Bitqyck abandoned due to regulatory investigation, offshore reboot?

June 20, 2018 mlmdetective 0

In a message provided to affiliates in their backoffice, Bitqyck has confirmed it is under federal regulatory investigation.The company doesn’t name which regulator is investigating it. Based on Bitqyck’s unregistered securities business model however, it’s safe to say it’s probably the SEC.
Bitqyck founders and owners Bruce Bise and Sam Mendez signed off on the message, which claims Bitqyck is ‘winding down … in response to an ongoing federal agency review of our business and business model‘.
Considering US regulators don’t “review” MLM companies or their business models, this is a roundabout way of confirming an investigation.
Back in March BehindMLM reviewed Firstmover International.
Essentially a…

Thomas Dluca risks contempt in FTC case, bitcoin liquidation argued

June 20, 2018 mlmdetective 0

Thomas Dluca is one of four named defendants in a March 2018 FTC filed lawsuit.The lawsuit specifically alleges Dluca is the founder of the Bitcoin Funding Team gifting scam. He is also accused of promoting the My7Network pyramid scheme.
Despite the granting of a TRO and preliminary injunction, to date Dluca has failed to comply with either.
Subsequently, the FTC has now filed a motion requesting Dluca be held in contempt.
Citing the provision of “ample notice” and “ample opportunities” for Dluca to correct injunction compliance deficiencies, the FTC allege he has failed to

submit sworn financial and cryptocurrency disclosures
disclose salary/wages for his spouse
disclose the purchase…

MaVie Review: $1000+ annual access to a DNA kit, travel & shopping

June 19, 2018 mlmdetective 0

MaVie operate in the e-commerce, nutrition and travel MLM niches.The company launched earlier this year and is headed up by Founder and CEO, Aboud Barakat.
As per Barakat’s MaVie corporate bio, his background is mostly in distribution and manufacturing of wellness and personal care products.
It also lead to the beginning of a ground breaking opportunity in the field of human DNA wellness tests.
This opportunity was based on wellness reports that measured an individual’s nutritional needs based on their personal genetic makeup.
Amazed with this scientific breakthrough that gave the ability to identify the wellness needs of any human being based on their DNA,…

Firoz Patel’s Payza tax fraud bill climbs to $15.2 million

June 19, 2018 mlmdetective 0

Firoz Patel’s Payza tax fraud bill has claimed to $15.2 million, following adjusted undeclared income of $26.2 million USD.Revenu Québec previously pegged Patel’s unpaid taxes at $10.8 million, however an ongoing investigation has revealed additional undeclared income.
In its efforts to recover Patel’s unpaid taxes, Revenu Québec has frozen his Canadian bank accounts and seized the Patel family home in Montreal.
The regulator is also hoping to secure another $1.2 million from Mazarine Commerce, one of the shell companies used to operate Payza through.
Firoz’s wife Nazlin Patel is also being pursued for $2.6 million. His brother and co-founder of Payza, Ferhan Patel, owes Revenu Québec…

Charles Scoville arrested for aggravated sexual abuse of a child

June 19, 2018 mlmdetective 0

News of the arrest of a Charles David Scoville in Utah broke last week.Given the severity of the charge, I held off on reporting the story until I had absolute confirmation it was Traffic Monsoon’s Charles Scoville.
Following an unrelated June 18th filing by the Receiver, I can now confirm Charles Scoville, founder of Traffic Monsoon, has been arrested for aggravated sexual abuse of a child.
Details of Scoville’s alleged crime have yet to be made public.
Following his arrest, Scoville was transported to a Salt Lake City prison in Utah.
Scoville’s inmate details reveal he was arrested on June 12th with a $100,000 bond…

The Four Percent Group Review: $5000+ a year marketing funnel

June 17, 2018 mlmdetective 0

The Four Percent Group launched in mid 2016 and operate in the online marketing MLM niche.The company is based out of the US state of South Dakota and is headed up by Founder and CEO, Vick Strizheus (actual name Vitaliy Strizheus).
According to his The Four Percent Group corporate bio, Strizheus (right) “started from zero back in 2006”.
Strizheus’ journey “from zero” in 2006 saw him arrested for insurance fraud in 2007. Prosecutors trying the case referred to Strizheus as a “con man”.
Strizheus plead guilty to one count of grant theft and was sentenced to 90 days in prison, commuted to time served on…

OneCoin’s blockchain lies exposed by GDPR

June 17, 2018 mlmdetective 0

As annoying as the GDPR might be, lo and behold some good has come of it.Before we get into that though, let’s revisit early 2017.
Blockchain developer Bjorn Bjercke had just dropped the “OneCoin has no blockchain” bombshell.
Through an executive job offered through Asenshia, Bjercke claimed OneCoin offered him the role of Chief Technology Officer.
As Chief Technology Officer, Bjercke would be paid $2.5 million annually to create a blockchain for OneCoin.
Seeing as OneCoin claimed to have had a blockchain since inception in 2014, this begged the question of what the company had been using for a year and a half.
Based on correspondence…

Matt Lloyd lawyers up, MOBE preliminary injunction hearing delayed

June 16, 2018 mlmdetective 0

A new motion by the FTC has requested the currently scheduled preliminary injunction hearing for June 26th be pushed back to July.The FTC’s motion has consent from all of the named defendants, as well as the court-appointed temporary MOBE Receiver.
The reason cited for the delay is the voluminous evidence the FTC filed in support of their complaint, TRO and motion for a preliminary injunction.
Due to the volume of materials filed in this action, defendants have requested additional time to familiarize themselves with the matter and prepare for the preliminary injunction hearing.
The FTC has requested a new preliminary injunction hearing date of…

LuLaRoe seek to divide and conquer in class-action arbitration

June 16, 2018 mlmdetective 0

Of the affiliate lawsuits filed against LuLaRoe that are still playing out, the most prominent is a proposed class-action pertaining to the company’s return policy.The six-count complaint claims damages in excess of $5 million and seeks to represent a nationwide class of distributors who either attempted (unsuccessfully) to return inventory or purchased inventory during the five-and-a-half month period in which LLR had a “100% Buy Back” policy.
The complaint claims unjust enrichment, breach of contract, and deprivation of distributors’ investments, among other things.
As of April 17th, the lawsuit had been stayed pending the outcome of compulsory arbitration.
On June 14th a Joint Status…

Payza’s Firoz Patel surfaces in Canada, mocks DOJ

June 16, 2018 mlmdetective 0

Following his indictment earlier this year, Payza co-founder Firoz Patel went into hiding.Now, if a June 12th Facebook status update is to be believed, Patel has resurfaced in Quebec, Canada.
Patel’s June 12th “check in” update is accompanied with a message seemingly aimed at the Department of Justice:
I want to take a moment and loosely quote Mark Twain… “The reports of my demise have been greatly exaggerated.”

The DOJ have filed a $250 million money laundering case against Payza, Firoz Patel and his brother Ferhan.
Ferhan was arrested in March and is currently being held by US authorities. Firoz is a wanted fugitive and,…