Eaconomy co-founder Candace Ross has sued Hassan Mahmoud.
Ross, who is also Mahmoud’s ex-wife, has accused him of “fraud and mismanagement”.
Eaconomy was founded in 2019 by Ross and Mahmoud. from Ross’s complaint filed on January 24th;
Ross and Mahmoud were among the founding members of Eaconomy; a third member quit the firm in or around 2020.
Ross and Mahmoud signed a separate operating agreement for the company (the “2021 OA”) on or around March 16, 2021.
Ross and Mahmoud each have a 50% membership stake in Eaconomy, according to the 2021 OA.
The CFTC penalised Ross and Mahmoud $75,000 for their fraudulent investment scam, Silverstar Live, which was relaunched as Eaconomy.
Early in 2020, the first version of Eaconomy crashed. Mahmoud relaunched Eaconony via Beyond almost a year later.
Michael Talento, a trade expert and important leader at Eaconomy, announced his departure from the company in 2022.
Ross and Mahmoud decided to give Talento a 33.33% membership stake in the company in an effort to deter him from doing so.
Mahmoud sent Talento a Telegram message on June 12, 2022, saying,
Examine your emails. A completed operating agreement Additionally, [counsel] said that someone ought to get 0.01 since 33.33 x 3 = 99.99, so I just tossed it on mine, although it has no significance.
Feel free to sign. Let’s get really wealthy.
Ross and Mahmoud made the decision to relocate to Portland, Oregon, in June 2022.
Ross was told to relocate first by Mahmoud, who also promised to gather their things and meet her there.
But once Ross got to Portland, Mahmoud said he was leaving, that he had moved in with another lady, and that he no longer wanted to be married.
August 2022 marked the dissolution of Ross and Mahmoud’s marriage.
According to Ross, the newly hired manager of Eaconomy, she and Mahmoud both own a 50% share in MacroXell, which stands for “MacroXell Management Services.
Mahmoud allegedly resigned, but he refused to provide Ross the vital information he needed to run the company or fix his poor management.
To weaken Ross’ authority and make sure they were faithful to him, Mahmoud also held private discussions with certain of his associates.
Mahmoud intimidated and coerced Ross after Ross repeatedly told her that she could not function as CEO without complete openness and access to the company’s data and activities.
He repeatedly threatened to “shut down” the company and move on if she did not comply with his instructions, which was a violation of his fiduciary obligations.
He also worked with a lot of affiliates who verified that their goal, according to Mahmoud, was to “force her out.”
As an additional tactic to maintain control over the Company, Mahmoud also repeatedly threatened to take Ross’ kid away from her.
Ross asserts that she was not even notified or consulted, even though she is still a co-owner. According to Ross, she didn’t find out about the arrangement until Mahmoud’s lawyers gave her a charge for its draughting.
Based on knowledge and belief, the company is in violation of the agreement to the tune of almost $1,000,000 due to Mahmoud’s continued mismanagement.
Furthermore, even though the agreement lists another company operating agreement from January 17, 2024, as an attachment, Mahmoud’s lawyers assert that the operating agreement does not exist and it is not attached.
According to knowledge and belief, Mahmoud came up with a plan to steal Ross’ membership stake without paying any of the agreed-upon purchase price after he substantially failed to fulfil his commitments under the terms of the 2023 Sale Agreement.
Finally, Ross claims that
Ross’ membership stake in the company has been fraudulently misappropriated by Mahmoud via the falsification of documentation.
Furthermore, Mahmoud continues to mismanage the company and embezzle its cash by paying family members and businesses under his control, all the while claiming that these payees are “employees” and genuine service providers, according to knowledge and belief.
In addition, he has failed to pay a back-office software supplier and a crucial vendor that are essential to paying affiliate payments on schedule.
Similarly, according to knowledge and belief, Mahmoud disputed in early January 2025 that Talento had any stake in the company, and Talento has not received any dividends or K-1s.
By late 2024, Ross and Talento seem to have had enough and turn to Josh Zwagil, proprietor of My Daily Choice (right).
Additionally, there is the formal ownership agreement between Talento and Eaconomy;
According to Talento, his alleged interest in economics never earned him a K-1.
Talento got in touch with Mahmoud in 2023 to find out how his K-1 was progressing. In response, Mahmoud said Eaconomy was simply “backed up” on its tax files, according to Talento.
In a recent interview with Ross, Mahmoud said that there was no transfer to Talento and that the written authorisation was just a fictitious document he made to persuade Talento to stay with the company.
Although Mahmoud is accused of telling Ross that, she asserts that he just informed Economy leaders that “he bought out Talento’s interest for $1,000,000.”
In addition to being blatantly untrue, this assertion runs counter to Mahmoud’s own claims that Talento had no interest.
Ross says she addressed Mahmoud about his “ongoing mismanagement” of Eaconomy in January 2023 after discovering that he had “fraudulently” obtained a loan from the Small Business Association.
Mahmoud replied that he would step down, but he made up the excuse that he was terminally sick.
After being approved and appointed by MacroXell, Ross went on to become the company’s CEO.
They asked about a possible acquisition of their shares and help in turning the company around since they knew Zwagil was a well respected operator in the direct sales sector.
In addition, pre- and post-judgment interest, restitution, damages, injunctive relief, and legal fees are sought.
At the time of publishing, Eaconomy’s website did not include any executive or ownership information.
In December 2024, SimilarWeb recorded around 46,900 monthly visitors to Eaconomy’s website, compared to just approximately 3300 visits in November.
There seems to have been a surge in new economy hiring in Poland (27%), the US (16%), and the UK (11%).
The increase comes after the UK and Czechia issued regulatory fraud warnings in November 2024, and Norway, New Zealand, and Slovakia in October 2024, according to Economy.
