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 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.
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.