Ministry of Finance concludes BBOM is a Ponzi
In papers filed in support of ongoing legal action by the Federal Public Ministry in Goiás (GO-MPF), Brazil’s Ministry of Finance have declared BBOM to be an “unsustainable” Ponzi scheme.
In the papers, ‘presented to the Judge of the 4th District Court of the Judicial Section of the State of Goiás on Thursday (21/11)’, the Secretariat for Economic Monitoring of the Ministry of Finance (EEAS / MF) wrote that, after reviewing the case and BBOM’s business model, they could not
identify a fair and reasonable (legal) economic reason that could explain the explosion of profitability observed by BBOM.
The business is not viable over time, which is “emphasised by the absurd promise of stratospheric gains well above the gains earned in the competition.”
The department also stressed that “the business structure promoted by Embrasystem (BBOM) has no parallel in any other companies in their line of business.”
That last line isn’t that surprising, as I imagine there aren’t too many GPS fronted Ponzi schemes around. BBOM was certainly the first I’d heard of one (not only in Brazil but globally).
To date, BBOM President João Francisco de Paulo’s only official response to the charges has been
(They are) absurd and groundless.
The charges were planted by different people and the prosecution are wrong in their decision, since the sources can not be trusted.
Right, good luck pushing that in court chief since well, y’know – the source of BBOM’s business model would be none other than BBOM itself.