Overview
Online Academy LLC has been accused of scamming investors through a scheme promising high returns from advertising campaigns. This report outlines the company’s operations, the nature of the scam, and the current findings based on available information.
Scam Allegations
The company allegedly required an initial investment of $12,000 plus $4,000 for each ad campaign, promising returns within 30 days and profit shares. Reports indicate it paid out for a few months before suddenly stopping communication in August 2023, affecting over 200 victims with significant financial losses.
Current Status
The company’s address is now associated with Carvana LLC, and no active registration or online presence was found, suggesting it may no longer be operational. There are no public records of legal actions, despite mentions of an FBI investigation, which remains unconfirmed.
Investigation Report: Exposing Online Academy LLC
This investigation report delves into the allegations, scam reports, red flags, risk assessment, negative reviews, and adverse media surrounding Online Academy LLC, based in Richmond, VA. The company has been accused of operating a pyramid scheme, scamming investors out of thousands of dollars. This report aims to provide a comprehensive analysis for potential investors and the public, highlighting the dangers associated with this entity.
Background and Company Overview
Online Academy LLC was located at 2307 Westwood Avenue, Richmond, VA 23230, and was run by principals Matt Graham and Orlando Diaz. The company advertised on platforms like YouTube and Instagram, targeting investors with promises of high returns from advertising campaigns. The business model required an initial investment of $12,000, with an additional $4,000 for each ad campaign, guaranteeing the return of the $4,000 within 30 days along with a share of the profits.
| Company Details | Information |
|---|---|
| Name | Online Academy LLC |
| Location | 2307 Westwood Avenue, Richmond, VA 23230 |
| Principals | Matt Graham, Orlando Diaz |
| Operation Period | Active until August 2023 (based on reports) |
| Business Model | Investment in ad campaigns with promised returns |
The company’s operations seemed to focus on recruiting new investors to sustain payouts to existing ones, a hallmark of pyramid schemes. However, detailed financial records or regulatory filings were not found, adding to the opacity of its operations.
Scam Allegations and Victim Reports
- Financial Loss: One report indicated an initial investment of $12,000, with additional $4,000 per cycle, totaling significant losses for over 200 victims from the United States, with numbers growing daily.
- Operational Shutdown: On August 25, 2023, the company announced a temporary interruption of operations, with the last communication promising an update by September 5, 2023, after which all contact ceased.
- Victim Impact: Reports suggest losses exceeding $20,000 per victim, with no response to phone calls or emails post-shutdown.
The BBB profile corroborates these claims, with complaints mirroring the RipoffReport, including one victim stating, “For 5 months this ran smoothly, then they ghosted all their investors after sending a letter saying they had to temporarily suspend their operations until their legal team authorized them to engage again.”
Investigation and Legal Actions
Efforts to investigate Online Academy LLC revealed limited public information. The RipoffReport mentioned an open investigation with the FBI, but no further details or public records confirming this were found through searches on FBI-related websites or news outlets. This lack of information suggests either the investigation is ongoing and not public or the claim was speculative.
Property records indicate that 2307 Westwood Avenue, Richmond, VA 23230, was sold to Carvana LLC in February 2024, as reported in a news article . This sale suggests Online Academy LLC is no longer operating from this location, and no current business registration under this name was found on the Virginia State Corporation Commission (SCC) business search .
Attempts to find Matt Graham and Orlando Diaz online yielded numerous individuals with these names, but none directly linked to Online Academy LLC beyond the scam reports. This lack of traceable online presence for the principals adds to the company’s opacity and potential for fraudulent activity.
Red Flags and Risk Assessment
Several red flags indicate that Online Academy LLC was likely a scam:
- Unrealistic Promises: Guaranteeing high returns with little to no risk is a common tactic of fraudulent schemes, as seen in the promised $4,000 return per cycle and profit shares.
- Pyramid Scheme Indicators: The reliance on new investor funds to pay existing investors, coupled with the sudden shutdown, suggests a pyramid scheme structure, which is illegal in many jurisdictions.
- Lack of Transparency: No clear information on how ad campaigns were managed or how profits were generated, with no regulatory oversight or accreditation found.
- Sudden Closure: The abrupt cessation of operations in August 2023, with no further communication, is a typical sign of a scam operation that has exhausted its funds or been exposed.
| Red Flag | Description |
|---|---|
| Unrealistic Promises | Guaranteed high returns with minimal risk, e.g., $4,000 return per cycle. |
| Pyramid Scheme Structure | Relied on new investors to pay existing ones, unsustainable model. |
| Lack of Transparency | No clear operational details, no regulatory oversight. |
| Sudden Closure | Ceased operations in August 2023, no communication post-shutdown. |
The risk assessment for potential investors is high, with financial losses reported, reputational risks from association with a fraudulent entity, and potential legal risks if the company faces prosecution. Given the lack of current operation and the property’s sale, the risk is now primarily for those seeking to recover losses, with little chance of restitution based on current findings.
Negative Reviews and Adverse Media
Negative reviews are primarily found on RipoffReport and BBB, with no significant adverse media coverage in news outlets, possibly due to the scam’s scale or recency. The lack of online presence beyond complaint platforms suggests the company operated under the radar, avoiding broader media scrutiny. Social media searches, including Reddit, did not yield specific discussions about Online Academy LLC, further limiting public awareness.
Conclusion and Recommendations
Online Academy LLC appears to have been a scam operation that defrauded investors through a pyramid scheme disguised as an ad campaign investment opportunity. The company’s sudden shutdown in August 2023, after collecting significant investments, left over 200 victims with substantial financial losses. The property’s sale to Carvana LLC and lack of current registration suggest it is no longer operational, but no confirmed legal actions have been found, leaving victims with limited recourse.
For potential investors or users, the following recommendations are advised:
- Always verify the registration and accreditation of any investment company with regulatory bodies.
- Be wary of promises of guaranteed high returns with little risk, as these are common scam indicators.
- Research company reviews on trusted platforms like BBB and RipoffReport before investing.
- Seek legal or financial advice before entering any investment scheme, especially those advertised heavily on social media.
This investigation highlights the importance of due diligence in financial decisions, particularly in the online investment space, where scams can proliferate undetected.
