Top Lyoness distributor suing over position sale


Silvio Spangl was a Lyoness promoter for 9 years. He rose to President, Lyoness’ highest distributor rank.

As a part of his management, Spangl centered on development of Lyoness throughout the Americas. He claims to have had over 250,000 distributors in his downline.

Final yr Spangl left Lyoness. As a part of authorized efforts to get Lyoness to pay him for his place, Spangl not too long ago gave two interviews with BE Battle Administration.

Spangl’s first interview was uploaded to Be Battle Administration’s YouTube channel on April twenty third, 2021.

Half two was uploaded on April twenty seventh, nevertheless there appears to be a while distinction between the 2 interviews (I feel the primary one was shot a lot earlier).

On why he left Lyoness, Spangl claims he started questioning the corporate in 2018.

[1:32] While you do a simple arithmetic based mostly on all these clouds, for instance, this cloud system was altering so many instances.

[2:35] When this cloud enterprise began rolling, there was one idea after which they modified it into one other idea.

To enterprise cloud then enterprise and that, it modified so many instances that hardly somebody might perceive it anymore.

I feel the largest downside was that individuals misplaced focus as a result of no one knew anymore, “OK what’s the focus now? What’s our product?”

I feel procuring quantity is ultimately the final precedence on the checklist. And if we don’t have procuring quantity then this entire factor is popping right into a typical, how individuals would say, pyramid.

So that is the rationale (in) 2018 I began considering, “How ought to we transfer ahead?” As a result of this can’t exist for much longer the best way the way it was current.

It will definitely was (a) cash amassing membership each few months.

Final yr in Could I made a decision I had no guts to help one thing like this. I jumped out.

Spangl maintains there’s no animosity in the direction of Lyoness founder Hubert Freidl from his facet.

Since leaving the corporate nevertheless, Friedl has despatched Spangl a number of ominous sounding messages:

Spangl describes Friedl’s messages as “bizarre”.

BehindMLM revealed its first Lyoness evaluate in Could 2012.

The primary time this occurred I added Lyoness to my evaluate checklist and when the time got here went over their website to start out my analysis.

A couple of hours and an enormous headache later, I closed my browser window and gave up.

I concluded that Lyoness had put so little thought and energy into the coherency of explaining their enterprise, that it merely wasn’t price my time to attempt to perceive the enterprise mannequin.

I retrospect it was a lot simpler to dissect Lyoness’ MLM alternative again then.

You had a cashback procuring community, which was primarily a entrance for an “accounting unit” scheme.

Through the years I’ve revisited Lyoness. And every time issues have gotten increasingly more complicated. Buying models, procuring vouchers, cloud positions, the failed eCredits crypto scheme, real-estate returns… on and on it goes.

Spangl claims Lyoness’ frequent migration from one shiny ball to a different was a big a part of his choice to depart.

[8:31] I feel the largest downside on this entire enterprise was that, both Hubert or the entire management on the company facet, they weren’t in a position to concentrate on one factor for longer than 3 months.

It was altering on a regular basis. On a regular basis one thing new. Now let’s do that, let’s do this.

It’s completely with none plan.

And now the most recent plan with (the) inventory market and and and and… I imply it’s such a delusion as a result of this firm is gentle years away from inventory market.

Initially I believed Lyoness was entering into buying and selling, however somewhat the corporate is floating going public.

And, in opposition to a backdrop of a cashback platform no one is pushing, that potential itemizing is getting used to proceed soliciting funding.

Spangl goes on to explain Lyoness’ promoting of digital shares.

[9:48] What I don’t perceive you already know, no less than within the US and I feel in Europe it’s not totally different, if you wish to current and promote some shares or future shares or nevertheless they name it, one thing needs to be finished. It needs to be ready.

And promoting shares forward of time and also you don’t even know … there’s nobody paper about inventory market or getting ready or licenses or no matter.

This can be a gigantic course of to get an organization on the inventory market. For me it sounds fairly unlawful.

Certainly, be it within the US or elsewhere, promoting unregistered securities is prohibited.

However hey, give it just a few months and as soon as cash has been handed over and digital share allocation has been recorded someplace, that’ll most likely be the final anybody will hear of it.

Then there’ll be some new ruse to pitch to new potential traders.

Two different attention-grabbing tidbits from Spangl’s interview are that

  1. Lyoness was not too long ago fined $23 million for tax fraud in Turkey; and
  2. Hubert Friedl has reduce worker salaries by 20% to pay for the Feb 2021 Italian pyramid scheme positive.

How a lot Spangl made collaborating in a fraudulent funding scheme for 9 years, or how a lot he bought his place to Lyoness for, isn’t disclosed.

Wanting ahead, Spangl stays skeptical about Lyoness’ future.

[11:06] The very fact is this complete neighborhood shrunk to (a) minimal. I nonetheless have a whole lot of mates in America, I get a whole lot of info (about) what’s occurring.

Once I see what Profession ranges after this new system the place you want only a half quantity for mainly (the) identical profession degree.

I imply that is peanuts what’s coming in for the corporate on one facet. And the variety of energetic entrepreneurs is, it’s so small, it’s so tiny that I don’t suppose it may possibly survive for much longer.

Spangl claims leaders nonetheless in Lyconet are in denial as a result of they’re being “manipulated”.

[12:20] I do know it very nicely as a result of these Presidents who’re nonetheless within the enterprise, they’ll let you know solely the most effective of the most effective.

No matter I’m saying they’ll say, “OK this can be a lie”. So individuals don’t have a chance to get info about (the) actuality of what’s actually occurring backstage.

In negotiating his exit from Lyoness, the corporate reserved first proper to purchase Spangl’s place.

Lyoness purportedly exercised this proper however as of but hasn’t paid Spangl for his place.

Spangl describes his exit contract from Lyoness as a “mafia contract”.

The “blackmailing doc” prohibited Spangl from selling any MLM associated enterprise for 20 months.

Spangl says he signed anyway as a result of he needed out.

After the contract was signed, Spangl claims Lyoness and Friedl ghosted him.

Seven to eight emails had been despatched with no response. This prompted Spangl to ultimately pursue authorized motion.

To that finish Spangl has engaged BE Battle Administration as a part of his authorized illustration.

 

Replace twenty ninth March 2022 – BE Battle Administration’s YouTube channel was terminated in mid March.

As such beforehand accessible linked to cited BE Battle Administration YouTube movies have been disabled.