MAPS is a breath of fresh air in an industry plagued with scrutiny

Unlike the thriving MLM company of My Advertising Pays, a lot of MLM’s are getting themselves into deep trouble lately. Turns out the SEC absolutely hates it when financial businesses don’t pay them respect by registering with them.  Fail to register your investment company and they’ll be all over you.  Next thing you know, the Press will be on your backs too.  That in turn makes regular law-abiding folk get all worked up and before you know it, some politician sees opportunity to make his mark and take up the cause.

That’s exactly what’s happening to Emgoldex … and things aren’t looking good for the gold investing network marketing company with offices all over the world.  To be clear, the SEC warning is against “Emgoldex Philippines”.

Investment Opportunity or Sales Job?

Emgoldex Philippines may not have registered with the Securities and Exchange Commission (SEC) because they don’t consider their company to be an investment company.

They word their affiliate program (like the one shown in this video) as rewarding members for bringing in new buyers of gold.  But at what point does an affiliate reward system become an investment scheme?

Turns out that’s up to the SEC, not Emgoldex.

In an ABC news piece covering the SEC’s warning against Emgoldex Philippines, the SEC is quoted as saying Emgoldex is “luring the public to invest for a promise of high returns”.  Indeed, Emgoldex promises payouts of $8000 simply for buying $800 worth of gold.

That simply can’t be sustained, which means the entire thing is built upon getting new members to bring in more cash infusions to support the payouts. Digital Altitude on the other hand, has a compensation plan that is set up much differently and doesn’t have to rely on new members to fund the payouts. With Emgoldex, when the new memberships dry up, it all crumbles down and people lose money.  That, in a nutshell, is the definition of a Pyramid Scheme.

In any case, the SEC has deemed Emgoldex Philippines to be an investment company, and therefore is required to register.  Since they haven’t, they are not authorized to sell investment opportunities or even to solicit them from the public.

They’ve Been in Trouble Before

Emgoldex is basically a revived version of the older, problem-plagued TelexFree Inc.  TelexFree was an internet phone service company whose owners (US citizens) have been charged with criminal fraud.

Emgoldex is being investigated in Columbia and Panama as well.  In the US, the SEC is aiming its scrutiny and its warnings against Emgoldex Philippines.  However, the US arm of Emgoldex, called Emgoldex Team USA Inc, is also starting to draw attention of the public and of politicians.

It seems you can’t simply change your name or set up operations in a different country and escape your past…especially if you’re conducting the same business in all your branches.  What got you in trouble before will probably get you in trouble again.

Things don’t seem to be going well for Emgoldex Team USA, whose website is now a GoDaddy landing page.  As for Emgoldex Philippines, they’ve been “disowned” by Emgoldex, who claims the Philippines “branch” (if that’s what it is) is using the Emgoldex name without authorization.  Indeed, Emgoldex has a statement on their site warning customers about the “fraudulent” Philippines wing.

But is the wing any different from the body organization?  They both promise disproportionately huge payouts based on low investments.  They both push recruiting heavily.  They both run a high-yield high-risk investment scheme.  Whatever pans out in the end, investors: you’ve been warned!

 

 

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