Sisel Co-Founder: OneCoin is an “illegal scam”
There’s one aspect of our “community of entrepreneurs” that’s sadly lacking.
We’ve got the marketing down pat, the self-promotion, the encouragement, personal development and training is available in abundance.
But self-regulation? Not so much.
Why exactly self-regulation lags so far behind the other aspects of the MLM community is debatable, but it’s certainly noticeable inside and outside of the industry.
Despite numerous schemes blowing up within the industry these last few years, MLM’s supposed representative groups remain silent.
We didn’t hear an official peep out of the DSA and ANMP about Zeek Rewards and TelexFree, together two of the largest MLM Ponzi schemes ever.
Both were also silent on Vemma, with the DSA only issuing statements after the FTC stepped in. Why weren’t they demanding Vemma (and other DSA members) initiate genuine retail incentives before regulatory agencies take action?
On the MLM blog side of things you’ve got BusinessForHome routinely publishing fluff pieces about OneCoin investors making off with thousands of dollars.
Worryingly, BusinessForHome’s blog posts do not disclose how much OneCoin or its featured investors might have paid for the coverage.
Every now and then though someone in the MLM industry speaks up about its underbelly, with that someone today being Tom Mower.
Mower (right) is a co-Founder of Sisel, a personal care MLM opportunity based out Switzerland.
After purportedly being contacted by a Facebook user via a friend request, Mower sent back the following response:
I cannot find you listed as a Sisel distributor Are you? I am also very concerned about One & Bit Coin and Binary MLM companies.
I am an Icon in MLM and one of the real authoritive/experts in this industry. Bit or One Coin and Binary companies grow fast because of the false hope they portray and are by design to do this BUT are in many MLM experts and in particular mine, a monster scam and all will eventually collapse or fail.
It is almost impossible for them not to inevitably collapse!
At their demise hundreds of thousands of distributors will be damaged, some severely. Big leaders may make a lot of money but do face prosecution from the government as is now happening with some companies and could face class action lawsuits from their downlines.
I do not want anyone affiliated with these kinds of get rich quick scam MLM schemes in my company exposing good enterprising people to this clever type of scam.
I am building a multi-billion dollar a year company and want to protect and significantly improve the lives of my distributors so they can achieve permanent lifetime wealth that will always be there and increasing for them.
A Sisel business with such real worth that it can be passed down as an inheritance to their families One or Bit Coin & Binary companies do not offer this in truth and reality.
Disaster awaits for most in them and it is happening with some even now as we speak and I believe it will only get worse..
What exactly Mower was asked about is unclear, but it appears to have been an enquiry about OneCoin investment. It might have even been a marketing pitch.
After he posted the above reply, Mower took to his other Facebook account to expand his thoughts on OneCoin:
ONE COIN the MLM shut down & closed by the US!
WOW TALK ABOUT BEING PROPHETIC
I was just talking about how these Bit type & One Coin companies will not last and will inevitably be closed down. And within hours of saying it I find out that ONE COIN has been shut down by the US.
Granted OneCoin wasn’t shut down by the US, rather the company terminated business operations there (ongoing regulatory investigations?), the thrust of Mower’s comments is otherwise pretty spot-on.
Now I expected to start happening in other countries and very possibly the EU could follow up with the closure too.
In my opinion I see no other course than this to happen for all the Coin and binary schemes that are based upon scamming their distributors to enrich the companies and the overly compensated ultrarich distributors at the top of these types of illegal scams.
Mower’s repeated reference to “binary schemes” appears to be both a dig at Vemma and the fact that a fair percentage of MLM Ponzi schemes use a binary backend for residual commissions.
In my opinion they are certainly immoral dishonest and evil and the end result will be there collapse.
One binary was shut down in the EU and now in the USA leaving all of their disturber forced destitute and now the company and some of the big leaders are facing possible criminal action against them.
Look at Zeek Rewards Who took so many people in on there.
Limes and now the government is holding a quarter of $1 billion much of what should’ve been commissions to disturbers which I doubt they will ever see.
My suggestion if you’re in a Coin company or a binary to get out quick even though it might look so bright star explodes there’s nothing left except it blows a big hole in your finances and crushes much of you future.
People you have brought into the company may now not believe you and not trust you even though the company was to blame they will still fault you for showing it to them Zeek Rewards was first then Veema was for shutdown in the EU and then shut down in the US.
Not one going to shut down in the US and I would expect the EU was for shutdown in the EU and then shut down in the US.
Now One Coin is shut down in the US and I would guess and expect The EU will be coming after them very soon.
Does anyone think that governments are through with these kinds of schemes and scams hardly… which one is next is the question it’s not if it’s going to happen it is who is going to happen to next.
And I would hate binary or a Coin company because I believe many of them must all now I’ll be in the sights of some government agency in the USA or the EU and I would expect that they will soon see it happening to them to.
What do you think? Whose next!!!
I’ve left Mower’s posts largely intact, so apologies on his behalf for the grammatical errors above. Still, the thrust of the point Mower is trying to get across is pretty obvious.
Rather than look at OneCoin’s business model and realize that paying off existing investors with newly invested funds is a Ponzi scheme, I suspect the response from OneCoin and their investors will instead be to bring up Mower’s past as a strawman defense.
In 2003 Mower was indicted for tax fraud, which resulted in a 33 month jail sentence in 2006.
I’ve also reviewed Sisel and found it to be heavily focused on affiliate autoships and recruitment.
Neither however have anything to do with OneCoin’s business model, which needs to be called out as the Zeek Rewards rehash that it is.
To date the only other MLM industry figure I’m aware of to speak out against OneCoin is MLM attorney Kevin Thompson.
In an August 17th blog post titled “BitCoin, cryptocurrencies & MLM“, Thompson (right) wrote:
The purpose of this article is to serve as a warning.
I feel as though there’s a cryptocurrency ponzi scheme bubble brewing in the network marketing industry. It reminds me of the environment during Zeek Rewards.
I’m afraid this cancer has already grown into a mass larger than what we saw with Zeek. Ponzi scheme promoters, domestic and foreign (primarily in China), are taking advantage of Bitcoin’s complexity and its veneer of legitimacy to convince investors that “now’s the time to invest in XYZ alt-coin, which is destined to be the next Bitcoin.”
Consumers, completely uneducated about the technology behind cryptocurrency and unable to decipher good from bad, are making serious mistakes.
Plus, there’s the added excitement of investing in a coin cheaply with the hopes of it rising in value 1000% similar to Bitcoin’s climb.
After seeing the Zeek Rewards hysteria, there’s one lesson I’ve learned: People under the influence of easy money make stupid mistakes.
Be warned: There’s a chance the cryptocurrency program is a cleverly disguised ponzi scheme. In most scenarios, the coins are not OPEN; thus, there’s no way to confirm the coin’s legitimacy.
When the coin is developed in a CLOSED environment, the value of the coin is driven purely by new enrollments into the scheme i.e. ponzi.
The ponzi promoters that push these programs look like you and I. The difference is that they spend most of their time building their “businesses” in the dark corners of the world, seemingly beyond the eye of the U.S. government.
They’re hanging out in places like Thailand, Hong Kong and China.
They know they’re doing wrong, which is why they’re building away from their homes, amassing as much money as possible before the market wises up to the industry.
In Zeek Rewards, there was about a two year run where the ponzi promoters made their money before the market figured out the game.
The victims are uneducated and faceless, which makes their work that much easier.
Thompson doesn’t reference OneCoin by name, but reading between the lines should be an exercise in the obvious for anyone familiar with the scheme.
Zeek Rewards had Monavie’s then President Randy Schroeder call them out in July of 2012.
Claiming Zeek Rewards was “probably a Ponzi”, Schroeder described Zeek as
a company that comes along and sweeps people into a trail that turns into a trail of devastation.
One of the best ways to predict the future is to carefully and critically study the past.
Companies whose compensation methodology is even remotely similar to the way people are compensation in the program called Zeek Rewards, falls way outside of the FTC guidelines in terms of what’s legitimate in the network marketing or direct selling industry.
I mean way, way, way outside the guidelines.
As I’m sure Mower will be, Shroeder was derided by the MLM Ponzi community for his remarks at the time.
A month later the SEC shut down Zeek Rewards for being an $850 million dollar Ponzi scheme.
TelexFree went though it’s lifespan largely unscathed by the MLM industry, with BehindMLM and a few others going at it alone.
And while it is disappointing that by and large the mainstream MLM industry continues to turn a blind eye to its underbelly cousin, it is refreshing to see at least a handful speak up.
It’s your industry too people, and you need to protect it.
MLM Ponzi fraud scams thousands of people out of millions of dollars each year. And yet, after one global billion dollar scam is shut down, it’s barely a few months before I find myself covering “the next big thing” in MLM Ponzi fraud.
If you’re in the MLM industry and sick of seeing Ponzi fraud drag down its reputation, isn’t it time you spoke up about it too?
Tom Mower’s two comments seemed to reflect his personal point of view rather than a professional point of view — his view as a person rather than his view as a co-founder of a company.
The fact that he tried to credit himself with being “an Icon in MLM and one of the real authoritive/experts in this industry” doesn’t make it become more professional.
Yes, now it has also been confirmed that its burning in all directions….
The former mentioned Audit firm (Semper Fortis LTD) has taken their hands off Onecoin and is no longer doing any audit or similiar for them…
Old news. A new auditing firm is auditing it now. Information will come soon
I heard their new accounting firm is Foolem, Trickem & Cheatem, LLP.
Ehhh… Have you been smoking something you shoudn´t?
All Onecoin sites are screaming that they are “the only Audited cryptocurrency” and that the Audit company is Semper Fortis Ltd Bulgaria.
Can I kindly ask you to provide a link where it clearly states, from Onecoin, that no Audit has been done and that Semper Fortis Ltd have taken their hands off Onecoin and does not wants to be associated with Onecoin?
Well since you are probably not a onecoiner you probably don’t know what is actually happening.
Your snitches are probably not in contact with uplines, so your information is old and outdated. You will shortly find out.
(Ozedit: Offtopic derail attempt removed)
I can leave a sneak peek: “We are working with another company and audits performed shall be shortly uploaded”.
Why don’t we hear any news about OneCoin Bank?
Looks like they always “will come soon”, but never really come.
Can you answer the questions I asked you in the other thread?
* Post #58. A question about whether I had interpreted your income claim correctly.
* Post #63. A question asking you to clarify something.
Since many of your statements are rather vague then I will need to ask some questions.
Answer the questions in the original thread to avoid confusions about it.
So your objection in post #3 was about that the news was old, not about that it was incorrect or Irrelevant?
The blockchain auditing was used as a “proof” in marketing for that OneCoin was a real crypto-currency — “not a scam”. But the problem is that it didn’t prove anything, it only proved a lack of integrity from the auditor — a misrepresentation in his oral presentations.
It wasn’t very clear that it was about a non-financial audit meant for internal uses only. That “internal use only” was partially visible in the written report, but Dian Dimitrov wasn’t very clear about it in the video presentations.
The fact that Semper Fortis / Dian Dimitrov now have resigned from the auditing seems to be a relevant part of the story. It’s much more relevant than “OneCoin has found a new auditing firm”.
bullshit. you have no proof of that.
Don’t confuse Mrno with facts. I’m still waiting on OneCoin to buy their 180 banks they said they are buying. They are buying those 180 banks, right Mrno?
These people couldn’t lie straight in bed.
I’m not trying to confuse him. I’m trying to limit his options to suddenly change his position from one position to another.
He claimed to have tripled his money. Then I asked him about whether he was talking about withdrawals. He answered “yes” to that. Then I asked him about the amounts. He tried to avoid that question.
Mrno hasn’t made any claims about that. Someone in OneCoin has. IIRC, it was about one bank with banking licenses in 180 countries, not about 180 banks.
Tommi Vuorinen tried to add some substance to it when he identified Hermes Bank, but that has later been denied by Hermes Bank itself.
“Lack of integrity” was based on that he didn’t clearly say anything about disclaimers in the video presentations.
The video presentations were misleading. He didn’t do enough to clarify that the audit was about non-financial matters only, e.g. about non-financial transactions.
You interpreted it out of context with the rest of the sentence. The main point was that the auditing report didn’t really prove anything of importance.
Here’s the part you focused on …
Here’s the whole paragraph …
Dian Dimitrov / Semper Fortis Bulgaria seems to have been kicked out as a Morison International member in the last few months. Or Dian Dimitrov may have stepped back as a managing partner — the company itself may still be a member.
Morison International currently has only one member in Bulgaria — SF Bulgaria (SF = Semper Fortis).
Click on the map to zoom in:
New website = sfbulgaria.com registered September 15 2015:
Dian Dimitrov is not listed among “Key Management Team”:
But they still use the old email address:
Semper Fortis Bulgaria seems to have reorganized itself in the last few months.
The website semperfortis.bg — the original website — is currently “Under Construction”. It’s still registered with Dian Dimitrov as Administrative Contact.
So Dian Dimitrov has at least been kicked out of the offices.
What informs you that he has been “kicked out?”
The information in post #15 and #16. Dian Dimitrov is in control of a rather “empty” company. The other partner kept most of the substance of the company.
I have combined it with the information that Semper Fortis terminated the auditing contract with OneCoin in August or September.
…for “lack of integrity?”
“kicked out” wasn’t meant to be interpreted too literally, e.g. you can’t apply your own experiences directly (e.g. if you have been kicked out of bars, restaurants, etc. because of some “policy”).
“Kicked out” may cover many different types of scenarios, many different nuances of the same thing.
* Kevin Grimes was “kicked out” from Grimes & Reese lawfirm after he was sued by the Receiver for malpractice.
* John Wuo was “kicked out” as a city council member of Arcadia, but in reality he resigned from that position.
In the Kevin Grimes example, the other partners tried to protect the lawfirm from the lawsuit by making Grimes become an “independent party”. The same thing may have happened here, i.e. it can have been a method to protect the auditing firm from potential legal risks.
I have two posts in moderation queue. You will need to read those two posts as partial answers.
I questioned the auditing report in July 2015, starting from about July 22nd. My current conclusions are partly based on what I looked into back then.
(posts #638 #644 #652 #654 #656 #658 #663 #671)
1. I looked at some facts …
* the two video presentations with Dian Dimitrov
* the written auditing report from May or June, e.g. the Disclaimer
* Dian Dimitrov’s email to “Jeff” published on Facebook
* how the material had been used in marketing of OneCoin
2. Then I tried to identify some rules …
* general rules about auditing, e.g. an EU Directive
* “Professional Rules of Conduct”, “Code of Ethics”
I used many different sources, starting from general sources and working towards more specialized ones.
I used Wikipedia to identify some general aspects, e.g. the different certifications (CIA, CGAP, CISA, CISM, CCSA, CRMA, CFE, CRISC, CISSP, PMP). Then I looked into “Code of Ethics” from a couple of those associations — to see how professionals potentially would interpret the facts.
Some of those “general sources” … trying to identify Dian Dimitrov’s certifications — CIA, CGAP, CISA, CISM, CCSA, CRMA, CFE, CRISC, CISSP, PMP — primarily trying to identify relevant associations where I could find relevant sets of rules to apply to the facts.
I have looked briefly at “Code of Ethics” from at least two of those associations, but I looked primarily at the most relevant one = the one Morison International identified itself as its “primary set of rules” (it had 2 sets listed).
In other words you don’t have any proof that he was “kicked out,” or that any “institutes” took action against him.
Your “case” if I may call it that, seems to be nothing more than guilt by association.
Here’s some sources for that …
* Dian Dimitrov, Dubai Event May 2015
* Dian Dimitrov, interview with Ruja Ignatova
– – – – – – – – – –
[Written audit reports]
* Audit Report May and/or June 2015 (partly quoted in post #14)
– – – – – – – – – –
* Dian Dimitrov’s email to “Jeff”, used by multiple affiliates
That one is also covered in post #644.
– – – – – – – – – –
[Websites — how the material was used in marketing]
* onecoinnorway.com (example source)
I have actually looked at tens of websites when I tried to identify how the audit report was used in marketing. It has a function as a “social proof”, i.e. people have typically used the material to add some false credibility to the OneCoin program and investment.
– – – – – – – – – –
I have primarily looked at whether the material is misleading in itself / in its function, or whether it’s a crystal clear report about something relevant — “something every investor will need to know before investing in onecoins”.
OneCoin itself and its affiliates have mostly used the material in a misleading way. Its primary function has actually been to mislead potential and existing investors.
Misleading actions or omissions?
* Dian Dimitrov didn’t properly disclose the disclaimer or the limitations of the report in the Dubai presentation.
* Some limitations were vaguely mentioned in the interview with Ruja Ignatova, but not clearly mentioned in an understandable way for non-professionals.
* Even the written report wasn’t very clear about limitations.
* His followup communication with “Jeff” adds to the impression that he willingly has assisted his client to mislead investors.
“Lack of integrity”?
That description can be used if people pretend to have a high ethical standard but fail to live up to that standard in reality, e.g. if a professional focus too strongly on the relationship to his own client but indirectly violates his duties to other affected parties.
The most common definitions for integrity revolves around “honesty”, “truthfulness”, “wholeness” and similar factors — rather vague factors.
I have no idea of which “institutes” you’re talking about there. I didn’t mention anything about “institutes taking actions against him”.
He can have been “kicked out” by business partners, just like Kevin Grimes was when the Receiver sued him and his lawfirm Grimes & Reese.
One of those posts starts like this …
The other post points to posts #15 and #16, to some current information.
It means that if you have a very literal interpretation of the expression “kicked out” then we’re not talking about the same thing.
The main Managing Partner of Semper Fortis Ltd, Georgi Kaloyanov, has started a new company SF Bulgaria Ltd, with a new management team.
* Dian Dimitrov and Denitsa Tsekova, two of the old Managing Partners in Semper Fortis Ltd, are not part of that new management team. So he has been “kicked out” as a Managing Partner in that part of the business.
* He has changed address, i.e. he has been “kicked out” from the office.
* He has temporarily changed email address, i.e. he has been “kicked out” from his old email address.
* Most of the substance of the old Semper Fortis Ltd. seems to have been transferred to the new entity SF Bulgaria Ltd., e.g. the two memberships in Morison International (two companies, the one in Sofia, Bulgaria and the one in Pristina, Kosovo).
The discussion here seems to be about the use of certain expressions — “lack of integrity” and “kicked out”. I have already added all the information I have about the use of those expressions, the background, the meaning etc., so I don’t have much more to add to it.
I currently have 3 posts in moderation queue, #19 #21 and #26 (those numbers may change). We will need to wait until those posts have been moderated before we can continue the discussion.
I believe most relevant points already have been answered.
Some minor corrections …
1. The website sfbulgaria.com is owned by Semper Fortis OOD, the local LLC type of company.
It probably means that the other partner, Georgi Kaloyanov, has the main rights to use the trademark / name / logo “Semper Fortis”.
2. Emails to the old address office @ semperfortis.bg currently seem to be redirected to mail.host.bg
It probably means that the other partner, Georgi Kaloyanov, has full control over incoming emails on a temporary basis — that Dian Dimitrov has been “kicked out” from access to emails.
One problem with the reorganizing of Semper Fortis → SF Bulgaria is that they haven’t done anything to limit potential damage to investors — e.g. by publishing something on the new website or by trying to limit the use of the material.
Dian Dimitrov failed to limit his client’s use of the audit report, i.e. he willingly allowed himself to be used for marketing purposes, and he probably didn’t restrict any uses. He only tried to limit his personal responsibility — in the written report but not in the video presentations.
His partner, Georgi Kaloyanov, seems to have tried to limit potential damages to his own company by reorganizing it. But it doesn’t look like he has done more than that.
* The audit contract has been terminated, but nothing has been done to repair the damage. It doesn’t look like he has done anything to stop misuse of the material.
* The company has been reorganized, but nothing has been done to warn new investors about that the old auditing reports no longer can be seen as valid. Nothing has been done to clearly identify the material as “not valid”.
He has actually done very little to limit damages to potential investors or others. His focus seems to have been on himself and his own company, e.g. that he has tried to distance himself from the problem rather than looking deeply into it.
WHAT GEORGI KALOYANOV (OR DIAN DIMITROV) CAN DO
It’s possible to object to use of material even after it has been used, e.g. by sending a request to OneCoin about “your current use of the specified material will bring my company in conflict with ethical rules (so please stop using it that way)”.
That was the neutral version. A request will need much more substance.
A professional business advisor would probably have used an external professional business advisor to look into the case — “someone to look into it from the outside, from a neutral perspective”.
Can’t wait to see the serial Ponzi Scams promoter Ken Labine make us a nice video to admit he was a complete asshole and was completly wrong.
I hope he will at least admit that he perfectly knew since the beguining that he was just an asshole trying to promote a ponzi scheme. OMG this guy is so dumb.
OMG don’t call ken labine ‘dumb’ or he’ll march in here demanding ‘personal insults’ to be deleted.
he runs around making sillybutt videos caling his critics all sorts of names, but he’s very sensitive towards his own ass.
In My Opinion, labine is a whole bunch of idiots all by himself. [as i am stating an ‘opinion’ and not presenting it as ‘fact’, labine cannot attack my free speech]
He will more likely publish a 1 hour 24 minutes video about it. 🙂
Who the crap is Ken Labine anyway?
Just asking because I saw some of his video presentations on Youtube, a highly unprofessional website where he basically tried to build his downline. I never saw a OneCoin conference held by him.
Will someone tell me whether Semper Fortis has issued any confirmation regarding the termination of its contract with OneCoin for blockchain audit.
Keep it simple lads -even if this is some kind of parallel world.