Authorities in Vietnam wish to prosecute Nguyen The Anh (observe that’s his title, not the phrase “the”), for orchestrating a $13.7 million greenback Ponzi scheme.
Supposedly Anh ran his personal MLM firm, Phuc Gia Bao Funding Joint Inventory Firm (extra generally recognized at “68 firm”), which relied closely on convincing others it was a part of Organo Gold.
The corporate launched a multi-level advertising and marketing scheme for the Organo Gold espresso model.
This enterprise didn’t do properly, so The Anh known as for enterprise co-operation for advertising and marketing the Lingzhi Pink Lucerne espresso.
The second reiteration of Anh’s firm, named Phuc Gia Bao Funding & Buying and selling JSC (“868 firm”), solicited funding by way of packages starting from $540 to $1570.
In return, companions would obtain VIP espresso vouchers, invites to essential conferences, travelling packages, and curiosity of 24 – 80 % a month.
As I perceive it Anh’s first firm was mainly his personal Organo Gold distributorship. When that flopped, Organo Gold’s espresso was distributed via vouchers as a advertising and marketing incentive for a individually initiated Ponzi scheme.
By means of that Ponzi scheme, which ran from July 2015 until collapse in February 2016, Anh and 13 accomplices had been in a position to persuade round 8600 traders to take a position over $13.7 million {dollars}.
Now I do know what you’re considering (as a result of it was my first impression too); Okay Oz, so this schmuck connected Organo Gold merchandise to his personal Ponzi scheme. It’s not like they knew about it, proper?
Formally Anh’s Ponzi scheme had nothing to do with Organo Gold. What I’m combating although is seemingly no person at Organo Gold knew this was occurring?
To start with, Organo Gold didn’t formally open in Vietnam until December 2015. So how was Anh advertising and marketing Organo Gold overtly in Vietnam from July 2015?
And this wasn’t some unknown backwater enterprise both. Anh offered his corporations in public as “official advertising and marketing representatives” of Organo Gold correct.
Organo Gold logos and advertising and marketing supplies had been used at Anh’s firm occasions, of which there have been seemingly many held nation-wide.
The corporate even managed to open up a grocery store at one level,
which was taken down shortly after, as a result of it was besieged by traders who had not acquired the promised returns.
Between his two corporations Anh opened ‘eighteen branches and to places of work in 15 cities and provinces‘ throughout Vietnam.
Whereas (Anh) offered his corporations as representatives of the Canadian agency, all he did was purchase their merchandise and supply it to traders without spending a dime.
I don’t know the way a lot Organo Gold product Anh bought to persuade over 8600 traders to enroll, however it needed to be a big quantity.
Not withstanding once more, the query of how Anh managed to acquire Organo Gold merchandise in Vietnam within the first place.
And also you’re telling me that whereas this was happening for seven months, no person at Organo Gold batted an eyelid?
Not even one in every of Anh’s 8600 traders ever contacted Organo Gold with an enquiry or to reality examine?!
To be clear, I’m on no account suggesting or insinuating Organo Gold had something to do with Anh’s Ponzi scheme, that’s on him.
However how the hell did Anh’s presumably big month-to-month buy quantity and promotion of Organo Gold, in a rustic the corporate wasn’t licensed to function in, not set off alarm bells?
Someone needed to be Anh’s upline, and someone that distributor’s upline… and in case you adopted the chain of recruitment excessive sufficient – you’d inevitably wind up at Organo Gold company itself.
Or was it merely a case of, as long as Anh was producing appreciable commissionable gross sales quantity, look the opposite means and don’t ask?
Unknowingly or not, stolen investor funds have been funneled into Organo Gold via Anh’s Ponzi scheme.
No matter quantity that seems to be, I positively suppose there’s a case for Organo Gold to reply right here.
Replace fifth October 2018 – Organo Gold’s basic counsel claims the merchandise used to advertise The Anh’s Ponzi scheme had been counterfeit.