5 Star Signals collapses, over $180,000 in commissions stolen
BehindMLM reviewed 5 Star Signals back in October of 2015. The review concluded 5 Star Signals were paying pyramid scheme recruitment commissions, tacked onto an unregistered securities offering.
About a week after our review was published, we uncovered 5 Star Signals was built on years of lies and deception. Hardly surprising given the company’s business model, but the amount of detail we were able to put together made for one hell of an interesting backstory.
Following the orchestration of a funeral for an entirely fictional persona, Mariska van de Langenberg and Dean Black continued on with 5 Star Signals as if nothing had happened.
By all accounts things appeared to be going well. Over the last few months Black, posting as himself, published regular updates on the 5 Star Signals Facebook page boasting of profits.
What was actually going on behind the scenes however paints an entirely different story.
In an announcement believed to have been made in the last few days, Mariska van de Langenberg (right) announced that 5 Star Signals has collapsed.
If Langenberg is to be believed, 5 Star Signals collapse is the result of non-communication and poor trading decisions on Dean Black’s behalf.
It is a very sad day for me personally, as it is the end of the existence of 5 Star Signals in the shape as we know it..
In the past few weeks it has been virtually impossible to communicate with Dean.
I’ve tried in every way possible but he simply didn’t respond. Or when he did, he never read any of the urgent messages I sent him.
I’ve worked so very hard to make this a viable company, but this is going nowhere, if anywhere it is from bad to worse.
In attempt to salvage the business (again), Langenberg and Black appear to have come to an agreement last week.
After long conversations in the last week, we found a way to make things right.
I refer to the post in the Facebook group of last Wednesday by Dean.
Langenberg claims Black soon reneged on the agreement.
How things were presented to you, well it took less than 24 hours for Dean to throw it all overboard and to start trading with way more risk.
When I woke up this morning, I saw huge profit in equity. Though trades were still running…no profit was taken.
I then saw a message in the FB group, and notified Dean on FB about it.
FB chat, the type of messages he had been ignoring for weeks.
I then received an answer that because he read my message a lot of money was lost on the accounts.
Unacceptable…. has nothing to do with my message, has everything to do with him not acting according agreement and taking on way too much risk.
I cannot continue like this, any agreement is voided within hours and that is not in your best interest.
Langenberg claims over $180,000 in commissions owed to 5 Star Signals affiliates is “gone”.
In the past months over $180k in commissions have been generated and all of it has been used to add to the BlueMoon accounts…nothing is left, it is all gone.
Dean also took commissions generated on the news strategies to fund the BlueMoon Account, resulting in lack of funds to pay our trading partner. These amounts are included in the $180k.
Total losses of 5 Star Signals affiliates, including funds invested into the scheme, is unclear.
I feel bad for the people who have trusted me and invested on our accounts that Dean has blown.
He may be a brilliant analyst, the trading psychology when trading other people’s money is one he doesn’t seem to master, only in theory.
My supporting him has reached a point where I can no longer continue this support.
Blown accounts several times, and even though what he has projected to happen in the markets in the very near future has already started happening, enough people have been damaged by now, this HAS to stop right here and right now.
I have no choice but to stop exposure.
Refusal to communicate is definitely a point to draw the line. Ignoring agreements made and not acting like you’ve told members you would, that is unacceptable.
Volume trading in order to build cash for compensation was nice in theory, in reality it has failed.
This is that point of no return. Both companies in both Netherlands and Ireland will be dissolved.
I wish I could compensate all of you, I truly wish.
In an attempt to find something positive in the collapse, Langenberg states;
I don’t know what my personal future will look like, but I am confident I will get through this as an individual.
An expensive lesson learned: in business no one can be trusted, only yourself.
Her advice for 5 Star Signals affiliates however is less than inspiring.
For those who were under the BlueMoon accounts, you’d best try to contact Dean directly, since he gave a personal guarantee. It never was a company guarantee.
To be honest at this point: don’t get your hopes up, there is nothing to obtain from him, no possessions whatsoever.
In the last week he has seen no reason why he would have to be cut out of the company and he does not agree with it.
He also insists he will make it up to all concerned. That is his responsibility.
In November of 2015 the Netherlands Authority for the Financial Markets issued a warning against investment in 5 Star Signals.
The AMF began investigating 5 Star Signals upon suspicion it was operating an unlicensed investment opportunity within the Netherlands.
Langenberg is based out of the Netherlands and, despite being fully able to respond to the AMF’s enquiries, chose instead not to.
The AMF thus concluded 5 Star Signals were offering what amounted to an unregistered securities offering.
The AMF went on to fine 5 Star Signals €50,000 for non-compliance.
The company has yet to pay the fine, with Langenberg insisting, despite the AMF’s findings, that 5 Star Signals’ unregistered securities offering is compliant.
Add up to all of this that AFM, despite the fact we are in the green from a compliance perspective, is persistent in collecting €50,000 in fines.
Ridiculous of course and a clear example how a regulatory body is killing a promising company, if it hadn’t been killed by its Head Analyst already..
When an unregistered securities offering collapses, investors have no direct recourse. What Langenberg chalks up to being an “expensive lesson”, is actually financial fraud.
Yet despite this, Langenberg has vowed to relaunch.
I will start up another company, but without Dean. Our trading partner is still happy to work with us as we agreed upon last night..
IF there would be an affiliate program, it will be completely different, provided brokers can handle the commission side of it.
That still has to be seen, all is highly insecure at this point. I do know the new company will offer the news trading strategies.
Dean’s IP will be blocked on the servers, and all logins will be changed as soon as the master accounts are transferred to the new entity.
I’d like to thank all of you for your support and trust and from the bottom of my heart, I am truly sorry for letting you down.
It will be ONLY the professionals trading these accounts, no one else, ever again.
With the website being down, these news trading strategies will continue to be traded, with exception of HotForex.
All subscriptions are going to be cancelled from our end, so no more fees will be taken off your account on behalf of the Dutch or Irish company.
It is a very sad day for all of you, it is a very sad day for those who have put their heart and soul in this company.
I do take accountability for the fact I’ve supported Dean for too long.
See it as a mother who is reluctant to admit her kid has unacceptable behavior…. still care for him as a person, the behavior has to stop, right here, right now. It is truly saddening.
I never stopped believing in the concept, investing, compounding and sharing revenues that are actually made is a viable business concept, I wholeheartedly believe in it!
I realize for me personally this has been a highly expensive learning process…one that I am not willing to risk again in the future.
For this reason Dean will no longer be part of 5SS or a new company. He may choose to continue the forum, that is up to him.
In the new company there will be some general info on Forex, but no education and no signals and no Dean.
It is truly one of the saddest days of my life…I am very, very sorry!
Whether or not Langenberg’s 5 Star Signals reboot has an MLM-based affiliate program remains to be seen. We’ll certainly be keeping an eye out.