The electric scooter sharing scam that fleeced millions of dollars from Americans
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LSSC’s online resources, including its website, news releases, and mobile apps for Android and iPhone, all contain links to China. Sean O’Brien of the Yale Privacy Lab, which investigates digital vulnerabilities, inspected the LSSC Android app’s code and found numerous Chinese digital certifications, as well as references to Chinese tech companies such as QQ, Taobao, and Alibaba. Despite Apple’s requirement for a personalized privacy policy in apps on its App Store, LSSC’s policy was seemingly neglected, titled simply as “无标题文档,” or “Untitled document” in Chinese.

Apple did not comment on the situation, but the LSSC app was taken down from the App Store following inquiries by NBC News. Android users have the option to download apps directly without needing Google’s Play Store.

Another tie to China is that LSSC’s web domain is shared with a company in Shenzhen dealing with rechargeable batteries. An employee admitted that while they had sold products to LSSC, no other associations existed, though they couldn’t clearly justify why they shared a domain.

Patricia Livingstone, a care manager from Philadelphia who invested $11,000, joined LSSC in April to assist her elderly mother financially. LSSC instructed her to use an associated crypto platform, Lightning Exchange, and a messaging app that supposed LSSC managers used to communicate investment directions. Managers directed her to engage in trades at specific times, leading her to invest considerable hours using the apps, interacting with others, and attending virtual training, which she found overwhelming.

“I felt like I was in a cult, like a zombie,” said Livingstone, 35. “I was trading four times a day. It became my life, and I couldn’t sleep.”

Kumba Kenneth, Livingstone’s friend and co-worker who joined because of her, said she felt similarly “under control.”

“I go to work. I have to trade. Then it’s midnight. Look at the LSSC app to run your scooter,” said Kenneth, 44. “We were being manipulated.”

Tah-Ming Lee launched a $1,270-a-month LSSC office in Sandy Springs, Georgia, for gatherings and training, underwritten by a manager named Paul he encountered on the chat platform. Nevertheless, he had uncertainties about the identity of individuals he was engaging with.

“We thought all these managers were AI,” Lee said. “They were writing in this weird way. They don’t sound like a normal human being.”

Lee attempted to verify how LSSC’s scooters were rented but couldn’t obtain a clear explanation; consequently, he asked a friend in Hong Kong to observe if any LSSC scooters were in use, only to learn that none were seen.

In the earlier months of the company last year, Lee said, money was flowing in — he estimates having earned at least $40,000 from his initial $35 investment — making the operation appear legitimate.

Kumba Kenneth at a LSSC event.
Kumba Kenneth of Philadelphia attended an LSSC event that encouraged members to recruit others.Courtesy Kumba Kenneth

But in recent weeks, investors trying to withdraw money from the app received messages saying the withdrawals were “pending.” The money never arrived. LSSC also asked people to pay an account verification fee of $75 to get their money, but members who spoke with NBC News said they refused.

Hoffman, the Arlington County police officer who began investigating LSSC in June, said the verification requirement appeared to be a “last-ditch effort” to squeeze money from desperate members before the scam collapsed.

Seeking payback

Hoffman said he understands how people presumed the scooter sharing app was real.

“We’re in this age of ‘be your own boss,’” he said. “You have DoorDash, Instacart, these legitimate businesses where you can make your own schedule.”

The lure of financial freedom attracted Mayson, the New Jersey man whose sister recruited him, to invest with LSSC. He attended company luncheons and parties and peered into a storefront in Oaklyn, New Jersey, a Philadelphia suburb, that was lined with scooters.

Oaklyn Mayor Greg Brandley had attended a ribbon-cutting for that store, where he announced that he had never heard of LSSC but said, “We just want to wish you much success.”

Brandley didn’t respond to requests for comment. The store appeared to be closed recently, and the business’ voicemail was full.

The Oaklyn Police Department said it is investigating reports of fraud regarding LSSC.

Mayson, who said he and his wife lost about $100,000, has joined a WhatsApp group for victims seeking justice. Some of the members, many of whom are West African immigrants, have filed complaints with law enforcement.

Mayson said he felt particularly manipulated by Vasey Salagbi, who identifies himself in videos as a regional LSSC manager. In one, Salagbi says he has over 1,500 members and proclaims the business is “not a sales scam.”

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