Daniel Filho, the founder of DFRF Enterprises, has claimed the company is pursuing an initial public offering (IPO) and seeking approval from the U.S. Securities and Exchange Commission (SEC). DFRF Enterprises operates a high-yield investment program promising investors 15% monthly returns. This announcement follows a RICO lawsuit filed against the company by Massachusetts investors.
Filho made these claims in DFRF Enterprises marketing videos uploaded to the company's YouTube channel. In a video posted March 16th, Filho stated that the company had "started the formalities to become a Public Company in the US and are awaiting approval from the Security Exchange Commission, SEC." He added that this would allow DFRF to "sell shares to raise to raise additional capital and trade in the stock market." Filho indicated the company would transition from private to public status by the end of March.
The DFRF Enterprises operation functions as a Ponzi scheme. New investor funds are used to pay returns to earlier investors, rather than through any legitimate mining operations in Africa as advertised. Filho has a history of involvement in fraudulent schemes. He was a defendant in a 2009 Florida lawsuit filed by regulators, which resulted in him returning millions stolen from investors.
The recent IPO claims may be a response to a RICO lawsuit filed in late February. Two Massachusetts investors who each invested between $80,000 and $100,000 allege they never received the promised 15% monthly returns. Their lawsuit states that "DFRF’s business income was grossly inadequate to satisfy payments promised to members." The investors claim Filho is now attempting to raise funds through share sales to cover these promised returns.
Following the surfacing of the lawsuit, DFRF Enterprises released a video addressing the allegations. This video was later removed by the company. It remains unclear if the SEC is aware of any application for IPO approval, whether filed directly by DFRF Enterprises or through a newly created entity.
Filho's announcements suggest a potential plan to register a new shell company for an IPO, possibly to circumvent regulatory scrutiny. In a March 23rd video, he stated an announcement would be made "as soon as we (have) all records (showing) that (we) are now a public company."
Investors who believe they have been defrauded by DFRF Enterprises or similar schemes can report their experiences to the SEC’s Office of Investor Education and Advocacy.