A federal jury in Milwaukee, Wisconsin, has convicted Candice V. Cunningham, 38, and Joseph E. Johnson Jr., 53, both of Chicago, Illinois, for operating illegal multimillion-dollar pyramid schemes in at least four states. The verdict followed a federal trial that examined how the schemes collected millions of dollars from victims across America.
According to court documents and evidence presented at trial, Cunningham and Johnson operated a series of programs promoted as investment opportunities. These programs were advertised under different names, including Wealth Partners Publishing, Wealth Wise, Zero to Profit, 30 Day Success Formula, Lav Label, Beckett Group, and Dreams To Reality Group.
Prosecutors said the programs were not legitimate businesses. Instead, they were illegal pyramid schemes that depended mainly on recruiting new participants rather than selling real products or services.
Authorities stated that Cunningham, Johnson, and others generated about $5 million in proceeds as a result of these schemes. The operations ran for several years and affected victims in multiple states.
Law Enforcement Response and Investigation
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said the verdict holds the defendants accountable for stealing millions of dollars through false guarantees of earnings and refunds. He stated that the conviction reflects the dedicated work of prosecutors and agents who brought the case forward on behalf of victims.
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The Federal Bureau of Investigation led the investigation. Special Agent in Charge Alan Karr of the FBI Milwaukee Field Office said the illegal pyramid schemes caused significant financial losses and emotional devastation to victims.
The investigation was carried out with assistance from the United States Postal Inspection Service and the Wisconsin Department of Agriculture, Trade, and Consumer Protection.
The case is being prosecuted by Trial Attorneys Christopher Berridge and Kashan Pathan of the Criminal Division’s Fraud Section, with support from the U.S. Attorney’s Office for the Eastern District of Wisconsin.
False Promises and How the Pyramid Schemes Operated
A pyramid scheme is a form of fraud that focuses on recruiting people instead of offering genuine products or services. In this case, marketing materials claimed that participants would receive payments from other people they recruited into the programs.
Victims were told that if they invested money, they could earn returns by bringing in additional members. The more people they recruited, the greater the promised earnings.
The materials also falsely guaranteed that if a participant did not receive payments from others, the person’s initial investment would be fully refunded. This promise was presented as protection for participants.
However, evidence presented during the trial showed that most victims did not receive payments from other participants. They were also denied the return of their original investment.
The schemes relied on funds from new participants to sustain operations. When recruitment slowed, most participants suffered losses. Authorities said many victims experienced serious financial hardship and emotional harm.
Because the schemes used the mail system as part of their operations, Cunningham and Johnson were charged with mail fraud.
Convictions and Sentencing Details
Cunningham and Johnson were each convicted of one count of conspiracy to commit mail fraud and six counts of mail fraud. The conspiracy charge relates to working together to plan and carry out the fraudulent activity.
Each mail fraud count carries a maximum penalty of up to 20 years in prison under federal law.
Sentencing is scheduled for June 23. A federal district court judge will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The conviction followed a full federal trial in Wisconsin, where jurors reviewed documents, marketing materials, and testimony before reaching their verdict.