At the core of the FTC’s pyramids scheme case against Vemma is the issue of a lack of significant retail activity, along with deceptive income claims.

Thus it was surprising that one of the first moves we saw Vemma’s attorney’s make, was to solicit affidavits from the general public.

To this day I don’t know what they have to do with demonstrating Vemma has significant retail activity, or that the income claims they made weren’t deceptive.

(Vemma) suggest that because they have some satisfied consumers, they cannot be found to have violated Section 5 of the FTC Act, 15 U.S.C. § 45(a).

However, several federal cases have held that the existence of “satisfied” customers is not a defense under the FTC Act.

Turns out neither do the FTC… [Continue reading…]

Income Disclosure Statements have become somewhat of a joke these last few years.

Rather than present the general public with an accurate snapshot of the business, MLM companies instead seek to manipulate the data such that they exclude as many affiliates as possible.

Here’s Lyoness doing it in 2012 and Empower Network and Herbalife in 2013. They’re hardly the only ones mind, with the practice now fully entrenched across the board.

So why are MLM companies manipulating the data to exclude affiliates?

The reason is to downplay affiliate losses and artificially bump up retail sales revenue. At the most egregious end of the manipulation scale, companies like Vemma even go so far as to reclassify affiliates who haven’t recruited affiliates as retail customers.

This despite said affiliates signing an affiliate agreement that makes them part of the income opportunity.

Enter the FTC, who are looking to put an end to MLM Income Disclosure Statement deception. [Continue reading…]

Founded in 2004, WellStar is based out of Germany and headed up by Founder and CEO, Christian Weisner.

Utilizing his vast specific expertise, Christian founded WellStar in 2004 and has been heading the company since then as CEO and Chief Strategist.

Kari Wahlroos joined WellStar in 2014. Rising to the rank of Crown Ambassador and frequently cited as a “top leader” of WellStar, Wahlroos recently departed the company.

That prompted Weisner to turn around and accused Wahlroos of “criminal behaviour”. [Continue reading…]

Following a the publishing of a now-deleted video, in which Tony Rush, Randy Schrum, Kristian Hoenicke and John Lavenia sat around a table and jovially announced they would not be attending the next Dubli event, now news that Dubli has terminated the four Vice-President ranked affiliates.

All is not what it seems though, with Rush, Schrum, Hoenicke and Lavenia claiming the terminations only came about after multiple attempts to resign. [Continue reading…]

Following encouragement from Arcadia City Manager Dominic Lazzaretto, suggesting USFIA investors contact Arcadia Police Department, several investors have taken him up on his advice.

Armed with banners similar to those that caused the cancellation of a USFIA Ponzi gala late last month, USFIA investors stormed Arcadia Police Department and called for the arrest of Steve Chen. [Continue reading…]

Filed alongside BK Boreyko’s response, in this article I’m going over Vemma’s official response to the FTC’s request for a preliminary injunction.

Not surprisingly Vemma are objecting to a preliminary injunction being granted. Here’s why. [Continue reading…]

As required by court procedure, the CEO and Founder of Vemma, BK Boreyko, today filed a response to the FTC’s allegation that Vemma is an illegal pyramid scheme.

In his response, Boreyko complains about the manner in which the FTC brought their case against Vemma, offers numerous strawman arguments seeking to weaken the Thacker declaration and ultimately fails to address the lack of significant retail activity taking place within Vemma. [Continue reading…]

It’s now looking more certain than ever that we’re going to see an MLM cryptocurrency bust by the end of the year.

The latest in the cryptocurrency MLM niche is the news that the FBI are actively investigating USFIA. [Continue reading…]

What would cause a top-affiliate in an MLM company to start selling shares to their downline?

If you’re Daryl Kingston Djuan, it’s because you believed you had a verbal agreement from the company to do so. [Continue reading…]

There is no information on the Cash Ninja website directly indicating who owns or runs the company.

The Cash Ninja website domain (“cashninja.org”) was registered on the 27th of August 2015, however the domain registration is set to private.

Further research reveals Cash Ninja affiliates claiming that a “Chris Jacobsen” is the “owner and creator” of the opportunity:

I myself however was unable to independently verify this claim.

Of note is a message that appears in the footer of the Cash Ninja website:

CashNinja created and designed by Palmwood Online Enterprises.

Palmwood Online Enterprises was incorporated in the UK on July 24th, 2015, with Thomas Sullivan listed as the sole Director.

The address used to incorporate Palmer Online Enterprises is that of Fletcher Kennedy, who claim to be ‘UK and Offshore company formation specialists‘.

Evidently Palmwood Online Enterprises has no physical presence in the UK, with the company existing there in name only.

Thomas Sullivan’s himself is based out of Perth Australia, having first popped up on BehindMLM’s radar as the admin of ProfitAdz in 2012.

ProfitAdz was a 200% ROI Ponzi scheme which collapsed shortly after launch.

Other schemes launched by Sullivan since include PowerOf3 (recruitment-based pyramid scheme) and AdzPays (another 200% ROI Ponzi scheme).

Sullivan’s latest scheme was My Amazing Life, a $24.95 a month recruitment scheme launched in June 2015.

At the time of publication, the My Amazing Life website is returning a “403 forbidden” error code:

The collapse of My Amazing Life has likely prompted the launch of Cash Ninja.

Read on for a full review of the Cash Ninja MLM business opportunity.
[Continue reading…]