Maryland company accused of using social media to issue unlawful investment contracts agrees to settlement

Maryland reached a settlement with a company accused of using social media to issue unlawful investment contracts to more than 6,500 investors across the U.S. 

According to the Attorney General's Securities Division, Middle Class United, Incorporated (MCU) promoted and issued the contracts, calling them "memberships." 

The Attorney General's Securities Division said four people connected to MCU entered into a consent order under the settlement: Spencer Lutgring of Lehi, Utah; Joseph Madden of Ocean Springs, Mississippi; Jeremy Powell of Draper, Utah; and Jarod Wetzel of Lehi, Utah. 

Another order issued by the Securities Division showed cause against MCU's founder and key promoter, Joseph Redden, of Pinellas County, Florida. Redden declined to enter into a consent order, officials said. The order initiates enforcement action against Redden and gives him the chance to respond to the allegation, according to officials. 

"By using social media to sell false promises and then pocket their clients' money, Middle Class United preyed on investors who just wanted to build themselves a more secure financial future," said Attorney General Brown.

WJZ has reached out to MCU for a statement. 

Alleged investment contract scheme 

According to the Securities Division, Redden, a social media personality known as the "Older Millennial," pitched the idea of an investment program for the middle class. 

In social media videos, Redden allegedly claimed that middle-class investors were prevented from participating in hedge funds due to regulations that required investors to be accredited. 

Redden allegedly pitched the idea as a middle-class hedge fund. However, officials said when he found that a hedge fund would require regulatory oversight, Redden began to call the opportunity a "cooperative." 

Redden's promotions gained traction, and Lutgring, Madden, Powell, and Wetzel joined the effort. They formed MCU in Maryland as a tax-exempt, non-stock corporation. 

After months of promoting the sale of "memberships" to a "housing cooperative," the company launched its program in May 2024, according to officials. 

Each membership costs $500. The settling parties said the funds would be used for investments in the real estate sector, and another portion would be donated to charity. 

Violating Maryland law 

Under Maryland law, a housing cooperative must offer members shares in the corporation and a possessory interest in real property. However, MCU did not own or have the capital to buy real property for each of the 6,500 investors to have interest, officials said. 

According to officials, the investor funds were eventually divided between a brokerage account and a checking account. The settling parties used the funds to pay for administrative expenses, including their own salaries. 

In its promotions, the company promised that management of the funds would be transparent, with members having a say in every financial decision, according to officials. However, Lutgring, Madden, Powell, and Wetzel initiated transactions out of the checking account without approval from investors. 

Redden was treasurer of MCU until December 2024, when he declined to seek re-election. 

The settling parties did not tell members that the funds would be used for salaries, travel and other administrative expenses. According to officials, none of the funds were donated to charity and MCU operated like any other pooled investment program, but without oversight.  

Investors will be repaid $414 using the remaining funds in MCU's accounts, officials said. The settling parties agreed to pay a $5,000 penalty to the Securities Division.