MLM Detective POSTS

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USI-Tech Ponzi abandons US & Canada, confirms SEC investigation?

In a move that is unlikely to have surprised anybody, USI-Tech has severed ties with the US and Canada.Rather than operate legally in the US and Canada and register with the appropriate regulatory bodies, USI-Tech has instead elected to abandon its legal obligations and focus on scamming investors elsewhere in the world.USI-Tech faced increasing pressure to prove it wasn’t a Ponzi scheme following a securities fraud cease and desist issued in Texas last month.Up in Canada, the provinces British Columbia, New Brunswick, Nova Scotia, and Manitoba had separately issued USI-Tech investor warnings.It is the Texas cease and desist however that, from…

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Falcon Coin Review: 180 day ROI “trading bot” ICO lending Ponzi

Falcon Coin provide no information on their website about who owns or runs the business.The Falcoin Coin website domain (“falconcoin.co”) was privately registered on October 7th, 2017.As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.Falcon Coin ProductsFalcon Coin has no retailable products or services, with affiliates only able to market Falcon Coin affiliate membership itself.The Falcon Coin Compensation PlanFalcon Coin affiliates acquire FFC points from Falcon Coin’s owners.Once acquires, FFC points are “lent” back to the company on the promise of a…

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The Merkle promotes BitConnect despite Texas cease and desist

The Merkle was founded in 2014 and covers ‘the latest crypto, finance, infosec and tech news‘.The Merkle has a dedicated cryptocurrency news section and also includes a variety of educational articles relating to Bitcoin, you can find anything from how to make money with bitcoin to how to create your own cryptocurrency.Learn about scams, malware, and ransomware in the education category and take a look at our comparisons and reviews of popular wallets, exchanges, and other services in the cryptocurrency land.Despite having a history of accurately reporting on MLM cryptocurrency fraud, when it comes to BitConnect evidently The Merkle has blinders on.In what…

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Diamond Reward Review: “Trading bot” ICO lending Ponzi

Diamond Reward provide no information on their website about who owns or runs the business.The Diamond Reward website domain (“diamondreward.io”) was privately registered on November 25th, 2017.As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.Diamond Reward ProductsDiamond Reward has no retailable products or services, with affiliates only able to market Diamond Reward affiliate membership itself.The Diamond Reward Compensation PlanDiamond Reward affiliates purchase DMR points from Diamond Reward’s anonymous owners, at rate of 70 cents to $1 each.Once acquired, DMR points are then…

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Top BitConnect investor instructs circumvention of Texas cease & desist

In addition to everyone in the MLM cryptocurrency niche being crypto experts these days, turns out they’re all legal experts too.Trevon James operates a YouTube channel boasting 129,000 subscribers.Within hours of news of the Texas Securities Board emergency cease and desist to BitConnect going live, James uploaded a video to his channel titled “Texas BitConnect Cease and Desist”.In the video James falsely asserts that some US states do not require registration of securities.[0:40] Look, states have rules. Certain states have certain rules.Hey, you know weed is legal in Colorado, but if I walk outside here and light up a blunt, I’m…

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BitConnect securities fraud cease and desist issued in Texas

While the SEC drags its feet, Texas continues to lead the charge against MLM cryptocurrency fraud in the US.The latest from the Texas Securities Board is an emergency cease desist issued against BitConnect.Issued on January 4th, the cease and desist identifies BitConnect’s ICO lending scheme, staking program and upcoming BitConnectX ICO as unregistered securities offerings.BehindMLM came to the same conclusion in our Bitconnect Review (published April, 2017), going one step further and identifying BitConnect as a Ponzi scheme.The Texas Securities Board accuses BitConnect of securities fraud, by way of the company not being registered to offer securities in Texas.Doing so would require…

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FTC issues 2018 guidance on MLM pyramid schemes

New year, new guidance from the FTC on MLM pyramid schemes.Sort of…In a January 4th “offer of business guidance concerning multi-level marketing”, the FTC has attempted to clarify common questions and concerns related to MLM and pyramid schemes.For some reason the FTC inexplicably goes to great lengths not to mention “retail sales” in their guidance, but they do refer heavily to “ultimate users”.This is a bit confusing, as ultimate users” can refer both to affiliates and retail customers.The FTC’s 2018 guidance is rooted in the 1975 Koscot decision,which observed that such enterprises are “characterized by the payment by participants of money…

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Chris Principe denied injunction in OneCoin defamation case

Last October Chris Principe filed a motion requesting a harassment order against defendant Timothy Curry.Principe argued that Curry was harassing him and requested the court prohibit him from doing so.Specifically, Principe wanted toenjoin Curry from “[c]ontacting [Principe], either directly or indirectly, by any means, including but not limited to, by telephone, mail, email, social media, or other electronic means”; from “[p]ublishing [Principe’s] name in any media whatsoever”; and from “[c]ontacting any of [Principe’s] known business associates concerning [Principe] in any manner or with respect to any topic concerning [Principe].”The length of the injunction sought was five years.Upon consideration of Principe’s motion, Curry’s…

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USI-Tech top investor is an Ass. Professor of Business at a US college

Predating the launch of their BTC package Ponzi scheme, David Frost was a prominent fixture in USI-Tech marketing.Often appearing alongside Master Distributors Dan & Patti Hunt, Frost appeared in USI-Tech marketing videos and co-hosted company events.Here’s the thing though – in addition to being high up the USI-Tech investor chain, David Frost is also Associate Professor of Business at Bethany College.And word on the street is Frost isn’t above recruiting students into USI-Tech.Bethany College is based out of Kansas and, according to their website,is a small, private college that provides students personal attention within a caring community.Bethany College is also “a College…

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Chrysos Coin Review: CHR points ICO lending Ponzi

Chrysos Coin provide no information on their website about who owns or runs the business.The Chrysos Coin website domain (“chrysoscoin.com”) was privately registered on December 14th, 2017.As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.Chrysos Coin ProductsChrysos Coin has no retailable products or services, with affiliates only able to market Chrysos Coin affiliate membership itself.The Chrysos Coin Compensation PlanChrysos Coin affiliates invest funds in CHR points, which the owners sell for 50 cents to $1.85 each.Acquired CHR points are then “lent” back…