5 Star Signals Review: Recruitment and 3rd party forex
5 Star Signals operate in the forex MLM niche and appear to be based out of Ireland.
As per the 5 Star Signals Terms and Conditions:
Jurisdiction and venue of any matter not subject to arbitration shall reside in The Republic of Ireland.
Heading up 5 Star Signals is CEO Mariska van de Langenberg.
As per van de Langenberg’s 5 Star Signals corporate bio, she has
over 25 years in international Corporate management and over 5 years in network marketing.
Further research reveals van de Langenberg (right) was an affiliate of Global One and Bonofa in 2013.
Global One initially launched in 2012 as Ultimate Power Profits and sought to capitalize on the Zeek Rewards penny auction Ponzi craze at the time.
Following the SEC bust of Zeek Rewards in August 2012, Global One abandoned plans to launch their penny auction Ponzi.
The company limped along as a straight recruitment opportunity for another year or so, before collapsing entirely in mid 2013.
van de Langenberg stuck with the company till she left it for Bonofa in May 2013.
Bonofa affiliates pay a fee to join and then earn commissions by recruiting other affiliates who do the same.
The company also ran an unregistered securities points scheme, which was purportedly attached to an IPO offering.
Going by their Alexa statistics, Bonofa appears to have collapsed late last year.
Van de Langenberg appears to have gotten out as Bonofa went into decline, with 5 Star Signals launching in mid 2014.
According to van de Langenberg’s Facebook profile, she is based out of Amsterdam in the Netherlands. This suggests that 5 Star Signals is registered in Ireland in name only.
Read on for a full review of the 5 Star Signals MLM business opportunity.
The 5 Star Signals Product Line
5 Star Signals has no retailable products or services, with affiliates only able to market 5 Star Signals affiliate membership itself.
The 5 Star Signals Compensation Plan
The 5 Star Signals compensation plan sees affiliates pay a fee and then get paid to recruit others who do the same.
Residual commissions are payable if affiliates invest funds with third-party brokers 5 Star Signals have signed up for as affiliates themselves.
Residual commissions in 5 Star Signals are paid out via a 10×10 matrix compensation structure.
A 10×10 matrix places an affiliate at the top of the matrix, with ten positions directly under them.
These ten positions form the first level of the matrix, with the second level of the matrix generated by splitting each of the ten first level positions into another ten positions each (100 positions).
In this manner each subsequent level of the matrix is generated, for a total of 11.1 billion positions.
Given this is more than the population of Earth, 5 Star Signals readily disclose
Make yourself no illusions, you will never be able to fill that matrix.
That would require 10 billion people on your 10th level and that will never happen.
Why then 5 Star Signals are using a matrix structure they know affiliates cannot fill is unclear.
In any event, commissions are paid as a percentage of the fees affiliate pay when they sign up as follows:
- level 1 – 12%
- level 2 – 34%
- level 3 – 8%
- level 4 – 6%
- level 5 – 4%
- levels 6 and 7 – 2%
- level 8 – 3%
- level 9 – 4%
- level 10 – 5%
Note that as affiliates are charged fees monthly, the above commission payouts are also monthly recurring.
If 5 Star Signals trade, the company charges them a broker commission.
60% of that commission is paid out as commissions across two levels of recruitment (unilevel).
40% is paid on commissions generated by personally recruited affiliate’s trading, and 20% from their recruits (your level 2).
Automated Trading Commissions
Using the same unilevel compensation structure as used in broker commissions, 5 Star Signals affiliates can also earn third level commissions on automated trading earnings.
- funds invested by 3rd level affiliates is greater than $250,000 = 3% commission on third level automated trading earnings
- funds invested by 3rd level affiliates is greater than $500,000 = 5% commission on third level automated trading earnings
- funds invested by 3rd level affiliates is greater than $1,000,000 = 7% commission on third level automated trading earnings
Personal Global Pool
The Personal Global Pool is made up of 1% of the entire funds paid into 5 Star Signals by affiliates.
The pool is paid out quarterly, with affiliates able to qualify for shares in the pool by accumulating points:
- recruit a Copper affiliate = 1 point
- recruit a Bronze affiliate = 2 points
- recruit a Silver affiliate = 5 points
- recruit a Gold affiliate = 10 points
For every 100 points an affiliate generates, they are awarded one share in the Personal Global Pool.
Team Global Pool
The Team Global Pool is also made up of 1% of the entire funds paid into 5 Star Signals by affiliates.
The Team Global Pool is also paid out quarterly, with shares allocated based on the recruitment efforts of an affiliate’s downline:
- Copper affiliate recruited = 0.5 points
- Bronze affiliate recruited = 1 point
- Silver affiliate recruited = 3 points
- Gold affiliate recruited = 5 points
Again, for every 100 points accumulated one share is allocated in the Team Global Pool.
Joining 5 Star Signals
Affiliate membership with 5 Star Signals is $10 plus one of the following:
- Copper – $7 a month (non-MLM)
- Bronze – $27 a month
- Silver – $197 a month
- Gold – $497 a month
All 5 Star Signals affiliates are also charged $20 annually.
Trading Forex, actively or passively, now available for the masses!
The problem with anything passive in MLM is that it typically constitutes the offering of a security.
MLM companies don’t register themselves with the appropriate securities regulators (the SEC in the US for example), and thus engage in the offering of unregistered securities.
5 Star Signals appear to be guilty of this, as I was unable to find any indication they have registered with the SEC or any other securities regulator for that matter.
Breaking down the securities offering, 5 Star Signals solicit minimum investments of $500 into third-party brokers:
5 Star Strategy With No Multiplier – minimum Deposit of $1,000, additional deposits possible and aiming for approx. 3% gains on average per month.
5 Star Strategy With x3 Multiplier – minimum Deposit of $500, additional deposits possible and aiming for 9-10% gains on average per month.
5 Star Strategy With x5 Multiplier – minimum Deposit of $1,000, additional deposits possible and aiming for 15% gains on average per month.
Third-party brokers or no, that’s what is current advertised on the 5 Star Signals website.
And the ROI “aims” on the 5 Star Signals website appear to be pseudo-compliance baloney, with van de Langenberg openly advertising guaranteed ROIs on Facebook (August 27th, 2015):
Now what if that can change….where 100% of the members can make money with money making Forex products (without them even having to learn Forex in order to trade)….so the failure is taken out of the equasion (sic), cool isn’t it?
The rest of the 5 Star Signals compensation plan mirrors what Mariska van de Langenberg was participating in both Global One and Bonofa, that being chain-recruitment.
You sign up, pay a fee and then get paid to recruit others who do the same.
This alone constitutes a pyramid scheme, with the offer of unregistered securities an additional compliance red flag.
Ponzi fraud issues also arise upon consideration of how the advertised 3 to 15% “aimed” ROIs per month are generated.
On paper it’s purportedly through forex, but if newly invested funds are just being shuffled around to pay off existing investors, then all we’re looking at here is a Ponzi pyramid hybrid.
And given van de Langenberg’s MLM history, that wouldn’t at all surprise me.
As per a Facebook post by van de Langenberg dated September 30th, 2015:
I have promoted opportunities that turned to scam in the past and have been even a topleader in a product based pyramid scheme that still goes around.
It is so easy to point a finger and play the blame game to a leader, to an upline.
BUT……no one has forced you to sign up, you all have been able to do your own due diligence, to do a sanity check on a business plan. YOU joined and you joined voluntarily for reasons that only you know.
Take that responsability (sic) yourself and admit you did a poor job or maybe even no job at all in researching an opp and owners before joining. You are very much to blame as well!
With 5 Star Signals the culture of victim-blaming fraud will likely continue.
At best you’re looking at a pyramid scheme attached to questionable third-party brokers. At worst, a pyramid scheme attached to full-blown Ponzi fraud.
Approach with extreme caution.