Back in April Vemma’s insurer, Hanover Insurance, refused to fund Vemma’s legal defense against the FTC.

Hanover Insurance acknowledged that Vemma had a $5 million liability police with them, but argued the FTC action wasn’t covered because pyramid scheme allegations had been made dating back to 2012.

According to Hanover, the ‘policy applies only to claims first made against the insured during the policy period‘.

The matter is currently playing out in court, with Hanover seeking a court ruling stipulating they don’t have to cover Vemma’s legal fees.

On May 15th, Vemma filed their response to Hanover’s lawsuit. In it, Vemma not surprisingly mostly deny Hanover’s claims.

On the same day they filed their response, Vemma also went on the offensive and filed a counterclaim. [Continue reading…]

One of the major deterrents against MLM litigation is discovery.

Closet skeletons are abundant in this industry, with it only taking a few queries from “someone in the know” to potentially destroy a company or budding career.

One MLM company currently fighting to keep its skeletons tightly locked up is Jeunesse. [Continue reading…]

Following a warning issued by New Zealand’s Financial Markets Authority earlier this month, now the Central Bank of Malaysia has also issued a warning against FX United. [Continue reading…]

There is no information on the Freedom5 website indicating who owns or runs the business.

The company claims only that it is run by a

team of honest, professional and transparent Canadians with years of online marketing and business experience.

The Freedom5 website domain (“freedom5.net”) was registered on the 16th of March 2015, however the domain registration is set to private.

A marketing video on the Freedom5 website is hosted on a YouTube channel bearing the name “J Vandenbrink”.

Further research reveals Freedom5 affiliates identifying Jason Vandenbrink and Wally Lumley as owners of the company:

“Years of online marketing experience” for Jason Vandenbrink is apparently how he describes being an affiliate in the MMM Global Ponzi scheme.

MMM Global was a Ponzi scheme launched by convicted felon Sergey Mavrodi. The scheme collapsed last month with most investors losing money.

In January 2016 Vandenbrink claimed MMM Global wasn’t a Ponzi scheme because ‘you are not asked to invest. You are asked to give.‘

Other Ponzi schemes Vandenbrink has signed up as an affiliate with include Zukul Ad Network, My Paying Ads ($1 to $50 adcredit Ponzi scheme), Ultimate Revenue Share ($4 adcredit Ponzi scheme), Traffic Monsoon (collapsed single-level Ponzi) and My Advertising Pays.

Wally Lumley’s MLM history is a more low-key, but I wouldn’t be surprised to learn he’s followed Vandenbrink into one or more of the above schemes.

Read on for a full review of the Freedom5 MLM opportunity. [Continue reading…]

There is no information on the Plus Profit website indicating who owns or runs the business.

The Plus Profit website domain (“plusprofit.net”) was registered on the 3rd of February 2016, with Tiger Stand Corporation listed as the owner. An address in the US state of California is also provided.

Tiger Stand Corporation’s website appears to be defunct, with no information about the company provided on the Plus Profit website.

Corporate records reveal Tiger Stand Corporation was incorporated in Delaware back in 2005. James Koh is listed as the sole registered agent.

Koh also incorporated Plus Profit Inc. in California on April 21st, 2015.

Why there is no information about James Koh on the Pure Profit website is unclear.

Read on for a full review of the Plus Profit MLM opportunity. [Continue reading…]

One of the side-effects of the rise of MLM cryptocurrency opportunities, has been analysis and scrutiny from the wider cryptocurrency community.

When it comes to MLM and compensation plans, I like to think I know my stuff. While I have a working knowledge of how bitcoin works however, the technical side of the cryptocurrency isn’t something I’ve delved into.

Presumably authored by someone in the bitcoin community, on May 27th an article published by “Mr. Poth” compares bitcoin’s blockchain with that of OneCoin’s.

Not surprisingly, the author has concluded that OneCoin’s purported blockchain is “useless”. [Continue reading…]

For one of the investors of the Wings Network pyramid scheme, litigation initiated by the SEC early last year has come to an end.

In their complaint, the SEC alleged Simonia de Cassia Silva of Gloucester, Massachusetts earned $419,900 in recruitment commissions.

As part of a consent judgement that took into account Silva’s “financial condition”, she has been ordered to pay back $141,307.86. [Continue reading…]

James Merrill’s criminal trial is currently scheduled for October 3rd, just over four months away.

Thus far whatever defense Merrill has planned has been kept under wraps. On the offense side of things though, Merrill has gone all out in a hilarious set of motions filed from May 20th…

According to his filed motions, Merrill wants all seized evidence against him suppressed. [Continue reading…]

The Zeek Rewards, Payza and VictoriaBank dispute has been running for some time now.

At the center of the dispute is $13 million dollars in stolen Ponzi funds, currently frozen in a Bank of New York Mellon account.

The Zeek Receiver wants these funds returned to Rex Venture Group, in order for them to be distributed to victims of the Zeek Rewards Ponzi scheme.

VictoriaBank insist the money is rightfully theirs. VictoriaBank are largely relying on the premise that they aren’t a US bank and should thus be permitted to keep the funds.

Back in February the Zeek Receiver filed a motion seeking to hold VictoriaBank, Payza and PaymentWorld to turn over the $13 million or be held in contempt.

VictoriaBank has since filed an opposition to the motion, which the Receiver has now replied to.

It ain’t pretty… [Continue reading…]

Last month the TelexFree Trustee estimated the TelexFree victim claims portal would go live in early May.

Slightly late but better than never, the victim claims portal has just gone live. [Continue reading…]