EmGoldex Scam Charged With Fraud
Gold Bars Image © www.chards.co.uk
Even when a product-based pyramid scheme has the highest quality “product”, it does not matter. If recruitment is the focus and not product sales, you are promoting a scam. Even a “product” as pure as gold will not change that.
A recent technique for scammers is to use gold as a cover for running a pyramid scheme. In my opinion, EmGoldex is a perfect example of this type of scam. With their marketing program only a small amount of gold is actually sold by EmGoldex. The vast majority of the money is made by people investing in their pyramid scheme instead of gold.
The Philippines Department of Finance Securities and Exchange Commission has issued a warning that advises you to NOT invest money in EmGoldex.
The SEC reiterated that based on its existing records, Emgoldex is not a registered corporation or partnership in the Philippines. Thus, the agency said the entity is not licensed or authorized to solicit investments from the public in the country.
The Superintendency of Corporations, ordered the immediate suspension of operations of EmGoldex in the Republic of Colombia. There are objective and well-known facts of mass illegal collection of money from the public by the EmGoldex operation in Colombia.
EmGoldex representatives claimed the following:
To accomplish this Visionary program, in 2010 on the territory of UAE in Dubai the parent company registered the daughter company EMGOLDEX, to operate as an online store on trade of gold bars in amounts from 1 gram to 100 grams of pure gold with a content of 999,9 of the world famous manufacturer of Emirates Gold DMCC.
Here is what the DMCC said about EmGoldex:
EmGoldex is not a DMCC-licensed company. DMCC has taken steps to prevent further misuse of our name.
EmGoldex Scam Claims
EmGoldex is making fortunes for individuals, just like you, all over the world.
For 5000 years, from the Pharaohs to the presidents, gold has always embodied a sign of power and wealth. Who had gold, always had money. Nothing has changed in our days. Whoever controls the gold, will control money and power.
The main key to success of clients who receive high income in the gold business of Emgoldex is self-education and training!
Here is a video of how this scam is presented to people:
EmGoldex Scam Reality
Massachusetts Secretary of State William F. Galvin on OCTOBER 22, 2014, filed civil fraud charges against EmGoldex Team USA Inc. Here are some highlights for you from the complaint.
EmGoldex is an illegal pyramid scheme. EmGoldex is unable to actually send its product directly to participants in the United States.
EmGoldex is purportedly registered in and maintains an administrative office in, the Seychelles, an island nation off the eastern coast of Africa: EMGX F.S. Ltd Internet-shop, Suite 1, Second Floor, Sound and Vision House Francis Rachel Str. Victoria, Mahe Seychelles. While representing itself as an internet-based store specializing in the sale of gold, EmGoldex has no discernable retail sales activity and relies on new investor funds as its primary source of income.
The substantial returns promised by EmGoldex to investors are based exclusively on the recruitment of new investors into the pyramid scheme. Investors have no incentive to sell EmGoldex’s purported product, gold bars. Instead, investor efforts are focused on recruitment, which guarantees profits in excess of 1,105%.
While holding itself out as a “training center” to help investors understand and succeed in the EmGoldex network marketing program, EmGoldex Team USA is in reality a major cog in the EmGoldex marketing and recruitment machine. Through the use of websites, social media, and live events, EmGoldex Team USA has created a complex web entangling investors.
At its headquarters in Andover, Massachusetts, they held weekly “training” sessions, and charged investors an entry fee to advise them on the EmGoldex pyramid scheme. Investors already participating in the pyramid scheme could bring new recruits free of charge to learn about the scheme. EmGoldex Team USA used the weekly meetings to train current investors on recruitment techniques, which would bring even more investors into the EmGoldex pyramid scheme. EmGoldex Team USA were positioned to profit significantly as the number of downline investors grew. The weekly meetings also exposed potential investors to the passive income opportunities available in the EmGoldex pyramid scheme. Although thinly veiled as weekly “training,” the Team USA weekly meetings ultimately served as yet another tool for EmGoldex Team USA to increase the value of their personal interests in the EmGoldex pyramid scheme.
EmGoldex Scam Marketing Program Overview
- Submit an order for a set of investment gold bars, valued by EmGoldex at approximately 7,000 Euro.
- Instead of a complete payment of the invoice for the gold bars, victims make a prepayment to, or initial investment in, EmGoldex.
- Basic level victims can pay 540 Euro. Accelerated level victims can pay 1,050 Euro.
- Victims who submit the prepayment to EmGoldex receive a coupon, which includes a subscription fee for a personalized EmGoldex website, as well as an activation code granting entry into the EmGoldex Marketing Program.
- Once a victim has entered their activation code, they are placed into an EmGoldex payout structure, which victims move through following the one plus two formula, along with the efforts of other victims.
- Once activated, the only requirement to become eligible for payouts is the recruitment of two new investors into the EmGoldex Marketing Program.
- Under the One Plus Two Formula, each victim in the EmGoldex Marketing Program, recruits two new investors, who also recruit two investors, in theory continuing on forever, thus ensuring a constant stream of new investors into the EmGoldex Marketing Program.
- I think you get the idea. It’s a pyramid scheme.
– Source Sec.state.ma.us
EmGoldex Scam Conclusion
In my opinion, as an illegal pyramid scheme, EmGoldex is destined to collapse. This will harm the vast majority of people that invest their money. Avoid the EmGoldex scam.