Even when a product-based pyramid scheme has the highest quality “product”, it does not matter. If the recruitment is the focus and not product sales, you are promoting a scam. Even a “product” as pure as gold will not change that. Let’s see why they are a scam in this EmGoldex review.
A recent technique for scammers is to use gold as a cover for running a pyramid scheme. In my opinion, this company 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, this company 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 this company:
EmGoldex is not a DMCC-licensed company. DMCC has taken steps to prevent further misuse of our name.
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 this company is self-education and training!
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.
This company 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 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 Review 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.
EmGoldex is an illegal pyramid scheme!
- Pyramid Scheme
- No Reason To Trust
I was curious about this company, so I decided to check them out. I was surprised to see that only a small amount of gold is actually sold by EmGoldex. Most of the money is made by people investing in their pyramid scheme. I’m glad the SEC has warned people about this company.
The SEC in the Philippines issued a Cease and Desist Order November 5, 2015, and filed two cases before the Department of Justice against EmGoldex, Global Intergold (GIG) and Prosperous Infinite Philippines Holdings, Corp. (PIPHC). It is great to see the SEC stepping in. There have been a huge number of victims of this gold scam.
Here are the details of the SEC action:
The SEC issued a Cease and Desist Order (CDO) yesterday, 5 November 2015, and today filed two (2) cases before the Department of Justice (DOJ) against related entities namely EmGoldex, Global Intergold (GIG) and Prosperous Infinite Philippines Holdings, Corp. (PIPHC) for violations of Section 8 and 28 of the Securities and Regulation Code (SRC) for selling or offering for sale or distribution unregistered securities to the public and without a license, respectively. Each violation of the SRC is punishable, upon conviction, with a fine of not more than Php 5 Million or imprisonment of 7-21 years, or both.
The filing of the aforestated cases and the issuance of a CDO by the SEC are products of months of investigation, including the previous issuances of SEC Advisories and Disclaimers against EmGoldex. With the help of the DILG, PNP, NBI and NICA, the SEC was able to gather evidence including affidavits of two (2) victims who are active PNP officials. They have also recruited at least 95 investors. An estimated Php 2,718,400.00 cash investment has already been made by them with an estimated return loss of at least Php 11 Million. One of the two PNP officials invested in EmGoldex in desperation after his house burned down early this year.
Per Asst. Dir. Lalaine Monserate of the SEC’s Enforcement and Investor Protection Department (EIPD), the said entities operate a classic Ponzi scheme of getting cash investments and giving high return payouts thru the recruitment of people. As more people are recruited into the scheme, it eventually reaches a point wherein it can no longer sustain its payouts, and payments will stop thereby leaving investors penniless.
Originally, the entity which employed the Ponzi scheme was EmGoldex. However, in response to SEC’s Advisories warning investors against EmGoldex, the original entity renamed itself to GIG. PIPHC was then incorporated sometime on August 2015 to aid and assist GIG investors who were unable to obtain a return on their investment. Currently, EmGoldex is already banned in other countries based on international media reports.
The selling and marketing of unregistered securities by EmGoldex, GIG, and PIPHC are largely done online. Crimes committed in cyberspace and through the use of Information and Communication Technologies (ICT) carry a higher penalty as provided under the Cybercrime Prevention Act of 2012.
According to SEC Chairperson Teresita J. Herbosa, the SEC’s primary mission is to protect Filipino investors, including Overseas Filipino Workers (OFWs) that fall victim to these investments scams. Chairperson Herbosa also noted that the Commission, in its commitment to protect Filipino investors, is ready to receive and assist victims, including OFWs, with their affidavits.
The Commission also warns the public regarding the upcoming event scheduled by the said entities at the SMX Convention Center on Sunday, 8 November 2015, at 5:00pm wherein an estimated 2,000 people will be attending.
With the Aquino administration’s focus on anti-corruption initiatives, the SEC challenges the individual suspects namely Mr. Kevin Miranda, Mr. Ryan Manuit, Mr. Charles Juiz Padilla, Mr. Rabel Ymas, Mr. John Rafael Calicdan, and Mr. Paul Alviar to face the public and take accountability for their actions. – Source Sec.gov.ph
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.