Nui restructures, pseudo-compliance and responding to cease & desist
Seemingly in response to Texas’ cease and desist, Nui has announced it is restructuring its affiliate offering.
We haven’t heard much from CEO Darren Olayan after he claimed securities regulation didn’t exist a few weeks ago.
Thus is was left to “Keystone Leaders” Jim Paré and Casey Combden to front affiliates.
First topic of business on the webinar was the Texas securities fraud cease and desist.
Combden claimed Nui corporate “knew this was going to happen”, implying to affiliates that there is nothing to worry about.
BehindMLM sounded the Nui unregistered securities alarm bell as far back as November 2017.
If Nui corporate knew then they were offering unregistered securities, as Combden claims, why they didn’t do anything about it is a mystery.
Combden of course is no stranger to unregistered securities.
Getting back to Texas, Combden states
Nui is responding appropriately and doing so in the right manner.
Jones Day attorney Mark Rasmussen is displayed on-screen while Paré and Combden address the cease and desist, implying that he is working on it on Nui’s behalf.
Nui also announced a new compensation plan and affiliate signup options.
A slide for the $6700 “Executive” options states affiliates who chose it are “all in… ready to mine”.
Jim Paré states the reason for the compensation changes is because
the number one thing for us is being compliant throughout the entire United States.
What happened in the last couple of days is we took what we were projecting to do in six months and jammed it into this week.
Part of that compliance appears to be pretending affiliates are somehow active in receiving Mintage Mining returns, by bundling an Ant Router with Pro ($1150), Elite ($2650) and Executive ($6700) membership.
Nui affiliates will receive the Ant Router upon payment of a $500 Mintage Mining fee.
Ant Router (model R1-LTC) is available from Bitmain for $30 USD.
Moving people into a piece of hardware means they’re actually active in this.
This is us moving into the highest level of compliance.
Ant Routers are standalone mining rigs that provide 1.29 MH/s for Litecoin mining or “any Scrypt-based coin on any pool”.
The problem, as far as securities compliance goes, is that this has nothing to do with Mintage Mining passive ROI payments.
The notion that affiliates mining separately to their passive Mintage Mining contracts, somehow making their Mintage Mining contracts active instead of passive, is absurd.
Regardless of what they do or don’t do with their Ant Router, Nui affiliates will still receive a three-year passive ROI on funds invested into Mintage Mining.
This is precisely what the Texas cease and desist pinged Nui for.
Anything the Ant Router generates is fine. Anything derived passively through Mintage Mining is still a security.
Neither Nui, Mintage Mining or Darren Olayan are registered to offer securities anywhere in the US.
Speaking of Mintage Mining, Paré and Combden also revealed as of August 3rd, Mintage Mining commissions will be paid in bitcoin.
Previously earned commissions were issued in credits, which had to be reinvested into new mining contracts.
Existing Nui affiliates who have invested in Mintage Mining will receive bitcoin for the remainder of their three-year ROI contract.
Based on a July 11th issue date, Nui has until August 11th to challenge the Texas cease and desist.
Having obtained a copy of Nui’s compensation plan dated July 25th, BehindMLM will be publishing an updated Nui review tomorrow.