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The Daily Mail reported that Mrs. Nebraska 2024 Liz Friesen is being sued by the state for allegedly running a fraudulent passive income scheme.

The 34-year-old beauty queen is accused of frequently flaunting her wealthy and upper-class image on social media to make consumers believe that she will help them achieve similar levels of wealth and success.

The lawsuit states that Friesen used the victims' investment money to fund a lavish lifestyle that included luxury vacations, Lamborghinis, Cadillac Escalades and other high-end vehicles, multimillion-dollar mansions, jewelry, designer clothing, private jets, lake houses and countless other extravagant pleasures.

The lawsuit alleges that Friesen lured consumers into purchasing “automated” e-commerce stores run by “dropshipping experts” on Amazon and Walmart, through a shady company called WiFi Money.

“Dropshipping” is when a seller does not hold any inventory or handle shipping, instead forwarding the product to a third party, meaning they do not pay for the product until it is purchased.

The lawsuit alleges the scheme was started by Mrs. Nebraska 2024 during COVID and sought to capitalize on the boom in online shopping.

According to records, each victim paid between $15,000 and $100,000 to set up an account and was promised income of up to $100,000 a month.

Friesen and his co-defendants, who were also influential, pocketed the victims’ money and used it to fund their own lavish lifestyles, Attorney General Mike Hilgers’ office said in a statement. The victims, Hilgers said, saw minimal returns or large losses on their investments.

The report added that the defendants, including other influencers, continued to promote the program for two and a half years, even after it failed.

“Defendants continued to promote this scheme to consumers through social media and elsewhere, causing many consumers to pay tens of thousands of dollars for a scheme that was doomed to fail,” the complaint states. The complaint includes examples of posts allegedly made by Miss Friesen in which she made outlandish claims about expected profits.

Miss Friesen and her co-defendants are being asked to refund consumers, stop their deceptive schemes and reimburse the state for legal fees. The state is also seeking a civil penalty.

Friesen, from Lincoln, is married with two children. She was crowned Mrs. Nebraska in June, a decade after she won the Miss Nebraska pageant.

Since news of the lawsuit broke, the Mrs. Nebraska organization has announced that Friesen will relinquish her crown.

"At this time, we have no reason to believe that any of the current allegations relate to the official social media accounts of the Mrs. Nebraska organization," pageant organizers said in a statement.

Miss Liz Friesen often flaunts her lavish, wealthy lifestyle on her personal page. According to the lawsuit, she uses these images to "lure" many people into falling into the trap of fraud. When she was young, Liz Friesen won the Miss Nebraska title.

The Miss Nebraska Pageant is a beauty pageant that selects the state representative to compete in the Miss America pageant. Most recently, Raechel Warren was crowned Miss Nebraska 2024 on June 8, 2024 at the North Platte HS Performing Arts Center in North Platte. She will compete for the title of Miss America 2025.

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