Cossets scam—2 convicted. Each fined 112,000 rupees.

Puneet Nanda and Rajiv Dugala formerly ran Cossets Marketing Private Limited, in the respective capacities of MD and Director. The multi-level marketing company launched in 2001, had 40 centers across India, and had enrolled 300,000 members. Investors made several complaints against the company, accusing it of large-scale fraud. Nanda and Dugala were accused of [...]

Multi-level marketing wire fraud scheme—three arrested.

Between 2001 and 2015, Craig Jerabeck was Co-founder, President and CEO of Rochester-based multi-level marketing company 5LINX. From 2001 onwards, Jason Guck and Jeb Tyler were its Co-founders and Vice Presidents. In June 2006, the company signed a purchase agreement and stockholder’s agreement with two investment companies. Guck, Jerabeck and Tyler transferred millions of [...]

Fake millionaire convicted for online pyramid scam.

Lee McKenna operated multiple schemes that promised significant earnings to customers. Customers were required to pay a small subscription fee to join McKenna’s membership and were subsequently pressured into introducing others to the scheme. Initially, customers registered for a “boot camp”, during which they were shown training videos that explained how to set up [...]

Pyramid scheme—convicted couple found in Florida.

In 1996, Martha and David Crowe were convicted of using their company, Gold Unlimited Inc. (Gold), to dupe 96,000 Americans and Canadians out of millions of dollars in an investment scam. Gold operated an illegal pyramid scheme. The court argued that the defendants operated a “scheme or artifice to defraud” under the mail fraud [...]

Vietnamese Pyramid Scam—almost 67,000 people lose $88 million.

Almost 67,000 people fell victim to a Vietnamese multi-level marketing scam, with combined losses of over 2 trillion Vietnamese dong ($88.4 million). Lien Ket Viet was founded by Le Xuan Giang, who organized events to gain the trust of his clients and potential investors, and to build a good reputation for him and his [...]

Canada deports multi-level marketing promoter to the UK.

Alan Kippax Alan Kippax moved from the UK to Canada when he was two-years-old. In his adult life, he launched Treasure Traders International (TTI). TTI traded in emeralds, sapphires, rubies and travel packages. Kippax claimed that the organization made $34 million in year one. This was not, however, reported in any official financial publications, [...]

Herbalife ordered to reimburse 350,000 victims of its multi-level marketing scheme.

Herbalife sells nutritional supplements, and operates one of the world’s largest multi-level marketing schemes. In 2015, the company made $4.5 billion through supplement sales. In the early 1980s, Herbalife was accused of overstating the health benefits of its products. Herbalife distributors are pressured into bulk-buying products that they must then sell on. According to [...]