Eric Worre sweeps millions in Ponzi fraud under the rug
Eric Worre has been in the spotlight of late for recruiting people into Traders Domain, a half billion dollar Ponzi scheme.
This followed Worre signing on with OmegaPro corporate and publicly endorsing the Ponzi scheme, which was tied to Traders Domain.
Both OmegaPro and The Traders Domain collapsed in late 2022.
Earlier today, Worre uploaded a YouTube video titled “Eric Worre Responds to Critics“.
I was expecting Worre to address his stealing of millions of dollars through The Traders Domain and receipt of stolen investor funds through OmegaPro.
Instead I got nine minutes of excuses, lies and misdirection.
The overarching problem of Worre’s “response” is his refusal to acknowledge Ponzi schemes and securities fraud.
Instead, after trotting out a long list of MLM companies (at least two of which are/were MLM Ponzi schemes engaged in securities fraud), Worre misdirects with pyramid scheme rhetoric.
[3:04] Some critics like to say, “Well this company was obviously bad. Or obviously a pyramid. So you should have known better, and you shouldn’t have given it any credibility by being a trainer for them in the first place.”
Here’s my position on that;
If I made it a criteria to never speak, train or consult for a company that was ever accused of being a pyramid, then I’d never speak at all.
Because every single company in our profession has been accused of being a pyramid at some point or another. Including yours.
It’s a cheap and easy accusation from outside critics.
[4:20] Some people like to say. due to my position in the profession, that I should speak out against specific companies, that in their opinion aren’t legitimate …
[4:44] I decided not to do that. For two main reasons.
First … there’s many companies that lived in a grey area for quite some time, before making the proper adjustments to legitimacy.
[5:22] The second reason I don’t put companies on blast, is we already deal with so much misunderstanding and negativity in network marketing from outside sources.
I wanted, from my heart, to come from a position of encouragement instead of criticism. I decided that in the end, the market will decide who succeeds and who fails.
While it is true all MLM Ponzi schemes also operate as pyramid schemes, Worre is right in characterizing pyramid scheme due-diligence as a grey area.
Not with respect to the law, which is clear cut and has been for some time, but with respect to due-diligence.
Establishing whether an MLM company is a pyramid scheme is a complex recipe of compensation, marketing, products, backgrounds and financials.
The latter the public doesn’t get access to, so we have to work with what’s available.
With respect to BehindMLM’s reviews, for example, unless I see something that definitively defines an MLM company as a pyramid scheme, I’ll write in probabilities rather than certainties.
Worre’s misdirection here lies in him feeling the heat, not for failing to recognize pyramid schemes, but for stealing millions through The Traders Domain and receiving stolen investor funds through OmegaPro.
MLM Ponzi schemes and securities fraud go hand in hand. In contrast to pyramid scheme due-diligence, establishing securities fraud is very simple:
Is the MLM company offering a passive return of any sort?
If no, then then securities law doesn’t apply to them. If yes, then are they registered with financial regulators in the countries they solicit investment in.
Eric Worre is from the US and securities in the US are regulated by the SEC. Securities fraud has been illegal in the US since the 1933 introduction of the Securities and Exchange Act.
The SEC has a public Edgar database, on which anyone can take five seconds to search and verify if an MLM company offering securities is registered.
If they aren’t, they’re committing securities fraud and there’s a 99.9% chance you’re looking at a Ponzi scheme.
This bare minimum due-diligence is what Eric Worre, through unashamed negligence, failed to perform on The Traders Domain and OmegaPro.
So what due-diligence does Worre perform before deciding to accept money from an MLM company?
[1:51] When I’m deciding to work with a company or its leaders, I just what I feel is the intent of the players involved.
And if I feel that that intent is good, I usually move forward.
This excuse falls flat. When it comes to Ponzi schemes like The Traders Domain and OmegaPro, the only intent of a Ponzi scheme is to steal money.
[3:46] In the end, the good companies make proper adjustments and survive. Like many of your companies have.
Again we have pyramid misdirection. MLM Ponzi schemes cannot un-Ponzi themselves into legitimacy, both from a regulatory and operational perspective.
Investment fraud is the business model. There’s no “proper adjustments” to be made.
And as for “the market” deciding whether a Ponzi scheme succeeds or fails, this is more misdirection. Simple math guarantees that every Ponzi scheme will fail. Period.
Anyone with half a brain will realize a search of the SEC’s Edgar database isn’t beyond Eric Worre. The reason he didn’t perform any due-diligence on The Traders Domain and OmegaPro is because he saw dollar signs.
Specifically, Eric Worre’s involvement in OmegaPro and his recruitment of friends and associates into The Traders Domain, saw him walk away with over $21 million dollars.
$21 million dollars plus, ultimately stolen from victims Worre refuses to acknowledge.
Moving on, here’s one lie I found particularly offensive;
[2:40] And for the umpteenth time, I don’t have a position in any company. I don’t have ownership in any company. And I have never specifically endorsed any particular company…
…or asked anyone to get involved in any particular company, and I never will.
I can’t speak to positions or ownership, but I can categorically confirm Worre endorsed OmegaPro and asked people to get involved in The Traders Domain.
Worre’s engagement with OmegaPro wasn’t a fly-in, speak, fly-out regular gig. He joined OmegaPro corporate as the company’s official “Strategic Coach”.
That’s an endorsement Eric. You endorsed OmegaPro by giving it the thumbs up. You endorsed OmegaPro by signing on as an executive.
While we don’t know how many people Worre recruited into The Traders Domain, we know a good chunk of the $21 million plus he stole through the Ponzi is linked to recruitment.
Otherwise the numbers don’t add up.
For reference, while The Traders Domain wasn’t an MLM Ponzi scheme, it still paid a direct referral commission.
All of the top The Traders Domain net-winners were recruiters, and Worre came in seventh with his $14.6 million. Eric’s wife, Marina Worre, came in twelfth with $6.8 million.
Of the public top The Traders Domain net-winners, several have no connection to the Ponzi scheme other than Eric Worre and Go Pro.
If we ran through the top 100 in The Traders Domain, is Worre seriously contending not one person would claim he was the one who introduced them?
Another theme towards the end of Worre’s response is the idea that his past can wash away stealing and receiving millions through two Ponzi schemes.
[5:46] My role is to support the profession as a whole. And let me tell you about that support, because I’m very proud of it.
Go Pro has been the number one book in network marketing for ten years, with almost five million copies sold in nineteen languages around the world.
The Go Pro annual event is the Superbowl of network marketing, and the largest generic training event in our profession.
And the Most Powerful Women in Network Marketing event does the same for the great women in our field.
I put out more free network marketing training content then anyone ever has. And will continue to do so, because it’s what I’m meant to do.
Over five million people consume the free content that I put out on a weekly basis. And we have big, big plans to grow that number.
I have a collection of best-selling courses that have helped people experience breakthroughs in their business, big and small.
I have the most powerful top-earner mastermind in our profession, representing companies all over the world. And we work together to raise the bar for everyone in network marketing.
And in talking about pure results, okay? Over the last fourteen years I’ve helped millions of people enjoy a nice part-time income.
I’ve helped well over ten thousand people to create a six-figure annual income. And I’ve helped over five hundred people get their network marketing income to over a million dollars a year.
I’m certainly not here to diminish or trivialize Worre’s accomplishments. Good for him, and I genuinely mean that.
If I may quote Woody Harrelson’s character Vince Boudreau in Play It to the Bone though;
If a man builds a thousand bridges and sucks one dick, they don’t call him a bridge-builder… they call him a cocksucker.
Right now, Eric Worre isn’t the great MLM coach and trainer he’s worked on being over the past fourteen years.
He’s the scumbag who, over the course of a few months, stole $20 million plus through one Ponzi scheme and received who knows how much from another.
I’m not going to suck my own dick for as long as Worre did today but, regardless of how you feel about BehindMLM, I think we can all agree I’ve done my bit for consumer awareness over the years.
If over the next six months I abandoned my moral compass and began recruiting people into the Ponzi schemes I routinely warn consumers about, that too would be my legacy.
I wouldn’t be Oz, the guy who’s spent the last fifteen years going head to head against the worst of the MLM industry day in and day out.
I’d be Oz, the guy who ran BehindMLM and wound up stealing a bunch of money from a bunch of people. And, like for Worre, there’d be no undoing that.
[7:15] Critics will take shots, I get that. People want to blame, I get that also.
But for those critics on the sidelines, I encourage you to step up and try to out-produce me in terms of the value you bring to our profession.
Let’s compete to see who can bring the most value. That way everyone wins.
Well, except your victims. Their losses remain very real and unaccounted for.
Save to say I could have done nothing over the past fifteen years, and I’d still be ahead versus the $21 million plus in consumer losses attributable to Worre through The Traders Domain and OmegaPro.
I’m not interested in Worre’s pissing contest. It’s not constructive and doesn’t address the issue.
So how do we address the issue of Worre being a prominent figure in the MLM industry, weighed down with $21 million plus in ill-gotten gains?
From a legal perspective Worre has opened himself up to securities fraud charges from the SEC.
Both OmegaPro and The Traders Domain used trading ruses to hide their respective Ponzis behind, so to a lesser extent the CFTC might get involved on commodities fraud charges.
The DOJ may or may not sandwich criminal wire and securities fraud charges in as well.
The $21 million plus amount certainly warrants it. As does Worre’s continued arrogance and failure to show any remorse for the victims whose money he misappropriated.
But that’s out of our hands.
Worre’s never going to wash away the stench of fraud he’s cloaked himself in. He was too well regarded and it’s just too much.
For now and pending federal charges if they’re coming, the best thing Worre can do is is drop the act and just be honest.
How much Worre stole through The Traders Domain is public knowledge. How much he received from OmegaPro isn’t public but is likely substantial.
Who Worre recruited into The Traders Domain isn’t 100% clear but it’s obvious he was funnelling people into it.
Be honest and take accountability. As I’ve previously stated, we’re well-past concerns about self-incrimination. There’s nothing Worre could disclose that the SEC and DOJ can’t ascertain or don’t already have access to.
If they’re going to file they’re going to file, that train left the station months ago.
This is about doing something wrong, owning up to it once caught and, on a very public stage, responding in as appropriate manner as you can given the circumstances.
There’s no redemption arc and it’s not going to be pretty. The best you can aim for is forgiveness over time – but that journey starts with acknowledgment.
That acknowledgement has to come from Worre himself and it has to be brutally honest.
This hiding behind your accomplishments, calling out “the critics” and refusing to publicly acknowledge The Traders Domain and OmegaPro as Ponzi schemes you profited from, is just digging a deeper hole.
These are very serious acts you’ve committed Eric. How about we try taking them seriously?