Better Business Bureau (BBB) is warning investors about Lightning Shared Scooter Company LLC (LSSC), a business claiming a North Texas address that appears to be operating as a pyramid scheme.
LSSC currently holds an “F” rating with BBB for failing to respond to complaints and for operating without the required competency license from the U.S. Securities and Exchange Commission (SEC). In July, BBB saw a sharp increase in consumer complaints and BBB Scam Tracker reports, triggering an investigation.
Investors were given what appeared to be an SEC certificate. However, the document was riddled with typos, grammatical errors, and a fabricated certificate number. The company advertises itself as the “leading shared scooter company,” encouraging investors to lease scooters at varying investment levels, with promises of daily returns.
Scam Tracker reports describe losses ranging from $1,000 to $55,000—matching the so-called “investment levels.” Like many pyramid schemes, investors are recruited by friends or family and are encouraged to bring in new members. Bonuses are promised based on the investments of those recruits. Investors report being required to pay in cryptocurrency, a common tactic in fraudulent investment schemes.
Scam reports connected to LSSC have come in from 17 states, with many concentrated in California and Florida.
Authorities have taken notice:
- The Salinas, California Police Department issued a warning to residents about the scheme.
- The Minnesota Attorney General’s Office also cautioned consumers about a fraudulent electric scooter investment opportunity.
BBB has a long history of exposing such scams. In recent years, BBB investigated another North Texas operation, Blessings In No Time (BINT Operations LLC), which lured investors with a so-called “blessing loom.”
If you’ve been approached by Lightning Shared Scooter Company LLC or a similar investment, file a report with BBB Scam Tracker.