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AI/SaaS “ecosystem” sold as a pre-launch founder position · 10×3 forced matrix

OnPassive

A historical offer, graded as history: $108,000,000 taken from more than 800,000 people for 1,120,000+ “Founder positions” at $97 each, against which $0 in commissions was ever paid to anyone.

Reviewed August 1, 2026 Founded Founder positions went on sale in 2018 from a Florida LLC; Hyderabad facility opened September 2020, Indian subsidiary incorporated 9 August 2021, Dubai headquarters opened September 2022; ecosystem switched off July 2024 Confidence: High
FGRADE
0.4/10
Weighted composite

HISTORICAL OFFER - CLOSED, $0 EVER PAID

This report grades a historical offer, not a live one: the ecosystem was switched off in July 2024, gofounders.net is now a blank WordPress install, omail.ai is listed for sale at $56,246 and the two surviving apps were last built in mid-2024 - there is nothing to join today, and what was sold between 2018 and 2023 took $108,000,000 from more than 800,000 people and paid out $0.

The question you came with

Can you actually make money with OnPassive?

NO No - not on the numbers this company publishes

No, and the first thing to say is that there is nothing to join. The ecosystem was switched off in July 2024, gofounders.net is now a blank WordPress install, omail.ai is listed for sale at $56,246 and the two surviving apps were last built in mid-2024. This report grades what was sold between 2018 and 2023, because more than 800,000 people paid for it.

What they paid for was a position in a 10x3 matrix at $97, and 1,120,000-plus of those positions were sold for $108,000,000. Across five years and every one of those people, the commissions actually paid came to $0. Not low earnings and not a thin top tier taking most of it. Nil, to everyone, for the entire life of the offer. About 93,000 buyers, roughly 12%, bought more than one position.

There was no income disclosure at any point in any jurisdiction. What existed instead was a maximum-payout grid showing $2,032,614 a month, which is the exact inverse of a disclosure. Forty-four of about fifty announced applications were never released, and the six that shipped were free and never carried a fee. On 14 August 2025 the founder consented to $26.22m of disgorgement, $1.22m of interest, $8m in penalties and an eight-year officer-and-director bar, with no admissions.

Two things are true here and usually go missing in the retelling. Software genuinely existed and genuinely shipped, built by roughly 600 real employees in a real facility, about 200 of whom in Hyderabad went six months without pay and struck in July 2024. And no token and no equity instrument was ever issued, so the realized cost to a buyer was capped at the $97 they sent.

What it costs to be in
$97

one-time, for a position in a 10×3 matrix - rising to a stated $997 after the launch that never came; 93,000 people bought more than one

What would have to change
  • A distribution that actually reaches buyers. The judgment language is permissive - the Commission may propose a plan subject to the court's approval - and no plan could be located, so the route from $26.22m of disgorgement back to a $97 buyer does not exist on paper today.
  • A commission paid to somebody. Any amount, to any participant, at any point across five years, would have made this a plan that performed badly rather than a plan that never performed at all.
  • A live ecosystem for the positions to attach to. Forty-four of about fifty applications were never released and the six that shipped were free, so the matrix had no revenue to pay from other than the next $97.

That call is computed, not chosen - the rule reads three of the nine published dimension scores and is printed on the methodology page. It describes this company's plan and the figures it publishes about the people already in it. It is not a prediction about you, and nothing on this site is advice.

$108,000,000
Taken in from 800,000+ people, 2018 to March 2023
1,120,000+ positions at $97 each - essentially the entire revenue line
$0
Commissions ever paid to any participant
across five years and more than 800,000 people
44 of ~50
Announced applications never released
six shipped free from November 2022; none ever carried a fee
$26.22m
Disgorgement consented to on 14 August 2025
plus $1.22m interest, $8m penalties and an eight-year officer-and-director bar, no admissions

Legal status

CONTESTED, THEN RESOLVED ON CONSENT - the offer was sued by the US Securities and Exchange Commission as an unregistered securities offering and a fraudulent one, in SEC v. Mufareh, No. 6:23-cv-01539 (M.D. Fla.), filed 11 August 2023 under Securities Act §§5(a), 5(c) and 17(a) and Exchange Act §10(b) and Rule 10b-5. A motion to dismiss was denied on 27 August 2024 - which is a ruling that the allegations state a claim, not a ruling that they are true - and trial was set for 6 April 2026. It never happened: consented final judgments were entered on 14 August 2025 carrying $26.22m in disgorgement against the company, $1.22m in prejudgment interest, $8m in combined civil penalties, permanent injunctions and an eight-year officer-and-director bar against the founder, all settled with no admissions of any kind. A consent judgment is not a litigated finding of fact and this report does not present it as one. Claims against the founder’s wife, named as a relief defendant, were voluntarily dismissed by the Commission. No criminal charge against the founder could be located in any jurisdiction. A bad grade on this site does not mean illegal, and here the plain reading is narrower than the headlines: one US federal civil action resolved by agreement, one central-bank warning (Bangladesh, 12 December 2023) and one deposit-protection-fund warning (Uganda, November 2023). No court anywhere has made an adjudicated pyramid finding.

Confidence: High

Primary sources fetched directly where possible. Everything we could not verify is listed at the bottom of this page by name.

What this actually is

Follow the money

A historical offer, and this report grades it as one. Between 2018 and 2023 a Florida LLC trading as GoFounders and OFounders sold 1,120,000-plus “Founder positions” at $97 each to more than 800,000 people worldwide, raising $108,000,000, on the promise of passive income from the future monthly subscription fees of later entrants to a ten-level, three-wide matrix. There is nothing to join today. The ecosystem was switched off in July 2024; gofounders.net now redirects to a bare default WordPress installation serving the stock “Welcome to WordPress” post; the flagship domain omail.ai is listed for sale at $56,246, marked down from $74,995; two other product domains no longer resolve; and the two surviving Android applications last received a build in the first half of 2024.

What is genuinely real deserves to go first, because it is what most commentary gets wrong. Software was built and software shipped. A first release was announced on 24 and 25 November 2022 covering O-Mail, O-Net and O-Trim, carried by wire services, with O-Bless and O-Connect following; the SEC’s own amended complaint concedes six applications were released free of charge by 30 June 2023. Two official Android apps published by the Dubai entity are still listed and each passed 100,000 installs. Roughly 606 people were employed in a Hyderabad facility, in a company that filed statutory accounts through March 2023 with no secured borrowings. The corporate marketing was real too, and expensive: Burj Khalifa projections in April 2022, a broadcast tie-up in November 2022, and a ten-year naming-rights deal on a Dubai metro station in January 2023. And the present-day Dubai website presents as an ordinary business-to-business software shop with no founder program, no matrix, no affiliate scheme and no income claim of any kind - which should be stated in its favor.

What the money bought is a different question, and the answer is the report. The $97 did not buy software. In the company’s own written words it bought an “Early Founder Position” in “OnPassive’s Top Leadership… the top 1% of the leaders in the company,” carrying “a higher placement in the pyramid, and higher returns, than later investors,” against a promise of “unlimited residual income” “for life,” quantified in a webinar grid at up to “$2,032,614 per month for life,” funded from “subscription fees paid by later investors,” and obtainable “without engaging in any recruiting activity.” Some 93,000 buyers - about 12% - purchased more than one position, which is the cleanest available proof of what was being bought: nobody buys the same software license twice.

The delivered ledger, five years on, is short. A back-office login. Several years of webinars. From November 2022, free access to a handful of free consumer applications that anyone could use without paying anything. No commission, ever, to anyone: $0 across more than 800,000 people, which is the regulator’s finding as of June 2023 and was never displaced. No equity - despite the “Founder” branding, no share certificate, cap-table entry, convertible note or allocation of any kind was ever issued. No token; none was ever created, and cryptocurrency appears in this file only as an inbound payment method and as an alleged destination for funds. And no refund policy, no terms and conditions and no privacy policy existed during the years the money was being taken.

The compensation plan could not have worked even if everyone had behaved perfectly, and this is the structural point that outlives the individual facts. Commissions were payable exclusively out of monthly subscription fees - $25, $125, $250 or $500 a month, with the regulator recording a planned range reaching $900. No product ever carried a fee. Therefore no subscription fee ever existed. Therefore no commission could ever be generated, by anyone, at any level of effort, for the entire five-year life of the offer. The plan was structurally incapable of paying a single person from the day it was designed.

Where each of the $108,000,000 went

Derived from the court record rather than estimated from a compensation plan. Denominator: $108,000,000 raised from more than 800,000 participants between 2018 and March 2023. The founder line is the sum the company and the founder consented to disgorge as ill-gotten gains; the residual is everything else.

24% 76%
Paid to participants as commission (0.0%)Disgorgement consented to as ill-gotten gains - $26.22m (24.3%)Development, ~600 salaries, offices, events, marketing spectacle, legal - ≈$81.78m (75.7%)
ProductPricePays
Founder position (GoFounders)
The entry, and the entire revenue line. Stated to be rising to $997 after the launch that never came. It paid no commission to anyone - the $97 bought grid placement, not product, and 1,120,000-plus of them were sold to more than 800,000 people.
$97 one-time
one-time
$0
Additional Founder positions
Optional, and 93,000 people - about 12% of participants - bought more than one. There is no consumer rationale for buying the same software access twice; there is an obvious one for buying two positions in a grid that pays per position.
$97 each
one-time, repeatable
$0
Entry monthly package (planned)
Required to be commission-qualified at launch. Never billed, because no fee-bearing launch ever occurred, which is why every commission figure in this table is $0.
$25/month
monthly
$2 per filled level-1 position, tapering to $1 at levels 4–8
Second and third monthly packages (planned)
Never billed. At $250 a month the buyer would have been paying roughly four times a $62.66 mainstream stack assembled at 2026 list prices.
$125 and $250 per month
monthly
Proportionally higher per-position payments across the same ten levels
Top monthly package (planned)
Never billed. The regulator records the planned range as $25 to $900, later described in company material as “substantially higher although unspecified amounts.” The tiers track commission generation, not capability.
$500/month
monthly
Highest per-position rate in the grid
O-Mail, O-Net, O-Trim
Webmail with @omail.ai addresses, a social network and a URL shortener, announced 24 and 25 November 2022 and carried by wire services. Free to everyone, including people who never paid $97. The omail.ai domain is now listed for sale at $56,246; o-trim.com and o-mail.com no longer resolve.
Free
$0
O-Connect and OES
Video conferencing and the unified ecosystem hub. Both have official Android applications published by the Dubai entity, each past 100,000 installs - the strongest evidence in this file that something real was built. Last builds: 20 March 2024 and 12 June 2024 respectively.
Free
$0
The other ~44 announced applications
A site builder, lead tools, a workplace suite, workforce management, tracking and roughly 39 more. The amended complaint records six released and 44 unreleased as of 30 June 2023. O-Rotator and O-Survey were announced after the 2025 settlement - announcements only.
Never priced
$0
Background check

Who runs it, and what they ran before

A"
Ashraf "Ash" Mufareh
Founder (2018) and Chief Executive Officer

The SEC filing records that he had sole and final control of company operations. His prior record was available to any prospect who searched, before the first dollar was raised: he ran AshMax, a recruitment-based matrix scheme carrying his own name, around 2010; he promoted TelexFree, which collapsed as one of the largest pyramid and Ponzi failures on record; and he promoted PayDiamond, identified as a Ponzi scheme, which collapsed in mid-2018 - within months of OnPassive launching. Stage-labeled precisely: his role in the latter two was as a promoter, and no criminal charge, indictment or regulatory finding against him personally arising out of either could be located. The pattern is the finding, and it is not a criminal record. On 14 August 2025 he consented to a final judgment carrying a $4,000,000 civil penalty, a permanent injunction and an eight-year officer-and-director bar, with no admissions.

AM
Asmahan Mufareh
Co-owner; director of the Indian operating subsidiary

Named by the SEC as a relief defendant - that is, a person alleged to have received investor funds without providing consideration, rather than a person charged with wrongdoing. The claims against her were voluntarily dismissed by the Commission as part of the August 2025 resolution, and that dismissal should be read for what it is: the regulator withdrew, and nothing was established against her. She sat on the board of the Hyderabad company whose staff went six months without wages.

MC
Michael Curran and Mohamed Mourad
Chief Financial Officer and Chief Information Officer

Listed as principals in the corporate record. No adverse regulatory, civil or criminal record against either could be located in any source reviewed. That is worth saying plainly rather than leaving to inference: not everyone in this file has a file.

Gn
Governance note
The manufactured-validation allegation, and why it matters to a diligence reader

The SEC alleged that the founder created counterfeit review websites designed to mimic legitimate industry-critique sites, seeded them with fake positive reviews of his own company, registered the domains using privacy protection to conceal his involvement, and presented the results to prospects as independent third-party assessment. That is an allegation resolved by consent without admissions, not a proven fact. Its practical significance is specific and unusual: the ordinary defense a careful buyer relies on - “I searched, and the reviews were positive” - was engineered against. A prospect in 2020 typing “is this a scam” could land on a page the founder himself owned. It is the single strongest argument in this file for treating search-result sentiment as worthless and primary documents as the only evidence.

Registered address

Orlando, Florida, USA - with operations in Hyderabad, India and Dubai, UAE
Three jurisdictions and three quite different stories. The Florida LLC is the entity that sold the $97 positions and the entity the SEC sued; an early independent review traced its stated operational address to a mailbox rental at a shipping-store franchise, which was the address live while the first tranche of positions was being sold. The Indian subsidiary was substantial and real - roughly 606 staff per third-party company data, statutory accounts filed through the year ending 31 March 2023, and no secured borrowings registered - but it was capitalized at ₹1 lakh, roughly US$1,200, which means the operating company carrying six hundred salaries was entirely dependent on transfers from the parent. In July 2024 about 200 of those staff struck after six months without pay and filed a report at Madhapur police station. The Dubai entity became the payment rail: after the SEC sued in August 2023, affiliate payments were reported diverted to Dubai, and the complaint alleges the company moved to cryptocurrency and alternative processors once mainstream card processing became unavailable. No audited accounts exist for the Florida LLC in the public record; the only reliable revenue figure in this report is the regulator’s $108,000,000.

Compensation plan

What has to be true for you to get paid

To coverYou need
The passive founder - one $97 position, no recruiting, as the pitch instructed Never
the plan’s own arithmetic said ~16 months at $2 per level-1 position; the realized figure is $0 received across five years, then the ecosystem was switched off
The multi-position buyer - five positions at $97 Never
$485 in; $0 out; a hypothetical costless distribution of everything ordered would return roughly $159, a 67% loss at best, and no distribution plan has been located
The team-builder - recruits twenty people over three years Never
$1,940 introduced to the company by this participant, $0 in commission on it, because the $97 entry paid nothing and the commissionable event never occurred
The top-tier believer - one position plus the $500/month package from launch day Never
a $6,097 first year on the plan’s own numbers against a $751.92–$1,548.96 mainstream stack - a 4.0× to 8.1× premium, which he only avoided paying because the launch never happened

Read this twice

This is the shortest break-even table on the site and it has one entry repeated four times, because break-even requires a revenue mechanism and this offer never had one. Commissions were payable exclusively out of monthly subscription fees. No product ever carried a fee, so no subscription fee ever existed, so no commission could ever be generated - at any level of effort, by any participant, for the entire five-year life of the offer. That is not a judgment about how hard people worked; it is arithmetic about the plan as designed. The regulator’s finding as of June 2023 was that the defendants had not launched any product for a fee and had paid no commissions to investors, and nothing displaced it afterwards. The third row is the one to sit with, because it is the closest thing in this file to a purely mechanical injustice: a participant who ignored the “no recruiting required” line, did the work, and signed twenty people at $97 introduced $1,940 to the company and received nothing - not because they underperformed, but because the entry fee was structurally non-commissionable and the event that would have paid them never arrived. Two things belong here in fairness. The realized cash cost to a typical participant was $97, which is genuinely small against the four- and five-figure buy-ins common in this category, and there was no autoship, no inventory, no minimum purchase and no mandatory events to compound it. And the fourth row contains a perverse result worth naming: the only reason the top-tier believer did not lose $6,097 in year one is that the company failed to deliver. For that participant, non-delivery was cheaper than delivery would have been.

Run your own numbers

Drag the sliders. Nothing here is stored or sent.

-
Cumulative net, after costs
Retained filled level-one positions -
Commission that month -
Total commissions earned -
Total you paid in -
Net -

The present-day figure at every position on every slider is zero: the ecosystem was switched off in July 2024, the founder-portal domain now serves a blank installation and the mail product is advertised for sale. What follows models the offer as it was sold. Two dollars is the advertised payment per filled level-one position on the $25 monthly package, tapering to one dollar at levels four to eight across a ten-by-three matrix with a theoretical maximum of 88,523 positions; the $25 package is the cost line. The $97 founder position is excluded from the slider because it bought a place in a queue rather than a commission stream, and because 93,000 people bought more than one. The number that matters is not on this calculator at all and cannot be modeled: across five years the program took in approximately $108,000,000 from more than 800,000 people and paid $0.00 in commissions to anybody. Every profile on this page returns minus one hundred per cent, and that is not a projection - it is the outcome. Your own subscription cost of $25/mo is included.

Your money

What it costs to replace this yourself

The pitch was a bundle of email, a social and contact layer, video conferencing, a website builder, hosting, domains, link shortening, an autoresponder and an “AI” layer - which is a bundle of exactly the things mainstream vendors sell at published list prices. Below is that bundle assembled from named vendors at real 2026 list prices for one user. Read it twice, because it answers two different questions: what the promised paid tiers would have been worth, and what the delivered free apps were actually worth.

What they sell youWhat you'd use insteadYour cost
O-Mail - business email, calendar, storage, cross-device syncGoogle Workspace Business Starter$7.00/user/mo annual
O-Mail with full document, drive and meeting suiteGoogle Workspace Business Standard$14.00/user/mo annual
O-Connect - video conferencing, webinars, screen shareZoom Workplace Pro$14.16/user/mo
O-Connect at business scaleZoom Workplace Business$15.58/user/mo first year
O-Trim - branded short links and click analyticsBitly Core (Growth at team scale, $29)$10.00/mo
Autoresponder, emailer and contact managerMailchimp Essentials at 500 contacts (Standard $20)$13.00/mo
O-Create - site creator, landing pages, hosting, SSLWix Light (Core at $29 for selling online)$17.00/mo annual
Domain registration and renewalAny mainstream registrar, .com≈$15–$30/yr (≈$1.50/mo)
The “AI” layerA consumer AI assistant subscription from a major vendor≈$20/mo - list price not re-verified, see unverified
What was actually delivered: webmail, a social feed, a link shortener, a conferencing appThe free tiers of the same five named products$0.00/mo
Total as sold
$97 once, then $25–$500/month at launch (a planned range reaching $900)
Total, built yourself
$62.66/month lean ($751.92/yr) or $129.08/month fully loaded ($1,548.96/yr) - and $0.00/month for the capability actually delivered

Price-to-value

The naive defense writes itself: $97 once against $751.92 a year looks like an extraordinary bargain, which is precisely why it sold 1,120,000 times. It is the wrong comparison. OnPassive never delivered any of these capabilities on a paid basis. What it delivered was a webmail, a social feed, a link shortener and a conferencing app, every one of them free to anyone on earth - so the honest comparison is not $97 against $751.92, it is $97 against $0.00, because the free tiers of the five named products above cover the entire delivered feature set at no cost. Then the second question, which cuts the other way at the bottom and hard against the company at the top. Had the product launched as pitched, the $25 entry tier would have been genuinely cheap against a $62.66 mainstream stack. But the tiers where the compensation plan actually paid were $250 and $500 a month, and the regulator records a planned range reaching $900 - two to eight times a best-of-breed stack from named vendors with published terms, real service-level commitments and data portability, none of which this offer had. The tiers were not priced against capability. They were priced against how much commission each would generate in the matrix.

Odds of profit

Three operators, five horizons

Probability of cumulative net profit

Hover any point for median, top decile and bottom quartile.

0% 25% 50% 75% 100%3 mo6 mo1 yr3 yr5 yr 0% 0% 0%
Joined 2019, believed it was a startup - one $97 position, understood as seed capital in an early-stage company; held six yearsMulti-position holder, joined 2020 - five positions at $97 - one of the 93,000 who bought more than oneTeam-builder, joined 2018, recruited 20 - one position, six years of unpaid promotional work, twenty people signed

Joined 2019, believed it was a startup

one $97 position, understood as seed capital in an early-stage company; held six years

HorizonP(profit)Median
3 mo 0% −$97
6 mo 0% −$97
1 yr 0% −$97
3 yr 0% −$97
5 yr 0% −$97

Multi-position holder, joined 2020

five positions at $97 - one of the 93,000 who bought more than one

HorizonP(profit)Median
3 mo 0% −$485
6 mo 0% −$485
1 yr 0% −$485
3 yr 0% −$485
5 yr 0% −$485

Team-builder, joined 2018, recruited 20

one position, six years of unpaid promotional work, twenty people signed

HorizonP(profit)Median
3 mo 0% −$97
6 mo 0% −$97
1 yr 0% −$97
3 yr 0% −$97
5 yr 0% −$97

Methodology note. These are modeled outcome ranges, not claims about any individual, and they are unusual on this site in one respect: there is almost nothing to model. ANCHORED to the record - the $97 position price, the five-position case drawn from the 93,000 buyers who held more than one, and the regulator’s finding that $0 in commissions was paid to any investor across five years and more than 800,000 people. That last figure is why the median, top and bottom columns are identical in almost every row: with no commission ever paid to anyone, there is no distribution to spread. The share in cumulative profit is 0% at every horizon in every cohort, and that is a rarity - most graded opportunities have at least a thin top tier that profits, and here the entire participant population sits in the loss column. MODELED by us: the single exception, the top figure in the five-year row of the multi-position cohort, which shows −$326 rather than −$485 to illustrate what a costless, complete distribution of the full judgment sums across all 1,120,000 positions would look like at roughly $32 per position. That is a hypothetical, not a forecast. No distribution plan, claims administrator, claims portal or deadline could be located as of August 2026, and this report makes no claim about how any distribution would work or whether one will occur. Also modeled: the time cost, which is uncosted throughout and was for many participants the largest item - five and six years of webinars, team calls and unpaid promotion. Not modeled at all: the relationship cost carried by the third cohort, which introduced $1,940 to the company and twenty people to an offer later sued as a fraudulent unregistered offering, and which cannot be expressed in dollars.

Go-to-market

Where you are actually allowed to promote this

Platform policy reads, not verifications. Check every one before you spend a dollar - enforcement changes faster than the written policy does.

Channel
Status
Notes
Published terms and conditions
NONE EXISTED DURING THE RAISE
An independent review in 2020 went looking specifically for terms and conditions, a privacy policy and a refund policy while positions were being sold, and found none of the three. That is unusual even by the standards of this category, and it means a participant who paid $97 had no written statement of what they had bought, what the company owed them, or what would happen if it did not deliver.
Refunds
NO POLICY, NO MECHANISM, EVER
No refund policy was published at any point and no refund mechanism has been located in any jurisdiction. Card chargeback windows are typically 120 days; buyers were told launch was weeks away, repeatedly, for years, so the window closed many times over before the position was obviously worthless.
Payment rails
MOVED TO DUBAI, THEN TO CRYPTO
After the SEC sued in August 2023, affiliate payments were reported diverted to Dubai, with banks flagging transactions; the complaint separately alleges the company continued accepting payment via cryptocurrency and alternative processors once mainstream card processing became unavailable to it. Crypto payments do not reverse. Moving to irreversible rails while under investigation is the fact, and it is stated as an allegation resolved on consent without admissions.
Recruiting
EXPRESSLY NOT REQUIRED
The pitch told buyers they would earn “without engaging in any recruiting activity,” “relying entirely on ONPASSIVE to conduct marketing efforts,” with vacant positions supposedly filled by other people’s activity. Read one way this is a genuine relief - nobody was obliged to work a warm list to stay qualified. Read the other way it is the sentence that makes the offer a security, because it concedes that the profit was to come from the efforts of others.
Marketing rules for participants
NONE LOCATED
No policy on paid advertising, trademark bidding, social conduct, income claims or lead purchase could be found. In practice the model did not need one, since participants were told they need not promote at all. The back office where such a policy might have lived is gone: gofounders.net now serves a blank default WordPress install.
Income claims by the company
QUANTIFIED, PUBLISHED AND EXTREME
A displayed payment grid topping out at “$2,032,614 per month for life,” a webinar statement that “$30 million per month was feasible if more than ten rows were populated,” and “unlimited residual income” “for life” in an e-Book circulated from December 2021. Against a realized figure of $0 across more than 800,000 people.
Third-party validation
ALLEGEDLY MANUFACTURED
The SEC alleged the founder built counterfeit review sites mimicking legitimate industry-critique publications, seeded them with fabricated positive reviews, and registered the domains under privacy protection to conceal his involvement - then presented the results to prospects as independent assessment. Resolved on consent with no admissions. Its practical effect, if true, was to disarm the one check a careful buyer performs.
Exit
NO EXIT OF ANY KIND
No refund, no secondary market for positions, no equity to sell, no token to trade and nothing meaningful to cancel. A participant’s only available exit was to stop attending the webinars. That is a rare and complete absence of liquidity, and it is a direct consequence of there being no written terms.
What was not there - and it counts
NO AUTOSHIP, NO INVENTORY, NO MINIMUMS
No monthly volume requirement, no product to stock, no lead-buying obligation, no mandatory events and no clawback mechanics. The realized cash cost to a typical participant was capped at $97. Against a category where four- and five-figure buy-ins with recurring drains are routine, this is a genuine and unusual absence, and it is why the terms line scores half a point rather than zero.
The evidence

Red flags and green flags

Red flags

15
1$108,000,000 in, $0 out, across more than 800,000 people and five years
Not “low earnings” and not “most participants lose money” - nil, to everyone, for the entire life of the offer. That is the regulator’s finding as of June 2023 and nothing displaced it afterwards. Every modeled profile in this report returns −100%.
2The founder’s prior record was searchable before the first dollar was raised
AshMax, a recruitment matrix carrying his own name, around 2010. TelexFree, which he promoted and which collapsed as one of the largest pyramid and Ponzi failures on record. PayDiamond, identified as a Ponzi scheme, which he promoted and which collapsed mid-2018 - with this venture launching within months. He was a promoter in the latter two, and no criminal charge or regulatory finding against him arising from either could be located. The sequence is the finding.
3The promised return was quantified in writing at $2,032,614 per month, for life
Displayed as a payment grid in webinars through late 2020, alongside “unlimited residual income,” “thousands and even millions of dollars,” and a September 2018 webinar statement that “$30 million per month was feasible if more than ten rows were populated.”
4The sales copy conceded that the profit came from other people’s efforts
Buyers were told they would receive passive income “without engaging in any recruiting activity,” “relying entirely on ONPASSIVE to conduct marketing efforts.” That is the sentence a defendant would normally spend a trial trying to escape, published as the selling point.
5The plan was structurally incapable of paying anyone, from day one
Commissions were payable exclusively from monthly subscription fees. No product ever carried a fee in five years. Therefore no subscription fee ever existed and no commission could ever be generated, at any level of effort, by anyone.
693,000 buyers - about 12% - purchased more than one $97 position
There is no consumer rationale for buying the same software access twice. There is an obvious investment rationale for buying two placements in a grid that pays per placement. This is the cleanest single proof in the file that the $97 was priced against position rather than product.
7Six years of imminent launches, with payments taken throughout
“About one month” in July 2018; “possibly… next 30 days” in September 2018; “June… celebrate launch” in April 2019; “everything looking good for 2020” in March 2020; “scheduled and set to launch in 2020” in August 2020; “realistically a few weeks” in October 2020 - and years more after that.
8No refund policy, no terms and conditions and no privacy policy during the raise
An independent review in 2020 looked for all three and found none. A participant handing over $97 had no written statement of what they had bought or what the company owed them.
9Payments diverted to Dubai and then to cryptocurrency after the regulator sued
Reported in September 2023, one month after the complaint, with banks flagging transactions; the complaint alleges continued acceptance of crypto and alternative processors as mainstream card processing became unavailable. Crypto does not reverse.
10Consented final judgments of $26.22m disgorgement, $1.22m interest and $8m in penalties
Entered 14 August 2025 in SEC v. Mufareh, No. 6:23-cv-01539 (M.D. Fla.), with permanent injunctions and an eight-year officer-and-director bar, settled with no admissions. A consent judgment is not a litigated finding of fact. It is also not nothing: disgorgement is measured as ill-gotten gains, and $26.22m is roughly a quarter of gross intake.
1144 of approximately 50 announced applications were never released
Six shipped free by 30 June 2023, four and a half years after positions first went on sale. Not one product in five years carried a fee - which is the fact that made the compensation plan unpayable.
12About 200 Hyderabad staff went six months without pay and struck in July 2024
A report was filed at Madhapur police station. The same corporate group had bought Burj Khalifa projections in April 2022 and a ten-year metro-station naming deal in January 2023. The operating subsidiary carrying roughly 600 salaries was capitalized at about US$1,200.
13The ecosystem was switched off in July 2024 under the phrase “we make some improvements to our service”
Both surviving Android applications last received a build in the first half of 2024, and no development activity of any kind has been evidenced since. The flagship domain omail.ai is now listed for sale at $56,246, reduced from $74,995.
14A central bank called it a fraudulent Ponzi scheme and made promoting it an offense
Bangladesh Bank, 12 December 2023, characterising the operation as engaged in “embezzlement of large amounts of money” and stating that it operated in violation of that country’s Anti-Money Laundering Act 2012, with promotion within the country also violating it. That is an official regulatory warning, not a judicial finding. Separately, Uganda’s Deposit Protection Fund warned in November 2023 that the company had falsely claimed partnership with it.
15No income disclosure ever existed - only its inverse
No disclosure statement was published in any jurisdiction at any point. What a prospect saw instead was a maximum-payout grid showing $2,032,614 a month. A grid showing what a fully populated matrix would pay is the opposite of a disclosure, and the gap between the published figure and the realized $0 is the largest this site has recorded.

Green flags

9
1Software genuinely existed and genuinely shipped
Six applications released free by 30 June 2023 - a fact conceded in the regulator’s own amended complaint - with a first release announced on 24 and 25 November 2022 and carried by wire services. Two official Android apps published by the Dubai entity remain listed and each passed 100,000 installs. Anyone who says nothing was ever built is overstating it, and this report will not.
2Roughly 600 real employees in a real facility
The Hyderabad company was incorporated 9 August 2021, filed statutory accounts through the year ending 31 March 2023, registered no secured borrowings, and employed about 606 people per third-party company data. There were offices, developers and payroll. This was not a bedroom operation.
3The products that shipped were free, and the realized cost was capped at $97
The $25 to $500 monthly layer was never activated, so no participant was ever billed a subscription. A typical participant’s total cash exposure was $97, and $194 to $970 for the 12% who bought multiple positions. In a category where four- and five-figure buy-ins are routine, that is genuinely small.
4No token and no equity instrument was ever issued
No coin, no on-chain asset, no share certificate, no cap-table entry, no convertible note. That removes an entire class of secondary-market, dilution and lock-up harms: there was nothing to be rugged and nothing to be diluted. It also means nobody was misled by a tradable instrument - they were misled by a grid.
5No autoship, no inventory, no minimum purchase, no lead-buying, no mandatory events
Participants were not placed on a recurring drain and were not required to stock anything. The cost stack is genuinely thin, and the absence is real rather than cosmetic - it is why the terms line carries half a point instead of zero.
6The regulator acted, and the founder agreed to pay and to be barred
$26.22m disgorgement, $1.22m prejudgment interest, $8m in combined civil penalties, permanent injunctions and an eight-year officer-and-director bar, entered 14 August 2025 on consent with no admissions. A fund exists on paper. Whether any of it reaches participants is unknown and this report asserts nothing about it - but a resolution of this size is more than participants in most comparable files ever see.
7The present-day Dubai entity makes no income claims at all
onpassive.ae today presents as an ordinary business-to-business software and consulting firm: no founder program, no matrix, no affiliate scheme, no earnings representation, no sign-up funnel and no pricing, with a contact form as its only call to action. Whatever the history, the current public face contains no income opportunity, and that should be stated in its favor.
8The corporate and court record is unusually retrievable
The Indian entity’s corporate identification number, incorporation date, directors, capital and filing history are public; the federal docket is public; the litigation releases and the final judgment are published by the regulator. A diligent buyer in 2026 can establish the material facts of this file in an afternoon - which is not true of most of what this site grades.
9The documented regulatory file is narrower than the participant count would suggest, and this report says so
Despite more than 800,000 participants across dozens of countries, what could actually be evidenced is one US federal civil action resolved on consent, one central-bank warning and one deposit-fund warning. Searches of the UK, Australian, Malaysian, Spanish, Italian, Belgian, New Zealand, South African, Namibian, Philippine and Canadian regulators, and of the FTC and CFTC, each returned nothing found. Several of those lists are search-gated, so a nil return is not proof of absence - but it is more honest than implying a wall of warnings that does not exist.
What would move this grade

We would like to be wrong about this

Upward

  • A funded and administered distribution plan with a claims portal, a named administrator and a real recovery rate reaching participants - none of which exists today, and the absence of which is why the participant-economics line is at zero rather than merely near it.
  • Evidence that the $26.22m disgorgement, $1.22m interest and $8m in penalties were actually collected. A judgment against a group whose operating subsidiary could not make payroll for six months is not the same thing as money recovered.
  • A live, priced, paid product at the surviving Dubai entity, sold to genuine outside customers with published terms and a refund policy and no income opportunity attached - which would make the product and price-to-value lines gradeable on their merits for the first time.

Downward

  • Any evidence that a fresh matrix has reopened behind the JavaScript-gated ecosystem storefront, or that the applications announced after the settlement are being sold with a position-based compensation plan. That would convert this from a historical grade to a live one and remove whatever mitigation the offer’s death currently provides.
  • Corroboration from a court, prosecutor or credible news outlet of any criminal proceeding against any principal - presently uncorroborated, excluded from this analysis, and not a basis for any part of this grade.
  • Any new venture by the same principals taking capital against a promised return during the eight-year officer-and-director bar, or confirmed non-payment of the judgment sums.
The better trade

Grade is F at 0.39, and it grades a historical offer. There is nothing to join: the ecosystem was switched off in July 2024, the sign-up domain is a blank WordPress install, and the flagship product’s domain is for sale at $56,246.

Start with what was real, because it is the part most commentary gets wrong and because the report is worthless if the good marks are not honest. Software was built and software shipped. Six applications were released free by 30 June 2023 - the regulator’s own amended complaint concedes it - after a launch announced on 24 and 25 November 2022 and carried by wire services. Two official Android applications published by the Dubai entity are still listed and each passed 100,000 installs. Roughly 606 people were employed in a Hyderabad facility inside a company that filed statutory accounts and registered no secured borrowings. The corporate marketing was real and expensive: skyscraper projections, a broadcast tie-up, a ten-year metro-station naming deal. And the surviving Dubai website today makes no income claim of any kind - no matrix, no founder program, no affiliate scheme, no pricing. That is a genuine artifact, and it distinguishes this file from schemes with nothing behind them at all.

Then the money, which is where it ends. $108,000,000 came in from more than 800,000 people for 1,120,000-plus positions at $97, and $0 in commissions was ever paid to anybody - not a small amount, not a bad median, nil, for five years. The reason is structural rather than moral: commissions were payable exclusively from monthly subscription fees, no product ever carried a fee, and so no commission could be generated by anyone at any level of effort from the day the plan was designed. The $97 did not buy software. In the company’s own written words it bought an “Early Founder Position” in “the top 1% of the leaders in the company,” carrying “a higher placement in the pyramid, and higher returns, than later investors,” against “unlimited residual income” “for life,” quantified at up to “$2,032,614 per month,” funded from “subscription fees paid by later investors,” and obtainable “without engaging in any recruiting activity.” The proof that this was placement and not product is that 93,000 buyers purchased more than one. Nobody buys the same license twice.

The legal file has to be read at its exact stage, and the exact stage is narrower than the headlines. On 14 August 2025 the US District Court for the Middle District of Florida entered consented final judgments in SEC v. Mufareh, No. 6:23-cv-01539: $26.22m in disgorgement against the company, $1.22m in prejudgment interest, $8m in combined civil penalties, permanent injunctions and an eight-year officer-and-director bar against the founder - all settled with no admissions of any kind, three weeks before a trial set for 6 April 2026. A consent judgment is not a litigated finding of fact. No court has made an adjudicated pyramid finding here. No criminal charge against the founder could be located in any jurisdiction, and an uncited blog allegation of criminal proceedings elsewhere was excluded from this analysis as uncorroborated. What the judgment does establish, on the defendants’ own agreement, is scale - disgorgement is measured as ill-gotten gains, and $26.22m is roughly a quarter of everything that came in. Meanwhile about 200 Hyderabad staff went six months without pay and struck in July 2024, and the ecosystem went dark the same month. Whether any money reaches participants is unknown: no distribution plan, claims administrator or deadline could be located, and this report makes no claim about how any distribution would work.

1

Treat “I searched and the reviews were positive” as worthless, permanently

The regulator alleged this founder built counterfeit review sites imitating legitimate industry-critique publications, seeded them with fabricated praise and hid the ownership behind domain privacy. Resolved on consent with no admissions - but the lesson survives regardless of who did it. Search-result sentiment is the cheapest thing on the internet to manufacture. Court dockets, regulator litigation releases, corporate registries and app-store build dates are not. Use the second list.

2

Ask what the money is priced against, not what it costs

$97 is a trivial number, which is exactly why 1,120,000 of them sold. The question that separates a software pre-purchase from an investment is not the price - it is what the price is attached to. A license, a seat, a subscription, a discount: those are products. A position, a placement, a level, a spillover slot, a percentage of what people below you pay: those are not. If the same person can rationally buy two of them, it was never a product.

3

Read the payout mechanism to its funding source before anything else

The single fact that made this offer unpayable was visible in the plan document from the start: commissions came from monthly subscription fees, and no fee-bearing product existed. Whenever a plan pays from a revenue line that has not started, write down the date it is supposed to start, and treat every subsequent extension as data. Six years of “a few weeks away” is not a delay. It is the business model.

4

Build the thing the bundle was pretending to be

The capability actually promised here - email, conferencing, links, an autoresponder, a site builder, a domain - assembles from named mainstream vendors for $62.66 a month at 2026 list prices, and the free tiers of the same five products cover everything that was ever delivered at $0.00. A consultancy that sets small businesses up on that stack, migrates them and supports them is an ordinary, legal, low-capital service business with real customers who pay real money. It requires no position, no grid, no spillover and no launch date.

One hundred and eight million dollars came in from more than eight hundred thousand people, and nought pounds, nought dollars and nought cents in commission ever went out to any of them.
Scorecard

Nine dimensions, weighted

Comp structure & KoscotDoes the plan pay for recruitment or for sales to real customers?
20%
0.5
A 10×3 forced matrix - ten levels deep, each row three times wider than the last, running 3, 9, 27, 81, 243, 729, 2,187, 6,561, 19,683 and 59,049 for a maximum of 88,523 positions beneath any single participant. The worked example in the plan pays $2 per filled position at level one, tapering to $1 per position at levels four to eight. Every one of those payments was to be funded from the monthly subscription fees of the people in those positions, and those people were themselves participants: qualification to earn required buying an affiliate package starting at $25 a month. There was no retail channel of any kind. Nothing was ever sold to anybody who was not in the matrix, and no commission in the grid varied with a product being bought or used by an outside customer - it varied with headcount. The confirming datum is that 93,000 buyers, about 12% of participants, purchased more than one position: nobody buys the same software access twice, but people buy grid slots twice, because the grid pays per slot. The half point exists for one reason only, and it is a bleak one - because no commission was ever paid, the plan never actually transferred money from late entrants to early ones. It transferred it to the operator instead.
Securities exposureAny passive return on capital? Howey, staking, tokens, withdrawal friction.
15%
0.0
This number rests on the primary source, not on the regulator’s case, and it would be 0 if no regulator had ever appeared. What $97 bought, in the company’s own written words, was an “Early Founder Position” placing the buyer in “OnPassive’s Top Leadership… the top 1% of the leaders in the company,” with “a higher placement in the pyramid, and higher returns, than later investors.” Against that money the company promised in writing “unlimited residual income” “for life,” “thousands and even millions of dollars,” and a payment grid displayed in webinars through late 2020 topping out at “$2,032,614 per month for life.” The stated source of that money was “subscription fees paid by later investors.” And the copy pre-emptively surrendered the one prong a defendant normally argues: buyers were told they would receive this “without engaging in any recruiting activity,” “relying entirely on ONPASSIVE to conduct marketing efforts.” That is capital handed over against a marketed return produced by other people’s effort. It is not a software pre-payment in any part. Had the same $97 bought a lifetime license to a forthcoming app suite that arrived late, badly, or never, this line would read 10 and the failure would sit under product and terms - a five-year wait for software is a consumer-protection problem, not a securities one. The $97 was never priced against software. It was priced against placement, and 93,000 people bought placement more than once.
Ownership & track recordWho runs it, what did they run before, and what happened to it.
15%
0.0
The founder’s record was a matter of public search before the first dollar was raised. He ran AshMax, a recruitment matrix carrying his own name, around 2010; he promoted TelexFree, which collapsed as one of the largest pyramid and Ponzi failures on record; and he promoted PayDiamond, identified as a Ponzi scheme, which collapsed in mid-2018 - with OnPassive launching within months. Stage-labeling matters: in both of those he was a promoter, and no criminal charge, indictment or regulatory finding against him personally arising out of either could be located anywhere. What followed here is heavier. On 14 August 2025 he consented to a final judgment carrying a $4,000,000 civil penalty, a permanent injunction against further violations of the charged fraud and registration provisions, and an eight-year officer-and-director bar, while the company consented to $26.22m in disgorgement and $1.22m in prejudgment interest - with no admissions of any kind. A consent judgment is not a litigated finding of fact, and this report will not call it one; it is an agreement to pay and to be barred, entered to end a case that was three weeks from a trial date. What it does establish, on the defendants’ own agreement, is the scale: disgorgement is measured as ill-gotten gains, and $26.22m is roughly a quarter of everything that came in. An eight-year officer-and-director bar is not imposed for a paperwork failure. Add the SEC-alleged counterfeit review sites, privately registered to conceal ownership, and the pattern of the two prior collapses, and there is nothing left on this line to award.
Product reality & demandWould a rational buyer purchase this if no income offer existed?
12%
1.5
This is not zero, and the reason has to be stated first, because it is the fact most commonly got wrong about this company. Real software was built and real software shipped. A first release was announced on 24 and 25 November 2022 covering O-Mail, O-Net and O-Trim, carried by wire services; O-Bless and O-Connect followed; and the SEC’s own amended complaint concedes that six applications were released free of charge by 30 June 2023. Two official Android applications published by the Dubai entity remain listed today, OCONNECT OFFICIAL and OES OFFICIAL, each past 100,000 installs. Roughly 606 people were employed in a real Hyderabad facility building them. Anyone who says nothing was ever built is overstating it. Against that: approximately 50 applications were announced and 44 of them were never released; the shipped six arrived four and a half years after positions first went on sale; not one product carried a fee in five years, which is decisive because the entire compensation plan paid from subscription fees that therefore never existed; both surviving apps last received a build in the first half of 2024; the ecosystem was switched off in July 2024 under the phrasing “we make some improvements to our service”; and the flagship product’s domain, omail.ai, is now listed for sale on a domain marketplace at $56,246. One further flag on the app data, stated as an observation rather than a finding: 64,800 reviews against 100,000-plus installs is a review rate near 65%, where a consumer app normally runs under 1%.
Participant economicsReal cost in, realistic money out, and whether they publish the numbers.
10%
0.0
$108,000,000 in, from more than 800,000 people, across five years and 1,120,000-plus positions at $97. $0 out. Not “low earnings,” not “most participants lose money,” not a thin top tier that profits - nil, to everyone, for the entire life of the offer, which is the SEC’s finding as of June 2023 and was never contradicted afterwards. Every modeled profile in this report returns −100%, including the profile that recruited twenty people and thereby introduced $1,940 to the company while earning nothing, because the $97 entry paid no commission and the commissionable event never occurred. No income disclosure statement was ever published, in any jurisdiction, at any point - what existed instead was a maximum-payout grid showing $2,032,614 a month, which is the precise inverse of a disclosure. The only route to any recovery is a distribution of the judgment sums, and the judgment language is permissive: the Commission may propose a plan subject to the court’s approval. Even a perfect, costless distribution of everything ordered would be roughly $32 against $97 paid, and this report makes no claim about how any distribution would work, because no plan could be located.
Price-to-valueWhat the same capability costs on the open market.
8%
1.0
Two questions, and they answer differently. What was actually delivered? Free webmail, a social feed, a URL shortener and a conferencing app - all free to anyone on earth, including the people who never paid $97. Measured against the open market that capability costs nothing at all: the free tiers of a mainstream mail service, a mainstream conferencing product, a mainstream link shortener, a mainstream email-marketing tool and a mainstream website builder cover the entire delivered feature set at $0.00 a month. The single point on this line is for the fact that the apps that did ship were genuinely usable, which is more than nothing. What was promised? A bundle of email, CRM, conferencing, a site builder, hosting, domains, an autoresponder and an “AI” layer, at $25, $125, $250 or $500 a month, with the SEC recording the planned range as reaching $900. At list price in 2026 that same bundle assembles from named vendors for $62.66 a month lean or $129.08 fully loaded. So the entry tier would have been genuinely cheap, and the tiers where the plan actually paid - $250 and $500 - would have run two to eight times a best-of-breed mainstream stack, from a vendor with no track record, no service-level agreement, no data-portability commitment and no published terms. The tiers were not priced against capability. They were priced against how much commission each would generate in the matrix, which is a compensation structure wearing a price list.
Payout sustainabilityCan the company fund the plan out of margin, or only out of inflow?
8%
0.0
100% inflow-funded, and unusually literally so: there was no margin from anything, because nothing ever carried a price. The only money entering the business was new $97 positions, which is why the arithmetic reconciles so cleanly - 1,120,000 positions at $97 is $108,640,000, against the regulator’s $108,000,000. Of that, roughly $26.2m was diverted to the founder, being the sum he and the company agreed to disgorge as ill-gotten gains, alongside allegations of transfers to his wife and conversion into cryptocurrency under the couple’s exclusive control. The residual, about $81.8m, went to development, offices, roughly 600 salaries, Burj Khalifa projections, a broadcast tie-up and a ten-year metro-station naming deal - spending that was real, visible and expensive. The test of whether a payout structure is sound is what happens when inflow stops, and this file answers it directly: about 200 Hyderabad staff went six months without pay and struck in July 2024, the same month the ecosystem was disabled, at a company that had been buying skyscraper projections eighteen months earlier.
Marketing conductIncome claims, regulator run-ins, hype, deadline stacking.
7%
0.0
The claim record is the densest part of this file after the court judgment. “$2,032,614 per month for life” as a displayed payment grid. “$30 million per month was feasible if more than ten rows were populated,” from a webinar of 25 September 2018. “WE ARE FULLY LEGAL-WORLDWIDE” in promotional material - a sentence no lawyer writes and no compliant firm publishes. “It’s a done deal,” said in a 2020 webinar to a participant who had just described financial hardship during the pandemic. “only God can stop OnPassive!” on 14 August 2023, three days after the complaint was filed. Around all of it, six years of imminent launches: “about one month” in July 2018, “possibly… next 30 days” in September 2018, “June… celebrate launch” in April 2019, “everything looking good for 2020” in March 2020, “scheduled and set to launch in 2020” in August 2020, “realistically a few weeks” in October 2020 - and payments taken throughout. Then the SEC-alleged counterfeit review sites, privately registered, seeded with fabricated third-party validation. And the disclaimer that eventually appeared, saying the company is “not an MLM,” is “not an investment platform” and does “not guarantee or promise any secured income/returns,” which sits in flat contradiction to the sales material quoted above. A disclaimer that contradicts the sales copy is not a disclaimer; it is an additional exhibit.
Operator terms & exitWho owns the customer, what you forfeit, how hard it is to leave.
5%
0.5
During the entire fund-raising period there was no refund policy, no terms and conditions and no privacy policy published - an independent review in 2020 went looking specifically for all three and found none of them, which is unusual even by the standards of this category. No refund mechanism has been located at any point, in any jurisdiction, for the $97. Chargebacks were defeated first by time and then by rails: the typical card window is 120 days, and buyers were told launch was weeks away, repeatedly, for years, so the window closed many times over before the position became obviously worthless; then after August 2023 payments were reported diverted to Dubai and the company moved to cryptocurrency and alternative processors as mainstream card processing became unavailable, and crypto payments do not reverse. There was no exit, no secondary market in positions, no equity to sell and nothing to cancel. The half point is genuine and it is for a real absence: no autoship, no inventory loading, no minimum monthly purchase, no lead-buying requirement and no mandatory events. There was no trap to be held in - only money that was gone.
Weighted composite
0.39
F

Dimension profile

Further from center is better. Hover any point.

Comp structure& Koscot 0.5 Securitiesexposure 0.0 Ownership &track record 0.0 Product reality& demand 1.5 Participanteconomics 0.0 Price-to-value 1.0 Payoutsustainability 0.0 Marketingconduct 0.0 Operator terms& exit 0.5

Hard caps that bind here

Ceiling at F - non-binding the arithmetic already lands at 0.39, which is the lowest band available, so a cap written at F is meaningless as a binding instrument and this entry does not pretend otherwise. The nine numbers earned the grade on their own: a matrix with no retail channel, capital taken against a written promise of income for life, a founder record of two prior collapses, 44 of about 50 applications never released, $108,000,000 in and $0 out, free capability sold at $97, a wholly inflow-funded structure, six years of claims, and no published terms of any kind during the raise. It is worth being equally precise about what this grade does not rest on. It does not rest on any criminal charge against the founder - none could be located in any jurisdiction, and a single uncited blog allegation of criminal proceedings elsewhere was excluded from this analysis as uncorroborated. It does not rest on a litigated finding of fact anywhere, because there is none: the case settled three weeks before its trial date. It does not rest on any admission, because the judgments were entered on consent with no admissions. And it does not rest on an adjudicated pyramid finding, because no court has made one. The grade rests on what was sold, what was promised in writing, and what was paid - and on the last of those, the figure is zero.

The lowest binding cap wins, regardless of the weighted arithmetic.

Sources consulted

What we read

Every source below links to the document itself. Tier 1 is a primary record - the company’s own plan, policy or disclosure, a court filing, a regulator’s decision or an SEC filing. Tier 2 is a self-regulatory or secondary regulator record, tier 3 reporting or academic work, tier 4 an open-market price comparison. Where a document can be moved or withdrawn, an archived copy is linked beside it. If a link is dead when you try it, that is a correction we want.

  1. SEC Litigation Release No. 25809 - SEC v. Ashraf Mufareh and ONPASSIVE LLC a/k/a Gofounders and Ofounders, No. 6:23-cv-01539 (M.D. Fla., filed 11 August 2023): over $108 million raised from approximately 800,000 investors
    RegulatorTier 1U.S. Securities and Exchange Commission · 2023-08-11archived copy

    SEC Litigation Release 25809 - complaint filed 11 August 2023, SEC v. Ashraf Mufareh and ONPASSIVE LLC a/k/a Gofounders and Ofounders, No. 6:23-cv-01539 (M.D. Fla.): $108,000,000 raised from 800,000+ investors; charges under Securities Act §§5(a), 5(c) and 17(a) and Exchange Act §10(b) and Rule 10b-5

  2. SEC Complaint, SEC v. Mufareh and ONPASSIVE LLC, No. 6:23-cv-01539 (M.D. Fla.) - charges under Securities Act §§5(a), 5(c) and 17(a) and Exchange Act §10(b) and Rule 10b-5 (PDF)
    RegulatorTier 1U.S. Securities and Exchange Commission · 2023-08-11archived copy
  3. SEC Amended Complaint, SEC v. Mufareh and ONPASSIVE LLC, No. 6:23-cv-01539 (M.D. Fla.) - source of the verbatim "unlimited residual income," "for life," "$2,032,614 per month" and "without engaging in any recruiting activity" quotations, the 1,120,000+ $97 positions and the July 2018 to October 2020 launch-date sequence (comp25809-amended.pdf)
    RegulatorTier 1U.S. Securities and Exchange Commission · 2023archived copy

    SEC amended complaint, comp25809-amended.pdf - source of all verbatim promise wording quoted here: “unlimited residual income,” “for life,” “$2,032,614 per month,” “without engaging in any recruiting activity,” “relying entirely on ONPASSIVE to conduct marketing efforts”; 1,120,000+ positions at $97; 93,000+ buyers of multiple positions; six applications released and 44 unreleased as of 30 June 2023; the launch-date sequence from July 2018 to October 2020

  4. SEC Litigation Release No. 26374, 15 August 2025 - final judgments against ONPASSIVE LLC ($26,220,364 disgorgement, $1,218,528.40 prejudgment interest, $4,000,000 penalty) and Ashraf Mufareh ($4,000,000 penalty, eight-year officer-and-director bar), with permanent injunctions
    RegulatorTier 1U.S. Securities and Exchange Commission · 2025-08-15archived copy

    SEC Litigation Release 26374 and the final judgment filed 14 August 2025 - $26,220,000 disgorgement and $1,220,000 prejudgment interest against ONPASSIVE LLC, $4,000,000 civil penalty against the company and $4,000,000 against Mufareh personally, permanent injunctions, an eight-year officer-and-director bar, settled without admissions; relief-defendant claims voluntarily dismissed; “The Commission may propose a plan to distribute the Fund subject to the Court’s approval”

    Not established by this document: The court-entered final judgment document itself (filed 14 August 2025) is not published as a standalone PDF on sec.gov; the terms above are taken from the SEC's own litigation release, not from the signed judgment.

  5. SEC v. Ashraf Mufareh and OnPassive LLC - Notice of Covered Action 2025-176 (whistleblower award claim notice recording the final judgment)
    RegulatorTier 1U.S. Securities and Exchange Commission · 2025archived copy
  6. Securities and Exchange Commission v. Mufareh, 6:23-cv-01539 (M.D. Fla.) - CourtListener/RECAP docket
    Court recordTier 1Free Law Project (CourtListener)archived copy

    CourtListener docket 6:23-cv-01539 and contemporaneous trade-legal reporting - motion to dismiss denied 27 August 2024, trial set for 6 April 2026 by scheduling order of 13 September 2024, settlement reached 27 June 2025

  7. Securities and Exchange Commission v. Mufareh et al, 6:2023cv01539 - docket, U.S. District Court for the Middle District of Florida
    Court recordTier 1Justia Dockets & Filings (U.S. District Court for the Middle District of Florida)archived copy
  8. "OnPassive SEC trial scheduled for Apr 6th, 2026 (updates)" - motion to dismiss denied 27 August 2024, scheduling order of 13 September 2024
    ReportingTier 3BehindMLM · 2024archived copy
  9. "Ash Mufareh settles OnPassive fraud with SEC for $32 mill" - settlement reporting, August 2025
    ReportingTier 3BehindMLM · 2025-08-13archived copy
  10. "OnPassive Review: GoFounders four-tier matrix pyramid scheme" - independent structural review of the 3x10 matrix, the $25/$125/$250/$500 tiers, $2 per level-one position tapering to $1 on levels four to eight, and the finding of no retailable products or services
    ReportingTier 3BehindMLM · 2019-01-07archived copy

    Independent structural review of the compensation plan (2020) - the ten-level, three-wide matrix, the 88,523-position ceiling, $2 per filled level-one position tapering to $1 at levels four to eight, the $25/$125/$250/$500 tiers, and the finding of no retail channel; and a separate 2020 review recording no refund policy, no terms and conditions and no privacy policy

    Not established by this document: The structural review actually carries a 7 January 2019 date rather than 2020, and computes an 88,573-position ceiling for a 3x10 matrix (the report says 88,523). The separate 2020 review recording no refund policy, no terms and conditions and no privacy policy could not be identified at a stable URL.

  11. "ONPASSIVE globally launches its first set of disruptive solutions" - ANI press release, 25 November 2022
    ReportingTier 3Asian News International, carried by Business Standard · 2022-11-25archived copy

    Contemporaneous industry reporting - first product launch 24 and 25 November 2022 via ANI and other wires; ecosystem disabled 14 July 2024; roughly 200 Hyderabad staff striking after six months without pay, report filed at Madhapur police station; payments diverted to Dubai after the SEC complaint; “only God can stop OnPassive” webinar of 14 August 2023; settlement coverage of 13 August 2025

  12. "OnPassive disables 'ecosystem' services" - reporting on the 14 July 2024 shutdown
    ReportingTier 3BehindMLM · 2024-07archived copy
  13. "OnPassive employees in India strike after 6 months no pay" - the roughly 200 striking Hyderabad staff and the report filed at Madhapur police station
    ReportingTier 3BehindMLMarchived copy
  14. "Cenbank raises red flag on Onpassive" - Bangladesh Bank / BFIU public notification warning against investing in OnPassive, reported 14 December 2023
    ReportingTier 3The Business Standard (Bangladesh) · 2023-12-14archived copy

    Bangladesh Bank public warning, 12 December 2023 - characterising the operation as a fraudulent Ponzi scheme engaged in embezzlement and stating it operated in violation of the Anti-Money Laundering Act 2012, with promotion within the country also violating it; Uganda Deposit Protection Fund warning, November 2023, denying a claimed partnership. Both are official regulatory warnings, not judicial findings

    Not established by this document: Bangladesh Bank's own 12 December 2023 notice is not individually addressable - bb.org.bd serves press releases through a session-based search interface with no stable per-document URL, so no primary regulator link exists to give. The Uganda Deposit Protection Fund's November 2023 notice denying a claimed partnership could not be found on dpf.or.ug or in any archived copy; it is referenced only second-hand.

  15. "Bangladesh Bank smells big-bet investment fraud, launches action" - contemporaneous coverage of the BFIU action against OnPassive
    ReportingTier 3The Financial Express (Bangladesh) · 2023-12archived copy
  16. "OnPassive Ponzi fraud warning issued by Bangladesh" - quoting the 12 December 2023 Bangladesh Bank warning verbatim ("fraudulent Ponzi scheme," "embezzlement of large amounts of money")
    ReportingTier 3BehindMLM · 2023-12archived copy
  17. "OnPassive — MLM has been saying it will launch since 2018. Distributors are 'fed up.'" - TINA.org consumer investigation, 3 March 2022
    Self-regulatoryTier 2Truth in Advertising, Inc. (TINA.org) · 2022-03-03archived copy

    Truth in Advertising consumer alert, March 2022 and coverage of 15 August 2023 - a watchdog nonprofit’s analysis, not a government action; source of the reader account of believing the $97 was capital in a startup needing funding

  18. "SEC Sues OnPassive Alleging It's a Pyramid Scheme" - TINA.org, 15 August 2023
    Self-regulatoryTier 2Truth in Advertising, Inc. (TINA.org) · 2023-08-15archived copy
  19. ONPASSIVE TECHNOLOGIES PRIVATE LIMITED, CIN U72900TG2021PTC153961 - MCA record: incorporated 9 August 2021, Madhapur Hyderabad, paid-up capital Rs 100,000, last balance sheet 31 March 2023, last AGM 30 September 2023, status Active
    Corporate registryTier 3Zauba Corp (mirror of India's Ministry of Corporate Affairs register) · 2021-08-09archived copy

    Indian corporate record, CIN U72900TG2021PTC153961 - incorporated 9 August 2021 in Hyderabad, paid-up capital ₹1 lakh, roughly 606 staff per third-party company data, statutory accounts filed to 31 March 2023, last recorded AGM 30 September 2023, no charges registered; Florida Division of Corporations document number L18000269382 from the search key only

    Not established by this document: The Florida Division of Corporations record for ONPASSIVE LLC, document number L18000269382, could not be retrieved - search.sunbiz.org returns HTTP 403 to automated requests and no mirror carrying the filing detail was obtainable, so no link is given for the Florida entity.

  20. onpassive.com - redirects (HTTP 302) to the JavaScript-gated ecosystem shell at oes.onpassive.com; no founder position, $97 offer or pricing is served
    Company documentTier 1ONPASSIVE LLC · 2026-08archived copy

    Fetched August 2026 - onpassive.com redirecting to a JavaScript-gated ecosystem shell; gofounders.net redirecting to a blank default WordPress install; omail.ai listed on a domain marketplace at $56,246, reduced from $74,995; o-mail.com and o-trim.com not resolving; onpassive.ae live as a B2B brochure with no income opportunity; Google Play listings for both official apps, 100,000+ installs each, last builds 20 March 2024 and 12 June 2024; 2026 list prices for Google Workspace, Zoom, Bitly, Mailchimp and Wix

    Not established by this document: gofounders.net could not be read: every web.archive.org request returned HTTP 403 or 429 through the available fetcher, so no archive URL for the historic $97 funnel can be given. The OMail.ai listing now shows $74,995 rather than the $56,246 reduced price recorded in the report. o-mail.com and o-trim.com do not resolve, so there is nothing to link. The 2026 list prices for Google Workspace, Zoom, Bitly, Mailchimp and Wix were not retrieved in this pass.

  21. OMail.ai domain sale listing - $74,995 buy-now, with lease-to-own at $2,875/month and rental at $1,499.90/month
    Open-market comparisonTier 4Atom.com (domain marketplace) · 2026-08archived copy
  22. onpassive.ae - the Dubai entity's live B2B services brochure, carrying no pricing, income opportunity or affiliate program
    Company documentTier 1ONPASSIVE TECHNOLOGIES L.L.C (Dubai) · 2026-08archived copy
  23. OES OFFICIAL - Google Play listing, ONPASSIVE TECHNOLOGIES L.L.C, 100,000+ installs, last updated 12 June 2024
    Company documentTier 1Google Play / ONPASSIVE TECHNOLOGIES L.L.C · 2024-06-12archived copy
  24. OTRIM OFFICIAL - Google Play listing, ONPASSIVE TECHNOLOGIES L.L.C, 10,000+ installs, last updated 28 March 2024
    Company documentTier 1Google Play / ONPASSIVE TECHNOLOGIES L.L.C · 2024-03-28archived copy
Unable to verify

What we could not get

  • The Florida corporate registry detail. The state’s entity search returned HTTP 403 to every attempt, so document number L18000269382 is taken from the search result key and the exact filing date, registered agent, officers and current active or inactive status were never read. A cross-jurisdiction corporate database returned 403 as well.
  • The historic sales page. Every attempted archive snapshot of gofounders.net returned HTTP 403 or 429, so the $97 funnel could not be read directly. All promise wording quoted in this report is taken from the regulator’s verbatim quotations of the company’s own e-Books and webinars, not from the page itself.
  • The Apple App Store position. Repeated fetches returned HTTP 429, so nothing is asserted about whether the applications are or are not listed on iOS. The Android listings were verified directly; the iOS side was not.
  • What sits behind the ecosystem storefront. oes.onpassive.com is reachable but JavaScript-gated, serving only a page title and a tag-manager snippet to an ordinary fetch. The storefront is gated, not absent - this report does not claim that any particular product is missing from behind it, and cannot state whether a working, priced marketplace exists there.
  • The UAE license. There is no free public corporate register comparable to the US or Indian ones, so the trade license number, the issuing authority, the license status and the shareholder register for the Dubai entity are all unknown. Its role as the app publisher of record and as the post-2023 payment rail is evidenced; its corporate particulars are not.
  • Any distribution of recovered funds. No proposed plan, claims administrator, claims website or deadline could be located as of August 2026, and whether the judgment sums have actually been collected is unknown. This report makes no claim about how any distribution would work, who would be eligible, or what a recovery rate would be.
  • The Indian entity’s current register status and the outcome of the July 2024 wage dispute. No annual general meeting or filed accounts after March 2023 could be located, the “Active” status quoted comes from an aggregator rather than the primary register, and whether the striking staff were ever paid is unknown.
  • The consumer AI assistant list price used in the replacement stack, at roughly $20 a month, and the completeness of the regulator sweep. A dozen national regulators, plus the FTC and CFTC, were each searched by name and returned nothing found - but several of those warning lists are JavaScript-gated or paginated, so a nil return means not found rather than proven absent.

Not advice

This is independent analysis for decision-making, not legal, financial or investment advice. Allegations reported by third parties should be verified against primary court and regulatory records before any decision.

Who writes this

Researched by Claude. Reviewed by an editor.

Every report is researched and written by Claude, Anthropic’s AI assistant, from the company’s own plan documents, policies, terms and regulatory file - then reviewed before publication by Rob Fore, who checks the sources and the stage-label on every allegation.

  • Nine weighted dimensions, published with their weights
  • The editor checks the evidence and cannot change the number - the build rejects any page whose grade does not reconcile to its own arithmetic
  • Every affiliate position we hold is disclosed on the report it touches
  • No company has paid for a grade, and no report carries an affiliate link
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Common questions

OnPassive - frequently asked

QCan you still join OnPassive in 2026?
No, and that is why this report grades a historical offer rather than a live one. The ecosystem was switched off in July 2024 under the wording “we make some improvements to our service.” The sign-up domain, gofounders.net, now redirects to a bare default WordPress installation serving the stock welcome post - the $97 funnel is gone. The flagship product domain, omail.ai, is listed for sale on a domain marketplace at $56,246, reduced from $74,995, and two other product domains no longer resolve at all. The two surviving official Android applications last received a build on 20 March 2024 and 12 June 2024 respectively. The main site redirects to a JavaScript-gated ecosystem shell that serves no product or pricing information to an ordinary fetch, so this report states the storefront is gated rather than absent and makes no claim about what sits behind it. The surviving public face is a Dubai business-to-business software brochure with no founder program, no matrix, no affiliate scheme and no income claim of any kind.
QHow much did OnPassive participants actually earn?
Nothing. Not a low median, not a poor average - $0 in commissions was ever paid to any participant, across more than 800,000 people and five years. That is the regulator’s finding as of June 2023 and it was never displaced. The reason is structural rather than a matter of effort: commissions were payable exclusively out of monthly subscription fees, no product ever carried a fee in five years, so no subscription fee ever existed and no commission could be generated by anyone. A participant who ignored the “no recruiting required” pitch and signed twenty people at $97 introduced $1,940 to the company and received nothing, because the entry fee itself was non-commissionable. No income disclosure statement was ever published in any jurisdiction; what prospects saw instead was a maximum-payout grid topping out at $2,032,614 a month.
QWhat did the SEC case against OnPassive actually decide?
Nothing was decided by a court. The Commission filed a civil complaint on 11 August 2023 in SEC v. Mufareh, No. 6:23-cv-01539 (M.D. Fla.), charging unregistered offer and sale under Securities Act §§5(a) and 5(c) plus fraud under §17(a) and Exchange Act §10(b) and Rule 10b-5. A motion to dismiss was denied on 27 August 2024 - a ruling that the allegations state a claim if true, not a ruling that they are true - and trial was scheduled for 6 April 2026. Three weeks of preparation short of that, on 14 August 2025, consented final judgments were entered: $26.22m in disgorgement against the company, $1.22m in prejudgment interest, $8m in combined civil penalties, permanent injunctions, and an eight-year officer-and-director bar against the founder, all with no admissions of any kind. A consent judgment is not a litigated finding of fact and this report does not present it as one. No court anywhere has made an adjudicated pyramid finding, and no criminal charge against the founder could be located in any jurisdiction.
QDid OnPassive ever build any real software?
Yes, partially, and being fair about this matters. Six applications were released free of charge by 30 June 2023 - a fact conceded in the regulator’s own amended complaint - after a first launch announced on 24 and 25 November 2022 covering webmail, a social network and a URL shortener, carried by wire services. Two official Android applications published by the Dubai entity remain listed and each passed 100,000 installs. Roughly 606 people were employed in a Hyderabad facility inside a company that filed statutory accounts through March 2023. Against that: approximately 50 applications were announced and 44 were never released; the six that shipped arrived four and a half years after positions first went on sale; and not one product ever carried a fee. That last point is decisive, because the entire compensation plan paid from subscription fees that consequently never existed.
QCan anyone get their $97 back?
There was never a refund policy or a refund mechanism, in any jurisdiction, at any point - an independent review in 2020 went looking for a refund policy, terms and conditions and a privacy policy while positions were being sold and found none of the three. Card chargeback windows are typically 120 days and closed many times over while buyers were being told launch was weeks away. After the complaint was filed in August 2023, payments were reported diverted to Dubai and the company moved to cryptocurrency and alternative processors, which do not reverse. The only theoretical route is a distribution of the judgment sums, and the judgment language is permissive rather than mandatory. As of August 2026 no proposed distribution plan, claims administrator, claims portal or deadline could be located, and whether the money has even been collected is unknown. This report therefore makes no claim about how any distribution would work or whether one will happen.
Who wrote this report

Author, editor and publisher

C
Written by Claude AI
Reviewed by Rob Fore · Published by Listech Inc · August 1, 2026

This report was researched and written by Claude, Anthropic’s AI assistant, working from primary documents - OnPassive’s own compensation plan, its policies and procedures, its terms of service, its income disclosure statement where one exists, and its regulatory and self-regulatory file. It was scored against nine weighted dimensions that are published in full, with their weights, on the methodology page.

Before publication it was reviewed by Rob Fore, who checks every source link, every figure against the document it came from, and every allegation against its stage-label - an investigation is not a finding, a warning letter is not an enforcement action, and a filed claim is not a verdict.

The editor does not set the grade. The published score is the weighted composite of the nine dimension scores, and the build refuses to emit a page where the two disagree by more than 0.06. A grade moves when the evidence moves it and not otherwise.

Rob Fore has marketed online since 1996, wrote Online MLM Marketing (2014), and is CEO of Listech Inc, the Nevada corporation that publishes this site. He holds affiliate positions in companies graded here - including LiveGood, which this site grades D, SendOutCards, which it grades C−, and the Home Business Academy, which it grades B−. Those positions are disclosed on the reports they touch, and changed nothing on this page.

About the author and our conflicts  ·  Contact the editor  ·  Corrections: corrections@opportunitygrade.com

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Every factual claim on this page is sourced, and the ones we could not stand up are named in the unable to verify list above. If something here is wrong, we want to know, and we would rather hear it from OnPassive than from a reader.

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