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,…

LuLaRoe Review: $5000 lucky leggings lottery?

June 15, 2018 mlmdetective 0

LuLaRoe was founded in 2012 and was incorporated in California a year later in May, 2013.Heading up the company is the co-founder husband and wife team, DeAnne and Mark Stidham (CEO).
LuLaRoe itself is an amalgam of the names of DeAnne Stidham’s first three grandchildren.
The LuLaRoe website very much presents Stidham (then DeAnne Brady) as the driving force behind the company.
Prior to LuLaRoe DeAnne had found success in network-based marketing.
It was during this time that she learned an important lesson; if you want to be someone who gets things done, act like you already are.
This self-empowering idea crystallized in her mind and directly led…

Redwood Scientific Technologies facing $5000 a day fine for contempt

June 14, 2018 mlmdetective 0

Last we checked on Redwood Scientific Technologies, parent company of RengaLife, they were continuing to dig themselves a deeper hole over alleged FTC Act violations.Redwood have missed multiple production deadlines, primarily relating to discovery requests by the FTC.
Following a motion by the FTC to find Redwood in contempt of court, a hearing was held on May 29th.
It wasn’t until June 12th however that an order was made.
As per Judge Otero’s June 12th order, Redwood was ordered comply with the FTC’s requested discovery production – by express delivery that same day.
Failure by Redwood either to update its Relativity database, or to produce…

Susan Zanghi to provide evidence against MOBE and Matt Lloyd?

June 14, 2018 mlmdetective 0

The FTC are looking to depose Susan Zanghi, one of three individual defendants in their case against MOBE.In an unusual turn of events, prior to Zanghi’s deposition the FTC have filed an emergency motion to unfreeze $5000.
The requested funds are to pay for limited legal representation at Zanghi’s deposition.
I don’t recall the FTC (or any other regulator) making such a concession before in an MLM related case.
Reason being that once assets are frozen, the intention is to preserve as much as possible to eventually return to victims.
Defendants using frozen assets to pay for legal counsel to defend allegations related to fraud…

Frank Calabro Jr. agrees to stop securities fraud, continues anyway…

June 14, 2018 mlmdetective 0

Rather than clear his name with evidence he isn’t a serial scammer, Frank Calabro Jr. has agreed to stop committing securities fraud in North Carolina.Calabro Jr. popped up on the North Carolina Securities Division’s radar via his promotion of the USI-Tech Ponzi scheme.
Neither USI-Tech or Calabro Jr. are registered to offer securities in North Carolina (or anywhere in the US for that matter).
Conclusions reached in Calabro’s settlement include:

USI-Tech’s BTC Packages constituted a security
Frank Calabro Jr. violated North Carolina’s securities laws by offering unregistered securities across the state
Frank Calabro Jr. violated North Carolina’s securities laws by offering securities in North Carolina (registered…

David Wood vows to “entirely destroy” World Ventures after termination

June 13, 2018 mlmdetective 0

Following a series of reported non-payment of owed commissions, David Wood issued World Ventures with multiple deadlines.World Ventures appears to have responded in kind by terminating David Wood as an affiliate sometime in the last 24 hours.
Unless World Ventures reverse the termination by 10 am Wednesday, June 13th, Wood has vowed to “entirely destroy” and “shutdown” the company.
Co-founder and CEO of the collapsed Empower Network opportunity, these days David Wood styles himself as 2020 Presidential candidate, Messiah Ben David, King Of Israel.
With the aid of hallucinogens, Wood believes he has roughly a year and a half to save the universe.
Evidently part of…