Lawsuit Accuses Coordinated Scheme
On March 27, 2026, Hassan Mahmoud and Omar Mahmoud filed a lawsuit in the Superior Court of California against Eaconomy, Icon Academy (Iqonic), and several individuals including Brian McMullen, Josh Zwagil, Candace Ross, Michael Tolento, and Creative Brands LLC, per. The complaint alleges a “coordinated fraudulent scheme” involving an illegal takeover attempt in January 2025, breach of agreements, and extortion, per.
Alleged Takeover and Broken Promises
According to the lawsuit, in January 2025, Josh Zwagil and Candace Ross (Hassan’s ex-wife) attempted to seize control of Eaconomy using fabricated documents, locking Hassan out of bank accounts and back-office systems, per. Brian McMullen allegedly posed as a “white knight” investor to help Hassan, but was secretly aligned with Zwagil and had invested in competing businesses, per.
The February 11, 2025 agreements that temporarily resolved the dispute are now challenged. Hassan claims McMullen made multiple promises that were immediately broken, including:
- No major changes for 6–12 months
- Hassan remaining CEO with operational control
- McMullen paying $1.5M to Zwagil and $700K in Omar’s debts
- No firing of executives and no brand or back-office changes
- 50/50 ownership split
Instead, McMullen allegedly rebranded to Icon Academy, migrated to Zwagil’s system, and demanded more equity, per.
Family and Business Entanglement
The complaint also references a custody dispute involving Hassan and Ross’s minor child, alleging Zwagil and Ross coordinated the child’s removal abroad to pressure Hassan during the takeover, per. Hassan obtained an international arrest warrant for Ross and continues efforts to recover the child, per.
Previous Litigation and Current Claims
This is not the first lawsuit. Earlier suits filed in January 2025 between Hassan, Zwagil, Ross, and Creative Brands were voluntarily dismissed in February 2025. Iqonic launched shortly after as an Eaconomy reboot, with McMullen’s ownership allegedly hidden. Hassan left to launch Noa, prompting McMullen’s separate lawsuit (trial set for September 1, 2026), which Hassan calls “frivolous,” per.
The new complaint brings ten counts, including fraudulent inducement, breach of contract, breach of fiduciary duty, and fraud. The Mahmouds seek to void the February 11 agreements, restore Hassan’s ownership of Eaconomy/Iqonic, and recover compensatory, punitive, and exemplary damages plus legal costs, per.
Implications for Investors
Eaconomy and Iqonic operated as MLM investment schemes that collapsed amid regulatory warnings in early 2025. The ongoing litigation highlights risks associated with opaque MLM structures and internal power struggles. Investors should exercise extreme caution with similar platforms and verify any claims through official court records or regulators.
Bitcoin (BTC) and the broader crypto market remain unaffected by this dispute
