USI-Tech Ponzi abandons US & Canada, confirms SEC investigation?
In a move that is unlikely to have surprised anybody, USI-Tech has severed ties with the US and Canada.
Rather than operate legally in the US and Canada and register with the appropriate regulatory bodies, USI-Tech has instead elected to abandon its legal obligations and focus on scamming investors elsewhere in the world.
USI-Tech faced increasing pressure to prove it wasn’t a Ponzi scheme following a securities fraud cease and desist issued in Texas last month.
Up in Canada, the provinces British Columbia, New Brunswick, Nova Scotia, and Manitoba had separately issued USI-Tech investor warnings.
It is the Texas cease and desist however that, from a regulatory perspective, was of the most significance.
In order to operate legally in Texas (and the US in general), USI-Tech had until January 20th to provide evidence of external revenue being used to pay affiliate ROIs.
The company has been promising to provide this to its affiliate since last June.
US and Canadian investors who perhaps hoped the company would finally prove to the world it wasn’t a Ponzi scheme, instead woke to a backoffice message from USI-Tech informing them they’d been dumped.
In what USI-Tech is calling an “extraordinary termination of distributor agreement”, the Ponzi scheme attempted to blame its outing as a scam on its affiliates.
We were utterly dismayed to learn that a large number of our sales partners extensively advertise our services on their own websites as well as on social media in a manner which is a breach of contract as well as illegal, and which gives the appearance that our service portfolio violates both US and Canadian law.
Despite the measures which we have already initiated, this behavior has even intensified in recent weeks and months.
This has already resulted in actions by the respective authorities against various distributors, as well as the first preliminary injunctions in response to this advertising behavior.
Now to make it clear right off the bat, while the Texas cease and desist did target two investors with respect to promotion of USI-Tech, it also demanded USI-Tech register its securities offering and provide evidence it was not operating as a Ponzi scheme.
This is something USI-Tech does not address in its “blame the affiliates” termination letter.
The next paragraph in the termination agreement is significant, as it suggests the SEC itself has launched legal proceedings against USI-Tech.
The initiation of the above-mentioned official action and the court-ordered preliminary injunctions has also inevitably placed our company in a legally problematic situation.
This is due to the fact that, in the event of any doubt, it cannot be ruled out that this illegal advertising by the distributors involved will cause the relevant authorities to suspect that our company itself is promoting this type of advertising activity, or at least tolerates it.
This type of alarming view by the authorities would lead to unforeseeable damage for our company as well as our sales partners who observe applicable laws.
We cannot subject our company or our reputable sales partners to this danger.
Again the “blame the affiliates” line of defense is baloney. Everyone in and out of USI-Tech knows it’s promoted as a 140% ROI scheme globally.
What’s more important is mention of a “preliminary injunction”.
The Texas cease and desist is an official notice attached to a thirty-one day timer that expires on January 20th.
If USI-Tech elected not to register itself with the Texas Securities Board and prove it wasn’t a Ponzi scheme, the Texas Securities Commissioner would enter an order declaring USI-Tech illegal in the state of Texas.
A preliminary injunction is something the SEC would file. At the time of publication I’m unaware of an SEC investigation into USI-Tech.
In the past we’ve seen preliminary injunctions filed against MLM Ponzi schemes under seal, as it gives authorities time to freeze invested funds while the operators of the scams are none the wiser.
It’s not until bank accounts and assets are frozen that targets of a preliminary injunction filed under seal realized the gig is up.
Whether this has happened with USI-Tech or not is at of this time unclear.
There’s no connection between a preliminary injunction and the Texas cease and desist though, so either the SEC are now involved or USI-Tech has bodged their termination notice.
Regardless, USI-Tech are blaming affiliates for the companies non-compliance in the US and failure to prove external ROI revenue.
Consequently, we have decided to immediately discontinue our business activities as well as our sales in the US and Canada.
Unfortunately, this also has a direct consequence for you as a sales partner since the cessation of our marketing operations means that we are forced to immediately terminate our contractual relationship with you.
US and Canadian affiliates have purportedly been blocked from their USI-Tech backoffices.
Whether the termination applies to US and Canadian investors who have signed up through offshore shell companies, as I’m sure many have, is unclear.
With respect to invested funds, USI-Tech will pay out backoffice commission balances up to two weeks from now – with catches.
The catches are any affiliates they’re aware of that have multiple accounts will have “unlawful payments” across those accounts deducted.
Any affiliates USI-Tech deems to have advertised the company for what it is, a 140% ROI Ponzi scheme, won’t be getting any of their money back.
In fact USI-Tech even goes so far as to assert it might go after these affiliates with “claims for damages” (hahahahahahaha!).
In a move that appears to be an attempt to scrub the internet of evidence for present and future regulatory investigations, USI-Tech also requires affiliates to
destroy and/or take offline all websites, landing pages, social media sites/chat groups (e.g., Facebook, YouTube, Instagram, WhatsApp, Telegram pp.) or other online or offline advertising materials relating to direct sales of our goods, software, other services and/or our direct sales concept.
Those that don’t comply are unlikely to see any of their money back.
So where to from here?
In abandoning the US USI-Tech finds itself in the company of well-known MLM Ponzi schemes. Both My Advertising Pays and OneCoin pulled the same stunt to avoid triggering a US regulatory investigation.
Both scams have since collapsed, resulting in widespread investor losses.
According to USI-Tech’s Master Distributor Dan Hunt, the termination has caught US investors off-guard.
In a livestream held shortly after USI-Tech terminated US and Canadian affiliates, Hunt stated:
This announcement came as an absolute surprise to all of us.
I have talked to several leaders around the country, none of those leaders had any idea that this action was going to be taken.
Hunt went on to urge USI-Tech investors to delete any publicly available evidence of their involvement in the scam and to “lay low”.
As I write this Alexa peg the US as easily the largest source of traffic to the USI-Tech website (45%). Nigerian princes come in a distant second at 12%.
Gutting invested US funds from USI-Tech will likely collapse the Ponzi outright, so I’d estimate the majority of US investors aren’t going to get their money back.
Rather than comply with USI-Tech’s request to scrub evidence to assist its owners stealing your money, if I was an investor in the US and Canada I’d be filing a complaint with the relevant authority.
For USI-Tech investors in the rest of the world, with respect to USI-Tech being a Ponzi scheme – you now have your answer.
At a base level the US and Canadian termination is going to wreak havoc on USI-Tech’s ROI reserve of invested funds. Get your money out now or be left holding the bag.
Only the scummiest of scammers will continue to promote USI-Tech in light of confirmation it’s a Ponzi scheme.
Anyone who claims it isn’t only need be reminded of USI-Tech’s failure to register itself in Texas and provide evidence to the contrary.
I had a hunch the SEC was only going to show its hand after the January 20th Texas deadline.
With USI-Tech referencing a preliminary injunction I’m not sure if that’s still the case.
I’ve checked Pacer but for now nothing is coming up. If the SEC has filed a lawsuit and won an injunction, it’s still under seal.
Thanks for the heads up from you all. I was asleep when this dropped.
Covering MLM news has been bonkers this week!
One important point on the “blame the affiliates” game, it gives them an excuse (per their TOS) to stiff all their US and Canadian investors/affiliates.
They speak of an audit and reserving the right to claim damages against the affiliates they say made them “look” illegal, those damages will be monetary in nature and deducted from what ever money the affiliates expect to be refunded.
This point is mentioned by Oz but is worthy of being repeated.
I’m in full LOL mode right now! Just yesterday I had a conversation with a friend who is in USI-Tech.
He swore it was legit. He swore the whole thing with Texas was nothing at all. He swore it wasn’t a Ponzi scheme. He swore it was going to become the #1 network marketing company of all time. He said he’s talked with the owners, had been to their offices, etc. etc. I could go on and on.
I’m convinced that the people who get in these Ponzi deals built around bitcoin, gold, silver, etc. etc., didn’t just drink the Kool-Aid, they smoked it as well.
To everyone at BehindMLM —- keep up the great work.
We all know that there were many major US promoters who were taking out large amounts monthly.
Wouldn’t it be a hoot if they sued USI if they get stiffed on what they know they were to have received and don’t get paid? There are a few I think would be dumb enough to try.
Now that would be worth paying to be in court to see.
THIS ONE I WILL TAKE ON THE CHIN. BUT NEVER AGAIN.
You were warned suckers!
Surely not, the Texas cease and desist happens to every company and was totally nothing.
YOUTUBE SAID SO FAM!
Special shoutout to the YouTube fuckboy squad. Welcome to the real world, bitches.
Link to the YouTube lol.
Most of them have probably disappeared. Search YT for “USI-Tech texas” and set it to around December 20th if you can.
We had a solid week of YouTube Ponzi pushers masquerading as securities law experts.
They still are being experts! The rhetoric coming from the leaders is reprehensible.
They are spinning this as “oh you cant be an affiliate any more but you can still use the platform to earn bitcoin passively” and the masses are lapping it up. Holy shit they are brainwashed.
I guess the youtube university graduates are eating their diplomas now!!
You think any of them have higher education?
Hell the YouTube poster-boy for BitConnect is some under-age schmuck who goes by CryptoNick.
His response to the Texas BitConnect cease and desist? “Who cares?”
The cherry on top is CryptoNick pushed out the video a few hours before the USI-Tech news broke today.
At [2:27] references the USI-Tech cease and desist:
This is a kid (legally) mind you. But that is where the MLM underbelly is at these days.
Kids pushing multi-billion dollar Ponzi schemes on YouTube. We’re all fucked.
A hapless, cashless USI-Tech affiliate experiments with prolonged inconclusive thinking.
What, like T LeMont Silver fleeing to the Dominican Republic?
Dude ruined his family’s life when he uprooted them after Zeek collapsed. Don’t think he ever recovered.
I’ve just heard accounts are being frozen and people are being blocked on all forms of contact.
Good riddance… Glad it happened sooner rather than later.
I watched one of the response videos and one guy had 70k locked up….. I have no words.
Frank Calabro Jr just lost his “numbers on a screen” millionaire status.
I love watching scammers like Calabro Jr losing everything. He is such a loser!
If you want a few “snickers” Saturday morning at 12:00 noon Eastern Time, listen to a live “update” call by some of the “leaders”.
515-604-9872, PIN CODE 722289#
oh ye.. i saw somewhere, in one fell swoop he lost around 4000 packs and 3000 direct team members he bought on hahhaha … master marketer indeed!
@Fred Watts, I hope some gov’t officials plan to listen on the call so they can get more names to track down and prosecute.
I told my buddy that USI will go for years as long as I didn’t join.
I joined… nuff said.
A lady I know put $9,000 into USI-Tech just last week. That’s money she’ll never see again.
She have well just put that money on a Weber grill, doused it with gasoline, and throw a match into it. Too damn funny!
(But what’s sad is how she bought off on everything her USI-Tech sponsor told her. Both her and her sister. Both are older gals; neither is in a position to just piss away $9,000 each.)
I’m in USI Tech. I have full access to my back page. Also got paid today.
They’ve disabled commissions and the ability to buy new BTC packages. Can still buy their token packages. Can still withdraw. Nothing is frozen.
Bit of wishful thinking there champ. Give it time.
Numbers on a screen != not getting paid. And they already said you’d be able to withdraw backoffice commissions cleared.
With new investment tanking withdrawals will work till ROI revenue is exhausted. Which will obviously happen at an exponential rate now USI-Tech has confirmed there’s no external ROI revenue.
It’s simple math, the US is USI-Tech’s largest source of ROI revenue. Whatever USI-Tech takes in from the rest of the world isn’t enough to pay everyone 140% + recruitment commissions.
Leave alone the fact who is going to pay non-US USI-Tech affiliates their 140% ROI when the time comes.
I know the average US Ponzi scammer doesn’t care about that but at least respect simple math.
OZ… What do you know about Crypterium ICO?
Numbers are all there. Nothing has been lost. Lot of claims above aren’t true.
I know that it’s not an MLM opportunity.
Didn’t think USI-Tech was a Ponzi prior to the Texas C&D.
Didn’t think the Texas C&D meant anything.
Think USI-Tech actually has enough money to pay their largest investor-base a 140% ROI + owed recruitment commissions.
Some people are beyond gullible. Best of luck chasing unicorns.
Regardless if it’s a ponzi or not (Ozedit: Regardless? Offtopic derail attempt removed. Stop making excuses for Ponzi scams.)
If you want to skim over the core reason why USI-Tech is on the run from US regulators, the Facebook echo-chamber might be a better fit for you.
Where was it you did your law degree again ???
Harvard, Duke, Stanley ???
really, you haven’t been scammed enough? you still want to buy their token packages which are worthless?
you cant sell token packages for pyramid commissions anymore. that was the only money to be made on these packages, the tokens themselves are useless.
is usi tech registered with the SEC to sell token package investments in the US and canada?
y’all want to get scammed again, when the company blames you and walks away with your money in a huff?
just over a week ago, your scamming co founder mike keifer said that the C&D in texas was a minor problem and the lawyers would solve it.
instead they put your money in big gunny sacks and ran away you friggin idiots!
goodluck getting any money back from USI tech. they’re going to pay some money to the top recruiters who’ll keep you all calm and sheeplike while they gently lead you into the next ponzi scam they’re joining – usi tech was a bad dream. forget it. give me some more money and this time you’ll get richer than god. move on move on move on.
silly scammed sheeple.
Ken U – your principal back in 6 months!!!!!!! Hahahahahahahaha
there’s nothing in the usi tech notice that says they are going to pay investments back?
from FB a few hours ago:
not getting investments back people. don’t nurture false hopes!
Dan Hunt told USI-Tech everyone was going to get paid owed ROIs. He states he hasn’t been in contact with USI-Tech management so, unless he’s lying, it appears to be based on baloney.
Not withstanding USI-Tech doesn’t have enough ROI revenue to pay every US affiliate (their largest investor-base) a 140% ROI well ahead of schedule.
Even on the 1% daily schedule obviously new ROI revenue is going to tank along with new affiliate recruitment, so there’s that too.
dan hunt also said he and david frost had contacted their own respective lawyers.
if the SEC has actually got an injunction against USI tech then hunt and frost could have their bank accounts seized.
as the company is offshore, it’s the top affiliates whose nuts will be on the chopping board.
Now that they are out of the US and Canada, expect the BS about the Bitcoin and Ethereum mining to restart elsewhere.
Without the US USI-Tech is over. It might not happen overnight but a massive Ponzi scheme can’t take a 40% hit to website traffic and survive.
USI-Tech just effectively ended the “secret algorithm” crypto scam model in the US. Just like OneCoin ended the crypto Ponzi points model.
If BitConnect goes under that’ll take care of the ICO lending scam and we’ll have some breathing room.
The hardcore scammers might move onto smaller variations but for “the masses”, the attraction of which made BitConnect and USI-Tech so big, the illusion of legitimacy will be shattered.
Anjali I wonder if Hart Carson are Hunt’s lawyers. A good fit.
yeah, but it’s a slow death march now.
usi tech wont survive 2018, i think.
i think hart carson will be busy building a defense that usi tech didn’t give them access to all information to make an evaluation of the business model properly, so they’re not liable in any way.
they wont touch anything usi tech with a barge pole now.
Self styled US “LEADER” and ex-lawyer James Little in a video released hours ago:
“But also, what we did not know before. A court ordered preliminary injunction that has been placed against the company”
Preliminary injunction = accounts seized, business frozen = no payouts of anything
Link please, or is the hack just parroting off my commentary?
The Texas Securities Board is unlikely to have obtained an injunction during the 31 day cease and desist response period. It had to be the SEC, unless another state stepped up.
Either way it’s all under seal. But if top US investors knew about it, you can bet they’ve been withdrawing like crazy since December 20th.
Really puts the shitshow the top US investors are putting on Facebook into perspective.
“Delete all the evidence, lay low… just do what the company says.” Bunch of slimy fucks right till the bitter end.
in a video around dec 16th, well before the texas C&D, usi tech founder horst jicha was very worried about US affiliates.
did he have a premonition or knew about legal actions in advance?
i remember commenting after hearing him that i wouldn’t be surprised if usi tech shut shop in the US soon.
of course if jicha knew he would have pre-warned top affiliates!
Little claims they do.
I don’t think he knows any more than we do.
He either read my impression or came to the same conclusion.
Edit: At least he’s acknowledging the unregistered securities. This is the same dickhead that was all over YouTube crapping on about how the BTC packages weren’t a security.
From the official USI-Tech letter to its’ US members:
“We were utterly dismayed to learn that a large number of our sales partners extensively advertise our services on their own websites as well as on social media in a manner which is a breach of contract as well as illegal, and which gives the appearance that our service portfolio violates both US and Canadian law.
Despite the measures which we have already initiated, this behavior has even intensified in recent weeks and months.
This has already resulted in actions by the respective authorities against various distributors, as well as the first preliminary injunctions in response to this advertising behavior”.
Yeah, that’s what I picked up on the article. Nobody seems to know who the preliminary injunction was issued by though.
Those it was issued against (which would likely include USI-Tech management) haven’t commented publicly.
Hopefully we find out next week but I’m not expecting anything. The international nature of USI-Tech might mean the SEC needs more time to secure what they can.
The delusion is great in this one. The American and Canadian government are not against bitcoin. They are against usi tech because it’s a ponzi.
And if you think other governing bodies in Europe and across the world will let usi tech trade in their countries after they have being barred from the USA, you have another thing coming.
Delighted with this news but astonished that the app for USI Tech is still listed on the App Store.
You have to admire their cheek. Getting an app for your Ponzi listed by Apple can’t have been easy. Is this a first in Ponzi Land?
Nope. Onecoin had their “One cloud” app that provided rebranded access to leased cloud service.
i have flagged the USI tech app thrice over the last few weeks, explaining it is a ponzi pyramid scheme.
these big tech guys google youtube facebook are running straight towards regulatory trouble in the near future. they make scamming so easy!
I agree, Anjali. I can’t count the number of times that Facebook has flagged my warnings to someone that they are in violation of the law as being spam, even with links directly to government webpages detailing the offense.
It’s like Facebook doesn’t care about any offenses besides pornographic ones or murders.
YouTube didn’t get back to me about BitConnect YouTubers instructing US residents to circumvent US legal orders.
Videos are still up. No shits are given.
Like I said before. Facebook erased my original scam page. And to get my page up, they are telling me to get in contact with the law firm usi tech hired in Germany.
When all the people that have being scammed through companies advertising on Facebook launch a class action lawsuit because Facebook failed to protect them, the erasure of my scam page while letting usi tech have multiple pages running will be evidence of them not caring. I would like to hear their explanation when the time comes.
But haven’t ALL the bigger ponzi players promoted it in the same way? Is Dan Hunt a major player in Usi? Jump to around the 17 minute mark, is that Usi compliant? Is he facing a pillage of his account by Usi?
That’s the beauty of the exit strategy.
Horst and the gang get a few weeks to tie up loose ends and disappear with everyone’s money.
USI-Tech affiliates are held to ransom, urged to delete evidence and lay low.
Then at the end of the bullshit audit everyone is disqualified from commissions for promoting USI-Tech for what it is – a 140% ROI investment scheme.
Trouble is most of the USI-Tech investor-base are first-time crypto cowboys, who are no match for the MLM underbelly veterans playing them for fools.
This shit is ruthless and will eat you alive from within the longer you wade through it.
Dan Hunt describes himself as the USI-Tech “North American Master Distributor”.
alexa will help us track an already declining usi tech.
i wish alexa would play some crash boom bust type of music in the background when ponzi graphs start their downward death spirals. it would make the experience more enjoyable for the viewers!
Looks like James has removed his youtube channel, the coward is going into hiding.
That’s a damn shame. These ponzi companies do it every time and people still fall for the con game.
Sadly, it’s an endless game of losers. Live and learn, fam. Live and learn.
Oz now that USI has supposedly gotten out of USA (and Canada), I assume this means the SEC won’t be getting involved as things are. Yes or No?
Guy just Dropped $60,000 on usi-Tech coin now is on youtube crying about it!!
Hilarious he is sitting there asking “what do I do now?”
Kiss that 60 grand goodbye is what he’ll be doing.
You’d think if you was going to drop that sort of money into something you’d at least check it out properly, and it’s not like he can say there wasn’t any warning signs or enough haters telling everyone it’s a scam. Muppet.
I told you “it had started.” I also knew the end was imminent. What I did not anticipate is the depth of the depravity of the founders.
To blame the sheeples for preaching exactly what they were brainwashed to say takes arrogance and hubris to a new nadir.
Moreover, to threaten to withhold return of capital and threaten to pursue damages claims against their brainwashed “paying victimes” for 1) blindly following company instuctions or 2) if they don’t destroy and erase evidence of their crime that was and continues to be perpetuated, completely changes one’s view of human nature.
There are no adjectives that can descibe these people.
For those of you that lost money, I am sorry… we tried to warn you. In the end, the “haters” turned out to be those who cared.
Anyone know what’s happened with the airline pilot named Dino Sylianopoulos, the one that flys 747s?
I heard he’s made way over $25 million in USI-Tech and quit his pilot job. He’s in some of the YT videos. He’s one of the top leaders.
I just now checked his Twitter page and it’s a long running list of what he’s bought and sold. Don’t know what it all means but is he bailing out and cashing out?
If so why would he post it all? is he showing leaders what to do now that it’s all caving in? Maybe someone can look at it and see what’s up before it all gets removed.
He said he was going to take down all his videos, etc. but his wife Grace will keep hers up since she is registered in SE Asia as they have a home there. He will just switch over to be under her and keep on truck’in as if nothing has happened.
Another major issue USI has to deal with is that many US “leaders” have people in their organizations that are from other countries.
Instead of dealing with this, they will just close up shop and wait 6-9 months and start their new Ponzi de Jour, but of course this time it will be different. Yeah right.
Can’t say either way.
The other scams that pulled out of the US primarily targeted offshore investors, eg. MAPS (UK), OneCoin (EU/Asia).
USI-Tech’s largest market is the US. You don’t steal millions from US investors (let’s be real, hundreds of millions, possibly over a billion) , decide to pull out of the country and walk.
I’d be very surprised if the SEC wasn’t already involved – but again I can’t say for sure at this stage.
DOJ might be circling too given the scope of Ponzi fraud we’re talking. Although Scoville’s up for $207 million and still walking so who knows.
Looks like he’s attached the USI-Tech forex software to his Twitter feed. Don’t think it has anything to do with the BTC packs.
Like the rest of the US leaders and USI-Tech management themselves, Sylianopoulos is likely hiding from the angry investors he stole from.
January 20_2018 will be judgment day. Simply will file with SEC and make payout adjustments. JMHO
1. USI-Tech has already abandoned the US and Canada, signalling they have no intention of registering their securities offering.
2. Registering with the SEC gives the game away. They have to leave a paper trail which will confirm there’s no external ROI revenue.
Your “honest opinion” is “wishful thinking” and isn’t based on reality.
If they do it will be a first in history event of a ponzi trying to register as a genuine revenue program so I doubt that going to happen.
“Simply” file with the SEC to now become legit, admit they’ve been selling illegal securities for almost a year, after advertising they were already legal with the SEC, on top of the owners lying publicly about a bitfury $70 million contract and a fake mining facility with pictures of someone else’s mining facility.
“Simply” then after no proof of anything other than running a basic Ponzi, they will now try to be legal and file with the SEC, who is likely already investigating them. Seems simple.
How can we get USI-TECH shutdown in UK and Europe before they scam too many more people?
London police have shown some interest in investigating MLM fraud. They haven’t to date done anything about it though (at least not publicly).
with usi tech shutting down in the US and canada, panic seems to be spreading to the UK too.
i mean, how long before other countries start banning usi tech too?
If they were going or even able to “simply file with SEC”, why haven’t they already, and why have they pulled out of North America?
I’m seeing a mixture. Some people are panicking, others are believing that because USI is such a great company it will all be okay.
A global leaders call with Mike Kiefer is scheduled for Monday.
The tokens are now at 220 million, which are the only thing that the USA/Canada affiliates can buy and this shows that they still know that USI is going places.
Sharon James has also shared a statement she spoke to someone called Anthony who had been talking to Ralf Gold before he called her, and apparently everything is going to be just fine.
I’ll post the full transcript in another post after this one because it’s very long and i’m not sure how relevant it is, so in case you want to delete it or amend it OZ.
Notice all the he said she said statements. Also they have conveniently not mentioned the Texas order calling out USI. The uneducated affiliates will believe what they are told from the grubs thst Kiefer, Gold and Horch are. Just straight out liars
There’s a rumor going around that “the SEC will be dropping the charges against USI-Tech due to lack of evidence”. Also, “They are predicting full privileges to be reinstated by the end of the week.”
Some higher-ups have a call scheduled with Mike Keifer and Ralf Gold on Monday and will be releasing “a statement and apology for the temporary hold on business in the US and Canada”.
We shall see.
never gonna happen.
Its just been confirmed by Santa Claus and The Easter Bunny!
Still waiting for confirmation of SEC charges.
Very interesting how they implemented a pyramid scheme into a new trend of crypto currencies. Interesting how many thought this was ok!
I admit I dropped a few hundred on this hey it was like betting on a football game. It’s amazing how you go up the line they all believe and don’t care who they get in friends family eg….
today the leaders yes they call them leaders at the top are still pushing tokens! They say USI is still a strong company and they dropped USA and Canada because they care about the company which is good for the token BUY more!
WTF does the leader care he has lots of tokens and will sell his own mother out!
Amazing to watch both sides of this! Fingers crossed for my Super Bowl box 🙂
How completely normal.
The same story has circulated every single time the SEC, FBI, Secret Service, DoJ or Homeland Security has stepped in and shut down a ponzi scheme since the days of Charlie Ponzi himself back in the 1920s.
The more things change the more they stay the same.
Back in 2008, the Secret Service raided ASD Cash Generator hauling off computers, money and checks in the office, and all their files.
The rumor later became that the Secret Service had admitted privately that they did not have a case and they needed time to work out a way to save face. So now USI is trotting out the same type of “rumor.” Too funny.
Oh and in the ASD Cash Generator case? Why the owner pled guilty to the criminal charges against him, was sentenced to 78 months in prison, and of course the Secret Service did not find a way to save face as they didn’t have a case. The same thing is going to happen here.
Now all we need is for USI to tell the US Distributors to send tea bags to a main stream media personality telling them how the evil US Authorities shut down their totally legal company and need to be brought up on charges themselves.
A travesty of justice. Actually don’t be surprised if something along those lines is not trotted out as action that the Distributors need to take immediately.
But but but MARK CUBAN!@%!! Traffic Monsoon said so…
You can be sure the authorities have their own grapevine and most agencies around the world would know by know.
(Ozedit: Abuse and offtopic derail attempts removed) Profits generated from PROVEN mining and trading = NOT A PONZI. Dolts.
Agreed. So where is the audited accounting proof?
And don’t link me that ETH pool, it means nothing and doesn’t proof external revenue is being used to pay affiliates.
Rather than regurgitate YouTube idiocy, ask yourself why USI-Tech didn’t register with the appropriate securities regulator in their largest market.
Referrral marketing is not a pyramid scheme or scam. And referral marketing is not mandatory. And unless you can prove otherwise in terms of the BTC packs been investment packs paid by other purchasers, your accusation of it been a ponzi is speculative at best.
You cannot prove it otherwise and you are not a lawyer on the matter to issue those claims. Opinion.
the added referral marketing offer is an optional offer for those to earn commissions from the selling of the product, BTC PACKAGES.
To get paid, it is not required to referral market people into usi tech. It is an optional activity people can participate in and they dont have to be a paid member or owner of a btc package to earn commissions.
IT IS NOT A PYRAMID scheme because people can join for free and referral market to gain signups and earn for free commissions.
Vocabulary is everything in this industry. Get your vocabulary straight!
Call it what you want, getting paid to recruit affiliates in MLM with no retail is pyramid fraud.
And getting paid to recruit has nothing to do with USI-Tech being a Ponzi scheme. USI-Tech is a Ponzi scheme because they use newly invested funds to to pay off existing investors.
You don’t need to be a lawyer to identify pyramid and Ponzi fraud.
In fact probably best your not a lawyer, as they seem to have a habit of getting paid to ignore the Ponzi and pyramid schemes that hire them. Just ask Hart David Carson.
Regulators don’t care if you call a duck an elephant. They examine how a business operates and act accordingly. In other words, your pseudo-compliance isn’t fooling anyone.
The German Ralf Gold and his scams in the past:
– Empower Network
– MX Fast Money
– World Consumer Alliance (WCA)
– HRS II
– APR Clicks
John Han what’s so difficult to understand here? Please explain to us (with a bit of proof) where all the money comes from to pay everyone.
And please don’t use the pathetic attempt to prove they were mining ethereum cause that’s just embarrassing. If Usi is so legit then you should be able to easily provide proof.
Meh! I already pulled out 4x my initial seed money. Ponzi or not, I’m good.
@Doryu. You are fooling yourself. Do the calculation of how much your seed capital is worth today if you bought Bitcoin direct
I kind of started trolling a Facebook page seeing what they would believe.
I really thought I’d get shot down straight away but within 2 mins it hit 60 likes and God knows how many shares.
So that ‘Rumour’ was just me testing the water and boy, they are desperately gullible.
top US scammer rodney burton was in london recently shopping for prada and louis vuitton with his usi tech ‘profits’. he was buying shiny shoes and stuff and was very pleased with himself.
maybe that’s where Jessica M***’s kids money went?
This might be why she and her hubby will never be rich!!
Sad that two grown adults would put a scam ahead of their own kids!!
Think they learned anything?
Looking for the next scam?
Off to the next ponzi!!
Feels good to be a gangsta!
Seriously? If that’s true, you’d better hire a bodyguard. Outraged USI-ans will come looking for you.
Not to worry.
I made a fake profile of a small time ponzi pimp named Ben. Thought I’d kill 2 birds with one stone.
People in these things always tend to miss the obvious in favour of defending a cause.
The question people should be asking is “If USI Tech is as legit as the owners and leaders claim it to be then why didn’t they just register with the SEC instead of pulling out of the US and Canada altogether?
Why instead did they destroy their biggest customer base just to avoid registering?” Would’ve been a lot less hassle and would’ve been great for PR.
If they had proof-of-concept then all they needed to do was present the information of the revenue generated from anything other than subsequent investment but instead they just dropped the US for calling them out first and to make matters worse they blame it on their members!
I’ve been in this industry for nearly two decades now and although the names of the programs change, the excuses, the model and the leaders don’t.
Kind of an a$$hole thing to do, frankly.
You may find it entertaining in a sadistic kinda way but you have to realize that the vast majority of USI affiliates are just regular folks – not professional ponzi scammers – who were just looking to get ahead, pay their bills, and send their kids to college. You just gut-punched them a second time.
I realised it was a dick move when it was blown out of proportion and can now only apologies for my mistake.
I didn’t expect that kind of reaction.
Are you kidding… This thing is cooked prior to Valentines Day my friend. Imagine the Withdraw Requests flooding in right now… This this is…
Glad to hear you’ve given it some thought. Not sure if there’s anything to do, other than post a public apology. I thought I made a mistake once. (But I was wrong.)
Standard Kubler-Ross 5-stages of grief response to traumatic revelations.
* Denial — no it’s not happening. It’s “fake news”. They’ll be back. I just have to wait a little longer.
* Anger — why me?! It’s so unfair! It’s the critics! It’s the naysayers! It’s the authorities! I had to blame somebody!
* Bargaining — Can we move to Mexico? That’s not US/Canada, right?
* Depression — OMG, WTF am I going to do?
Eventually, it’d be
* Acceptance — okay, I’ve been scammed. Lesson learned. move on.
EXACTLY the same thing happened when Secret Service closed ZeekRewards.
Probably by the SAME group of “net winners” that managed to extract money from Ad Cash early on.
Same excuses, over and over…
Oh Wow! That is spot on. I’ve seen most from the first two, and something from someone who was asking questions about whether he could move to the Cayman Islands and continue to be a part of USI.
The depression part is going to be bad when people get there. Some have invested everything, and so have every single member of their family.
I have a terrible feeling there may end up people who harm themselves because of this, because they have nothing left.
I’ve heard a few grumbling of non payments. Some people are 3 days behind.
Anyone else aware of unhappy affiliates? Once they start the hard crying we’ll know how badly they’re done.
Frank Calabro Jr. isn’t happy. He’s ranting about how USI is a sound business and it’s the fault of affiliates describing it as an investment and how it’s the only reason they got shut down in the US.
He is posting plenty of examples of ‘non-compliance’ from affliates and ranting that if USI had done something about them then they wouldn’t be in this mess.
He’s acting like he is just like anyone else caught up in this mess despite having been one of the top scammers in USI.
It did cross my mind that he may not have expected it this soon and he may not have gotten enough of his money out in time.
I know he had a huge amount of packs and a huge downline and he was likely planning to scam more money out of them for a while longer.
I got the feeling here that nobody expected it to end so soon, so the top scammers in USI may have been caught unawares as well.
Although i’m certain they got away with more than enough of other peoples money to have made the whole thing worthwhile for them.
Shame the last stage (lesson learned) is regarded by so few people.
For a lot of the MLM underbelly contingent USI-Tech was their current golden goose. They’re not as familiar with cryptocurrency as the YouTube crowd, who are more likely to have spread investment across a number of shady schemes (ICO Ponzi lending is saturated right now).
That and USI-Tech only started BTC packs 6 months ago. Even the earliest investments would have only expired recently (140 days), leaving the majority of commissions derived via recruitment – most of while at 6 months in would have been rolled back into new investment.
The 140 day ROI period made USI-Tech a slow-mo Ponzi, which when coupled with the relative speed the US began to crack down on it, likely caught a lot of scammers off-guard.
I saw a post today from a “leader” that there is a rumor circling that Usi is in contact with the SEC to “work out a solution” which would turn everything back to normal for US members. Supposedly more info will be available within a week.
This video selling the BTC packs with the big dogs in the USA is from 9 months ago.
9 months = 270 days.
Enough for one lot of returns but not as much as they’d have wanted second time around. Especially if recruitment commissions and initial returns had been reinvested.
Usually MLM Ponzi schemes get a year at least before regulators catch up.
Usi’s own Google adverts use the word ‘invest’. They are still live.
I joined USI/Tech in Oct. They are not a ponzi scheme!
I only put in a small amount and have taken out MUCH more than I put in! 100% of people who are in USI have made money! No ponzi scheme can ever say that!
Even after they sent us the message that they were halting business in the USA & Canada we have access to our back offices, and are still able to withdraw money… so please get your facts straight!
The intelligence of anyone buying USI Tech coin after the packages scam fell apart must be questioned. They must like self flagellation.
Every Ponzi scheme pays out initially. By the time it stops paying out it’s too late. And numbers in your backoffice != making money.
If everyone in USI-Tech tried to withdraw 1:1 what USI-Tech was representing they’d made it’d collapse instantly.
Well that is exactly what is happening right now. EVERYONE in USI TECH is trying to withdraw… I said VAlentines Day earlier but this might be COOKED by Martin Luther Kings B Day..
@Janet You’re just the type of person USI looks for. If you had put your money directly into Bitcoin, you would have doubled your money.
@Janet Pity the 250,000 who joined after you won’t be so lucky. If you believe anything USI put out anyway
I wonder if USI will freeze the accounts of the 3 leaders for telling the BS they did at the company conferences – ethereum and bitcoin mining, free energy, ATM machines, tech coin bkah blah blah.
How could you have taken out so much more than you put in unless you mean you got commissions from screwing others over. The bitcoin packages have 140 day turnaround.
I bet it’s that magical unicorn doing the negotiations too.
Just like the asshat blames the affiliates for the closure of the Zeek Rewards ponzi/pyramid at the 5:27 mark in this video blast from the past.. dailymotion.com/video/x4jo0zd
Same routine over and over again.
Keep in mind many of the top leaders/marketers lose all sense of integrity, ethics, and morals when an opportunity to amass a nice amount of dough presents itself.
“Some people will get hurt, but what the hey. Happens everyday.”
The “USI-TECH” Ethereum mining pool is cleared right out now. Must need that money to pay off all the requests from affiliates. Or they just bought a small island to hide on…..
Anyone know where it might have gone??? Seems like its in a bitfinex wallet now?
USI TECH has dumped its ethereum and withdrawn $17 million. facebook.com/Usi-Tech-Scam-1829396597072871/
copy and paste into twitter if you want to pressure apple to remove the app. Pls remove this post if it violates the rules..
USI has fully blocked any US or Canada affiliates from receiving payments or making withdraws out of the back office. No money out, no repayments. Here is the memo.
Pictures of Dan and Patti Hunt enjoying their downlines commissions in Panama recently.
Wasn’t today the day USI was to provide “clarification” of how the US & Canadian terminations were going to work, and answer all questions?
More good news for USI-Tech!
Today’s Dear John letter from USI to North America:
“Our lawyers are making us stiff ya’ll.”
First, don’t buy the delay, it’s a clear kiss off. They want to make it sound like there’s hope to see if maybe people outside the US will still be stupid enough to invest.
Second, it amazes me how many people are falling for the “it’s the affiliates fault” bull crap. IF USI was operating legally AND thee only problem was with affiliates they would NOT have abandoned the North American market. They would have marched into court in Texas to prove they we legit. But they aren’t so they wont.
Last, who the hell is USI going to prosecute to the full extent of the law? They fled the North American continent to avoid stepping foot in a court room. How stupid do they think their affiliates are? Oh, right.
This is the gullibility test phase. The USI members who have started doing research on their own and are thinking for themselves are going to be denounced and kicked out of facebook groups.
The people who parrot squawk repeating the lies their uplines tell them will be recruited into the next scheme. Rinse lather and repeat.
I tried to withdraw Bitcoin from my USI account 6 days ago and have not received it yet. It does say it’s pending in my back office, but I realize this means nothing.
The owners say that they will pay everyone the ROI owed on the packages bought, but I think this is proof they plan on paying no one.
I added a response to the blog, but I don’t think Christian and the faithful will like it.
ROI in your back office means ZERO.
If you can’t withdraw anything!!
Putting together today’s USI-Tech developments. Standby…
WHITEPAPER IS OUT!!!! LOL!!!
I just revisited the article from Guam and now there are zero comments. Guess the faithful didn’t like the truth being exposed about USI. Anyone else finding the comments have been removed?
Maybe since they released their “White Paper” the comments were disabled because it showed all of haters are wrong about USI.
The stats next to the header are screwy but the comments are still showing below here.
Anyone know who “the lawyers” that the fab 4 keep referring to are?
Is it printed on soft absorbent paper with perforations between the sheets? Because if so then it may not be useless.
Lol, from Ralph Gold
Here’s the White Paper.
I hear you can get someone from the Philippines to write a White Paper for $250. I’d be very interested in hearing from a crypto professional whether or not it’s total BS.
Lol!!! I know. captain oblivious right????
The white-paper has spelling mistakes and really doesn’t offer any technical details. Just more fluff. They released it a day after they shut down US/Can. Probably trying to get as much money now as they can.
They also just posted a new contest for a trip. You need to use “outside” money from external wallets to buy packs and tokens to get points. They need more outside money!
They say US/CAN will get paid back but there’s no way they can pay back two entire countries at the same time.
MAYBE they could if they opened up purchasing for US/CAN again but I don’t think they can legally do that.. so then the rest of the countries will all stop re-buying as they get scared and even less money will be going into the company.
It was a fun ride, but she’s cooked.
There was no scam.. however, interference from oppressive government agencies will likely cause people to lose money and people have certainly lost opportunity..
Investors should sue the authorities causing them to lose money.
SOOOOO! I have a phone call date with Mr. Jack McClellan of the washington state securities board.
He wants further details about a certain someone whos promoting this scam and maybe a few questions about similar scams as well. This might “impede” USI-TECH’ recovery….
False. A Ponzi scheme solicits investment and promises to pay out more than is invested. Over time this blows out, resulting in an ever-increasing number of people losing money.
Victims of a Ponzi scheme have already lost money, regardless of whether they realize it or not. The only people who actually lose money if a regulator shuts down a scam are net-winners.
Obviously net-winners hoping to keep what they’ve stolen are going to push an anti-government narrative to mislead their victims. Shame on you.
First of all, all US and Canadian members have not been totally banned. All they have to do is setup an offshore account and they are back in business.
This was nothing more than a lame attempt to hopefully head off an SEC investigation. In fact they said by taking this action it would stop any investigation, which is a lie. Investigations don’t work that way.
Second, USI has told every US and Canadian member to commit a felony or felonies by destroying evidence.
USI has admitted that a criminal act has occurred. Therefore destroying or tampering with evidence is a felony/felonies. What is incredible is that the members are doing that very thing.
I thought these were the brightest and smartest people in the world who are ‘experts.’
So much for how USI feels and cares about their members.
Everyone in the MLM crypto niche is an expert with a PHD in Facebook and YouTube these days…
Youtube university graduates.
usi tech top UK affiliates sharon james and john smith posted a video recently addressing the shutdown and announcement of no payments to US and canadian affiliates.
ignoring the ‘bleeding heart’ bullshit they tried but failed to project, the meat of their video is:
– stop asking us for your money, we’re just affiliates like you so F***Off.
– take down all your usi tech stuff from social media and don’t bad mouth the company because you’ll spoil the game for the rest of us.
– shut your traps about usi tech because if you bad mouth the company your account will be blocked and you wont get paid after the ‘so called’ audit of UK/canada accounts that usi tech is pretending to do.
– we’re going to go on with the business minus you poor blokes in the US/canada, so sorry, but F***Off.
in short, cheated usi tech affiliates in the US and canada are being told to be obedient subservient slaves to usi tech and their leaders because the carrot of ‘you’ll be paid at some point in the future’ is being dangled before them.
we know that the ‘future’ in ponziland falls around the 12th of never, so US/canadian affiliates should stop drawing lines on their walls to count the days.
I’d love to learn more about this. Is there a link or other supporting evidence you could provide which shows that a company served with a C&D has a month to provide evidence of external revenue paying commissions?
It’s in the cease and desist order itself. It states what the Texas Securities Board wants from USI-Tech and that they have 31 days to comply.
FYI I’m from Australia. My dear friend approached me just yesterday talking about this ‘get rich quick scheme’ with limited risk and guaranteed profits from some great company I’d never heard of.
The moment he said that, I called scam.
My reasoning – they don’t exist legitimately! Otherwise we would all be in on it. And if everyone is in on it, the get rich quick ship has already sailed.
However I could see how excited he was and already emotionally invested. I promised him I would look into it.
I’m so thankful for all of the comments everyone has taken their time to post and research to provide the proof I needed to show him that he would lose everything if he went ahead with an investment into USI. These scum bags target their victims and play with their emotional state.
Thank you to the person who sent the advice to the Australian authorities. Muchly appreciated from down under!
I will pay it forward and do what I can in Australia to bring these $*#/% (insert swear word) down before they trick anyone else.
In fact my friend (whom i am seeing tomorrow to advise him of the scam) has invited me to a meeting with two of the affiliates to ‘prove’ to me their claims of such easy fortune.
I’m going to enjoy watching them squirm as I prove the scam to my friend in their presence. Peace my friends!
@Cass B – Let us know how you go but I doubt you will have much effect on them. They are probably too far gone and emotionally hooked into the scam.
If anything print out the Texas order and show them point 4 under Conclusions of Law where it says USI is perpertrating a fraud.
The only way for USI to demonstrate that it isnt a fraud is to register with the Board and we all know the answer to that
Does anyone know who the “legal advisors” that USI Tech keep referring to are? Is it the firm of Horsch, Kiefer, Gold , Severino and Co?
No, for help with their “internal audit” USI Tech retained the law firm of Dewey, Cheatem and Howe.
Lets start a book. When will USI disappear. Next week, end of January, end of February, end of March
End of February especially if the bitcoin price continues to crash in value?
I’ve got 1 BCC on next week, making it a friendly bet by then.
You’re gonna bet $21.19?
You really think it’s worth betting $18.56?
Who’s gonna bet $15.78 anyway?
$8 and falling…
Hey, we’re in the wrong crypto ponzi post. 🙂 Bad Otto.
But down to $6.55 now
Makes you wonder of the intelligence of the buyers.
Well USI Tech are operating again in the US and Canada!! So it’s not a scam or Ponzi, it’s here to stay!! Thanks to all the haters.
Define: OPERATING” for us, will you ???
I watched the video and it was all fluff. This guys just delusional.
HUH? Oh you must be out of Aus or UK.. listening to the BS from USI. Geez at least make a wee bit of effort to check your facts.
It’s shut down and yes we all know USI had the big video lol saying it was all good. ah no.
One could say Horsch is full of Horsch Shit.
really? without responding to the C&D by the texas securities board?
someone wrote to the texas securities board and their reply confirmed that usi tech had failed to respond to the C&D in time and had lost their right to challenge it :
horsch shit is lying and stringing you all along.he barely has any money left anymore to pay out any ROI on the BTC packs worldwide.
here’s a recent comment on FB showing that payments are not being made and the usi tech backoffice numbers are a bullshit sham:
I’ve been meaning to put together a writeup since the vid interview surfaced. Will have one up later tonight.
uh, in case US/canada usi tech affiliates who’ve lost money and are complaining on FB about how they’ve been cheated by the ponzi, here’s a message for you from a serial ponzi scammer and current net winner in usi tech:
hmmmm, ^ no sympathy for poor USA/canada losers – crawl away and die
there are posts about australian affiliates not being paid so thommo glenn is probably lying too.
in ponziland, the ‘we are a family and love each other to death’ declarations last only till things start falling apart.
whether they say it as evocatively as thommo or not, that’s pretty much how usi tech ponzi leaders outside of the US/canada feel.
they’d just like the USA/canada chapter to crawl away and die and not take them down with them.
I see USI TECH are operating in USA again.
LOL, yeah, “operating”.