With an affiliate-base of almost two million and an estimated three billion dollars invested, TelexFree is undoubtedly the biggest MLM Ponzi scheme we’ve seen yet.

Now, as we near the two-year anniversary of the scheme’s shutdown, the first round of clawback litigation has been filed against its top investors. [Continue reading…]

Last September Craig Jerabeck resigned as President and CEO of 5Linx. Following his departure, Jerabeck signed up with Paycation.

Paycation was founded in 2014 and operate a recruitment-driven travel niche opportunity.

5Linx went on to file a lawsuit against Jerabeck, alleging he ‘breached a contractual pact by enticing a number of 5Linx top employees to join him at‘ Paycation. [Continue reading…]

The emergence of a new Temporary Restraining Order in the TelexFree civil case has left me stumped.

I’m still trying to suss out what’s going on, but for now here’s a breakdown of what we know. [Continue reading…]

The long-running contempt feud between the SEC and Rodrigues looks set to be resolved one way or another, with a decision on whether Rodrigues should be incarcerated before the court.

Working against a January 15th repayment deadline, Rodrigues on the 14th filed a proposed stay of the contempt proceedings against him. Submitted with the proposal was a payment plan, which suggested Rodrigues could pay off $474,503 by selling motivational books and videos.

The FTC has staunchly opposed Rodrigues plan in a response filed earlier today, labeling it “ill-defined” and “too little too late”. [Continue reading…]

In November last year BK Boreyko requested court-approval to sell of his share in AZPACK Properties LLC.

The FTC objected to the proposed sale, on the ground that AZPACK Properties was a holding company for real-estate properties. The FTC contended that the sale of Boreko’s share in AZPACK violated the terms of the Vemma preliminary injunction in place, which prohibit Boreyko from selling off real-estate.

Boreyko argued that he was just selling shares in an LLC, which in and of itself was not tied to any specific real-estate.

Judge Tuchi finally made a ruling on the matter earlier today, denying Boreyko’s proposed sale in full. [Continue reading…]

Amid questions of why Boreyko sat on his proposed short sale for six weeks before notifying the SEC, and whether or not the short sale of property would violate the terms of the Vemma preliminary injunction, the likelihood of Boreyko’s proposed short sale being granted were slim.

With a requested transaction date of January 18th, Boreyko had requested an expedited decision on the matter. This request was granted, with Judge Tuchi today denying Boreyko’s short sale proposal. [Continue reading…]

InCruises operate in the travel MLM niche and are currently in prelaunch.

The Incruises website lists a corporate address in the US state of Florida, which the company claims is

the address we use for all legal filings and customer mailings (if any). Our customer service staff works from this location.

We also have an office (not publically (sic) listed) where we house our in-house finance, operations and technology teams.

We also have a recording studio we manage from another non-listed location. We do not want to list these addresses on our site to avoid impromptu visits from distributors.

On the management side of things InCruises is headed up by Michael Hutchison (right) identified as Founder and CEO. Hutchison works out of an executive office in Orlando, Florida.

On his LinkedIn profile, Hutchison claims to have had his “share of failed start-ups”. Despite an extensive list however, no MLM companies appear in Hutchison’s provided employment history.

I ran a few searches myself and nothing turned up, suggesting InCruises is Hutchison’s first MLM venture as executive.

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

Two days ago BehindMLM reported BK Boreyko’s request for an expedited decision on his motion to short sell a property.

The court granted the request, with the motion moving fast towards a January 15th decision.

Part of the discourse of the motion has seen the FTC file an objection to the sale, with the regulator questioning Boryeko’s honesty with Bank of America. [Continue reading…]

Things are looking pretty bleak over at Ominto, with the company yesterday announcing combined losses of almost $25 million since 2015.

The revelation is part of Ominto’s annual Form 10-K filing, filed on January 13th for the fiscal year September 30th 2014 to September 30th 2015. [Continue reading…]

Remember that brief but weird “tell all” video phase Sann Rodrigues went through last month?

Turns out it might have all just been a preliminary marketing pitch for upcoming Rodrigues-branded products. [Continue reading…]