Before he turned to the MLM cryptocurrency niche to scam people through, Frank Dilullo ran a Ponzi scheme through his failed Holey Donuts venture.

As part of Chapter 7 proceedings, a court-appointed bankruptcy Trustee sued Dilullo for running a Ponzi scheme.

The Holey Donuts Ponzi scheme saw Dilullo (right) continue to solicit new investors even though he knew the company was insolvent.

As alleged by the Chapter 7 Trustee;

In essence, Dulillo was engaged in a Ponzi scheme, using sales to new investors to pay off, in whole or in part, old investors and himself.

As part of adversary proceedings in the bankruptcy case, the Chapter 7 Trustee filed for Default Judgment against co-defendant Oliver Zong. [Continue reading…]

EthTrade Club provide details of an executive team on their website.

As below however, images used to represent EthTrade Club’s executive team are stolen from Fivver members:

One can safely assume the names provided for EthTrade’s executives also don’t exist.

The EthTrade Club website domain (“ethtrade.club”) was privately registered on January 6th, 2018.

At the time of publication Alexa estimate that over 50% of traffic to the EthTrade website originates out of Spain.

This suggests that whoever is actually running EthTrade might be based out Spain too.

Update 7th September 2018 – Jonathan Martin  (aka Jonathan Marti) has emerged as a prominent EthTrade Club insider.

Martin features in official EthTrade Club corporate marketing videos. He has also hosted official EthTrade Club events in Spain.

At the time of publication nobody has been identified higher than Martin within EthTrade Club’s corporate structure. For all intents and purposes Martin appears to be running the company.

Prior to EthTrade Club, Martin was promoting the AiYellow pyramid scheme. /end update

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. [Continue reading…]

LiteTrade provide no information on their website about who owns or runs the business.

The LiteTrade website domain (“litetrade.org”) was privately registered on December 19th, 2017.

LiteTrade provide a UK incorporation number on their website, which corresponds with LiteTrade Limited.

The address used to incorporate LiteTrade Limited actually belongs to London Office, a virtual office services merchant.

UK incorporation is dirt cheap and for the most part unregulated. It is a favorite for scammers looking to incorporate dodgy companies.

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. [Continue reading…]

With OneCoin promotional activity dead in all but the most third-world’est of countries, one could easily gain the impression that nothing much going on at a corporate level.

Not so.

Just last month OneCoin corporate was busy setting up a new wave of shell companies to cover their tracks through. [Continue reading…]

PowerLoan provide no information about who owns or runs the business on their website.

The CEO of PowerLoan is cited only as “Johan” and likely doesn’t exist.

The PowerLoan website domain (“powerloan.io”) was privately registered on January 22nd, 2018.

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. [Continue reading…]

Du It Bitcoin Network operate in the MLM cryptocurrency niche. The company names Dwayne Golden as founder and CEO.

A corporate address in Medellín, Colombia is provided on the Du It Bitcoin Network website.

According to Golden’s Facebook page he’s based out of Pennsylvania in the US, so it appears Du It Bitcoin Network exists in Colombia in name only.

Dwayne Golden first appeared on BehindMLM as one of the admins behind Blue Bird Bids.

Blue Bird Bids launched in 2012 as a clone of the Zeek Rewards Ponzi scheme.

In 2014 Golden re-emerged as CEO of Ingreso Cybernetico, a recruitment-based pyramid scheme.

Golden went on to launch 1×2 Marketing Suite in 2016, a recruitment feeder for Ingreso Cybernetico.

Alexa traffic estimates for the Ingreso Cybernetico website reveal a sharp decline in activity from June, 2017.

According to Ari Maccabi, Golden might also have been involved in Xtreme Coin last year.

Xtreme Coin was a short-lived Ponzi scheme that has since collapsed.

If he was involved, Xtreme Coin would mark Golden’s first foray into the MLM cryptocurrency niche.

Read on for a full review of the Du It Bitcoin Network MLM opportunity. [Continue reading…]

Fireflies provide no information on their website about who owns or runs the business.

The Fireflies website domain (“fireflies.com”) was first registered on January 27th, 1999. The registration details were last updated on December 17th, 2017.

Gergo Hegedus of Swiss Halley AG is listed as the owner, through an address in Zurich, Switzerland.

Other than claiming copyright of the Fireflies website, the corporate relationship between Fireflies and Swiss Halley AG is not disclosed.

On his LinkedIn profile, Gergo Hegedus cites himself as Director of Operations at Swiss Halley from May 2011 to May 2015.

From June 2015 he cites himself as co-owner and General Manager of Online Travel Support (Seychelles) LTD.

Hegedus’ Twitter profile backdates his involvement in Swiss Halley to 2012.

Online Travel Support (Seychelles) LTD appears to exist only on Hegedus’ LinkedIn profile.

I was unable to find any further information on the company or confirm Hegedus’ ongoing involvement with Swiss Halley and/or Fireflies.

In March 2017 a video titled “Mr. Urlich Marki – Swiss Halley AG. CEO (Fireflies)” was published on the YouTube channel Team Revolution Training.

Possibly due to language barriers, I was unable to ascertain whether Marki has an MLM history.

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. [Continue reading…]

As part of continued efforts to mislead potential investors on MLM cryptocurrency offerings and US securities law, in an April 23rd blog article Nui claim its Kala altcoin has “increased stability and protection with the SEC”.

In a nutshell, Nui’s entry into the cryptocurrency MLM niche spans Symatri, Kala and Mintage Mining.

Nui runs Symatri, which is essentially a task-driven social network. [Continue reading…]

The FTC and Eric Pinkston have reached a preliminary injunction agreement, resulting in an agreed injunction granted on April 20th.

Last month the FTC sued Pinkston for promoting and profiting off of the Bitcoin Funding Team and My7Network scams.

As per the agreement, the court acknowledges that the FTC has an “ultimate likelihood of success”. [Continue reading…]

Game Loot Network launched in 2015 as a token-based mobile gaming platform.

The company was founded by Lance Baker, who also serves as Loot Gaming Network’s President.

A whitepaper on the Game Loot Network website claims the company is headquartered in the US state of Missouri.

During its first year in business, Game Loot Network went through numerous compensation plan revisions.

BehindMLM published an updated Game Loot Network review in June, 2016.

The updated compensation plan required Game Loot Network affiliates to generate “Premium Gamers”.

Premium Gamers were retail customers who paid $10 a month to access Game Loot Network’s platform.

Given the dominance of the “free to play” model across the mobile gaming market, Game Loot Network’s “Premium Gamer” model flopped.

Throughout 2017 traffic to the Game Loot Network continued to decline, before dropping off completely around August.

In late 2017 Game Loot Network announced it would be launching a LOOT altcoin.

Armed with a new business model and updated compensation plan, the company hopes to launch its LOOT ICO next month.

Read on for an updated review of the Game Loot Network MLM opportunity. [Continue reading…]