Eagle Gates Group Review: Package-based Ponzi investment
Eagle Gates Group name Eddy McClough as Founder and CEO of the company.
Has over 12 years of diversified financial services experience holding senior management roles spanning investment banking, private equity, investment management, and real estate in global financial services brands such as KPMG, Bank of America Securities and Merrill Lynch.
Distinguished speaker who has presented numerous keynote speeches globally ranging from macroeconomic issues, investment techniques and risk management at various international investment conference and summits.
As to the company itself;
Founded on February 2005 in the United States, Eagle Gates Group is now one of the world’s leading index futures investment and asset management company.
While the Eagle Gates Group website domain was first registered back in 2005, research reveals it hosted content that had nothing to do with Eagle Gates Group until earlier this year.
In early March the Eagle Gates Group domain registration changed, reflecting when McClough likely took possession of it.
Prior to March, the domain was redirected to an unrelated electrical gate retailer.
The Eagle Gates Group website as it is today went live sometime after March, 2016.
With respect to Eddy McClough (right), no information about him exists outside of what has recently been published in connection with Eagle Gates Group.
There is an obviously staged “CNN interview” doing the rounds, in which McClough is fed softball questions from a paid actor.
The interview is shot in a small studio with harsh lighting (McClough appears saturated in sweat) and echoey sound.
Quite obviously the segment didn’t air on CNN.
If you pay particular attention to McClough’s eyes, you can see he’s reading off a script (when he finishes his eyes dart back to the interviewer). There’s also two clocks on-screen which go out of sync at [3:13].
Who McClough actually is I have no idea. His LinkedIn profile claims he’s based out of New York but other than that there’s no reliable information publicly available about him.
Bit strange for someone who’s purportedly a ‘distinguished speaker who has presented numerous keynote speeches globally‘.
Eagle Gates Group provide a corporate address in New York on their website. Further research however reveals this is a “virtual office business center” ($99 a month).
It appears Eagle Gates Group (and probably Eddy McClough), exists in New York in name only.
At the time of publication Alexa estimate that 72.5% of traffic to the Eagle Gates Group originates out of Thailand. This suggests Thailand is likely where Eagle Gates Group is being operated from.
Read on for a full review of the Eagle Gates Group MLM opportunity.
The Eagle Gates Group Product Line
Eagle Gates Group has no retailable products or services, with affiliates only able to market Eagle Gates Group affiliate membership itself.
The Eagle Gates Group Compensation Plan
The Eagle Gates Group compensation plan sees affiliates invest up to $10,000 on the promise of a monthly ROI.
Eagle Gates Group affiliates are also paid to recruit new affiliates who invest.
Eagle Gates Group affiliates invest funds on the promise of advertised three-stage monthly ROI payments.
- Stage 1 is the first 90 days after funds have been invested
- Stage 2 is 91 to 180 after funds have been invested
- Stage 3 is 181 days and onward
Monthly ROI payments are based on how much an Eagle Gates Group affiliate invests:
- $1000 package – 3% monthly ROI in Stage 1, 6% monthly ROI in Stage 2 and 9% monthly ROI in Stage 3
- $5000 package – 4% monthly ROI in Stage 1, 8% monthly ROI in Stage 2 and 12% monthly ROI in Stage 3
- $10,000 package – 5% monthly ROI in Stage 1, 10% monthly ROI in Stage 2 and 15% monthly ROI in Stage 3
Direct Referral Commissions
Eagle Gates Group affiliates are paid a 10% direct referral commission on funds invested by personally recruited affiliates.
Residual Referral Commissions
Residual referral commissions in Eagle Gates Group are paid out via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Commissions are paid out as a percentage of funds invested by a unilevel team as follows:
- Assistant Manager – convince personally recruited affiliates to invest $40,000 and receive a 4% residual referral commission
- Manager – convince personally recruited affiliates to invest $200,000 and receive a 5% residual referral commission
- Senior Manager – convince personally recruited affiliates to invest $400,000 and receive a 6% residual referral commission
- Assistant Deputy Director – convince personally recruited affiliates to invest $2,000,000 and receive a 7% residual referral commission
- Deputy Director – convince personally recruited affiliates to invest $4,000,000 and receive an 8% residual referral commission
- Director – personally recruit at two Deputy Director ranked affiliates and receive a 9% residual referral commission
- Senior Director – personally recruit three Deputy Director ranked affiliates and receive a 10% residual referral commission
Joining Eagle Gates Group
Eagle Gates Group affiliate membership is tied to investment in one of three offered packages:
- $1000 package
- $5000 package and
- $10,000 package
The only difference between the above packages is income potential through the Eagle Gates Group compensation plan.
Ignoring the fact that Eagle Gates Group lied about being formed in 2005 and that no information on Eddy McClough exists, the company also fails the Ponzi logic test.
An official Eagle Gates Group marketing video claims the company has “over 8 billion USD of revenue-generating investments”:
In the same presentation Eagle Gates Group claim to have a three-year trading record of over 603 million dollars:
Again, putting aside the fact that Eagle Gates Group didn’t exist three years ago, why is a company able to produce this sort of revenue soliciting investment from affiliates?
If the marketing video is to be believed (and it certainly shouldn’t be), Eddy McClough is sitting on a perpetual goldmine that requires no outside investment.
The reality of Eagle Gates Group is the only source of revenue entering the company is affiliate investment.
The use of which to pay advertised monthly ROIs makes Eagle Gates Group a Ponzi scheme.
There is some MetaTrader MT4 component to the scheme, through which Eagle Gates Group affiliates can purportedly participate in index trading.
This however has nothing to do with the Eagle Gates Group MLM opportunity.
In addition to Ponzi ROIs, the referral side of Eagle Gates Group adds a pyramid layer to the scheme.
Eagle Gates Group affiliates are directly compensated for recruiting new investors, which is typical of an MLM Ponzi scheme.
Absolutely no proof or evidence is provided on the Eagle Gates Group website linking index trading to any of the revenue claims made in the marketing video.
If I had to guess, Eddy McClough is probably hiding out in Thailand or somewhere close by. And Eddy McClough itself is probably a pseudonym.
Eagle Gates Group is built as a fraudulent Ponzi scheme from the ground up, which starts with the claim the company has been around since 2005.
As with all Ponzi schemes, once new affiliate recruitment dries up so too will ROI payments made within the scheme.
Crunching the raw numbers,
- the $1000 package exceeds the 100% ROI mark after 14 months
- the $5000 package exceeds the 100% ROI mark after 11 months
- the $10,000 package exceeds the 100% ROI mark after 9 months
Considering Eagle Gates Group began soliciting Ponzi investment on or around March, 2016, this means the company is due for collapse either late this year or early the next.
Referral commissions will hasten the collapse, along with funds Eddy McClough and friends skim off the top.
Prolonged new investment might prop up Eagle Gates Group beyond this time-frame, however Alexa traffic statistics suggest recruitment crashed in early November.
Although they might not have realized it yet, this likely means the majority of Eagle Gates Group affiliates have already lost money.