MLM @ BehindMLM

Authorities in Venezuela have arrested Generation Zoe promoter César Julio Gómez López. Following an investigation by the Scientific, Criminal and Criminalistic Investigation Service Corps (CICPC), Lopez has been charged with fraud related to “false investments”.

Paraiba World has received a second securities fraud warning from Switzerland’s Financial Market Supervisory Authority (FINMA). FINMA’s first Paraiba World fraud warning was issued in March and targeted Paraiba World Switzerland. FINMA’s second warning pertains to the associated shell company Unique Private Bank LTD.

Tedy Teow, head of the MBI International Ponzi scheme, has been arrested in Thailand. Authorities allege Teow was caught laundering money from his online gambling business.

South Africa attempting to regulate MLM Ponzi schemes through a broken liquidation system is one of the dumbest things I’ve ever had to report on. In the latest show of stunning incompetence, South Africa’s Revenue Service, the country’s tax regulator, is looking to steal the entire balance of recovered funds.

Young Living has received a warning from the FDA, advising its CBD products “are drugs … intended for use in the cure, mitigation, treatment, or prevention of disease.” The classification has been made following observation of marketing by Young Living and its distributors.

Gilbert Armenta was indicted on OneCoin fraud charges in July 2017. He pled guilty to the charges in April 2018. Originally held in prison awaiting sentencing, Armenta was released on compassionate grounds in late 2020. Since then Armenta’s scheduled sentencing dates have been continuously pushed back. The official and now oft repeated reason for Armenta’s [Continue reading…]

Nextera has received a pyramid fraud warning from the Central Bank of Russia (CBR).

Regulators are starting to pay attention to the plague of “click a button” app Ponzis that have sprung up. The first regulatory fraud warning specifically pertaining to the scams has been issued by the Philippine SEC.

Daxio has received a pyramid scheme fraud warning from the Norwegian Gambling Authority (Lottstift). Lottstift issued its Daxio fraud warning via a May 20th letter addressed to “Daxio Norge”. Frode Jorgensen is identified as Daxio’s CEO.

Two Herbalife executives based out of China were indicted back in 2019. One of the executives, who fronted HerbaLife China for over a decade, was also sued for by the SEC. Both the criminal charges and civil case pertained to Herbalife’s violations of the Foreign Corrupt Practices Act.