Kannaway Crown Ambassador Randy Schroeder isn’t happy with BehindMLM reporting on TranzactCard.

Towards the end of a September 4th YouTube video, covering the same TranzactCard updates we’ve reported on, Schroeder had a bit of a meltdown.

Schroeder’s meltdown was precipitated by TranzactCard losing access to its US banking services last week.

This major development seems to have raised questions within TranzactCard, which Schroder is evidently sick of answering.

I have had the conversation I’m about to have with you, I’ve had with multiple people today. And I thought to myself you know what, why not have it one more time, make a little YouTube video and send it out to you all.

Ironically, Schroeder spends most of the video addressing TranzactCard losing its US banking services.

We saw references that Solid had severed its relationship with TranzactCard.

When the relationship with Solid was severed that, by its definition, severed the relationship with the partner bank.

This of course we already knew and reported on. One new bit of information I’ll add is that Solid provides a helpful uptime graph on its website:

Other than some minor delays on September 3rd, Solid doesn’t report any disruptions to its services. This is in direct contrast to what TranzactCard has told its affiliates, which Schroeder repeats;

We wound up not only disrupting our business … it wasn’t just our business was being disrupted by this massive number of new accounts, it is that other clients of Solid would be negatively impacted by the overwhelming of the system, caused by the stunning growth of this company.

Again, Solid’s uptime graphs reveal 100% uptime and very slight delays on a few days. There doesn’t seem to be any “disruptive” activity. Certainly not to the extent Solid’s backend was having trouble coping.

According to Schroeder, TranzactCard has already found a replacement for Solid and “contracts have been signed or will be signed”.

That’s great to hear and had Schroeder of stopped there, having achieved his stated goal of answering questions in relation to the banking “severing”, I wouldn’t be putting together this article.

Adding an update to our article to note TranzactCard has found replacement US banking services is trivial.

But instead Schroeder transitions into a full-blown meltdown about BehindMLM’s reporting, on the same banking issues he just finished addressing.

Now, there is another topic that I want to discuss this evening and that is this; there is a website out there called BehindMLM.

And BehindMLM has decided the thing they should do is write all sorts of negative things about TranzactCard.

And um, the first thing I’d like you all to do is contemplate and consider the source of the information.

For reference, out of the eight thousand nine hundred and fourteen published articles on BehindMLM, six pertain to TranzactCard:

This article will make it seven.

As for our source, for everything except the Obama, Trump & Lebron James endorsement article, it was TranzactCard itself.

The Obama, Trump & Lebron James article was based on TranzactCard marketing pushed by an affiliate, which I’d received several enquiries from readers to look into.

I wasn’t able to establish whether TranzactCard itself was the source of the nonsensical marketing claims, and so in the article I noted:

Whether TranzactCard endorses Mayes’ seemingly false marketing claims is unclear.

I’m sure Schroeder felt he had a point taking a dig at BehindMLM’s source material for our TranzactCard articles. Whatever it was though it’s lost on me.

Schroeder goes on diminish BehindMLM’s reporting, not because of its accuracy, but because he feels it equates to “airing dirty laundry”.

As the Editor and Chief here at BehindMLM, I can confirm whether something is “dirty laundry” or not isn’t an editorial concern. If it’s MLM related, newsworthy and/or in the public interest, we’ll research and run the story.

What Schroeder’s really upset about here has in fact nothing to do with BehindMLM. He’s upset news about TranzactCard is being reported on at all, and this comes out in what he says next;

And it’s about publishing whichever dirty laundry someone will pay them the most to publish.

It’s not something I think, it’s something I know. I’ve lived in the industry for many, many years and that is truly a trash rag.


It’s one thing to dislike accurately reported on news, but to attempt to discredit a publication simply because you don’t like what they’re publishing… again, that speaks more to Schroeder than it does to BehindMLM.

Within the context of MLM news and reporting, shooting the messenger isn’t due-diligence. It’s a tactic used by scammers when they can’t address the message.

The obvious? Since launching fourteen years ago BehindMLM has never accepted payment or any form of compensation in exchange for content. Period.

BehindMLM is fiercely independent. And as an independent journalist, I can’t imagine anything more soul-crushing then having to pump out content curated for the highest bidder.

Simply put: Randy Schroeder is full of shit. He’s publicly lied about BehindMLM to push TranzactCard and, such to the extent he had a credible reputation, has now destroyed it.

Schroder goes on to bemoan BehindMLM failing to “find so many admirable things to say about” TranzactCard. None of the examples provided by Schroder are actual news though, they’re just marketing points.

Oh and there was also this:

Are there some companies who may not find joy in our success? Are there leaders who are joining us from other companies?

Might some of those companies who are advertisers on BehindMLM have a little bit to do with what’s going on right now and that particular publication’s choice of dialogue?

Is it possible, do you suppose, that competitors are some way responsible for what’s going on?

I will tell you it’s not only possible, in my mind it’s altogether likely. It’s virtually a certainty.

Putting aside the fact that BehindMLM has no direct advertisers, what exactly would these unnamed competitors be responsible for?

The only parties involved in Solid closing down TranzactCard’s US bank accounts are Solid and TranzactCard. TranzactCard disclosed these events in their newsletters, which BehindMLM reported on.

What on Earth is Schroeder talking about?

Believe me, had another MLM company pressured Solid into dumping TranzactCard – you can bet that’s a story we’d be running.

I think a major problem here is Schroeder confusing bought and paid for marketing with independent journalism. Whether that’s intentional or not, who’s to say.

The last thing I want to address is why BehindMLM is keeping a more closer eye on TranzactCard, than we might typically do for an MLM company in prelaunch.

To best explain, let me turn it over to… *checks notes* …Randy Schroeder.

The year was 2012 and a sizable percentage of the US-based MLM industry had fallen for Paul Burks’ Ponzi scheme.

In what was a rare instance of someone in an executive position speaking up, Randy Schroeder, then President of MonaVie, publicly called out Zeek Rewards.

Zeek Rewards (is) a company that “comes along and sweeps people into a trail that turns into a trail of devastation”.

Zeek Rewards is “illegal, a pyramid scheme (and) probably a Ponzi scheme”.

If memory serves, the immediate backlash Schroeder faced was intense. Schroeder, if anyone, has first-hand experience of what being on the frontlines of factual reporting can feel like.

And this is something I pointed out in BehindMLM’s coverage eleven years ago;

No doubt efforts will be made to simply brush off Schroeder’s comments as “jealousy”, “negativity” or other dismissive labels, however little can be said to refute his claims.

Given this, Schroeder’s baseless personal attacks on BehindMLM over TranzactCard are all the more disappointing. But, I digress.

What I want you to take away from Schroeder’s remarks on Zeek Rewards being a Ponzi scheme is this:

One of the best ways to predict the future is to carefully and critically study the past.

Again, these are Schroeder’s own words. But they precisely tie into why BehindMLM is closely following TranzactCard in the lead up to its November launch.

TranzactCard is run by Richard Smith. Here’s his past:

Between 2003 and 2007 Smith launched Ascendus and FFCF, two Ponzi schemes that defrauded consumers out of around $10.9 million dollars.

In 2010 Smith was criminally charged with securities fraud. I tried to research the outcome of this case but didn’t find anything definitive.

The best I have is the case might have been dismissed after the State of Utah failed to make an appearance at a scheduling conference.

This is from a Supreme Court of Utah filing with respect to Smith’s accomplice, Roger Edward Taylor;

On August 13, 2010, the State filed an information charging Mr. Taylor with two counts of securities fraud and one count of abuse, neglect, or exploitation of the elderly.

One year later, on August 30, 2011, the State amended the information.

Less than one month later, when the State failed to appear at a scheduling conference, the district court dismissed the case without prejudice.


Update 7th November 2023 – I wasn’t able to ascertain the outcome of Smith’s securities fraud criminal case at time of publication but, following on from reader comments on another article, have verified the outcome.

In January 2017 Smith pled guilty to one count of Pattern of Unlawful Conduct, a second degree felony.

Smith was sentenced to pay $200,000 in restitution of which he has paid $100,000 with the remaining $100,000 to be paid in monthly installments of $1,667 for the next five years, which is the period of his probation, plus 250 hours of community service.

Smith’s sentencing was recorded on page 3 of a meeting minutes filing from the Utah Division of Securities Commission. /end update


In November 2012 a court-appointed FFCF Receiver secured a $3.2 million default judgment against Smith.

In late 2013 Smith resurfaced as co-founder of WakeUpNow.

WakeUpNow collapsed in 2015, generating tens of millions of dollars in consumer losses.

In 2016 Smith resurfaced as co-founder of Divvee.

Divvee’s original business model collapsed in 2017, prompting the MLM company to delve into securities fraud.

That didn’t last. Divvee collapsed by the end of 2017, once again generating widespread consumer losses.

In late 2017 Divvee rebranded as Nui. At some point Smith cashed out and quietly disappeared.

In 2019 Smith resurfaced as the founder of R Network. R Network strung affiliates along on a never-ending prelaunch.

By early 2021 R Network had collapsed, once again generating widespread consumer losses.

In March 2021, Smith cashed out and sold what was left of R Network to to iX Global. Last month the SEC sued iX Global for $49 million in securities fraud.

In 2023 Smith resurfaced as founder of TranzactCard.

Is it any wonder BehindMLM is closely monitoring TranzactCard’s prelaunch? Anything less would be a disservice to our readers and consumer awareness at large.

To be clear, in BehindMLM’s published TranzactCard review we identified a potential pyramid scheme. This came down to whether the majority of TranzactCard’s revenue was being generated from its affiliates over retail customers.

Thankfully we didn’t find a Ponzi scheme or any definitive evidence of securities fraud. Smith’s past was noted but was not a major factor in the conclusions drawn in the review.

Randy Schroeder might not like what BehindMLM reports on, and he might even seek to discredit us through deception…

…but there is nothing in this article that isn’t factual or of public interest to anyone in and/or following the MLM industry.

BehindMLM has no vested interest in whether TranzactCard launches on November 12th or not. In the interests of public due-diligence and consumer awareness, we’ll continue to report on any significant updates.


Update 7th September 2023 – Less than 24 hours after this article was published, Randy Schroeder set his meltdown video to private.


Update 8th September 2023 – Disabled YouTube link replaced with copy of the video still accessible on Schroeder’s FaceBook page.