Massachusetts Sec Div investigating EmGoldex
One of the more prominent reload scams to rise to prominence after the TelexFree shutdown was EmGoldex.
Shrouded in mystery, the company operates your typical European-based gold Ponzi/pyramid hybrid scam. Affiliate investors buy matrix positions for 540 EUR a pop, and once enough new positions have been purchased (by existing and recruited affiliates), a ROI commission is paid out.
Now, from the guys who brought you TelexFree is a billion dollar Ponzi scheme, comes the announcement that EmGoldex is being investigated.
As is common with ongoing regulatory investigations, at this stage details are sketchy:
Secretary of State William F. Galvin’s office is investigating the Andover operation of Emgoldex Team USA Inc., a company that recruits investors to buy gold online and pays bonuses for referring friends and acquaintances.
The state Securities Division “has an open investigation and is actively looking at the issuer and individuals associated with it,’’ said Brian McNiff, a spokesman for Galvin. He declined to provide details of the probe.
Who exactly runs EmGoldex is a bit of a mystery, with the company claiming on their website to be run out of the UAE:
The Emgoldex Trade Dmcc is registered in a certified free economic zone Dubai Multi Commodities Centre – DMCC.
The Emgoldex Trade Dmcc company is registered and obtains the licence in the free economic zone Dubai Multi Commodities Center for trade in Gold and Precious Metals all over the world. The company operates with the maximum profit for its customers.
If anyone’s going to get to the bottom of the scheme though, Galvin’s a good a candidate as any. Seeking to reverse the “Brazilian scam capital of the US” reputation TelexFree bestowed upon Massachusetts, Galvin is.
Meanwhile local promoters of EmGoldex, based in the Massachusetts town of Andover, have gone underground.
Emgoldex filed incorporation papers in Massachusetts in June, calling itself a training center. But online links and Facebook pages describe a business paying individuals large returns for buying gold and signing up others to participate.
Online literature promises a payout of $8,000 to people who spend $800 on gold with the company.
No one answered the phone at the company’s Andover office this week and two of the cofounders did not return messages left on their voice mail Thursday.
Not having run far, it’ll be interesting to see whether local scammers (all of which are likely to be ex-TelexFree pimps) are held accountable for the schemes Massachusetts operations.
Certainly the scam appearing to based out Europe is going to present its challenges for Galvin’s office.
When the Massachusetts Security Division effectively shut down Wings Network in the US in May, offshore management pulled the plug and “suspended business operations”.
The Wings Network scam remains shuttered today, it’s offshore owners still at large.
Footnote: Our thanks to BehindMLM reader “Charles” for the heads up.
Update October 23rd 2014 – The Massachusetts Securities Division has filed a complaint against EmGoldex promoters in the US.
As result of the Division’s investigation, Matthew Michael D’Agati, James Vincent Piemont, Jonathan Herman Siegler and Joseph Zingales, who together founded EmGoldex Team USA, have had civil fraud charges filed against them.