MLC Engineering: The truth of this Ponzi Scheme is Exposed (2023)
MLC Engineering’s website does not provide any information on ownership or executives. On September 29, 2022, a private registration for the “MLC Engineering.health” domain was made for MLC Engineering. The title of MLC Engineering’s marketing presentation can be found in Kazakh if we open the file:
This implies that MLC Engineering is being controlled by someone from Kazakhstan or someone with connections to Kazakhstan.
Other potential locations where Kazakh is widely spoken include Afghanistan, Mongolia, Tajikistan, Turkmenistan, China’s Xinjiang Uyghur Autonomous Region, and Uzbekistan.
A social media link to vKontakte is also included on MLC Engineering’s website, indicating connections to Russia (or at the very least, Russian speakers).
That gets us to their social media accounts, where it is made clear that “Ivan Saltanov” serves as the company’s CEO.
Beginning in August 2022, Saltanov, a Russian speaker, has been featured in MLC Engineering promotional videos.
If you’re wondering how their social media accounts predate the registration of its present domain, it’s because this scam was first known as MLC Engineering Engineering.
Before 2022, the scam cleaned up its Facebook page. On their YouTube account, there is only one August 2022 French-language video that raises the possibility that “OLO” was some sort of “Club 100” investment scheme:
The original design was some ridiculous “franchisee” idea. After that, Olo was relaunched as Olo DeFi, a cryptocurrency app project centered on the “OLOb token.
Olo, Partner Club 100, MLC Engineering, and OLO DeFi Ecosystem received a pyramid scheme fraud notice from the Central Bank of Russia on August 3rd, 2022.
This seems to be what led to the company’s renaming as MLC Engineering, and then as just MLC.
How exactly does a Ponzi scheme operate?
An investment fraud known as a Ponzi scheme draws investors with claims of great returns and no risk but fails to invest the money as stated. Instead, it pays off earlier investors with money from future investors while maybe keeping a portion of the profits. These schemes typically fail when recruiting investors becomes challenging or when multiple investors attempt to cash out. They depend on a steady flow of new buyers to operate. They are called after Charles Ponzi, who ran a similar scam using postal stamps in the 1920s.
Outside of OLO and MLC Engineering’s promotional materials, Ivan Saltanov does not exist. He is a strong candidate to become the next CEO of Boris, despite appearing in numerous promotional videos.
It’s noteworthy that the recently founded MLM Ponzi scheme EcoLine likewise utilized the exact same Kazakh document title.
The same con artists are probably behind OLO and now this, however, it is impossible to say for sure.
Always think twice before joining or giving any money to an MLM company if it is not completely transparent about who owns or runs it.
MLC Engineering doesn’t offer any goods or services for retail. Affiliates can only promote MLC Engineering affiliate membership in and of itself.
The Shady Compensation Structure
They claim that their affiliates need to make an investment in virtual shares for $0.0001.
The Ponzi scheme predicts that shares will increase to $1, enabling affiliates to profit more than they initially invested.
Their affiliates are also guaranteed dividends equal to 50% of the business’s revenue.
This money will come from the allegedly sold blood glucose meters. The MLM division of MLC Engineering provides commissions on affiliate investor recruitment.
Ranks of Associates
MLC Engineering’s pay structure has five affiliate ranks. They are as follows, along with the requirements that apply to each:
- Partner– join the MLC Engineering affiliate program
- Specialist– invest at least $250, personally acquire two or more affiliates who each invest at least $100, and combine your investment with the combined investment of the personally recruited affiliates to equal at least $450.
- Master– invest at least $500, find a minimum of three affiliates who have each contributed at least $200, and combine your investment with the combined investment of the individually recruited affiliates to produce at least $2000.
- Expert– invest at least $1500, bring on three Master-level or higher affiliates, and bring in enough money from your own investment and the investments of personally recruited associates to equal at least $5000.
- Professional – Professional: You must invest at least $5,000, find three affiliates who are Expert-level or above, and combine your own investment with the investments of individually recruited affiliates to produce at least $10,000 in total investment.
A unilevel compensation scheme is used by MLC Engineering to pay referral commissions.
In a unilevel compensation system, an affiliate is at the head of the unilevel team, and each affiliate that was personally recruited is positioned immediately beneath them (level 1).
If any level 1 affiliate brings on new affiliates, the new affiliates are assigned to the original affiliate’s unilevel team at level 2. In the event that any level 2 affiliates bring on new affiliates, they are promoted to level 3, and so on and so on down a theoretically unlimited number of levels.
Twenty is the maximum number of MLC Engineering-payable team levels. Rank-based referral commissions are given as a percentage of the money invested at each of these 20 levels:
- Affiliates that are personally recruited by partners earn 15% on level 1, 4% on level 2, 2% on level 3, and 1% on level 4.
- On level 1, specialists make 15%, on level 2, they make 5%, on level 3, they make 2%, and on level 4, they make 1%.
- Masters receive 15% of the level 1 pay, 7% of the level 2, 5% of the level 3, 2% of the level 4, 1% of the level 6, and 0.5% of the level 7 pay.
- Level one experts earn 15%, level two experts earn 7%, level three experts earn 5%, level four experts earn 3%, level five experts earn 1%, and level six experts earn 0.5%.
- Professionals make 16% at level 1, 7% at level 2, 5% at level 3, 4% at level 5, 1% at level 6, 0.5% at level 7, and 0.3% at level 9 and higher.
Joining process of MLC Engineering
Become an MLC Engineering associate for nothing. Investments of at least $100 are necessary to fully participate in the associated income potential.
Conclusion of MLC Engineering
I want to draw attention to the appropriation of established company names before we discuss MLC Engineering’s MLM potential.
Olo is a company that delivers apps. That concept was simply expanded by OLO the Russian pyramid scheme (note that none of this ever occurred):
Electrical consultancy company MLC Engineering Engineering was situated in Oregon. According to its web page, MLC Engineering Engineering closed its doors in 2022.
I could dismiss one business with the same name as accidental. Two appear deliberate. With their blood glucose monitoring scheme, MLC Engineering promises investors that a $10,000 investment would result in $10 million in revenue.
This is founded on marketing assumptions and claims, none of which are true.
When we examine MLC Engineering’s past, we see that some franchisee nonsense was affixed to marketing claims and promises. Initially, there was a brief cryptocurrency scam, and right now, it’s blood glucose monitors.
There is a trend of asking for investment but never providing it. This is so because pyramid recruitment is the true business.
MLC Engineering is seeking investment as part of its MLM business and offering commissions on the hiring of affiliate investors. MLC Engineering is a pyramid scam because there is neither advertising nor direct sales to retail customers.
Securities fraud is committed on the investing side even if it is not paying out anything.
Without first registering with financial regulators, MLC Engineering is not permitted to offer any shares of its business, virtual or otherwise.
MLC Engineering offers no proof that it is officially registered with any financial regulators.
MLC Engineering conceals its Russian heritage by posing as a shell business with connections to the Caribbean tax haven of St. Lucia.
Certification with financial authorities is not the same as registering a shell business, whether it is done abroad or in a tax haven.
Like other MLM pyramid scams, commissions will stop once affiliate recruiting stops. MLC Engineering will eventually collapse as a result of this.
The arithmetic underlying MLM pyramid scams ensures that most members lose money if the schemes fail.