May 9, 2014 (BostonGlobe) The SEC continues to investigate Multilevel in the U.S.

After TelexFREE WCM777 and now it's time for Red Wings The Office of Secretary of State William F. Galvin issued subpoenas to another multilevel marketing company to do business in Massachusetts after the recent lawsuit against TelexFREE seem Inc. For your business to a scheme pyramid. The second company is, Red Wings, appears to be based in Portugal, said that plans to sell the cloud-based internet storage, according to their web site and Facebook pages. Alas network called the attention of the Division of Securities Galvin, because its sales strategy appears to be similar to that of TelexFREE. messages in Facebook, both companies market the opportunity to acquire wealth by recruiting other participants. And have large sales conferences - which are more like rallies to encourage participants to join "We are witnessing one of their events,'' Galvin said." We had heard of some investors TelexFREE, and we had become. concerned'' not yet been charged Wings Network. DJ Poyfair advocate Red Wings in Denver, confirmed that the company had been sued by Galvin and lawyers Red Wings met last week with the Securities Division week. Regulators want to meet with company executives next week. " Red Wings agree to operate legally and ethically in all countries where it operates, including the United States,'' said Poyfair. Wings Said He is cooperating with the state's investigation and is "conducting its own internal investigation and intends to quickly address any problems found.'' Poyfair said the company is investigating whether local sales meetings were authorized by the executive. If you do not, they may have been created by opportunistic promoters as TelexFREE seemed to be falling out of favor in March. The company filed for bankruptcy last month invoking under Chapter 11 The site lists the Red Wings Carlos Barbosa . as chief executive in a statement here, Barbosa says: "Information technology applicable to mobile solutions is now a fast growing market is a reality that moves billion downloads daily with all kinds of applications .." Dozens of people have the Globe by e-mail, saying that some people involved are moving to TelexFREE Wings Network. How TelexFREE seems to be popular among immigrants who speak Brazilian Portuguese. Other companies involved in multi-level marketing - which involves hiring a large number of people to launch products or services - have come under scrutiny recently. The SEC froze the assets of March of World Capital Markets Inc., or WCM777 Inc. in California, accusing the group with the creation of $ 65 million from investors in a Ponzi scheme. Asian American and Hispanic target, according to the complaint, which was filed in federal court in Los Angeles group. Galvin signed a consent order with WCM777 in November 2013, requiring the company to reimburse residents of Massachusetts. In the end, Galvin's office said 160 investors Massachusetts, mostly residents of the Brazilian community, had paid more than $ 300,000 for WCM777 packages. The company agreed to the order, but neither admitted nor denied the allegations. The company could not be reached for comment.