My7Network Scam Shutdown
The My7Network money making opportunity was presented as your way to financial freedom from the comfort of your home. It turns out it was just a scam.
You can earn substantial income from the comfort of your own home, in your spare time! By using our easy-to-follow business system, you can grow your wealth by introducing the My7Network platform to other people. All you need is the internet access via computer or smart phone. -Source my7network.com
A federal court has halted the activities of Thomas Dluca, Louis Gatto, and Eric Pinkston who promoted deceptive money-making schemes involving cryptocurrencies. These schemes falsely promised that participants could earn large returns by paying cryptocurrency such as bitcoin or Litecoin to enroll in the schemes.
Here are the details of the scam:
In May and June 2017, Louis Gatto and Eric Pinkston began promoting My7Network. In November 2017, Thomas Dluca began promoting the program as well. My7Network requires participants to make a payment of bitcoin or litecoin (“ltc”), another cryptocurrency, for the right to recruit others into a downline structure. My7Network has offered a variety ofbitcoin and litecoin structures over time. As promoted by Eric Pinkston, My7Network offers four different bitcoin plans: the “My7 Mini,” the “My7 Starter,” the “My7 One,” and the “My7 Three” plans. These plans require initial payments of .046 btc, .21 btc, 1.05 btc, and 3.1 btc, respectively, and each purportedly offers correspondingly higher returns. My7Network also offers a litecoin plan called “My7 Litecoin,” which requires an initial payment of 3.5 ltc.
My7Network does not require participants to sell goods or services to generate revenue. Participants obtain rewards purely by recruiting new investors into the program. For example, the My7 Mini plan requires an initial payment of .046 btc and recruitment of two more participants, each of whom recruit two more participants for a second downline level of four participants; these four participants then recruit two more each for a third level of eight participants. The resulting downline consists of 14 participants. Once the 14 positions are filled and each participant makes a bitcoin payment, the primary participant “cycles” and receives a reward of .26 btc. Participants are encouraged to use this reward to buy into higher plans. The other plans work similarly; once participants make their bitcoin or litecoin payment and fill the downline structure, they receive a set reward of bitcoin or litecoin. The plans purportedly allow an unlimited number ofcycles if all participants continue to make the necessary payments.
My7Network’s system sets up a continual chain of recruitment. Participants can only recoup their initial investments by recruiting others into the scheme to make bitcoin payments and recruit.
Dluca, Gatto, and Pinkston pitch My7Network in publicly available promotional calls, YouTube videos, and social media. In these materials, they make claims concerning My7Network’s that the operation can provide substantial income on a monthly basis.
Thomas Dluca is recorded in promotional calls making income claims about My7Network. He claims that consumers can make “a fortune” through My7Network, pay off their debts, or make a million dollars in a few months. He states there is no reason why listeners cannot be “set for life.”
Louis Gatto promotes My7Network in a series of YouTube videos. In these videos, he describes the My7Network programs and claims that consumers can earn substantial income by “cycling” repeatedly. For example, he tells viewers that he will teach them how to turn one bitcoin into seven bitcoins and says, “we’re going to do it over and over and over again.” He displays My7Network webpages that claim that the operation is “your gateway to financial freedom” and offers “unlimited earnings” and “substantial income.” He claims the system is able to generate substantial rewards within a short period of time; according to him, one participant earned seven bitcoins in one day. The implication from his promotional calls and videos is that consumers who join My7Network can similarly realize large revenues.
Eric Pinkston is recorded in promotional calls making similar claims. He describes the My7Network programs as “your true gateway to financial freedom, I will guarantee it.” He also claims participants can earn unlimited income. He cites his own success as an example, claiming to have made over 30 bitcoin in less than 30 days.
In reality, My7Network’s chain recruiting structure ensures that most participants will lose money.
As requested by the FTC, the court has issued a temporary restraining order and frozen Thomas Dluca, Louis Gatto, and Eric Pinkston assets pending trial.
– Source ftc.gov