EmGoldex abandon Philippine affiliates
EmGoldex’s business model is pretty straight forward.
You sign up, you invest €540 and once enough subsequent investments have been made, a €3500 ROI is paid out.
Newly invested funds are used to pay off existing investors, with recruitment quotas required for a full €3500 ROI to be issued.
Dare to accurately market the EmGoldex MLM business though, and the company will turn its back on you.
Last month saw the Philippine SEC issue a warning against EmGoldex, informing potential investors that the company ‘is not authorized to solicit investments from the public‘.
In view thereof, the public is hereby advised to excercise self-restraint from investing their money into such high yield-high risk investment scheme (sic), and to take the necessary precautions in dealing with (EmGoldex).
Unwilling to challenge the SEC, EmGoldex has instead decided to abandon local Philippine affiliate investors.
In a statement EmGoldex issued to Business World Online late last week, the company wrote:
Emgoldex has no association with fraudulent operators allegedly trading as Emgoldex Philippines.
We do not condone the behavior of these people who are using our name without authorization.
EmGoldex affiliates need “authorization” to market the company now do they? Ho ho ho!
Emgoldex said it will continue discussions with the Philippine government “as we would like to see these people brought to justice.”
“They have no authority at all to use our Emgoldex name, and are causing our brand damage and our customers harm. If you are aware of who these people are, we encourage you to refer them to the SEC,” the e-mail read.
And so now a peculiar situation has arisen, where a Ponzi scheme is encouraging it’s investors be referred to regulators.
Let me be clear here, Philippine EmGoldex investors in no way have misrepresented the Ponzi scheme fuelling the company’s business model. Nor do they run a separate entity.
These are affiliates who have signed up to EmGoldex, invested at least €540 EUR in matrix positions and were attempting to recruit new investors, as EmGoldex’s business model requires them to do.
Emgoldex said it provides buyers “an opportunity to buy gold with a purity of 999.5/1000 or better” as well as “rewards to customers who refer other bona fide purchasers for value to the store.”
“We do not engage in investment advice or activity.”
The trouble of course with scammers is… well, they scam. And while EmGoldex may claim not to engage in investment activity, their business model (compensation plan) clearly suggests otherwise.
What will become of EmGoldex’s Philippine investors (and the funds they have invested in EmGoldex) is unclear.
Should the Philippine SEC further investigate, one would imagine a civil action against them might be forthcoming.
Unfortunately what with EmGoldex being run out of Europe by person(s) unknown, it is unlikely that said action will have any effect on EmGoldex’s global operations.
Alexa currently estimates the Philippines as the fifth largest source of traffic to the EmGoldex website (6.5%), behind Italy (14.3%), Spain (12.3%), Sweden (8.7%) and Colombia (6.6%)
Late last year the state of Massachusetts brought civil fraud charges against US-based EmGoldex investors.
The Massachusetts Securities Enforcement division alleged local EmGoldex affiliates were engaged in the offering and sale of unregistered securities, which formed part of a greater pyramid scheme (EmGoldex itself).
I was unable to find any updates on Pacer, but I believe the case is ongoing.
In any event, if you’re currently promoting EmGoldex elsewhere in the world and regulators come knocking on your door – don’t expect any corporate support or help from the company.
As investors in the Philippines have only now found out, you’re entirely on your own.