MLM Schemes | FinTelegram News

Category: MLM Schemes

January 30, 2024

Finally! U.S. DOJ And SEC Filed Charges Against Crypto Fraud Scheme HyperFund

The U.S. Securities and Exchange Commission (SEC) is continuing its enforcement actions in the crypto sector. The agency announced charges against Xue Lee (also known as Sam Lee), an Australian citizen who lives in Dubai, who is accused of co-founding crypto MLM scheme HyperFund, as well as two promoters, Rodney Burton of Miami, and Brenda Chunga of Severna Park, Maryland. The U.S. Department of Justice (DOJ) announced criminal charges against these three individuals.

January 20, 2024

Former CEO of Crypto Ponzi Scheme iComTech was sentenced to 5-year prison! More Prison Sentences Expected!

Damian Williams, the U.S. Attorney for the Southern District of New York, announced the sentencing of Marco Ruiz Ochoa to five years in prison for his involvement in the crypto Ponzi scheme IcomTech. Ochoa, 35, pled guilty to one count of conspiracy to commit wire fraud. Alongside his prison sentence, Ochoa has been ordered to undergo two years of supervised release and to forfeit $914,000 in criminal proceeds.

January 11, 2024

Attention: The Rise of Fraudulent Crypto Schemes Post-SEC ETF Approval!

In a cautionary tale for investors, David Carmona, founder of the notorious iComTech Ponzi scheme, has recently pleaded guilty to conspiracy to commit wire fraud, facing up to 20 years in prison. This case underscores a worrying trend that we at FinTelegram expect to see more of, particularly in the wake of the SEC's recent approval of crypto ETFs. Scammers are typically very competent in using new trends for their fraud business.

January 9, 2024

German Court Sentenced OneCoin Fraudsters And Their Lawyer To Prison Time!

The Münster Regional Court in Germany has handed down sentences in the notorious OneCoin crypto MLM fraud case, sentencing Frank Ricketts to five years and his wife, Manon Hubenthal, to four years in prison. The couple was convicted of amassing approximately €320 million from around 90,000 OneCoin victims across Europe. Their lawyer was convicted of money laundering.

January 8, 2024

Meet The German Law Firm IrleMoser And Their Approach!

Selecting an appropriate law firm is crucial for entrepreneurs, particularly in high-risk sectors where business operations might straddle the fine line of legality. In such environments, some law firms play a key role in enabling operators of unregulated financial services or crypto MLM ventures to confront their detractors aggressively. One notable instance is Josip Heit of GSPartners, who relies on the Berlin-based law firm IrleMoser.

MLM Schemes

January 8, 2024

U.S. Cease-and-Desist Orders Validate Blacklisting of Crypto MLM Scheme GSPartners!

The G999 website currently states that the GSPartners.global platform can no longer be used by its registered members due to various cease and desist orders. The once disputed blacklisting of GSPartners by FinTelegram has been confirmed as justified, following multiple cease-and-desist orders from various U.S. state regulators against the scheme and its mastermind Josip Heit. Read our update!

January 8, 2024

Pay Attention: BehindMLM’s Battle Against GSPartners And Its Mastermind Josip Heit!

In a David versus Goliath showdown, BehindMLM, a veteran watchdog of the MLM world, stands against Josip Heit and the GSPartners scheme. The platform has evolved into a bastion of consumer awareness, particularly in unmasking MLM-related financial fraud. Heit and his German law firm, Irle Moser, are known for their aggressive approach against critical media. FinTelegram is also a constant target.

January 7, 2024

Whistleblower Request: Who Are The Masterminds Behind The L7 DEX Crypto MLM Scheme?

In the intricate crypto world, transparency is key to building trust among investors. However, the L7 DEX scheme, operating under the guise of a decentralized asset management protocol based on Web3, raises red flags due to its opaque nature and potential connections to fraudulent activities. The L7 DEX website, encompassing domains like L7dex.com, L7dex.financial, and L7pay.finance, is shrouded in secrecy, offering little information about its operating legal entities and key individuals.

December 19, 2023

Open Letter To Alchemy Pay Regarding The L7 DEX Crypto MLM Scheme!

This is an open letter to Alchemy Pay which we discovered to be the payment processor and crypto card issuer behind the L7 DEX crypto MLM scheme. Alchemy Pay is registered in Lithuania as a Virtual Asset Service Provider. In our letter we request Alchemy Pay to influence its client L7 DEX to provide all legally and regulatory required information about the operators on their website.

December 18, 2023

Attention: Stay Away From Crypto MLM-Schemes Promising Quick Riches! You Will Loose Money!

Paraiba World was a vast MLM scheme founded by the Austrian Erich Ely. The (potential) members were promised quick riches through crypto investments. Regulators in various jurisdictions have issued warnings. Public prosecutors are investigating. The scheme has consequently renamed itself Trillant and launched its own Trillant Coin. A total of between €150 and €200 million is said to have been collected by Paraiba World and Trilliant.

December 15, 2023

Attention: The Secretive L7 DEX Crypto MLM Scheme Launched A Crypto Debit Card With Alchemy Pay!

The L7 a/k/a L7 DEX scheme describes itself as a decentralized asset management protocol based on Web3. The website is very secretive and doesn't reveal much more, which is not good for a financial scheme, to say the least. This scheme also operates its own crypto token, L7 (symbol: LSD), which currently has a market capitalization of around $5 million. L7 is a multi-level marketing (MLM) scheme and recently launched its own L7 crypto debit card.

October 12, 2023

U.S. Trial Against MLM Scheme OnPassive Set For June 2025!

In August 2023, the U.S. Securities and Exchange Commission (SEC) announced charges against Ashraf Mufareh and his company, OnPassive LLC, for orchestrating a fraudulent and unregistered offering. OnPassive claimed to be in the process of developing a range of computer applications powered by artificial intelligence and reportedly lured investors into an MLM scheme. These investors were promised passive income derived from subscription fees paid by subsequent investors.

Cash Cow Crypto: U.S. CFTC Enforcement Sets Records in FY 2024 with $17.1 Billion in Monetary Relief!

The U.S. Commodity Futures Trading Commission (CFTC) achieved a landmark year in FY 2024, securing over $17.1 billion in monetary relief, including $2.6 billion in civil penalties and $14.5 billion in restitution. The agency’s groundbreaking actions spanned digital asset (crypto) markets, voluntary carbon credits, and major compliance cases, highlighting its leadership in safeguarding market integrity.

U.S. DOJ’s Whistleblower Pilot Program: 250+ Tips in Just Months!

Whistleblowers are the only effective way to fight financial crime. The U.S. DOJ whistleblower pilot program has already proven effective, generating over 250 tips of potential misconduct since its launch in August, according to Principal Associate Deputy Attorney General Marshall Miller. According to a Reuters report, the initiative targets corporate malfeasance and encourages internal self-disclosure by companies.

Online Gambling: Lokinvestigation in Curaçao, its Maltese Connections, and How to Shut Down!

For many years, the far-far-away Curacao was the regulatory mecca of global online gambling. But that is over. The Lokinvestigation, spearheaded by opposition politician and forensic investigator Dr. Luigi Faneyte, reveals systemic failures and alleged corruption in Curaçao’s online gambling sector. With ties to Maltese investors and global financial networks, the report demands transparency but also carries political implications.

KTM’s Collapse: How Pierer and Blazicek Possibly Misled Investors and Profited Amid a €2.9 Billion Crisis!

The recent insolvency filing by KTM AG, Europe's largest motorcycle manufacturer, has unveiled significant managerial failures under CEO Stefan Pierer and Chairman of the Supervisory Board Josef Blasicek of Pierer Mobility AG. Despite clear indicators of financial distress, the company continued to distribute substantial dividends, misleading investors about its fiscal health. Here is an investor update on the KTM case.

Investor Briefing

Investor Briefing: Why Elon Musk’s SpaceX is valued at $350 Billion!

SpaceX, Elon Musk's private aerospace company, is reportedly in discussions to sell insider shares at a valuation of approximately $350 billion. This would be double what the company was reportedly selling shares at one year ago. In December 2023, Bloomberg reported SpaceX shares were being sold at a $175 billion valuation. Musk's closeness to Trump is apparently paying off.