DES MOINES, Ia. – A Florida man accused of operating a pyramid scheme that cost 17 Iowans about $51,000 has agreed to repay the money and is prohibited from participating in any business operation involving mail or phone solicitations in the state.
Iowa Attorney General Tom Miller said Tuesday he investigated Jhon Palacio, who also goes by the name Richard Diamond Sr., after receiving complaints.
Palacio, of Lake Worth, Florida, sent out mailers to Iowans telling them for $750 they could be part of a money-making scheme that would generate $5,000 a week.
Miller says Iowa consumers paid thousands of dollars and received no returns.
Palacio denied the allegations but agreed to refund the money and pay $5,000 to a state consumer education and litigation fund.