MGM Capital Review: “Multi-asset management” ruse Ponzi
MGM Capital (aka MGM Capital Traders), fails to provide ownership or executive information on its website.
MGM Capital’s website domain (“mgmcapital.co”), was registered in November 2022. The private registration was last updated on October 30th, 2023.
MGM Capital’s official Twitter profile was created in August 2023. As of September 13th, the company was still “coming soon”.
Despite only existing for a few months, on its website MGM Capital falsely claims to have “an aggregate expertise surpassing a hundred years”.
Of note is MGM Capital denoting its location on Twitter as the UAE. Typically this means Dubai, the MLM crime capital of the world.
Over on YouTube, MGM Capital has uploaded three marketing videos. The videos are hosted by a male going by “HappyMan”.
There is also an “MGMCapital” user on one of the webinars. The user has their camera disabled but, as above, it does turn on at least once during the broadcast.
I’m not 100% on his accent but HappyMan sounds like he’s from Malaysia or the Philippines (appreciate anyone able to confirm in the comments below).
In MGM Capital’s YouTube videos, “Sunshine Lee” is presented as CEO of the company.
Lee doesn’t exist outside of MGM Capital’s marketing but is represented on MGM Capital’s marketing webinars.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
MGM Capital’s Products
MGM Capital has no retailable products or services.
Affiliates are only able to market MGM Capital affiliate membership itself.
MGM Capital’s Compensation Plan
MGM Capital affiliates invest USD equivalents in cryptocurrency.
This is done on the promise of advertised passive returns:
- Bronze Plan – invest $25 to $999 and receive 1% a day for 90 days
- Silver Plan – invest $1000 to $9999 and receive 1.25% a day for 120 days
- Gold Plan – invest $10,000 to $100,000 and receive 1.5% a day for 200 days
- Diamond Plan – invest $101,000 to $1,000,000 and receive 2% a day for 230 days
- Platinum Compounding – invest $100 to $1,000,000 and receive 1% a day for 180 days
The MLM side of MGM Capital pays on recruitment of affiliate investors.
MGM Capital Affiliate Ranks
There are twelve affiliate ranks within MGM Capital’s compensation plan.
Along with their respective qualification criteria, they are as follows:
- Starter – have an active $100 investment, recruit three affiliates and generate at least $5000 in downline investment volume
- Silver – have an active $250 investment, recruit four affiliates and generate at least $10,000 in downline investment volume
- SilverPro – have an active $500 investment, recruit five affiliates and generate at least $20,000 in downline investment volume
- Gold – have an active $1000 investment, recruit six affiliates and generate at least $50,000 in downline investment volume
- GoldPro – have an active $2000 investment, recruit seven affiliates and generate at least $75,000 in downline investment volume
- Platinum – have an active $3000 investment, recruit eight affiliates and generate at least $100,000 in downline investment volume
- PlatinumPro – have an active $5000 investment, recruit nine affiliates and generate at least $200,000 in downline investment volume
- Diamond – have an active $10,000 investment, recruit ten affiliates and generate at least $500,000 in downline investment volume
- DiamondPro – have an active $25,000 investment, recruit eleven affiliates and generate at least $1,000,000 in downline investment volume
- Ambassador – have an active $50,000 investment, recruit twelve affiliates and generate at least $2,000,000 in downline investment volume
- Regional Ambassador – have an active $75,000 investment, recruit thirteen affiliates and generate at least $6,000,000 in downline investment volume
- Global Ambassador – have an active $100,000 investment, recruit twenty affiliates and generate at least $500,000 in downline investment volume
Referral Commissions
MGM Capital pays referral commissions 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.
Referral commissions are paid as a percentage of invested funds down ten levels of recruitment:
- Starter and Silver ranked affiliates earn 8% on level 1 (personally recruited affiliates) and 1% on levels 2 to 6
- SilverPro and Gold ranked affiliates earn 8% on level 1, 1% on levels 2 to 6 and 0.5% on level 7
- GoldPro and Platinum ranked affiliates earn 8% on level 1, 1% on levels 2 to 6 and 0.5% on levels 7 and 8
- PlatinumPro and Diamond ranked affiliates earn 8% on level 1, 1% on levels 2 to 6 and 0.5% on levels 7 to 9
- Diamond Pro and higher ranked affiliates earn 8% on level 1, 1% on levels 2 to 6 and 0.5% on levels 7 to 10
ROI Match
MGM Capital pays an ROI match on daily returns paid to downline affiliates recruited into the unilevel team (see “referral commissions” above).
The ROI Match is paid out down five levels of recruitment:
- level 1 – 8% match
- level 2 – 2% match
- levels 3 to 5 – 1% match
Leadership Bonus
Ambassador and higher ranked MGM Capital affiliates “receive a 2% override on their entire organization”.
This overrides pertains to new investment tied to downline recruitment.
Rank Achievement Bonus
MGM Capital affiliates earn a Rank Achievement Bonus when they qualify at Bronze and higher.
- qualify at Bronze and receive $50
- qualify at Silver and receive $100
- qualify at SilverPro and receive $200
- qualify at Gold and receive $500
- qualify at GoldPro and receive $750
- qualify at Platinum and receive $1500
- qualify at PlatinumPro and receive $4000
- qualify at Diamond and receive $10,000
- qualify at DiamondPro and receive $30,000
- qualify at Ambassador and receive $100,000
- qualify at Regional Ambassador and receive $250,000
- qualify at Global Ambassador and receive $500,000
Joining MGM Capital
MGM Capital affiliate membership is free.
Full participation in the attached income opportunity requires a minimum $25 investment.
MGM Capital solicits investment in various cryptocurrencies.
MGM Capital Conclusion
MGM Capital represents it generates external revenue through
unmatched proficiency in renewable energy, forex, stocks, commodities, cryptocurrencies, real estate, oil, and gold trading, as well as business acquisitions
Collectively, MGM Capital refers to this as a “multi-asset management” model.
No evidence of MGM Capital paying withdrawals with funds derived from the stated methods is provided.
Furthermore, even if we take MGM Capita’s return revenue ruses at face value, the business model fails the Ponzi logic test.
If MGM Capital already has a “multi-asset management” model legitimately capable of generating up to 2% a day on a consistent basis, what do they need your money for?
On the regulatory front, MGM Capital’s passive returns investment opportunity constitutes a securities offering. MGM Capital fails to provide evidence it has registered with financial regulators in any jurisdiction.
This means that at a minimum MGM Capital is committing securities fraud.
As it stands the only verifiable source of revenue entering MGM Capital is new investment.
Using new investment to pay affiliate withdrawals would make MGM Capital a Ponzi scheme.
As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.
This will starve MGM Capital of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
