Notorious MLM industry figure David Wood has emerged with a new MLM AI trading grift.

Quantum Club is currently in prelaunch. The newly announced MLM company appears to combine securities fraud, commodities fraud and pyramid recruitment.

Quantum Club is operating from the website domain “quantumclub.ai”, privately registered on December 12th, 2023.

Presently Quantum Club’s public-facing website discloses nothing about the company or its owners. Visitors can only sign up as an affiliate or log in.

Quantum Club is supposedly headed up by three co-founders, one of which is David Wood.

Wood is known to BehindMLM as the co-founder of the Empower Network gifting scheme.

Empower Network began to collapse in 2014 but it wasn’t until 2017 that the company fully imploded. Later in 2017 Wood claimed the last few years of Empower Network were “fake and bullshit“.

One of the more disturbing aspects of Empower Network’s collapse was Wood’s substance abuse. This led to bizarre footage of Wood claiming he could cure diseases and control plants.

Wood would later introduce himself as god incarnate (“King David”), and even claimed he’d be the next President of the US (circa 2018 IIRC).

As the Empower Network money dried up Wood would return with various money making schemes. There was even talk of rebooting Empower Network at one point.

Thankfully, at least on the surface, Wood seems to have recovered. I didn’t see any of the post-Empower Network craziness in Quantum Club’s marketing material.

As to the other Quantum Club co-founders, for unknown reasons who they are isn’t being disclosed.

One potential club is in Quantum Club’s website Terms of Use. Here we find a reference to Simple2Advertise LLC.

Simple2Advertise appears to be a New Jersey company owned by Vincent Webb.

Webb uses Simple2Advertise to sell marketing funnels. On December 23rd, Webb boasted a “new system” had gone viral:

That’s a screenshot from the Quantum Club backoffice.

Moving on to Quantum Club’s business model; Quantum Club is currently in recruitment mode. There is no retail, making it a pyramid scheme from the get go.

On social media Quantum Club affiliates are claiming the company will market an “AI software trading tool for investors”.

In a marketing video in the Quantum Club backoffice, here’s how Wood pitched Quantum Club’s product;

So we have a product, Quantum Club okay? … that without any affiliate opportunity at all, this product already, this is selling five million dollars a month of this product.

That’s without any affiliate opportunity. We’ve already got sales. We’ve already got processes in place.

I’m gonna tell you what the best business opportunity in the world is, and you’re never gonna guess what I’m gonna say; and that is just “investing”.

Now I’m not gonna get into the exact details of what we’re doing in this (???).

The power that investing has it that investing give you the ability to make money from any market. If the market’s going up you can make money. If the market’s going down you can make money. If the market’s going sideways you can make money.

And this year in particular, there has been some radical advancements in technology. In particular artificial intelligence technology.

We’ve got our clients earning returns that are just insane.

AI and promises of “insane returns”. Yeah, sounds like another AI trading bot grift to me.

The elephant in the room is if, as Wood claims, this AI trading bot is already generating $5 million in sales a month, why does Quantum Club need to exist.

Ditto the “insane returns”. Why aren’t Wood and the cofounders just pumping their own money into the bot and making “insane returns”?

On the regulatory front an MLM company pitching “insane returns” through automated trading constitutes a securities offering.

This requires Quantum Club and its founders to be registered with the SEC. Depending on what’s being traded, registration with the CFTC could also be required.

A search of the SEC’s Edgar database reveals neither Quantum Club or David Wood are registered with the SEC.

Wood could argue that he’s living in Costa Rica (which has their own financial regulator), but a number of Quantum Club’s current top recruiters are US nationals and/or residents.

In any event any MLM company pitching a passive returns investment scheme to US residents, regardless of where they are operating from, needs to be registered with the SEC.

This is basic MLM securities law 101.

In a nutshell, Quantum Club is shaping up to be a pyramid scheme. If recruitment doesn’t collapse before it gains traction, Quantum Club could still wind up in the crosshairs of financial regulators in the US.

As I understand it Quantum Club is scheduled to launch in January 2024. Pending full compensation and trading bot details being made public, a full Quantum Club BehindMLM is pending.