As part of an effort to slow down withdrawals, HyperFund has begun freezing large investor accounts.
Confirmation of the frozen accounts comes as regulators warn of financial fraud.
Our source material confirming HyperFund freezing accounts is from an investor in South Africa.
Correspondence cited by BehindMLM includes discussion between HyperFund affiliate investors, as well as HyperFund’s Compliance Officer Ronae Jull (aka Hope Hill).
In addition to burying securities fraud, HyperFund has tasked Jull with shutting down large investor accounts.
To that end, in late June Jull (right) reached out to our investor to inform them their account had been frozen.
This email serves as a formal notice to you to cease and desist immediately all activity that involves and connects Hyperfund and the “syndicate” you have described and for which you have provided proof.
In addition, we insist that you return all funds to any person who has been promised a “monthly annuity payment for life” by you under the auspices of Hyperfund, as this does not represent or align with the Hyperfund Rewards Program.
Any of these members will then be given the opportunity to join Hyperfund directly if they so choose.
The syndicate refers to sharing the profits of multiple HyperFund accounts across a downline.
HyperFund itself doesn’t prohibit affiliate investors from owning multiple accounts:
As has been the case since the first MLM Ponzi scheme, the only reason affiliates have multiple accounts is to stack them.
Obviously HyperFund knows this and has allowed it since launch. Cracking down on it now only makes sense within the context of restricting withdrawals.
I know of 3 other structures set up by other people not associated with me that have done the EXACT SAME THING – They created a syndicate that shares in the rewards of the accounts and a single person is appointed to manage the accounts!
The difference between them and me, is that I requested PERMISSION to market the concept and look at the price, I and everyone has had to pay!
Weeks dragged on and nothing happened. Nobody was contacted and the accounts remained frozen.
When pressed, this was Jull’s stated the reason for delay;
An investigation is much more involved than simply proving you’re a real person, and is not up to me personally.
As the team goes through each account one-at-a-time, the team requires abundant documentation since there has been an allegation of serious violation of the published Service Agreement.
The affiliate claims their account was frozen without receiving a notice of a violation.
Additionally, prior to the freeze, the affiliate claims Jull personally certified the website he was promoting HyperFund through was in compliance.
Seven weeks and seventy-three emails later, when asked for an update Jull told the affiliate;
I cannot speed up the process or give preferential treatment to any one member.
As the investigation continues, members are indeed getting their accounts released.
It takes time, and that is up to the team. I apologize that it is not fast enough to suit you.
If you were actually in touch with everyone, you would know that some have already had their accounts released.
This promoted the investor to reach out to other HyperFund affiliate investors;
The purpose of this mail is to ask if anyone has had their accounts unfrozen and to deny that there has been ANY SERIOUS VIOLATION of the published Service Agreement as she falsely states!
If your account has been unfrozen, please let me know.
I have sent Hope 73 emails and bent over backwards to rectify this unjust situation – all in vain!
It has been 7 weeks now and I simply cannot accept that a “team” of people can take so long to identify the owners of an account!
At the time the affiliate alleges that nobody who had an account frozen had been contacted by HyperFund.
The affiliate claims to be organizing a “class action” against HyperFund if their account is not unfrozen.
I would also like to state that Hope Hill has placed in writing to a number of you, GROSSLY untrue statements for which I am advised that I have a substantial claim for defamation of my character against both her in her personal capacity as well as Hyperfund since she wrote this in her capacity a corporate compliance officer of Hyperfund.
I can understand that some of you may not have wished to share her defamatory remarks about me to you, but rest assured she has lied and you are welcome to forward her email to me.
Effectively, I was punished for what I WANTED TO DO, not WHAT I HAD DONE!!!
She then proceeded to freeze my account and all of your accounts simply because I was assisting you with the management thereof.
I can honestly state that I believe “spite” to be the only motive and it is completely unfair that Hyperfund has frozen YOUR accounts with the lame excuse that they think your accounts are mine!!!
I am also of the opinion that they are purposely delaying the unfreezing of your accounts in the hope that it will adversely affect your trust and belief in me and the good relationship that we have built up.
After 7 weeks, this is beyond a joke and decisive action must now be taken.
HyperFund maintains the affiliate
personally accepted fiat currency (from some, not all) for the purpose of facilitating purchase of Hyperfund membership(s) for others. In some cases this involved large sums.
This is considered money laundering in every jurisdiction.
You are currently also in violation of both the Integrity and the Defamation clause of the Service Agreement by threatening not only the company, but sending such threats personally to me and to others in the Hyperfund leadership.
I can’t speak to the Service Agreement violations but Jull’s money laundering claim is certainly interesting.
Receiving funds from other investors to invest in a Ponzi scheme isn’t money laundering. What HyperFund does with the money is money laundering.
What Jull has identified is solicitation of investment for an unregistered securities offering, which constitutes securities fraud.
She can’t say that though, because that’s an admission that all investment into HyperFund is securities fraud (which it is).
As I understand it the accounts in question remain frozen.
The take-away here is HyperFund has provided a taste of how it intends to deal with the inevitable exponential growth of withdrawals.
They are not able to rebuy or withdraw as a number of people are DESPERATE to do.
What about those accounts that were relying on rebuying in order to restore their pending rewards enabling further withdrawals that are now reduced to ZERO due to the fact that they cannot rebuy?
My own VIP 2 Star account has suffered substantial losses as a result of this fiasco!
This mathematical equation is behind every Ponzi scheme’s collapse, and it appears HyperFund is well on its way there.
Assuming regulators don’t move in first.
To date regulatory warnings against HyperFund have been issued by the UK, New Zealand and Guernsey.
Authorities in India are also reported to be investigating the Ponzi scheme.