Affiliate shares Global1Entertainment refund woes
With the Global1Entertainment not really offering new (everything is “coming soon” with these guys and has been ever since the I2G casino flopped), I’m predicting we’re just going to see a repeat performance of I2G.
Those who invested early might recoup some additional funds due to a few new people signing up who are oblivious of the previous incarnation of the company, but then we’re back at square 1.
A revenue-share without any incoming revenue to share.
Despite the obvious reliance on affiliate funds to stay afloat, stay tuned for a barrage of I2G affiliates riding on the coattails of promises that the company has consistently failed to deliver on.
–BehindMLM Global1Entertainment review, July 2014
A reboot of the failed Infinity2Global MLM opportunity, Global1Entertainment is a far cry from the casino come revenue-sharing opportunity that was initially pitched late last year.
Here at BehindMLM we’ve covered i2G’s initial launch and subsequent transition purely within the context of the company’s compensation plan.
But what has it been like for affiliates who paid thousands of dollars, only to have the company’s business model change on them time and time again?
Following a series of thus far unsuccessful attempts to get his money back, today G1E affiliate Bruce Deery shares his story.
In a YouTube video titled “An Open Letter to the G1E/Global 1 Entertainment’s Attorney and CEO”, Deery identifies himself as having been ‘in the MLM network marketing business for thirty years‘.
[00:42] So let me give you a little bit of background.
I joined what used to be i2G on May 28th of this year. Actually I was introduced to it in April, I was in Florida at the time but decided not to do anything until I got back to North Carolina in May and until I did a lot of due diligence.
So I didn’t actually join it like I said, until late May after talking extensively with Faraday Hosseinipour.
Faraday Hosseinipour was recently identified as a “top earner” in Global 1 Entertainment by BusinessForHome.
Along with partner Dave Manning, Hosseinipour has ‘a team of approx.18,000 members‘ and has earned ‘about $2.3 million in 1 year‘ through i2G and G1E.
[01:11] Without going into all the details, my primary decision was based on what were then the two flagship products; i.e. the i2G casino and Songstagram… of course which no longer exist.
But it appeared to me as it did to 99% of the people that joined, that there was a substantial opportunity for residual income in the casino and in Songstagram.
So anyhow after that, in July, I bought a second High Roller position, based again on conversations with Faraday Hosseinipour.
As per the i2G compensation plan, a High Roller position cost $600. Two of which would put Deery $1200 in the hole.
[1:53] It was shortly after that that i2G all of a sudden, without really any prior announcement disappeared and it became G1E, Global1Entertainment.
Well, at that point all kinds of red flags went off and I decided “hey, I’m not doing anything further until I get a bunch of questions answered and find out what the heck is going on here.”
At that point, I shot a video and offered one of my two High Roller positions for sale. And then I get an email from the corporate attorney, David Koerner, saying “no, no!” because of new corporate policy. Y’know you can’t mention the name G1E or use any of their images etc. etc. etc.
Anyhow apparently David Koerner called Faraday and Faraday called me and y’know, was encouraging me to take that video down.
I had a very candid conversation with Faraday and basically said, “Faraday, y’know, what’s going on here stinks. There are all kinds of red flags… I’m gunna ask for my money back.”
I’m not gunna go into all the details but I was very candid with her and she told me some stuff that was just, hah, outrageous. Bullshit. Lies.
You can tell I’m a little angry about this whole situation.
So anyhow I gave her, I had written an outline of what I have here, which is a six-page email to the corporate attorney… an outline of what I was gunna do.
And she (Hosseinipour) said, “Bruce, don’t do that.” She said, y’know, “try the softer way.” She said, “I will fully support you in getting a full refund of your join fees and your monthly fees.”
As Deery’s immediate upline, Hosseinipour would have collected $120 in recruitment commissions off of Deery’s two High Roller positions.
[03:48] Infact she said she was surprised the CEO, (Rick) Maike, had returned a lot of Emperor fees and other people’s fees that were outside of the thirty-day refund policy.
So I tried that. I wrote a brief letter, an email, very nice to David Koerner and said, “Hey, based on a conversation with Faraday, she can fill you in on the details, y’know I’m asking for a full refund and she (Faraday) said she would fully support me.”
Well, I never got a reply.
Ok, so that led up to what I’m essentially… I’m gunna read it to you because I need to get it off my chest.
[04:37] Mr. Koerner,
It’s become obvious that you’re completely avoiding me and you have no intention of responding to my emails.
I can’t say that I am surprised that I have not received a response to my September 3rd email, or my email to you on August 20th, or your customer support team, since neither of you have responded to my three emails beginning on July 28th.
And although I guess I’m a little surprised since Faraday Hosseinipour, master distributor, said she would fully support my request for a full refund. And indicated that G1E hs refunded many Emperors, and others that were way beyond the thirty-day refund period.
For your convenience I’m reproducing the contents of my request to customer support. Which after three emails, they forwarded to you for your review and reply.
And of course I never got a reply.
At this point, Deery then goes on to reveal what appears to be financial and regulatory troubles within i2G and G1E.
[05:34] So here’s what my initial questions to customer support were, from way back in July.
“With all the recent changes, name changes (and) mentions of problems with banks because of the casino, no mention of what has happened to Songstagram or the i2G casino, and no explanation of how velocity dot com or i2G or velocity sports book fit into the picture – I’m getting very nervous and am reluctant to spend any more time, money or energy until these issues are clarified.
In addition, I just did some quick math that concerns me. It’s been mentioned the company’s done about $45 million dollars in revenue.
5000 Emperors times 5000 dollars equals 25 million dollars. And a number of people told me there are approximately 90 thousand reps (and I had to correct that later).
Assuming an average of $50 a month in fees, that equals yada yada yada yada.
Which leads me to ask, how much revenue is actually being derived from the online casino and onling gaming and i2G Touch and Songstagram?
It appears to me it’s very little and that leads me to wonder how much residual income is achievable?
I, we, meaning other reps, we need some transparent full disclosure. Not generalities as to what’s going on.”
Then I went on to say I stand corrected. I made reference to there being 90,000 reps, Faraday corrected me and indicated there were approximately 18,000.
So in a nutshell I recalculated (and) estimated the joining fees from 5000 Emperors plus the Novices, the Players and the High Rollers, plus estimated monthly fees – and came up with an estimated $37,000 to $38,000 in gross revenues.
Faraday indicated the gross revenue to be around those figures, which means that maybe two to three million dollars is from i2G and Songstagram… which is doubtful.
Because as Faraday indicated to me there were only about a thousand downloads on Songstagram, which of course no longer exists and is not even mentioned in the corporate twelve-minute video.
So, on the surface it appears the company is paying commissions out of joining and monthly fees versus profit from product purchases.
Ding ding ding, come on down!
[08:23] And incidentally Maike expanded on Songstagram, to take care of the lose ends as he talked about it a couple of weeks ago in a corporate update… and said he had a half a million dollars invested in that company.
That is just not true.
A pal that I’m working with spoke with a person in the company. He is furious, there was no half a million dollar investment as Mr. Maike has said on several occasions.
And it gets worse than that… but that’s for another time.
[09:04] In a recent Google Hangout, my sponsor, Faraday Hosseinipour, indciated that nothing has changed.
Cmon, I didn’t just fall off a turnip truck! I wasn’t born yesterday!
This is just not true, as evidenced by the following.
So I go on to say, the name change from i2G – Infinity 2 Global, Global1Entertainment, slash G1E entertainment.
The official explanation was so it had more meaning to perspective participants in the plan. But the reason it was explained to me, by Faraday, is that the banks didn’t like the company being involved with an online casino (and) would no longer do business i2g, with an online casino which is not legal in the United States except for three states.
Regulators were not at all comfortable with a five thousand dollar joining fee slash investment for Emperors, suggesting that it was an unlicensed security.
[20:20] When the banks ct us off, Emperors that joined at that point had to send a $5000 certified check to a bank in Hong Kong. Who knows where that money is? Who knows if that income was ever reported to the IRS?
If true, this is the first I’m hearing of a regulatory investigation into i2G and/or G1E.
To the best of my knowledge, the company has never publicly acknowledged their awareness of an investigation taking place or publicly disclosed any communications with US regulators.
Deery then goes into differences between the current G1E compensation plan and the one that those who are or have made significant income earned it under.
[10:12] I go on to give other examples of why it’s not true that nothing has changed.
The $5000 Emperor position was eliminated.
Now incidentally, when Faraday talks about six millionaires, six people that have earned over a half a million, fifty that are making six figure incomes – she didn’t mention the fact that those were all Emperors who bought one or more positions. And that their income is based upon the old compensation plan.
In addition to that the fees have increased. 100 to 200, 400 to 695, 600 to 1495… and again the Emperor position was eliminated.
The compensation plan changed, infact it just changed again this week. Apparently Emperors and other people were putting pressure on the company.
The i2G casino no longer exists… at least publicly. (It) was the flagship product, the main recruiting carrot attraction incentive to join i2G because of the implied potential income, residual income.
Though Faraday continues to talk about it (the casino). How she’s getting away with that, I don’t know.
There’s absolutely no mention of the casino in the corporate video. Infact, if you go to the corporate video and click on products, there’s a drop-down menu. It only mentions two products, G1E Touch and Boardwalk. And there really isn’t any money in either one of those.
Songstagram was dropped and its implied potential was residual income. There’s no mention of Songstagram on the corporate video.
There have been implications of a new casino product, ala Faraday Hosseinipour, VelocityCasino, and a new music product. But nothing specific, only hints that there would be some new product announcements at the last Vegas convention over Labor Day.
And of course, nothing was mentioned about either ones of those products.
[12:20] The company has requested that no IBO mention anything about a casino. However in Google Hangout trainings, the facilitator for Faraday Hosseinipour suggested that it’s ok to mention it, just mention it discreetly.
That it’s still going strong in 200 countries and the Emperors are still receiving 50% of the profits.
In other words, we’ve been coached by her (Hosseinipour) to keep the existence of the casino under the radar so as not to alert the banks or regulators. To keep them unaware of its continuing existence.
I don’t know how they’re doing that but anyhowthough. There was no mention of it in the corporate video or the product drop-down menu.
Not exactly cricket.
If Deery’s allegations are true, it reveals deception not only of the financial institutions G1E might be engaging with, but also their affiliate-base. I2G’s was always a front for the company’s taking of newly invested affiliate funds to pay off existing investors with.
What Deery’s remarks suggest is that there’s still an “inner-circle” of G1E affiliates being paid according to a different compensation plan the rest of the affiliate-base are being paid with.
Not being cricket is an understatement, with such conduct constituting outright fraud.
[13:10] Not sure that the regulators, the attorney generals (or) the FTC would approve of this tactic.
You might be interested to watch Faraday and Dave Manning’s Google Hangout, which I have saved on my computer. They gave a coaching session where they actually coached their team to use the same bait and switch tactics they used for ten years when they were in the time-share business.
How about them apples.
I don’t know if the corporate attorney or the CEO (of G1E) would be real comfortable with that but y’know hey, I’ll leave that up to them.
Hosseinipour isn’t the only party Deery repeatedly takes to task, with much of his frustration directed at G1E itself.
[13:50] There have been promised to for months that the company would be providing marketing tools, but nothing has been provided.
Infact the so called backoffice for reps, is really an embarrassment. There’s no capture pages, there’s no auto-responder, there’s no banner ads, there’s no suggested ad-copy… virtually nothing.
At best it’s a bare-bones backoffice. So I can’t help but wonder “what am I getting? What is anybody getting for their monthly fees?” Whether it’s 25 bucks, 50 bucks or 75 bucks?
Particularly in view of the fact that the two flagship products have been eliminated, along with the potential residual income.
And this is really a good one: The all new G1E compliance policy.
“We do not permit the use of any of our company or company-related trademarks or copyrighted material in any public forum. Whether it’s to promote the company or if you’re trying to sell your spot.
That would include the internet, social media, video channels and any other form directed to the general public.
Anything that can be searched for, found or accessed by the general public must be completely generic, and otherwise in compliance with the applicable rules and laws – with no references to the company.”
“When someone requests more information such as by filling out a contact form or sending you an email, then you can contact them about G1E and mention the company. Or direct them to company produced tools (there are none), such as the one corporate video and other material available in the replicated website.”
I’ve been in the MLM network marketing business for thirty years, on and off but fulltime since 2008. I’ve never, ever been restricted from mentioning the name of the company that I’ve been promoting.
The new policy is tantamount to tying our hands behind our back. What is the company so afraid of?
Again, if Deery’s earlier allegations carry weight – why G1E would be paranoid about their name being bandied about openly by their affiliate investors should be rather obvious. Especially if they’ve had prior run-ins with regulators in relation to their online casino activities.
[15:49] In summary, G1E slash Global1Entertainment is not even remotely similar to the company I joined, invested in.
The potential for residual income has largely been stripped from the program and really the only way to make money is by recruiting other people.
And by definition, that’s really the definition of a Ponzi scheme. Paying commissions based upon other people joining and their monthly fees.
If I might clarify, what Deery describes is more akin to a pyramid scheme. However the “share in 50% of revenue” deal the Emperors got back under i2G most certainly fit the definition of a Ponzi scheme.
[16:17] The new G1E Touch platform is simply a social media platform, really with no income opportunity attached to it. And the new gaming platform, Boardwalk, it ain’t ever gunna be competitive with Facebook, that does eighty billion dollars.
In fact, the only people in my opinion that are going to join it are going to be members of G1E.
So, in short, G1E Global1Entertainment is not even remotely close to being the company that I joined in May. As it’s presently comprised, I would never ever ever ever have joined it.
So in view of the above, Mr. Koerner, and more, I am requested a full refund of my two High Roller positions that I purchased plus any monthly fees I paid into the company to date.
If I don’t receive a refund within fourteen days from the date of this email, you can expect me to share a very comprehensive report with the following:
- the Kentucky Attorney-General
- all of the Attorney-Generals
- the Kentucky Better Business Bureau
- the Federal Trade Association (I believe this is the FTC incorrectly referenced)
- the Direct Sellers Association (which G1E does not belong to)
- Lou Abbot @ MLM The Whole Truth
- Robert Fitzpatrick @ Pyramid Scheme Alert
- Troy Dooly @ MLM Helpdesk
- Oz @ BehindMLM and
- Chuck King @ I2G Full Refund
For the record, I haven’t received any correspondence from Bruce Deery. I stumbled across the video myself through my various daily checking up on industry news and events to report on.
[18:04] Mr Koerner I am truly sorry it has come to this however your company’s refusal to answer my emails, seven weeks, and requests for answers confirms that my suspicions were correct. And leaves me no choice but to be proactive in obtaining a full refund and informing the authorities as to what’s going on with your company.
At this point Deery recalls a past opportunity he was involved in “a number of years ago”, that he claims ran into troubles with the SEC, FTC and IRS.
[18:39] The company was shut down, and the owner spent some time in the caboose.
Deery then states that G1E “may be in some serious trouble”.
[18:45] I’m not saying that’s going on here but there’s some things that I can’t disclose or discuss with you… uh… (awkward pause)… G1E may be in some serious trouble.
Whether Deery is just attempting to add weight to his refund request or is actually aware of pending regulatory issues that might affect G1E in the future is not clear. He doesn’t elaborate any further on the subject.
Deery’s YouTube video was uploaded on September 18th, which means, assuming his email was sent around the same time, that his deadline for a refund expires on October 2nd.