda and Marlon Moore operated an illegal pyramid scheme targeting financially distressed consumers across the country during the pandemic, costing Arkansans hundreds of thousands of dollars,” Griffin stated. “Sadly, most consumers lost every dollar they contributed.”
The settlement permanently bans the couple from multi-level marketing activities and requires them to pay at least $450,000 toward consumer refunds — a fraction of the estimated $25 million taken from victims.
Sentencing in the criminal case is still pending, but the couple faces potentially significant prison time for orchestrating what prosecutors characterized as one of the most brazen fraud schemes to exploit the pandemic’s financial uncertainty.
For the thousands of victims who thought they were receiving a blessing during difficult times, the only thing that came “in no time” was the disappearance of their hard-earned money.
