MLM Detective POSTS

0

Zeek Receiver wins VictoriaBank appeal, $13.1 mill clawback resumes

The Zeek Rewards Receiver is one step closer to recovered $13.1 million in stolen investor funds, following the reversal of a District Court decision.The Receiver has been locked in a struggle with Payza, Payment World and VictoriaBank since February, 2016.In a nutshell, Payza laundered $13.1 million dollars invested by Zeek affiliates through PaymentWorld, who in turn laundered it through VictoriaBank.Unable to access the $13.1 million held abroad, a freeze order was granted on $13.1 million VictoriaBank held in a US account at the Bank of New York Mellon.VictoriaBank sought do dismiss clawback proceedings against it, by claiming the court had no…

0

Bitcoiin collapses, admins do a runner after $75 million B2G ICO

A week after BehindMLM reported Bitcoiin was continuing to violate a securities fraud cease and desist, the company has collapsed.Over $75 million is believed to have been invested during Bitcoiin’s ICO, which was scheduled to wrap up on March 30th.Instead, Bitcoiin’s anonymous admins have pulled the plug early and done a runner with everyone’s money.Bitcoiin and its B2G altcoin surfaced back in January. Bitcoiin marketed B2G in typical “we’re better than bitcoin” fashion, however the coin itself had no practical purpose beyond soliciting investment from the public.Some investors had no doubt hoped to recover earlier scam losses, as evidenced by Bitcoiin…

0

Will the UK ever regulate rampant Companies House registration fraud?

The level of MLM company registration fraud taking place in the UK is such that, whenever you see a Companies House certificate paraded about as proof of legitimacy, save yourself some time and just assume the company in question is a scam.I can’t recall the last time I came across a legitimate MLM company for review incorporated in the UK, and it’s been this way for years.The primary reason for this is that UK Companies House incorporation appears to be entirely unregulated.Anyone from anywhere in the world can pay the £12 GBP fee and register online. Punch in whatever personal details you want…

0

MMM Global’s Sergey Mavrodi dead of a heart attack at 62

When I first learned of Sergey Mavrodi’s passing earlier today, my first reaction was “What is he pulling this time?”Such has been the staying power of Mavrodi’s MMM Global since it first popped up in 2011.Without a doubt MMM Global is one of, if not the most pervasive fraudulent schemes in MLM history.By now it has been confirmed that Sergey Mavrodi did indeed pass early morning on March 26th.On the evening of March 25th, Mavrodi (right) is reported to have been waiting at a bus stop in Russia’s capital, Moscow.At some point he is believed to have been struck down by a…

0

Mintage Mining claim to be “pre-compliant” with SEC regulation

Mintage Mining is purportedly a partnership between David Childs (cited as owner of the company) and Darren Olayan, CEO of Nui.BehindMLM reviewed Mintage Mining last December. We came to the conclusion that, at best the cloud mining business model would constitute a securities offering.The lack of registration with the SEC at the time meant that, at worst, Mintage Mining could be recycling newly invested funds to pay off existing investors.Likely due to the increasing number of issued cryptocurrency securities fraud cease and desists, Darren Olayan has attempted to brush off regulatory compliance by claiming Mintage Mining is “pre-compliant” with the SEC.Olayan…

0

Kannaway accused of “illegal pyramid sales” of cannabis oil in Belgium

We’re a bit late to this one, but earlier this month Kannaway was accused of illegally selling cannabis oil in Belgium.A March 19th report in Het Laatste Nieuws (HLN), Belgium’s top newspaper, accuses Kannaway affiliates of illegally selling cannabis oil.HLN goes on to call out predatory marketing practices that target “severely ill patients”, as well as Kannaway’s “pyramid sales” business model.Pieter Geens, founder of the Medcan non-profit, is quoted by HLN as stating Kannaway are “flat-out opportunists” who “benefit from severely ill people”.On their website Medcan describe themselves asthe national expertise center and advisory body for medical cannabis.We provide a professional service…

0

FTC vs. Dluca, Gatto, Pinkston & Chandler close to prelim injunction

Back in February the FTC sued serial MLM scam promoters Thomas Dluca, Louis Gatto, Eric Pinkston and Scott Chandler.On March 12th an ex-parte Temporary Restraining Order was granted, freezing Dluca, Louis, Pinkston and Chandler’s assets.On March 21st a “show cause” hearing was held, giving the defendants an opportunity to argue why a preliminary injunction shouldn’t be entered against them.Despite all four defendants being made aware of the hearing, none of them showed.The day after the hearing Magistrate Snow recommended the preliminary injunction be granted, but also gave the defendants until April 5th to object.In the meantime the current TRO has been extended…

0

Pedro Fort’s dismissal denied, jury trial scheduled for September

In late 2017 the SEC filed charges against Ponzi admin Pedro Fort Berbel.Fort, a Spanish citizen, stands accused of causing $38 million in investor losses through his Fort Ad Pays, The Business Shop and MLM Shop Ponzi scheme.In an attempt to weasel out of liability, Fort filed a Motion to Dismiss on December 22nd of last year.In his motion, Fort (right) presented four primary arguments;the relevant transactions occurred outside the United States between only foreign investors, so this means the SEC has no jurisdictionthe SEC failed to show a reasonable likelihood that Fort will commit a future securities law violationthe SEC’s complaint is an…

0

Payza terminate US payment processing, status of client funds unknown

The latest move by Payza co-founder and fugitive Firoz Patel, has been to terminate payment processor services to US residents.It appears now, like Patel, Payza itself is on the run from US authorities.Payza’s abandoning of US clients was announced via email on March 23rd.Dodging the $250 million money laundering lawsuit and Patel’s indictment and fugitive status, Payza simply states their “previous domain is no longer accessible”.Payza clients, many of whom US regulators allege are criminals, scammers and child pornography rings, have been instructed to use the company’s new EU domain.Firoz Patel is believed to have hastily set up Payza’s EU domain…

0

Scott Warren’s Crypto World Evolution securities memo is deeply flawed

In my almost ten years of covering the industry, I’ve come to realize that if an MLM company tries to convince you they’re not selling securities – then they probably are.This of course isn’t a hard rule, but it’s generally applicable to the companies that pay lawyers to convince you otherwise.As far as I’m aware no MLM company with a “we don’t offer securities” legal opinion that has attracted the attention of US authorities, has been cleared of offering unregistered securities.That’s because the securities law with respect to MLM investment opportunities is pretty clear-cut: MLM + passive ROI = security.Over the…