MoBrabus Ponzi scheme collapses, model is “fundamentally flawed”
Things aren’t going well for MoBrabus.
In a video uploaded on September 4th, admin Pearse Donnelly acknowledges that alot of MoBrabus affiliates are “concerned” and “pissed off”.
[0:06] There’s no point in beating around the bush. Alot of you are fed up, annoyed (and) frustrated at how things have turned out with MoBrabus.
MoBrabus is an adcredit Ponzi scheme launched in early 2015. MoBrabus affiliates invested $5 in Ad Packs on the promise of a $6 ROI, paid out of subsequently invested funds.
MoBrabus appears to have officially collapsed a few days ago, with Donnelly (right) appearing in a “MB Member Update” to explain the current situation.
Citing Traffic Monsoon, a similar adcredit Ponzi scheme shut down by the SEC in late July, Donnelly explains how new investment into MoBrabus tanked.
[1:15] When Traffic Monsoon got their PayPal account froze, we seen a ten percent drop in our daily sales.
[1:25] When the news was released that Traffic Monsoon had been closed… was closing down, we took a huge hit to our daily sales.
[2:02] Two week ago we were generating in excess of $35,000 a day. And then the other day, just a few days ago, we took $600 in sales.
Donnelly claims he initiated “some changes” in MoBrabus to encourage new investment, however “that didn’t happen”.
Donnelly claims MoBrabus isn’t “bankrupt” but doesn’t disclose how much money is left in the scheme.
[3:46] When Traffic Monsoon went offline, I wouldn’t say they’re bust yet, they weren’t bust, when they went offline because of the Ponzi allegations, we realized that we are in the line of fire and so is every other revenue share.
Rather than just acknowledge MoBrabus was a Ponzi scheme that ran out of money, Donnelly blames affiliates who he claims invested $990 a day for a few months.
[6:22] A hundred thousand coming into the business is great in sales, it’s brilliant.
But we’re not an investment company, we can’t carry that kind of responsibility.
[6:38] These members managed to make withdrawals in excess of half a million dollars over the last month.
Ponzi ROI liabilities aside, what Donnelly is getting at is unclear. Whether you’re paying a $6 ROI on a $5 investment or a $120,000 ROI on a $100,000 investment, the underlying math is the same.
Despite launching MoBrabus as a 120% ROI investment scheme, Donnelly himself appears to be unfamiliar with the concept of math.
[7:34] We were trying to put out a fire in a system that has a big bloody hole in it. Because that’s how they’re designed.
I never knew this at the start. Revenue share programs are fundamentally flawed. Fact, they are.
No admin will ever tell you this, but it’s a fact – they are.
Addressing MoBrabus affiliates who will continue to invest in Ponzi schemes nonetheless, Donnelly dishes out his own personal investment advice.
[7:53] If you’re going to continue in the revenue share industry, follow these rules and don’t break them.
Number one, never spend more than five hundred to a thousand dollars.
Number two, get your seed money out as quick as you can.
Number three, follow a 70/30 rule. Rebuy advertising packs at 70% and take 30% out.
Because unless you do that, you’re not going to be profitable.
Sure sounds pretty experienced for someone who, despite running one, claims he didn’t know how revenue sharing schemes worked up until recently.
How much MoBrabus currently owes affiliates in ROIs is unclear. What we do know however is that the company is not paying out.
[11:21] We had to make a decision. Do we stop this now and remain profitable as a company and stay at a good place, or do we just keep throwing good money after bad until we go bankrupt?
What would you do?
Here’s how Donnelly’s decision went down with MoBrabus affiliates:
[11:37] I’ve had been call all day calling me a scammer, a scumbag, a thief, a Ponzi scheme and everything else.
Why? What would you do? You tell me what you would do?
Far be it from me to interject, but how about not scamming people in a 120% ROI Ponzi scheme to begin with?
Around the time the SEC busted Traffic Monsoon, MoBrabus investment was already on the decline. This prompted Donnelly to announce the launch of Traffic Powerline.
Traffic Powerline sees affiliates invest $54 in “Traffic Packs”. Back in July, Donnelly himself claimed Traffic Powerline affiliates had ‘the potential to earn $33,984 in 100 days.‘
Enough of the compensation plan had been made public at that point to put together a detailed Traffic Powerline review, which is exactly what BehindMLM published on August 10th.
This has since prompted threats of negative SEO and legal action by Donnelly, who claims Traffic Powerline was marketed ‘using non compliant advertising that was not supposed to be shared‘.
To date Donnelly has not differentiated Traffic Powerline from a revenue sharing scheme.
As of September 4th, Donnelly is still marketing Traffic Powerline as a successor to MoBrabus.
[13:37] I’m giving you an option. I’m giving you another opportunity.
Now I’ve been speaking to hundreds of marketers over the last few weeks, who have teams in excess of five hundred thousand to a million people, a million members.
And that’s all coming towards Traffic Powerline, and you as MoBrabus members all have the opportunity to be in ahead of that.
[15:09] Now I’m ranting a little bit now, alright, but I’ve had a really messed up day with messages from people calling me this, that and the other.
Crack on, call me whatever you like. But if you don’t understand what it is that I’m actually trying to do, then get out of my business. Just get out.
[15:31] We have taken an illegal business model that one day will be shot down. It will be shot down the same way Traffic Monsoon has been shot down.
If we continue with MoBrabus, they will close it down and they will seize its assets.
Despite the implied (yet undisclosed) differences between Traffic Powerline and MoBrabus, MoBrabus ad packs will be converted into Traffic Powerline Traffic Packs at some point.
Ultimately whatever happens, not being able to pay out more than is invested being what makes a Ponzi scheme unsustainable, is a point that appears to remain lost on Donnelly.
[18:00] Revenue sharing platforms are unsustainable, simple as that. Because they allow everybody to do whatever they like.
Traffic Powerline has been designed with control and compliance at its foundation.
Members can’t do what they can do in other revshares in Traffic Powerline.
And we’re not a revshare. Traffic Powerline is a linear matrix system.
By all means call it what you will. But if new affiliate funds are still being used to pay off existing investors, Traffic Powerline is no different to any other Ponzi scheme out there.
Footnote: The video referenced in this article is titled “MB Member Update”.
The video was uploaded to a YouTube channel bearing the name “Mo Brabus” on September 4th, 2016.
Update 9th September 2016 – Within 48 hours of this article going live, Pearse Donnelly deleted the referenced video from the MoBrabus YouTube channel.
Bonus video: youtu.be/B2RBtGVczcQ
Apparently we were 100% right on Mo Brabus but everything else on BehindMLM is “some kind of crap”.
Oh and “Fair Use has to be for non-commercial gain”… Riiiiiiiiight.
The law actually factors in commercial use of copyrighted work, which has nothing to do with commercial gain.
For example, you won’t find BehindMLM selling third-party company logos or images used in our reviews.
Coming from the guy who only just discovered what a Ponzi scheme is though, yeah…
When you listen to the TPL launch update video and hear the usual, “I’ve talked to team leaders and they will be bringing in millions, get positioned, get in before everyone else, payment processors will be in place crap, we broke the code for a long lasting sustainable business, you know that the business in question will be completely reliant on recruiting
This guy is a complete FOOL. takes you to court and will win?? yeah right.
The guy is Bitter and pissed and taking it out on a honest review…
Revenue Sharing means you take real earnings and then distribute… NOT a flat amount. What an idiot!!!
Can you just imagine Donnelly explaining to an experienced judge just how his schemes work and why they aren’t fraudulent ???
Never gonna happen, no matter how much juvenile huffing and puffing he does.
The worst anyone can expect from Donnelly is a nasty letter from a pet lawyer.
since pearse donnely claims he’s such an honest guy, he should disclose how much money is left in mobrabus and reveal his intentions about that money.
saying – hey i did my best, but screw you!- is not acceptable. he should distribute the money in mobrabus to those who want their seed money back.
donnely is making the Standard Ponzi Scammer Speech – hey, things went wrong okay! its not my fault! its because of the affiliates/the govt/the business model/the @#*#..! i’ve learnt my lesson! i’ve now invented a special secrety secret model! see this shiny new object? let’s play again!
translated this^^means – teeheehee gimme your money suckers! i’m going to scam your asses All Over Again you pitiful suckers!!
pearse donnely stands exposed as the thieving lying scammer he is.
now, those that reinvest with him in TPL will expose themselves for the Suckers they are.
Hah, HYIPs are usually *happy* when another scheme collapses… more refugees / sheeple to “reload scam”.
The only reason why a scheme would worry about “Traffic Monsoon” is they are so similar to TM they are worried they’ll be next.
Unfortunately, as much as he tried to explain things, I couldn’t help thinking he’s not the kind of guy I’d like to pass in a dark alley.
Mo Brabus is Irish for My Earnings/Gain/Return.
There is no “real earnings” in a scheme like this. What is called “revenue sharing” is a mash-up of “sales revenue,” (actually money invested) and the expense of making the sale, (which in this case is primarily the cost of paying commissions, bonuses and returns to the participants in order to induce even more people to invest)
Such a scheme so violates basic accounting principles that the only thing that can be said is that when new money comes in, it is then paid out to earlier investors ( a ponzi.)
Whatever “rules” investors are told apply are window dressing. Behind the curtains the promoter is just robbing Peter to pay Paul and doing it in whatever way he finds most expedient.
Kids these days.. Way to go OZ!!! You called it !!
He’s not though. Look at what he’s doing: claiming he didn’t know he was running a ponzi, decrying it as a discovery he made, then suggesting you could make money in a ponzi if you were careful, then offering everyone a brand new not-a-ponzi.
He knows what he’s doing, he wants to come across as having no idea. He’s a very savvy scammer.
He might be savvy as a ponzie schemer, but at the same time is very stupid for exposing his scheme for all to see.
There will be NO flying under the radar for the Irish networker who has exposed himself as a thief. The Irish networker has been skimming 10% off the top and who knows about any other special positions which he created for personal gain.
The fact remains he is not willing to dip into his earnings to pay what he owes.
The Irish networker is the perfect example of a seasoned admin at work screwing with people’s finances, without any remorse of his crimes. I wonder if he pays taxes on his earnings.
Shame on you Mr. Irish Networker! You say that you cracked the code, what exactly did you change to make your so called business legit?
Quote from Pearse:
Speaking for myself, if I was in a net loss position the first thing I’d do is contact a legal/regulatory body in your country and request they take action against you and do whatever is necessary to protect any remaining funds that could repay some portion of my “investment” and hopefully clawback fraudulently obtained funds from the net winners.
Hopefully this is what every Mo Brabus member with a net loss from your adpack scheme will do as it’s the only way any of them have a hope of recovering anything from your ponzi fraud.
Absolute bullshit!
What a load of rubbish, anyone who follows this guy is off their head!
Seems Blondie @ MMG didn’t appreciate my comments about this Ponzi and her promoting Ponzi’s, illegal pyramid schemes and cash gifting schemes. So she got the mod to take it down, as well as hers that started my response.
Funny how she didn’t like being called out for who and what she is.
Now she is promoting his TrafficPowerLine of course. It’s all she knows. If she didn’t like my comments in the Mo Brabus thread, she sure isn’t going to like my comments in the TrafficPowerLine thread. LOL!
@oz
latest TPL webinar by donnelly. may cover the comp plan.
youtube.com/watch?v=MFkEwoNdhOU
@anjali it sure seems like the TPL code which was cracked is, recruit recruiters who recruit other recruiters.
You no pay, you no play.
TPL also states they are 100% business compliant, do they need to be registered as a business? If so, where can one find the registration information?
If I am not mistaken, it also looks like TPL will be selling leads to their affiliates.
Videos taken down, Donnelly nuked the MoBrabus YouTube channel.
Looks Like Traffic Powerline have a Lawyer. It looks positive because as least it isn’t Gerald Nehra….
if they did, they would just name them.
Notarized lawyer? Nonsense.
Notorious. Yes… which is about the only kind that would suggest that a little tweaking will solve his potential legal problems. No lawyer (even the most notarized!) can unring the bell if he’s already broken the law…which seems to be the case.
If investors are convinced that everything is fine by this announcement, then perhaps that is the point of it. Otherwise he’s already blown his engine.
I thought TPL already stated in a live call that they were legal and compliant!
Does TPL have some business registration number(s) listed?
Ridiculous how these CON ARTISTS have taken to throwing this crap up on Youtube to lure suckers, then removing them the minute someone points out the absurdity of the recycled promises.
I’d propose they try shouting out their back door as the next big thing in “Internet Marketing”.
SD