Skainet Systems fails to provide ownership or executive information on its website.

Skainet Systems’ website domain (“skainetsystems.com”), was privately registered on April 9th, 2024.

Courtesy of internal marketing, one name we can attach to Skainet Systems is Michael Baur.

As above, Baur is Skainet Systems’ Chief Marketing Officer. I’ve also seen Baur credited as Skainet Systems’ “CEO of South America”.

In 2019 a BehindMLM reader tied Baur to the CMMT Revolution Ponzi scheme. In August 2022, another BehindMLM reader tied Baur to the collapsed PLC Ultima series of Ponzi schemes.

Baur’s name also led me to this FaceBook post from serial MLM Ponzi promoter Christof Torck:

According to Torck, his “partner in crime” Lee Oshea recently held a Skainet Systems meeting with Baur in Dubai.

Due to the proliferation of scams and failure to enforce securities fraud regulation, BehindMLM ranks Dubai as the MLM crime capital of the world.

BehindMLM’s guidelines for Dubai are:

  1. If someone lives in Dubai and approaches you about an MLM opportunity, they’re trying to scam you.
  2. If an MLM company is based out of or represents it has ties to Dubai, it’s a scam.

If you want to know specifically how this applies to Skainet Systems, read on for a full review.

Skainet Systems’ Products

Skainet Systems has no retailable products or services.

Affiliates are only able to market Skainet Systems affiliate membership itself.

Skainet Systems’ Compensation Plan

Skainet Systems affiliates pay a fee. How much they pay determines how much they can invest through Skainet Systems’ purported AI trading bot.

  • T-800 – $29.99 a year and lets you invest $100 or more on the promise of 20% a month
  • T-1000 – $49.99 a year and lets you invest $100 or more on the promise of 30% a month
  • T-X – $99.99 a year and lets you invest $100 or more on the promise of 40% a month

Note that funds invested with Skainet Systems’ trading bot are “locked” for 6 months.

The MLM side of Skainet Systems pays on recruitment of affiliate investors.

Skainet Systems Affiliate Ranks

There are ten affiliate ranks within Skainet Systems’ compensation plan.

Along with their respective qualification criteria, they are as follows:

  1. Rank 1 – sign up as a Skainet Systems affiliate and invest at least $100
  2. Rank 2 – invest $300 and generate $5000 in downline investment volume
  3. Rank 3 – invest $500 and generate $25,000 in downline investment volume
  4. Rank 4 – invest $1000 and generate $50,000 in downline investment volume
  5. Rank 5 – invest $3000 and generate $100,000 in downline investment volume
  6. Rank 6 – invest $5000 and generate $250,000 in downline investment volume
  7. Rank 7 – invest $10,000 and generate $500,000 in downline investment volume
  8. Rank 8 – invest $25,000 and generate $1,000,000 in downline investment volume
  9. Rank 9 – invest $35,000 and generate $5,000,000 in downline investment volume
  10. Rank 10 – invest $50,000 and generate $10,000,000 in downline investment volume

Referral Commissions

Skainet Systems affiliates earn a 15% referral fee on access fees paid by personally recruited affiliates.

Residual Commissions

Skainet Systems pays residual 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.

Skainet Systems caps payable unilevel team levels at ten.

Referral commissions are paid as a percentage of passive returns paid across these ten levels as follows:

  • Rank 1s earn a 10% match on level 1 (personally recruited affiliates)
  • Rank 2s earn a 10% match on level 1 and 15% on level 2
  • Rank 3s earn a 10% match on level 1, 15% on level 2 and 20% on level 3
  • Rank 4s earn a 10% match on level 1, 15% on level 2, 20% on level 3 and 25% on level 4
  • Rank 5s earn a 10% match on level 1, 15% on level 2, 20% on level 3, 25% on level 4 and 30% on level 5
  • Rank 6s earn a 10% match on level 1, 15% on level 2, 20% on level 3, 25% on level 4, 30% on level 5 and 35% on level 6
  • Rank 7s earn a 10% match on level 1, 15% on level 2, 20% on level 3, 25% on level 4, 30% on level 5, 35% on level 6 and 40% on level 7
  • Rank 8s earn a 10% match on level 1, 15% on level 2, 20% on level 3, 25% on level 4, 30% on level 5, 35% on level 6, 40% on level 7 and 45% on level 8
  • Rank 9s earn a 10% match on level 1, 15% on level 2, 20% on level 3, 25% on level 4, 30% on level 5, 35% on level 6, 40% on level 7, 45% on level 8 and 48% on level 9
  • Rank 10s earn a 10% match on level 1, 15% on level 2, 20% on level 3, 25% on level 4, 30% on level 5, 35% on level 6, 40% on level 7, 45% on level 8, 48% on level 9 and 50% on level 10

Rank 10 Pool

Skainet Systems takes 5% of company-wide investment and places it into a Rank 10 Pool.

Rank 10 ranked affiliates receive a share in the pool daily.

Rank Achievement Bonuses

Skainet Systems rewards affiliates for qualifying at Rank 2 and higher with the following one-time Rank Achievement Bonuses:

  • qualify at Rank 2 and receive $50
  • qualify at Rank 3 and receive Apple Airpods or $100
  • qualify at Rank 4 and receive an Apple Watch or $300
  • qualify at Rank 5 and receive an Apple iPhone
  • qualify at Rank 6 and receive a MacBook
  • qualify at Rank 7 and receive “VIP travel”
  • qualify at Rank 8 and receive a Rolex watch
  • qualify at Rank 9 and receive a BMW
  • qualify at Rank 10 and receive a Ferrari

Joining Skainet Systems

Skainet Systems affiliate membership is either $29.99, $49.99 or $99.99 annually.

The more a Skainet Systems affiliate spends on membership the higher their passive ROI rate.

Skainet Systems Conclusion

Skainet Systems is an admittedly clever integration of terminology from the Terminator series of movies (albeit seemingly unauthorized).

Skainet Systems represents it generates external revenue via an AI trading bot.

SkAInet Systems is your trusted partner in the fast-paced world of Forex trading.

As a cutting-edge platform powered by advanced technology, we specialize in providing high-frequency trading bots specifically designed for the Forex market.

No verifiable evidence of Skainet Systems generating any revenue via trading is provided. Instead, Skainet Systems trots out MyFXBook and a Mwali “international brokerage certificate”

MyFXBook is not a substitute for legally required audited financial reports filed with regulators. Furthermore, MyFXBook stats are easily faked.

The Mwali certificate pertains to Cermak LLC, a purported brokerage operating from the domain “cermakfx.com”.

It should firstly be noted that Cermak LLC is nothing more than a shell company run by person(s) unknown. For the purpose of MLM due-diligence, the Mwali certificate is completely meaningless.

Secondly, Cermak LLC’s website domain was only registered earlier this year on January 16th. There’s a good chance there’s overlap between Skainet Systems’ anonymous owner(s).

From an actual regulatory perspective, Skainet Systems’ advertised passive returns constitutes a securities offering.

As of June 2024, SimilarWeb tracked top sources of traffic to Skainet Systems’ website as France (98.5%), Germany (1%) and Brazil (0.4%).

Skainet Systems fails to provide evidence it has registered with financial regulators in any jurisdiction.

Thus, at a minimum, Skainet Systems is committing securities fraud in the jurisdictions it solicits investment in.

As it stands, the only verifiable source of revenue entering Skainet Systems is new investment. Using new investment to pay ROI withdrawals would make Skainet Systems a Ponzi scheme.

Additionally with nothing marketed or sold to retail customers, the MLM side of Skainet Systems operates as a pyramid scheme.

As with all MLM Ponzi schemes, once affiliate recruitment dries up so too will new investment.

This will starve Skainet Systems of ROI withdrawal revenue, eventually prompting a collapse.

This is from Skainet Systems’ website Terms and Conditions;

SKAINET SYSTEMS can justify any service-related decision and terminate client relations without obligation to explain.

Clients must refrain from negative comments about SKAINET SYSTEMS. Breaching this clause results in a fine.

The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.