BBB reports: 2 Connecticut residents fall victim to pyramid scheme, lose thousands

Two Connecticut residents fell victim to a pyramid scheme, resulting in the loss of thousands of dollars, as reported by the Better Business Bureau (BBB) Serving Connecticut. The BBB issued a warning to individuals nationwide regarding Lighting Shared Scooter Company LLC (LSSC), a business that claims to operate out of North Texas.

According to the BBB, LSSC is engaged in running a pyramid scheme and currently holds an “F” rating for failing to address complaints and operating without the necessary competency license from the U.S. Securities and Exchange Commission (SEC). In a recent statement, the BBB Serving Connecticut highlighted a significant increase in consumer complaints and reported instances in the BBB Scam Tracker.

Two Connecticut residents shared their experiences of losing substantial amounts of money to LSSC, prompting an investigation into the matter. These victims were led to believe in the legitimacy of LSSC by presenting what seemed to be an SEC certificate. However, upon closer examination, the document was fraught with errors, including typos, grammatical mistakes, and a falsified certificate number.

Despite these red flags, LSSC continues to tout itself as the “leading shared scooter company,” enticing investors to lease scooters at varying investment levels with promises of daily returns. Reports from the BBB Scam Tracker reveal financial losses ranging from $1,000 to $55,000, aligning with the investment tiers presented by LSSC.

Typical of pyramid schemes, individuals are lured in by acquaintances and incentivized to recruit new members in exchange for bonuses. Victims recounted being instructed to make payments in cryptocurrency, a common tactic employed by fraudulent investment schemes. The BBB has received reports of this scam from 20 states, prompting a concerted effort by their team to raise awareness nationwide.

In light of these developments, the BBB is actively working to educate the public about the dubious practices of LSSC and its alleged pyramid scheme. This cautionary tale serves as a stark reminder to remain vigilant and exercise due diligence when approached with investment opportunities that appear too good to be true.