Ash Mufareh SEC Settlement: OnPassive Collapses in $32M Fraud Scandal

Well, well, well… look who finally got served.

After years of blowing smoke, dodging lawsuits, and selling dreams wrapped in tech jargon, Ash Mufareh — the self-proclaimed savior of humanity via AI and passive income — just settled with the SEC for a cool $32 million.

Let that sink in.

The man behind OnPassive — the biggest digital MLM delusion of the decade — has been legally banned from peddling securities and investments ever again. That’s right. Ash is now officially retired from the fraud game… or at least until he reincarnates under another domain name.

Let’s break this down the right way (with some popcorn, sarcasm, and cold hard facts).

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Now if you still want to read this news on Ash and Onpassive keep reading…

Who Runs the Company

Ash Mufareh, a former TelexFree Ponzi promoter, is the mastermind behind OnPassive. And when we say mastermind, we mean the kind that thinks “God is the only one who can stop me” — which he actually said on video after the SEC filed suit.

Spoiler alert: God didn’t stop you, Ash. The SEC did. Or maybe God stopped him through the SEC! 

Mufareh operated OnPassive alongside his wife Asmahan, who was named a relief defendant in the $108 million fraud case. Turns out, she was enjoying the spoils of the scheme — and by “spoils,” we mean stolen investor funds.

Now, thanks to the SEC’s enforcement hammer, both Mufarehs are coughing up millions. Asmahan’s unjust enrichment claim was dismissed, but not before the SEC drained those misappropriated funds like a corporate vampire.

Products Offered

Let’s be honest: there were never any real products.

OnPassive’s “offerings” were little more than a digital mirage. Think automated tools that didn’t work, AI software that didn’t exist, and platforms that never launched.

It started with GoFounders, where people paid $25 to $500 for matrix positions. Then it evolved into an endless promise of revolutionary tools — marketing automation, email campaigns, webinar systems — all perpetually “in development.”

If you’ve ever bought a product from OnPassive and actually used it, you’re either lying or dreaming. Probably both.

Compensation Plan

Ah, the MLM mechanics — classic and sleazy.

Early on, Ash pitched matrix-based positions where people bought in and waited for the “AI machine” to magically fill their downlines. Supposedly, one day the system would go live, and you’d be raking in autopilot riches.

Except that day never came. Because it was never meant to come.

Eventually, the plan devolved into confusing affiliate commissions based on recruiting new suckers — sorry, “founders” — under you. The deeper your tree, the more Monopoly money you were promised.

But nobody was getting rich… except Ash and the gang.

Cost to Join

Buy-in ranged from $25 to $500, depending on how “serious” you were about financial freedom.

If you were really committed (read: gullible), you could stack multiple founder positions, upsell packs, and even invest in nonsense like O-Connect and O-Mail — fake services that never made it past mockup.

Let’s just call it what it was: You paid for a front-row seat to a vaporware circus.

Investment Details

This entire scheme was dripping with unregistered securities violations.

The SEC made it crystal clear: OnPassive was selling securities without registering them, using misrepresentations and deceptive tactics. Ash promised passive returns and residual income with zero effort — textbook investment fraud.

He made false statements, omitted material facts, and misled thousands of investors globally, particularly targeting people in India, the U.S., and the U.K. Middle-aged victims in these regions were fed fantasies of AI-driven wealth while their wallets were quietly drained.

In total, the SEC alleges over $108 million in consumer losses.

PROS and CONS

PROS

• It’s finally over.

• The SEC came through.

• Ash can no longer legally scam anyone with securities.

CONS

• Thousands of victims lost life savings.

• The products never worked.

• No real AI. No real services. Just hot air and false promises.

• OnPassive promoters like Red Redfern are still shilling the dream as if nothing happened.

Final Verdict

OnPassive wasn’t just a scam — it was a masterclass in MLM delusion.

Ash Mufareh played the long con with religious fervor, dressing up his lies with God references, AI buzzwords, and a cult-like founder base. People weren’t just sold a product — they were sold a movement. A belief. A fake digital utopia.

And now?

The SEC has stripped Ash of $32 million, barred him from any future investment schemes, and buried OnPassive in legal concrete.

But don’t be fooled — these schemes always come back wearing a new outfit.

So if you ever see a pitch that sounds eerily familiar to OnPassive… run.

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