The Mass Marketing Section of the Toronto Police Service Financial Crimes Unit is a member of the Toronto Strategic Partnership against Cross-Border Fraud.
The partnership represents a combined enforcement strategy, specializing in the investigation of mass marketing fraud in, or originating from within the province of, Ontario with cross-border implications.
In January 2013, the Financial Crimes Unit started an investigation into an alleged pyramid scheme.
The Toronto Police Service was assisted by investigators from the RCMP, Competition Bureau of Canada, Ministry of Government and Consumer Services, Ministry of Finance, U.S. Federal Trade Commission, FINTRAC, and the Canada Revenue Agency.
It is alleged that:
– Between October 2010 and March 2013, a pyramid scheme known as “Banners Broker” was operated out of a Church Street address in Toronto
– The scheme offered participants the opportunity to double
Tag Archive for Pyramid
Hot Business News Today
FTC – Receiver Email To The Vemma Database – An Abuse Of Government Power?
by Ted Nuyten • • 0 Comments
Whatever happened in the USA with “innocent till proven guilty?”
When the Vemma receiver (the court appointed lawyer) sends out a copy of the FTC lawsuit to hundred thousands of active customers and affiliates around the world, 12 years of the company networking efforts gets blown up with ONE push of the send button. All this before Vemma gets to stand in front of a judge.
Below email was send out in the name of Vemma Corporate, which confused many people, thinking BK Boreyko and the corporate team has done so.
Unbelievable an USA government agency can come into your office, and send a massive email out on your behalf, around the world, without telling customers, not Vemma is doing so, but the FTC – receiver. I call this abuse of government power. I am
Hot Business News Today
Vemma Customer Victims – Where Are They?
by Ted Nuyten • • 0 Comments
According to the Federal Trade Commission (FTC) in the USA:
“Defendants (Vemma) are running a global pyramid scheme that has likely victimized hundreds of thousands or millions of consumers”.
We at Business for Home are pretty familar with Vemma since year 2006. We have searched intensive for “hundrerd thousands of Vemma Consumer Victims” however can NOT find them at all.
Not under our 4 -5 million annual visitors, not under our 45,000 Facebook Business page fans….
Massive customer complaints about the products? Sure there would be some, however “Victimized hundreds of thousands or millions of customers?”
That is a FTC statement which that agency can NOT prove, and is mispresenting the case “Pur Sang”.
What we have noticed are many satisfied customers who are running low on the product and are looking for a way
Hot Business News Today
Vemma – FTC Hearing Set For September 15
by Ted Nuyten • • 0 Comments
According to a statement BK Boreyko – CEO Vemma made today on his facebook the Vemma – FTC Case will start on September 15. The Vemma website is back on-line, the affiliate back office is not open.
BK Boreyko says:
“I wanted to give you a short update. The legal team is in place and you’ll be proud of this team as they begin to defend your right to market the finest wellness products on the planet.
A lot has happened in the past week, all without this team and myself being able to stand in front of a judge. Only yesterday were we able to access the home office computers in order for us to produce the data to prepare our defense and prove our innocence.
Because of that, and along with the importance
Hot Business News Today
Alex Morton’s Family Statement In The Vemma – FTC Case
by Ted Nuyten • • 0 Comments
In a Facebook statement under the article Where The FTC Went Right — And Where It Went Wrong
Alex Morton’s father Marc Morton weights in on behalf of the family -with below statement- which we publish as Facebook comments some times tend to disappear.
Marc Morton:
“First I need to state that I am the father of Alex Morton so yes I have a biased view of this situation.
Alex and myself visited the home office of Vemma with our sponsor in February of 2011. Alex was a 21 year old Full-Time Junior at Arizona State in the Hugh Downs School of Communication, and a part time Arizona Real Estate Agent leasing homes and condos.
Alex asked me to come check out Vemma after spending several night in the “VerveLounge” at the Phoenix Suns games. His first
Hot Business News Today
LEOCoin Founders Linked to Pyramid Scheme in Pakistan
by Ramya Chandrasekaran • • 0 Comments
The latest alternative currency hype launch, LEOCoin, has received quite a bit of attention, following a series of outlandish claims. The developer team behind LEOCoin, in a recent CNBC article, claimed that several thousand merchants were willing to accept the digital currency.
“The company therefore claims it has 131,176 registered businesses ready to use LEOCoin, potentially making it the “second largest digital currency” in the world.”
Several media outlets have requested the founders of LEOCoin to provide some evidence to back up the claims made in that particular CNBC article. However, no commentary has been so far by LEOCoin representatives. As of today, nobody seems to have any idea as to who the 131,175 merchants really are. LEOCoin’s developers, Dan Anderson and Atif Kamran, have a somewhat checkered past.
In 2012, Anderson and Kamran were warned by
Hot Business News Today
Dutch Justice Closes Down Pyramid Game PlanB4You
by Ted Nuyten • • 0 Comments
Justitie legt voor miljoenen beslag op rekeningen PlanB4you uit Den Bosch om piramidespel
DEN BOSCH – Justitie heeft beslag gelegd op de bankrekeningen van PlanB4you en van de directeur. Dat bedrijf, dat voor kort een kantoor in Den Bosch had, zou zich voor 2,5 miljoen euro schuldig hebben gemaakt aan oplichting en witwassen.
De FIOD, de opsporingsdienst van de Belastingdienst, doet strafrechtelijk onderzoek naar het bedrijf. Het vermoeden bestaat dat PlanB4you zich schuldig maakt aan een piramidespel, dat ook wel ponzifraude heet. Hierbij betaalt het bedrijf deelnemers met de belegging van de inleg van nieuwe klanten. De oprichter eigent zich dan meestal een bijzonder hoog rendement toe.
‘Makkelijk geld verdienen’
Via YouTube en bijeenkomsten probeert PlanB4you nieuwe klanten te strikken. Het bedrijf houdt ze daarbij voor dat ze makkelijk geld kunnen verdienen door dagelijks tien keer op advertenties te klikken. Daarnaast zouden potentiële klanten makkelijk geld kunnen verdienen door anderen over te halen deel te nemen aan het project.
“Deze deelnemers komen dan als het ware onder de aanbrenger te hangen wat weer extra inkomen oplevert voor de aanbrenger. Naast het klikken op de banners heeft PlanB4you ook nog een webshop waar goederen tegen ‘hoge’ kortingen kunnen worden aangeschaft”, aldus justitie.
Invallen in Nederland en andere
Hot Business News Today
SEC Alleges Zhunrize To Be A Pyramid Scheme – Assets Frozen
by Ted Nuyten • • 0 Comments
Zhunrize, launched in 2013 is a shopping and savings portal and offers affiliates a replicated storefront, which the company has branded “ZhunCity”. The shopping portal starts at $99 and $30 a month, up to $3,000 and $100 a month.
According to a SEC Press release:
“On September 22, 2014, the Securities and Exchange Commission filed a civil injunctive action in the Northern District of Georgia against Zhunrize, Inc. (“Zhunrize”) and its CEO, Jeff Pan (“Pan”). In connection with the filing of this action, the Commission obtained a temporary restraining order against the defendants and an order freezing all of defendants’ assets.
The Commission alleges that Zhunrize, an Atlanta-based multi-level marketing company, and Pan have been operating a fraudulent pyramid scheme that has raised over $100 million from investors worldwide.
According to the Commission’s complaint, Zhunrize purports to be a legitimate multi-level marketing business by which members purchase online stores and then sell merchandise through them, while earning commissions on products purchased by their customers and through store sales to other members and hosting fees paid by those members.
In fact, the company is operating as a pyramid scheme because its commission structure is based on the continual recruitment of new members, with the
Hot Business News Today
Lyoness Responds To Ponzi Allegations In Australia
by Ted Nuyten • • 0 Comments
Lyoness Australia has issued the next statement:
“Lyoness rejects allegations raised by the ACCC, and will vigorously defend the proceedings commenced by the Commission on 28 August.
Lyoness is a shopping community, customer loyalty program and network marketing business.
Benefits are exclusively generated by shopping activities within the Lyoness community. Members receive benefits when they shop, whether they introduce other members or not. Lyoness members may introduce members and receive benefits when the new member shops in the Lyoness community, but no benefits come from the introduction alone.
Lyoness has been active for 10 years and in none of the 46 markets in which it is active has Lyoness been found guilty of or convicted for operating a pyramid scheme.
Over four million members take advantage of the Lyoness benefits at over 40,000 loyalty merchants around the world. In Australia, there are now 780 Lyoness loyalty merchants, including many small and medium sized enterprises.
Lyoness is committed to full compliance with the law and to dealing honestly with Australian consumers.
Daily business is not affected. This court action has no effect on Lyoness members, loyalty merchants or staff, and Lyoness may be contacted by them in the usual way.
Since the proceedings are before the court, Lyoness
Hot Business News Today
Australia Sues Lyoness With Pyramid Allegations
by Ted Nuyten • • 0 Comments
The Australian Competition and Consumer Commission (ACCC) has instituted proceedings against Lyoness International AG, Lyoness Asia Limited, Lyoness UK Limited and Lyoness Australia Pty Limited (together ‘Lyoness’) for operating a pyramid selling scheme and engaging in referral selling.
Although Lyoness has been investigated by regulators for conduct in other countries, this is the first court action taken against Lyoness alleging that the Lyoness Loyalty Program constitutes a pyramid scheme.
Pyramid schemes involve new participants providing a financial or other benefit to other existing participants in the scheme. New participants are induced to join substantially by the prospect that they will be entitled to benefits relating to the recruitment of further new participants. Pyramid schemes may also offer products or services, but making money out of recruitment is their main aim, and often the only way for a member to recover any money is to convince other people to join up. In contrast, people in legitimate multi-level marketing schemes earn money by selling genuine products to consumers, not from the recruiting process.
The ACCC alleges that Lyoness has operated the scheme in Australia from mid-2011 and that it continues to operate the scheme. The scheme offers ‘cash back’ rebates to members who shop through