Eaconomy Review: Silverstar Live reboot without convicted fraudster
Eaconomy surfaced three or four weeks ago under “Global Takeover” prelaunch branding.
After a cringey “we won’t tell you the company name but plz sign up anyway” period, Eaconomy was revealed about a week ago.
Heading up Eaconomy is President Hassan Mahmoud.
Mahmoud (right) first appeared on BehindMLM back in January, as co-owner of Silverstar Live.
Silverstar Live was a short-lived MLM company, offering unregistered securities under the guise of automated forex bot trading.
I’ve been loosely tracking SilverStar Live’s collapse. Apparently as it was collapsing there was a fallout between Mahmoud and his wife, and convicted fraudster David Myer.
At some point SilverStar Live was renamed AI Global, and then again to Ai Expert Advisor.
There’s no information about who’s running AI Expert Advisor on its website, but presumably it’s still Myer.
Bear in mind there’s not much of a company left, with Alexa pegging AI Expert Advisor with a 2.5 million rank (good as dead for an MLM company).
After splitting with Myer, Mahmoud seems to have taken what he collected and launched his own opportunity.
Mahmoud’s wife, Candace, joined him as co-owner of SilverStar Live.
There’s no mention of her on the Eaconomy website, and she seems to have deleted all her social media profiles.
Not sure what the story is there, but I’m sure she’s enjoying the money she received from SilverStar Live affiliates.
One last note on Eaconomy management; I couldn’t help but notice Sal Leto credited as Vice President of Operations.
Read on for a full review of the Eaconomy MLM opportunity.
Eaconomy market two forex bots, which for some reason they’re misrepresenting as “expert advisors”:
- Traide Ringer – “this advanced expert advisor creates a ring around price like a wheel that rotates and captures profit as the wheel turns”
- Traide Runner – “this top forex expert advisor can make over a hundred trades a day collecting small wins that add up like a scalper”
- Traide Compass – “this advanced expert advisor creates a ring around price like a wheel that rotates and captures profit as the wheel turns”
Eaconomy’s sell access to their bots for $247 and then $169 a month.
Discounts are offered on multiple bot purchases, however these are not disclosed on Eaconomy’s website.
The Eaconomy Compensation Plan
At the time of publication, Eaconomy fail to provide a copy of their compensation plan on their website.
The following is sourced from a Global Takeover prelaunch marketing video and various marketing presentations.
Eaconomy Affiliate Ranks
There are twelve affiliate ranks within Eaconomy’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Rank 1 – generate 435 GV a month in bot subscription volume and generate and maintain at least three total downline bot subscriptions
- Rank 2 – generate 1740 GV a month in bot subscription volume and generate and maintain at least twelve total downline bot subscriptions (split 4/4/4)
- Rank 3 – generate 5075 GV a month in bot subscription volume and generate and maintain at least thirty-five total downline bot subscriptions (split 10/10/15)
- Rank 4 – generate 13,050 GV a month in bot subscription volume, generate and maintain at least ninety total downline bot subscriptions (split 30/30/30), and recruit and maintain at least three Rank 1 affiliates
- Rank 5 – generate 36,050 GV a month in bot subscription volume, generate and maintain at least two hundred and fifty total downline bot subscriptions (split 100/100/50), and recruit and maintain at least two Rank 2 affiliates
- Rank 6 – generate 72,500 GV a month in bot subscription volume, generate and maintain and maintain least five hundred total downline bot subscriptions (split 200/200/100), and recruit and maintain at least two Rank 3 affiliates
- Rank 7 – generate 181,250 GV a month in bot subscription volume, generate and maintain at least one thousand two hundred and fifty total downline bot subscriptions (split 500/500/250), and recruit and maintain at least two Rank 4 affiliates
- Rank 8 – generate 362,500 GV a month in bot subscription volume, generate and maintain at least two thousand five hundred total downline bot subscriptions (split 1000/1000/500), and recruit and maintain at least two Rank 5 affiliates
- Rank 9 – generate 725,000 GV a month in bot subscription volume, generate and maintain at least five thousand total downline bot subscriptions (split 2000/2000/1000), and recruit and maintain at least two Rank 6 affiliates
- Rank 10 – generate 2,175,000 GV a month in bot subscription volume, generate and maintain at least fifteen thousand total downline bot subscriptions (split 6000/6000/3000), and recruit and maintain at least two Rank 7 affiliates
- Rank 11 – generate 4,350,000 GV a month in bot subscription volume, generate and maintain at least thirty thousand total downline bot subscriptions (split 12,000/12,000/6000), and recruit and maintain at least two Rank 8 affiliates
- Rank 12 – generate 8,700,000 GV a month in bot subscription volume, generate and maintain at least sixty thousand total downline bot subscriptions (split 24,000/24,000/12,000), and recruit and maintain at least two Rank 9 affiliates
GV stands for “Group Volume” and is sales volume generated via bot subscriptions to retail customers and recruited affiliates.
Note that GV is downline subscription sales volume, not just your own personal efforts.
Split subscription numbers refer to an Eaconomy affiliate’s top three downline legs (quotes are minimums required in the three largest legs).
MLM Commission Qualification
In order to qualify for MLM commissions, each Eaconomy affiliate must maintain 55% retail customer volume on their first three recruitment legs.
A recruitment leg is created when you personally recruited an Eaconomy affiliate.
Weekly Commission Caps
Eaconomy caps all weekly residual commissions and bonuses based on rank:
- Rank 1 affiliates can earn up to $37.50 a week
- Rank 2 affiliates can earn up to $150 a week
- Rank 3 affiliates can earn up to $375 a week
- Rank 4 affiliates can earn up to $750 a week
- Rank 5 affiliates can earn up to $1250 a week
- Rank 6 affiliates can earn up to $2500 a week
- Rank 7 affiliates can earn up to $6250 a week
- Rank 8 affiliates can earn up to $12,500 a week
- Rank 9 affiliates can earn up to $25,000 a week
- Rank 10 affiliates can earn up to $62,500 a week
- Rank 11 affiliates can earn up to $125,000 a week
- Rank 12 affiliates can earn up to $250,000 a week
Retail & Recruitment Commissions
Retail and recruitment commissions are paid when retail customers and recruited affiliates purchase access to Eaconomy trading bots.
A $40 one-time commission is paid on the first bot subscription purchases by an affiliate’s fourth retail customer and/or recruited affiliate.
Note that additional bot purchases by the same retail customers and/or recruited affiliates only generates a $15 commission.
Fast Start Bonus
Eaconomy pays a one-time $110 Fast Start Bonus if an affiliate generates four bot sales within ten days of signing up.
Team Coded Bonus
The Team Coded Bonus is a bonus paid on the first three downline retail customers or recruited affiliate bot purchases.
That is affiliates you recruit selling Eaconomy bots to retail customers or affiliates they recruit, and you getting paid 15% on their first three bot sales.
If any of those first three retail customers become affiliates (or all are affiliates), 15% of their first three retail customer and/or recruited affiliate bot purchases is also paid out.
In this manner the Coded Bonus can theoretically pay an infinite depth, as long as subscriptions continue to be purchased.
Affiliate rank increases the Coding Bonus up to a potential 30%.
- Rank 1 affiliates earn the standard 15% Coded Bonus rate on the first three affiliates and so on
- Rank 2 affiliates earn a 20% Coded Bonus rate on the first three affiliates and so on
- Rank 3 affiliates earn a 25% Coded Bonus on the first three affiliates and so on
- Rank 4 affiliates earn a 25% Coded Bonus on the first three affiliates and so on, plus an additional 25% on personally recruited affiliates from your fourth (the three affiliates they recruit and so on), plus an additional 3% on all subscriptions sold from your fourth recruited affiliate
- Rank 5 affiliates earn a 28% Coded Bonus on the first three affiliates and so on, as well as the 25% Rank 4 fourth affiliate and onward bonuses (includes bonus 3%)
- Rank 6 affiliates earn a 28% Coded Bonus on the first three affiliates and so on, plus the 3% Rank 4 additional bonus percentage is increased to 5%
- Rank 7 affiliates earn a 30% Coded Bonus on the first three affiliates and so on, plus the Rank 6 increased Rank 4 bonus percentages
- Rank 8 and higher affiliates earn a 30% Coded Bonus on the first three affiliates and so on, plus the 6% Rank 6 additional bonus percentage is increased to 7%
Note that “the first three” refers to the first three affiliates recruited, the first they recruit (level 2) and so on and so forth.
The fourth affiliate and onward still maintain this “first three” structure.
That is the fourth affiliate’s first three recruited affiliates, the first three they recruit and so on.
Sounds confusing? That’s because it is.
Matching Coded Bonus
Rank 2 Eaconomy affiliates earn a 20% match on Team Coded Bonuses earned by their first three recruited affiliates.
Rank 3 Eaconomy affiliates earn the same 20% and also a 10% match on Team Coded Bonuses paid out to their first nine second level recruited affiliates.
Note that the second level refers to affiliates recruited by your personally recruited affiliates.
Rank 4 Eaconomy affiliates earn the same 20% and 10% match, and also a 5% match on Team Coded Bonuses earned by levels 1 and 2 of your fourth personally recruited affiliate and onward.
That is affiliates recruited by your fourth recruited affiliate and affiliates those affiliates recruit.
Again, if that sounds confusingly complicated it’s because it is.
Eaconomy pays guaranteed weekly income based on rank.
- Rank 1 affiliates receive $37.50 a week
- Rank 2 affiliates receive $150 a week
- Rank 3 affiliates receive $375 a week
- Rank 4 affiliates receive $750 a week
- Rank 5 affiliates receive $1250 a week
- Rank 6 affiliates receive $2500 a week
- Rank 7 affiliates receive $6250 a week
- Rank 8 affiliates receive $12,500 a week
- Rank 9 affiliates receive $25,000 a week
- Rank 10 affiliates receive $62,500 a week
- Rank 11 affiliates receive $125,000 a week
- Rank 12 affiliates receive $250,000 a week
Eaconony affiliate membership is $79 and then $29 a month.
The whole marketing pitch behind SilverStar Live was that David “Quick Silver” Myer was a successful trader.
Hassan and Candace Mahmoud were relative nobodies, who prior to SilverStar Live were selling Enagic water filters.
So who or what is behind Eaconomy’s trading bots?
The company fails to disclose who created the bots, their history or any verifiable trading history of the bot itself.
As opposed to legally required investment disclosures regarding their bot, instead prospective Eaconomy subscribers are being told they can make 22.3% a week.
Considering Eaconomy is based out of the US and so is Mahmoud, this puts both him and company in violation of US securities law.
Which makes Sal Leto’s compliance interview with Elizabeth Morgan (cited as an “attorney at law”), all the more ridiculous.
From day one we’ve had a huge emphasis on compliance and making sure that legally we’re structured in a way that will keep us safe and guarded long-term.
At one point during the exchange, which doesn’t addresses securities fraud, Morgan claims
We are actually working directly with the CFTC and other regulatory bodies to make sure what we do this correctly.
Sorry, what? US regulators don’t “work with” companies on their compliance.
In fact they’re particularly cagey about companies (MLM or otherwise) inferring any sort of working relationship, as it inevitably implies regulatory approval.
And let’s face it, that’s basically the underlying tone of Leto’s ‘HAY GUYS, WE SPOKE TO A LAWYER!’ video.
Make no mistake, said video is not a substitute for registering with the SEC and/or CFTC, and providing investors full disclosure regarding Eaconomy’s auto trading bots.
This would include submitted audited accounting verifying any trading results attributed to the bots.
Let’s shift gears though and take a step back from legalities and regulators.
Imagine you woke up one day, walking into your kitchen and there’s a trading bot sitting on your table.
Attached is a note telling you that if you plug the bot into a broker account, you’re going to make a ton of money.
What’s your first instinct?
To plug it in, see if it works and then quietly make a fortune?
Or whore the bot out over the internet for $247 a pop?
This is the problem with every single auto trading bot MLM opportunity.
If the bot(s) is/are so great, why don’t the company owners use them to become the next Jeff Bezos?
Therein lies the fallacy of the MLM trading bot scam. And for evidence we need look no further than Silverstar Live.
Nobody in that company had any idea what their Hamilton bot was doing. They just purchased it off someone or got some developers to cobble some source-code together.
Like Eaconomy, prospective affiliates were shown 30% A WEEK OMFG!%!” marketing slides. And everything worked great… until it didn’t.
From memory Silverstar Live subscribers initially struggled to recoup monthly fees, which then devolved into blowout losses.
Here at BehindMLM, Hamilton bot subscribers began reporting losses in early March.
These continued through until the scheme collapsed.
And remember, Hassan Mahmoud was a co-owner of Silverstar Live.
For all the time I’ve spent on the trading aspect of Eaconomy though, in truth it’s all just smoke and mirrors.
Hopefully that’s something those gullible to invest with SilverStar Live’s bot learned.
If you’ve gone over the compensation plan section of this review, you’re likely to have been left confused.
While Hassan Mahmoud might know stuff all about the technicalities of trading bots, he evidently can put together a massively complicated compensation plan.
Pass up this, skip this, get paid on this and that group… there’s far simpler ways to put together an MLM compensation plan.
So why this particular one?
At the core of Eaconomy’s compensation plan are the coded pass-ups.
No matter how rubbish these might be for regular affiliates or incomprehensible to explain, company owners and admins love these plans because… guess who sits at the top of the company-wide pass-up chains?
Yep. Through one or more preloaded positions, and positions created for executives, and positions created for the Michael Fausts and the rest of the insiders… most of the money paid in fees is passed up – straight into the bank accounts of said insiders.
It doesn’t matter if the bot causes widespread losses, the subscription fees are where Mahmoud and his partners will make all their money.
I mean obviously the bot isn’t as much of a money spinner as they’re making it out to be, otherwise, as previously pointed out, they’d be quietly using it to create riches.
One final thing I want to touch on are the rank-based guaranteed payouts.
This is a total compliance red flag in any MLM company.
Sure, Eaconomy require affiliates to maintain a 55% retail ratio in some recruitment legs to qualify (in addition to rank qualification), but from a regulatory perspective the flow of money is the same.
You sign up as an Eaconomy affiliate, pay fees and collect a guaranteed weekly amount based on fees paid by those who join after you (retail customers or affiliates).
Retail customers make it not quite a total Ponzi scheme, but up to 45% of that weekly payout can be sourced from fees paid in by subsequent affiliates.
That drags us into pay to play pyramid scheme territory, unless Eaconomy can prove the majority of affiliates are using the bot and turning a profit.
Which brings us back to SEC/CFTC registration and providing prospective subscribers and public with legally required disclosures.
Marketing screenshots with no context (or even with context) are not a substitute.
And can I just say that nothing kills retail sales faster than requiring affiliates to pass up retail commissions.
Nobody is going to sign up and generate three retail sales, only to watch the commissions flow upline.
With zero information disclosed about Eaconomy’s Traide bots, it’s easy to imagine they were sourced from the same provider of Silverstar Live’s Hamilton bot.
Mahmoud was after all a co-owner and definitely had the access.
At the end of the day though I suppose it doesn’t really matter to the average affiliate or retail subscriber.
You can go and look up the mess that Silverstar Live left behind. Eaconomy provide no evidence to suggest it’ll turn out any different.
Update 5th November 2019 – On November 4th Hassan Mahmoud and Candace Ross-Mahmoud settled Silverstar Live CFTC fraud violations for $75,000 plus post-judgment interest.