Following regulatory pressure and court decisions that have gone against it, Lyoness appears to be distancing itself from Europe. Desperate to keep new investment rolling after Italy outlawed the Ponzi scheme, Lyoness is gearing up for a push into Malaysia, Saudi Arabia and Colombia.
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A top Lyoness distributor, who claims to have over 2 million members under him, has admitted “focusing on shopping is a mistake”.
As part of a consumer protection ruling in Austria, Lyoness has been ordered to compensate victims with interest. The ruling covers Lyoness victim losses on investments made between 2007 to 2009 and in 2012.
The Norwegian Gaming Board has rejected Lyoness’ second appeal, resulting in the Ponzi scheme being permanently banned in Norway.
Following a nation-wide ban and 3.2 million euro regulatory fine, Lyoness affiliate investors in Italy want their money back. To that end Lyoness’ Italian victims have lawyered up to demand the return of their losses.
Following a boom in local investor recruitment, Lyoness caught the attention of Italian authorities. Italy’s Competition Authority (AGCM) announced a preliminary investigation into Lyoness in September 2018. The investigation concluded in late December, resulting in Lyoness being declared a pyramid scheme.
In response to authorities announcing a preliminary investigation, Lyoness has suspended investment from Italy.
In what very well could be an early death-knell for Lyoness, Italian authorities have announced a preliminary investigation into the company.
One of the common rebuttals we see to Lyoness’ Ponzi scheme is the cashback side of the business. Originally offered through Lyoness itself, the cashback scheme was rebranded as CashBack World last year. Following the Gaming Board’s decision to ban and then uphold Lyoness’ ban in Norway, the company has filed a second appeal. In [Continue reading…]
Any hope Lyoness changing its name to myWorld would reverse an earlier ban have been dashed, after the Norwegian Gaming Board reaffirmed Lyoness is an illegal pyramid scheme.