This is going a while back, but last we checked in the Department of Homeland Security had seized Payza funds deposited with Ultralight FS (dba Obopay Inc).

The US Department of Homeland Security has seized all MH Pillars dba Payza money on deposit with UltraLight FS.

Additional information will be published as we receive it.

How much money was seized was never disclosed, ditto any information about a resolution or outcome.

Now, almost two years later, some light is shed on the matter. [Continue reading…]

In their latest filing against Vemma, the FTC have taken issue with the raising of “affirmative defenses”.

In their Answers to the FTC’s Complaint, Defendants raise several “affirmative defenses” that are insufficiently pled, legally unavailable in defense of this action, or redundant.

For those unfamiliar with the term, an “affirmative defense” is

a justification for the defendant having committed the accused crime. It differs from other defenses because the defendant admits that he did, in fact, break the law.

He is simply arguing that he has a good reason for having done so, and therefore should be excused from all criminal liability. (FindLaw)

I’d have thought Vemma and Boreyko admitting to running a pyramid scheme would be a good thing for the FTC, so what are these objections all about? [Continue reading…]

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

The Amoo World website domain (“amooworld.com”) was registered on the 13th of July 2015, however the domain registration is set to private.

The Twitter profile on the Amoo World website lists its location as India, which is likely where Amoo World is being run out of.

Of note is that Amoo World appears to have previously been launched as “amooye”, with the Amooye website linked off the Amoo World Twitter profile suspended by the hosting provider.

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…]

There is no information on the SuccessPay4u website indicating who owns or runs the business.

The SuccessPay4u website domain (“successpay4u.com”) was registered on the 3rd of April 2015, however the domain registration is set to private.

Further research reveals the official SuccessPay4u Facebook group list Nick Shanks as its sole admin.

Shanks lists his Facebook profile location as Cape Town in South Africa, which is presumably where SuccessPay4u is being operated from.

As per a Facebook post made by Shanks late last month:

Looking for a private loan to be able to start my business. Anybody can help with it? Contact in PM please.

This was followed up on October 7th with:

Looking for co-admin for new cycler program. Site is ready, small invest required. URGENT!

And finally a SuccessPay4u prelaunch announcement on the 17th of October.

On his Facebook profile Shanks is also advertising a “private investment” opportunity, through which he promises ‘a 40% interest with a 2 months term‘.

The familiarity Shanks has with “cyclers” on his Facebook wall suggests he’s likely been an investor with more than a few of them in the past. No specific examples however are mentioned.

Read on for a full review of the SuccessPay4u MLM business opportunity. [Continue reading…]

There is no information on the Xip4Life website indicating who owns or runs the business.

The Xip4Life website domain (“xip4life.com”) was registered on the 9th of July 2015, listing “Christopher Bratta” as the owner. An address in the US state of Florida is also provided.

The address used to register the Xip4Life domain is the same used by isXperia, an MLM opportunity launched by Bratta (right) in 2007.

Current Alexa statistics on the isXperia website suggest isXperia has since gone into decline.

Of additional note is a marketing video linked off the Xip4Life official Facebook page, which is hosted on Kalpesh Patel’s YouTube channel.

On his LinkedIn profile, Patel claims to be a co-founder of Xip4Life.

Patel first popped up on BehindMLM’s radar as a top Zeek Rewards investor in the UK.

A few months ago the Zeek Receiver sued Patel, claiming he made $140,842 in the $850 million dollar Ponzi scheme.

Whether or not Patel has since paid back the funds he stole from Zeek victims is unclear.

Read on for a full review of the Xip4Life MLM business opportunity. [Continue reading…]

Having only just resolved objections to Vemma automatically reclassifying affiliates as customers, now the company is again clashing with the FTC.

The latest dispute is over Vemma’s proposed compensation plan revision, which would govern it’s MLM income opportunity globally.

A copy of the proposed revision plan was included in a Vemma filing seeking a hearing on the dispute, so I figured we’d go over it and see what Vemma affiliates have in store for them.

In the conclusion I’ll also be going over the FTC’s objections and Vemma’s assertions about the plan, weighing in on whether or not they respectively have any merit. [Continue reading…]

It might not be standard-practice for an MLM affiliate enquire as to the source of funds newly recruited affiliates are using to sign up with, but surely there’s at least some level of evaluation on affordability going on?

The internet goes some way to distance the obvious, but if you’re meeting face to face and actually engaging with your recruits – you don’t really have an excuse.

Common-sense would dictate that if you got the inkling your prospect couldn’t really afford to get involved, you’d abort. Thank them for their time and perhaps jot them down for a followup in six months or so.

Unfortunately there some MLM affiliates would rather realize short-term profits regardless. Their reasons are their own, but their actions reflect poorly on the MLM industry as a whole.

Especially when it blows up in their faces.

This is one of those depressing MLM stories I wish I didn’t have to cover, but here goes… [Continue reading…]

Following another day of grilling Nicolas Giannos, the Samoan uFun Club fraud case inches closer to a conclusion.

Next week will see final submissions from both the prosecution and defense, with Chief Justice Patu expected to make a ruling thereafter. [Continue reading…]

The MyAdvertisingPays website domain was registered in June 2013, with the scheme launching a few months later.

As we approach the end of 2015, that brings us to the typical two-year lifecycle of online Ponzi schemes, after which time liabilities racked up truly spiral out of control.

Typically what we see with such schemes at this point is either a collapse, regulatory shutdown (following an investigation having been carried out for months) or a compensation plan change.

No doubt in an attempt to stave off a collapse, and possibly aware regulators are closing in on them in the US, October 13th saw MyAdvertisingPays announced “The Most Important Update Ever Released!”. [Continue reading…]

Is there a better way to defend yourself in court by explaining exactly how you fleeced investors out of $126,000?

Probably. But for Nicholas Giannos, he decided to defend himself by declaring in court that funds invested with him were “his money”. [Continue reading…]