World Ventures still pyramid scheme, enforcement pending
Initially declaring World Ventures to be a pyramid scheme back in February, it wasn’t until late April that the the Norwegian Gaming Board issued a directive ordering World Ventures to “stop all activity” in the country.
The Norwegian Gaming Board’s decision came after a nine month investigation, which revealed conclusive evidence that World Ventures was operating as a pyramid scheme:
At the end of May 2013 had WorldVentures 3654 members in Norway. About 95 percent of the members were also sales representatives.
World Venture’s activities in Norway are an illegal pyramid game because revenues almost exclusively come from recruiting members and not the sale of travel residence.
As per World Venture’s business model, the company pays out on the recruitment of new affiliates. With only 5% of their members counting as retail customers, and in all likelihood an even smaller percentage of revenue not being sourced from affiliates, it doesn’t take a genius to put two and two together.
Still, quick to file an appeal and even quicker to reassure everyone that they had “permission” to continue to sign up new affiliates into the scheme, World Ventures refuted the Gaming Board claims, telling BusinessForHome:
WorldVentures considers both a number of the factual and legal aspects of the Gaming Board report as unfounded and associated with failure.
WorldVentures considers that there are no reasons for banning business.
Right.
Looking forward, World Ventures’ claim to have filed an appeal with Lotterinemda.
The Gaming Board in the meantime has voluntarily “suspended” enforcement of their decision until the appeal deadline, which is three weeks from April 30th (May 21st).
Presumably at that point the Gaming Board will set about enforcing their decision, pending the outcome of World Venture’s appeal.
For an indication of how Gaming Board appeals based on frivolous reasoining tend to play one, readers are advised to check out Wealth Masters International’s appeal.
After investigating WMI, the Norwegian Gaming Board found it to be a pyramid scheme because ‘essentially all (the people) purchasing the product are also consultants (affiliates)‘.
Sound familiar?
WMI appealed the decision, claiming that ‘the Gaming Board hadn’t understood Wealth Masters International’s internal structure or product composition.’ The appeal was rejected and the original pyramid scheme declaration upheld.
Wealth Master’s later went on to accuse the Gaming Board of collusion and libel, but that went nowhere.
With World Venture’s arguments taking on a similar-sounding tone, I doubt their appeal will go anywhere either.
Finally!
I’d love to see them dismantled here in Serbia also. However, out authorities seem to don’t care.
Only hoping for a domino effect.
This is such a predatory company – and big – Ive been hoping for years they would get reviewed here in the US too. Haven’t even heard a whisper of that.
MERRIL ARRESTED HAHAHHAHAHAHAHHAHA
FIRST ONEEEEEEEEEEEEEEE
http://www.bostonglobe.com/business/2014/05/09/telexfree-owner-arrested-worcester/EFuEWcbcvBlvQuCrhtUGdP/story.html
The Norwegian Gaming Board (Lotteritilsynet) is a regulatory authority, not a court. It will only declare a business operation to be illegal and demand a cease & desist. Only the very serious cases will be reported to the police authorities for investigation and prosecution.
I know about only ONE case where a pyramid scheme has been prosecuted / convicted in the last 5-7 years. The organizers in Plexpay got 2 or 2.5 years prison sentence (in December 2009 – Supreme Court). Max prison time is 3 years.
The only pyramid scheme case I have analysed in Norway was WMI Wealth Masters International in late 2009 – late 2011. It took around 8-9 months from “final report” –> “appeal to higher authority” –> “appeal denied” (March 2011 – December 2011).
WMI itself “collapsed” more or less around the same time. Locally in Norway it “collapsed” more or less shortly after December 2010, when the first “notice about report” was released.
* The party will first receive a “notice” or a “warning”. World Ventures received it in February.
* Next step is a final report, and WV received that April 30th.
* The last step is appeal to a Complaint Board, to be sent 3 weeks from the final report. Positive thinking isn’t a strategy I would recommend. 🙂
So on the 21st of May will have more news on this case?
Popehat detailed a laughably vague and extremely wordy (even for a lawyer) “cease and desist” letter received by one of the critics.
That letter used almost every Craddock vaguery available, including vague mentions of “misrepresentation” (no specifics), inappropriate use of trademarks and other marks (yep, that too), and basically ordered her not only to take down her review, but to refrain from making ANY statement about WV in the future.
WTF, man, WTF.
NOLINK://www.popehat.com/2014/07/09/popehat-signal-help-a-blogger-threatened-by-a-multi-level-marketer-worldventures/
The offending blog:
NOLINK://twenty-somethingtravel.com/2013/07/worldventures-this-is-not-the-way-to-travel-the-world/
The “intent to sue” letter (PDF):
NOLINK://www.popehat.com/wp-content/uploads/2014/07/CONDUCTYOURSELFBEFOREYOUWRECKYOURSELF.pdf
The letter is filled with legal language, but with no specifics about the alleged violations. The correct response should probably be to ask him to specify what he’s talking about, the specific details and how they violate tort laws.
Actually, by the time this blog post was posted, the Norwegian government had already overturned the earlier decision and said that WorldVentures could continue operations in Norway.
Nothing was overturned, an appeal was filed and enforcement is still pending.