Avazoo operates within the playing MLM area of interest. The corporate is headed up by Chairman Hans Reinisch.
Avazoo is proud to be led by Dr. Hans Reinisch, Avazoo’s Chairman of The Board.
Dr. Reinisch has a confirmed monitor document of over 25 years, holding CEO positions worldwide in Europe, Australia, The Caribbean and the USA.
In one among his Prime Fortune 500 enterprises, he served because the Managing Director and CEO of EMI Music/Capitol Information in Europe.
Reinisch is represented on Avazoo’s web site by what seems to be an previous picture with Jay Leno.
This struck me as odd.
In keeping with his LinkedIn profile Reinisch is predicated out of Florida. He lists involvement in Avazoo courting again to 2012.
At time of publication Avazoo’s official YouTube channel has sixty movies. Not one of the titles point out Hans Reinisch.
Contemplating he’s offered because the face of Avazoo, this additionally struck me as odd.
One latest video uploaded to Avazoo’s channel caught my eye; “Firm Replace”.
The video was virtually a half hour in size. Not eager to threat adjustments outdating my assessment as quickly because it was revealed although, I queued it up.
The very first thing I seen was the video’s description:
Avazoo Founder & COO Dave Cutler might be Stay at 8:00 PM New York Time (EST) with the Firm Replace, sharing important and key updates relating to Avazoo.
Hmm. That’s not Hans Reinisch.
So who’s Dave Cutler?
In keeping with his LinkedIn profile, he’s the CEO of AppTech Gateway and primarily based out of Las Vegas, Nevada.
In 2004 the FTC sued a David G. Cutler for working “an unlawful enterprise alternative”.
One of many corporations concerned within the scheme, B&C Ventures, Inc., was primarily based out of Nevada.
That alone although isn’t sufficient to verify this was Avazoo co-founder Dave Cutler.
Along with Cutler, the FTC sued Cindy Gannon, Paul D. Bonnallie, Tisa Christiana Spraul, and Michael J. Hatch.
Paul Bonnallie seems in a photograph with Cutler in a $300 Avazoo promoting spot on Black Tie Journal:
Tisa Christiana Spraul is head of Avazoo’s International Operations:
I wasn’t capable of verify whether or not Cindy Gannon or Michael Hatch have something to do with Avazoo.
Three of the 5 defendants the FTC sued for fraud in 2004 nonetheless are concerned.
Theeeeeeeeey’re again.
I’m undecided precisely how a lot precise involvement Hans Reinisch has in Avazoo. Not less than on the floor he seems to be nothing greater than a token government for Avazoo’s web site.
Learn on for a full assessment of Avazoo’s MLM alternative.
Avazoo’s Merchandise
Avazoo has no retailable services or products.
Associates are solely capable of market Avazoo affiliate membership itself.
Avazoo’s Compensation Plan
Avazoo promote tickets to a purported $1 billion lottery.
There are 50 million tickets in whole, bought for between $20 to
- Newbie – 5 million tickets for $20 every
- Affiliate – 5 million tickets bought in numerous three for $50 rather a lot
- VIP – no ticket restrict past the arduous 50 million ticket cap, bought in numerous ten for $100 rather a lot
- Syndicate – $1500 for one entry, plus three further entries per affiliate recruited inside ten days of buy (observe any winnings above $2500 are shared among the many syndicate)
- Company – $2500 for one entry, plus two further entries per affiliate recruited inside ten days of buy (capped at 250 recruits and any winnings above $25,000 are shared amongst all Company group members)
should preserve 100 free tickets to keep up place.
MLM Fee Qualification
To qualify for commissions, every Avazoo affiliate should
- preserve 400 free tickets
- personally promote three tickets
Free tickets are earned by way of Avazoo’s app. Associates are assigned duties which, when accomplished, award free tickets.
Duties referenced on Avazoo’s web site embrace
sharing our mission in regards to the Avazoo Billion Greenback Raffle in your social media, dropping off canned items at your native meals financial institution, volunteering at your native church, or perhaps visiting one among our collaborating Sponsors.
Lottery Earnings
Avazoo declare to supply a billion greenback lottery prize, payable to 1 successful ticket.
The affiliate who recruited the affiliate holding the ticket additionally earns $100 million.
There are additionally an extra 100 $1 million second prize attracts. The referring associates of successful second prize attracts every earn $100,000.
Month-to-month Prizes
Affiliate and better Avazoo affiliate tiers qualify for “month-to-month bonuses prizes”.
Avazoo’s web site has a web page on month-to-month bonuses prizes nonetheless no specifics are supplied.
Whether or not Avazoo has really held any month-to-month bonuses prizes since launching its lottery in late 2020 is unclear.
Referral Commissions
Avazoo pays referral commissions on ticket gross sales down two ranges of recruitment (unilevel):
- stage 1 (personally recruited associates) – 10%
- stage 2 – 5%
If an Avazoo affiliate indicators up and not using a referring affiliate, they’re allotted to an present MLM fee certified affiliate for a ten% fee.
Avazoo digital shares
If an Avazoo affiliate is and stays MLM fee certified (see above), they obtain a digital share each two weeks.
No specifics relating to the Avazoo’s digital shares are supplied.
Becoming a member of Avazoo
Avazoo affiliate membership is tied to a $20 to $2500 lottery ticket buy.
- Newbie – $20 for one ticket
- Affiliate – $50 for 3 tickets
- VIP – $100 for ten tickets
- Syndicate – $1500 for one ticket + syndicate grouping
- Company – $2500 for one ticket plus company grouping
The extra an Avazoo affiliate spends the upper their revenue potential.
Avazoo Conclusion
David G. Cutler, Paul D. Bonnallie and Tisa Christiana Spraul settled the FTC’s fraud prices towards them in 2006.
Bogus Enterprise Alternative Promoters Now Out of Enterprise
Group Bilked Customers Out of Tens of 1000’s Apiece
Seven corporations and 5 people, who scammed buyers out of tens of millions with their bogus enterprise ventures, have settled prices introduced by the Federal Commerce Fee.
The businesses will hand over their remaining property to the FTC, and two of the person defendants pays greater than $197,000.
The group used aggressive telemarketing campaigns and weekend gross sales seminars held in accommodations all through the U.S. to deceptively market and promote their enterprise alternatives involving rechargeable, pay as you go cellphone playing cards and public-access Web terminals at prices starting from $12,995 to virtually $250,500.
The defendants within the case – Web Advertising and marketing Group, Inc.; OneSetPrice, Inc.; First Selection Terminal, Inc., a Louisiana company; First Selection Terminal, Inc., an Arizona company; B&C Ventures, Inc.; RPM Advertising and marketing Group, Inc.; Nationwide Occasion Coordinators, Inc.; David G. Cutler; Cindy Austen Gannon; Paul D. Bonnallie; Tisa Christiana Spraul; and Michael J. Hatch – had been primarily based in Tennessee, Florida, Louisiana, Arizona, and Nevada.
The order introduced at the moment enters a $15 million judgment towards the company defendants, who’ve few remaining property. Their remaining property, nonetheless, might be turned over to the FTC.
The orders for every particular person defendant additionally enter a $15 million judgment towards every individual, suspended primarily based on their incapability to pay.
The settlements prohibit the defendants from violating the FTC Act, the Franchise Rule, and the Do Not Name provisions of the Telemarketing Gross sales Rule.
I need to be clear {that a} fraud settlement injunction granted in 2006 doesn’t routinely imply Avazoo is a rip-off.
Avazoo is a rip-off as a result of it’s an unlawful lottery wrapped round a pyramid scheme.
We’ll handle Avazoo’s pyramid scheme part as a result of that’s straight ahead.
Avazoo is an MLM firm with no retail providing. Everyone seems to be an affiliate with entry to the comp plan, making Avazoo a pyramid scheme.
Shifting on…
Avazoo makes an enormous deal about its lottery being authorized.
Avazoo’s Billion Greenback Raffle IS LEGAL AND REAL! It’s an occasion that Avazoo’s founders have labored arduous for and has taken over a decade to create.
IT’S FINALLY HERE so that you can play and hopefully win!
Avazoo’s authorized representations about its lottery rests in it being registered with the Cagayan Financial Zone Authority (CEZA).
To that finish an April 2021 CEZA “interactive gaming license” certificates for NCGAC Restricted is supplied.
The Cagayan Financial Zone is within the Philippines. Incorporate a shell firm, pay a charge and you can also get a CEZA license.
That’s nice for the Philippines. It means completely nothing for the legality of Avazoo within the US.
Avazoo’s co-founders are within the US. Alexa at the moment ranks the US because the third largest supply of visitors to Avazoo’s web site (16%).
What ought to you already know about international lotteries?
They’re unlawful. Federal legislation prohibits the cross-border sale or buy of lottery tickets by cellphone or mail.
That extends to on-line lotteries, which Avazoo themselves acknowledge.
Any ticket holder, who’s a resident of the USA or different jurisdiction by which web playing shouldn’t be allowed, might be chargeable for offering proof that their ticket was bought from a bodily location or on-line whereas outdoors of the USA and US Territories.
If adequate proof shouldn’t be supplied, the ticket shall grow to be void.
Yeah that’s not how the legislation works. Avazoo are illegally working a international lottery from inside the US, which is marketed to US residents.
The mere act of promoting international lottery tickets to US residents is in and of itself unlawful.
In a traditional instance of “legitimacy through affiliation”, Avazoo additionally claims legitimacy on the again of unnamed firms.
Giant Firms Are Eagerly Shopping for Into the Idea!
We’re extraordinarily happy to welcome a wealth of firms who’ve chosen to be related to the world’s first Billion Greenback Raffle both as sponsors, advertisers or co-branding companions.
Quickly, you will notice their manufacturers on our print promoting, on our web site, and thru joint TV commercials. Hold a lookout for them and take a look at their prime quality services.
We point out this assist as a result of we wish you to know that the vast majority of these giant firms do their due diligence earlier than committing and being related to a really public occasion equivalent to ours.
The truth that they’ve carried out stringent due diligence and glad themselves that the corporate and program is completely authentic, demonstrates simply how very actual Avazoo is.
You possibly can ensure that these firms work very arduous to guard their manufacturers by making certain that they don’t assist any scams.
Main firms wouldn’t make investments their promoting and advertising and marketing {dollars} in one thing that isn’t actual, authorized and secure for shoppers.
This could assist to place your thoughts comfortable in regards to the credibility of Avazoo’s Billion Greenback Raffle.
Avazoo is a rip-off by means of working a pyramid scheme and unlawful lottery within the US. Whether or not firms, none of whom are named on Avazoo’s web site regardless of it launching over a yr in the past, are “shopping for into” Avazoo is neither right here nor there.
Legitimacy through affiliation isn’t a factor.
Then there’s the maths behind Avazoo’s lottery.
Avazoo declare they’re promoting a tough cap of fifty million paid tickets. Avazoo’s most costly ticket possibility is $20 every, which involves $1,000,000,000 (1 billion). Keep in mind, with the costlier affiliate tiers factored in, this quantity will really be much less.
On the premise that associates have “1-in-3” odds of successful, right here’s Avazoo’s whole lottery payout construction:
If we add these winners and funds, we get 17,262,118 winners and $1,450,416,670 ($1.4 billion).
We’re already at a half billion deficit per lottery, and we haven’t factored in
- the $100,000,000 referral affiliate prize on the billion greenback ticket winner;
- MLM commissions;
- month-to-month bonus prizes;
- Dave Cutler and mates working without cost; and
- “charitable causes” (see beneath).
With the Billion Greenback Raffle, we wished to create a enjoyable expertise that encourages individuals to do selfless issues for these in want and that in the end raises a big sum of money for charitable causes.
And each twelfth lottery, Avazoo reckon they’re going to be paying out $5 billion on the identical ticket gross sales.
The place is that this cash coming from?!
As for 1:3 probabilities of successful…
For those who take a look at the assorted lotteries on this planet, nothing compares to what Avazoo presents.
Not solely are we freely giving the biggest lump sum prize in historical past, we’ve got found out a solution to make it possible for one out of each three individuals will win a money prize!
…there isn’t any restrict to the free tickets Avazoo prints out of skinny air. This isn’t factored into their 50 million paid ticket calculation.
On December ninth 2020, Avazoo uploaded the primary video to their official YouTube channel; “Avazoo – The Billion Greenback Raffle Launches 2021”.
Over a yr later and never one draw has taken place.
Why? As a result of Avazoo claims it isn’t working its billion greenback raffle until all fifty million obtainable paid tickets are bought.
We do NOT begin the prize drawings till AT LEAST 30 DAYS AFTER THE LAST TICKET HAS BEEN SOLD.
We’re doing this in order that EVERYONE, INCLUDING THE VERY LAST PERSON, has adequate time to earn free further entries.
So how’s that going?
Not nice.
Keep in mind that “firm replace” video that includes Dave Cutler I discussed within the introduction of this assessment?
In that video Cutler reveals he and Avazoo have or plan to leap on the MLM crypto bandwagon.
That’s as straightforward as attaching nugatory NFTs to every ticket sale and promising riches.
Dave Cutler: Beginning subsequent week, one week at the moment (March twenty ninth), tickets might be launched within the type of an NFT.
It can make a change to lots of people. If you already know something about these NFTs and what they’ll really do financially for you, then you definately’re going to understand it actual fast.
What Cutler doesn’t point out is that by issuing the NFTs, Avazoo will get a perpetual lower of any gross sales. It’s a low-cost cash spinner for Avazoo company.
$100 over the worth of a ticket and Avazoo associates can stick their face on their minted NFT.
Seems like a good way to make an already nugatory NFT much more nugatory.
As a part of Dave Cutler’s, Paul Bonnallie’s and Tisa Spraul’s 2006 FTC settlement, a everlasting injunction was issued. That injunction explicitly prohibits the trio from committing any additional violations of the FTC Act.
I’d put forth Avazoo’s ample misleading advertising and marketing claims constitutes FTC Act violations, wouldn’t you? Working a pyramid scheme is positively an FTC Act violation.
The final fraud tier I haven’t coated are Avazoo’s supplied shares.
That is quoted verbatim, from a March twenty ninth 2021 company Avazoo webinar hosted by Kellie Felgate;
[21:13] You have to 4 hundred free entries and three ticket gross sales to earn commissions. With that additionally you’ll obtain an organization share.
Each two-week cycle when you may have 4 hundred free entries and three ticket gross sales, you’ll obtain one firm share.
Felgate doesn’t go into additional specifics. Regardless, the providing of shares (digital or in any other case) by way of an MLM firm constitutes a securities providing.
At time of publication neither Avazoo or Dave Cutler are registered with the SEC.
Which means, on prime of the whole lot else, Avazoo is committing securities fraud by way of its share providing.
FTC Act violations, lottery fraud and securities fraud. Being perpetrated by serial FTC Act violation offenders, on US residents.
Yeah, this in all probability isn’t going to finish nicely.
Replace 18th April 2022 – Following publication of this assessment Avazoo has deleted cited advertising and marketing movies from their YouTube channel.
The 2 movies in query referenced Avazoo’s NFT plans and the corporate’s supplied shares.
Because of Avazoo deleting the cited movies I’ve needed to disable the beforehand accessible YouTube hyperlinks.