Smart Media Technologies pyramid busted in Bangalore
You pay your affiliate membership fees (upfront and then $30 a month), and then go off and find others to do the same.
And the more you pay, the more you earn.
Once the affiliate recruitment in Smart Media Technologies stops, so too will the commissions. I don’t even think it’s worth entertaining the idea that non-affiliates are using the YOBSN network.
–BehindMLM Smart Media Technologies review, December 2013
David Martin, the mysterious CEO behind Smart Media Technologies that people rarely see or hear from.
As with many of the suspiciously generic sounding one hit wonder admins you’ve never heard of, Martin was the creation of Indian Ponzi scammers.
Smart Media Technologies launched in 2013 and combined a social network with a recruitment-driven MLM compensation plan.
Affiliates bought in for between $125 to $400, and were then paid to recruit others who did the same.
How long police in India have been investigating Smart Media Technologies is unclear but after receiving a tip-off, City Crime Branch detectives raided a Smart Media Technologies hotel presentation last Wednesday.
Three men and one woman, the owners of Smart Media Technology, were caught red-handed attempting to solicit new participants into the scheme and arrested.
The four arrested have been booked under sections of the Prize Chits and Money Circulation Scheme (Ban) Act and Indian Penal Code section 420 (cheating), police said today.
“We have arrested four persons including a New Zealand national for illegally collecting Rs 50 crore through social media network,” a City Crime Branch (CCB) statement said.
RS 10 crore is 500 million or $8 million USD.
The foreign national has been identified as Driver Denise, who is the “Asia-Pacific Head” of the company.
She had been camping in the hotel since October 9 holding marketing sessions, they said.
The other persons arrested are Mohammad Khurram, Kiran Modi and Hithese Modi, all residents of Bengaluru.
As I mentioned earlier, how long Bengaluru police have been investigating the scheme isn’t clear, however police did tell Zee News that ‘further investigation was on(going)‘.
Action was also being proposed against the hotel for not sending Form-C to Foreigner Regional Registration Offices (FRRO) and allegedly abetting the accused, police said.
Preliminary investigation revealed that Denise has enrolled more than 30,000 people across the world and had collected millions of dollars worth about Rs 50 crore, police said.
Most of her members belonged to US (2,000), India (1,700), Malaysia (28,000), New Zealand (500), Dubai (200), Pakistan (100).
In India, her members are located in Karnataka (300), Maharashtra (800), Delhi (100), Punjab (100), Madhya Pradesh (300) and Hyderabad (100), they added.
Khurram has introduced 2,000 members and received US Dollar 10,000 as commission, police said.
At the time of publication the Smart Media Technologies website is unresponsive. The YOBSN (Smart Media Technologies’ social network) website however is still online.
The New Zealand national involved in the scam is a bit strange. Although the cynic in me chalks it up to wanting a white face to reassure otherwise cautious Indian investors.
Otherwise what Driver Denise (Denise Driver?) was doing in India scamming people escapes me.
Meanwhile here at BehindMLM we had scammers as late as August still professing the legitimacy of the company, so much for that hey.
Smart Media Technologies is done for and a pat on the back to Bangalore (Bengalaru) police for a job well done.
Footnote: Hat tip to Patrick Pretty for bringing this story to our attention.