The government’s misrepresentations regarding the Beast Training Video during the I2G trial should be considered a form of fraud upon the Court. This video was introduced as crucial evidence by several government experts to support claims that I2G promoted passive income as a “security.” This conclusion was based solely on a brief two-second clip in which the narrator mentions the possibility of future earnings while sitting on an island.
It is essential to understand that the primary goal of every multi-level marketing (MLM) business is to generate passive income over time. No MLM training advocates for success without emphasizing the hard work needed over several years to reach the ultimate goal: the generation of passive income. Syn explains that he works hard now so he can enjoy the rewards of his sacrifices, gaining time and freedom in the future. This aspiration is universal among MLM participants and is not indicative of selling securities.
The Beast Training Video emphasizes the effort required to achieve success, particularly in customer acquisition within the international casino industry. Syn noted that after selling the emperor packages, the focus shifted to attracting customers to the online casino. He pointed out that people in Asia were more interested in playing casino games than joining the I2G business, which is their popular pastime and critical to I2G’s success. Clearly, this does not resemble a security offering.
At the 41:51 mark in the Beast video, you can observe his emphasis on the role of the international casino in driving “lots and lots of customers,” which he points to as the company’s future. The video and its transcript are available below. In this context, a government witness with a background in securities testified that if distributors or investors have control over their rewards or “investments,” then those do not qualify as securities. This situation applies here.
It is highly misleading to imply that Hosseinipour or the video promotes passive income. She explicitly begins the video with two income disclosure statements, stating that most distributors are unlikely to ever achieve the same income as Syn and that many people will never earn anything at all. The claim that the video suggests achieving success within the i2G model requires no effort is simply false and duplicitous. All of Hosseinipour’s videos emphasize that if you do not put in the work, you will not make money with the I2G MLM plan. The government witness, Bruce Fredericks, made this same point in his testimony and also stated that she would always state she “does not have a crystal ball” and could not predict future casino profits.
Therefore, for the government’s “paid” securities expert to conclude that the I2G package is a security, he either did not watch the video, only reviewed the two-second clip, or he committed perjury. He admitted to having no background in MLM and acknowledged that, within the MLM context, it is logical for distributors to control their rewards. Moreover, the government expert testified that if I2G distributors are in control of their investments, then the I2G packages cannot be classified as securities.
The dishonesty of an officer of the court and a paid expert who attributes “securities” relevance to a two-second reference about future earnings in the context of a 90-minute discussion on hard work and customer acquisition for casino profits is alarming. The fact that this was used as key evidence highlights the case’s weaknesses. Officers of the court should promote honesty and avoid relying on trickery to take advantage of ineffective counsel’s ability to challenge evidence or their awareness of being deceived.
Hosseinipour’s attorney requested and was granted the rule of completeness to present the entire video; however, he never did so. His ineffectiveness does not excuse judicial misconduct or trickery. The government’s appeal answer essentially argues that if you do not recognize our deceptions—such as filtering out $28 million in gains from the gain-loss representations—then it’s too late for you to raise that issue. This only rewards government trickery and deceptions..
The use of this two-second clip to support the argument that it is a security should be condemned by any judge, congressperson, or the President of the United States who views the entire video. Please judge for yourself. The video emphasizes the importance of hard work and focuses on customer acquisition for the I2G casino. You can find the relevant content at the 41-minute mark. The truthful content of the video dispels the notion that I2G is a security or a pyramid scheme.
Therefore, any expert who testifies that it promotes passive income or represents a security—if they have indeed watched the video—would be committing perjury, and the government would be enabling false testimony. The content speaks for itself. You can judge for yourself. The Beast Video and its transcript can be found in various blog articles. Remember, if the distributor can drive their own investment, it cannot be classified as a security.
You can review the Beast Video Here. The Transcript highlights the focus on customer acquisition as the key to the I2G plan starting at the 41-minute mark. The Government witness Reynolds also testified that this was the “whole point” of the plan. The remaining 90 minutes are all about hard work to achieve success in this MLM model. I’ve attached the relevant transcript below for you.
Did no one watch the video?? Just observe the income disclosures in the first minute of the video which in itself disproves a security offering.