In an apparent continuation of the threats of violence that saw USFIA protests called off (prior to its regulatory shutdown), USFIA investors in China and Malaysia have called for two whistleblowers to be assassinated.

The disturbing revelations see the fallout of USFIA, who ran the $32 million dollar GemCoin Ponzi scheme, turn distressingly ugly. [Continue reading…]

Despite BK Boreyko posting the following to Facebook on September 26th:

Look for Vemma’s Customer Thank You Sale launching next week!!

the Vemma website has been dead for over a week now, leaving many affiliates wondering just is going on.

Roger Mayling: Can somebody from Vemma Corporate tell me whether Vemma Europe is reopening and a approx time scale please.


Jerzy Grzelak: Vemma is died in Europe………. we are not able to purchase Vemma more than a month !!!!!

Nobody answers with support for email , paid Vemma has not arrived from 26.08.2015 !!!! or a serious treatment of people who believe?????

Following a series of recent court filings, a battle between the FTC and Vemma over what they can and can’t communicate with affiliates has emerged. [Continue reading…]

As part of our continued coverage of proceedings against Zeek Rewards’ top thieves, news today that on September 30th, Judge Mullen confirmed the default judgement entered against David Sorrells. [Continue reading…]

A scheduling conference in the SEC’s Ponzi scheme case against DFRF Enterprises was held on the 29th of September.

At the hearing, the following tentative court dates were scheduled:

• Initial Disclosures 10/29/15
• Fact Discovery 5/31/16
• Expert Disclosure 6/30/16
• Defendants Expert Disclosures 9/30/16
• Motion for Summary Judgment due 10/30/16
• Opposition due 11/21/16

What we can learn from those dates is that the SEC seem pretty confident with their case. A summary judgement would see a Judge rule on the case without the need for a trial.

The initial disclosures to be filed by the 29th of this month would also provide some insight into Daniel Filho’s proposed defense.

Or at least it might have, had the DOJ not filed a Motion to Intervene on October 1st. [Continue reading…]

As part of the comparison between OneCoin and USFIA yesterday, I opined that, seven months in, OneCoin is probably at the stage where a Ponzi scheme “comes off the rails”.

Less than twenty-four hours after that article was published, we’ve now learnt that there are OneCoin affiliates who haven’t been paid for over a month. [Continue reading…]

One of the marketing tools affiliates in travel MLM niches often use is the travel itself.

Despite commissions typically having nothing to do with travel, recruitment is often marketed on the photos affiliates take on trips booked through third-party vendors.

And there’s nothing wrong with that.

But what happens when the third-party travel vendor goes rogue?

As affiliates in Pro Travel Plus recently found out, unfortunately it seems you’re just “shit out of luck”. [Continue reading…]

The recently filed responses by Vemma, BK Boreyko and Tom Alkazin to the FTC’s pyramid scheme case read pretty much like you’d expect:

Deny, deny, deny!

And that’s fair enough.

But there’s one peculiar assertion raised in their defenses that I don’t quite know what to make of… [Continue reading…]

If I was sure of anything MLM this year it was that by the end of the year, we’d see at least one MLM cryptocurrency offering busted by regulators.

That cryptocurrency was USFIA’s GemCoin, busted earlier this week by the SEC.

As with the MLM penny auction craze sparked by Zeek Rewards a year back, MLM cryptocurrencies are now popping up all over the place.

Not that that in and of itself is a problem, but to date I’ve yet to see one that isn’t just a rework of Zeek’s Ponzi points business model.

Of the current crop of MLM cryptocurrencies, by far the most visible is OneCoin.

What with USFIA’s GemCoin cryptocurrency revealed to be nothing more than a $32 million dollar Ponzi scheme, today I thought we’d take a look at the similarities between the two. [Continue reading…]

As we reported on a GemCoin party in Arcadia and Amber queen pageant in Singapore, the SEC was in the midst of halting USFIA’s business operations.

In a complaint filed under the seal on September 22nd, the SEC alleged USFIA is a $32 million dollar Ponzi scheme.. [Continue reading…]

Better late than never?

Following the SEC and having shut it down, the Business, California’s Department of Business Oversight has issued USFIA, Steve Chen, Leonard Stacy Johnson and Weiwen (Wayne) Zhao a cease and desist. [Continue reading…]