20 Shocking Ponzi and MLM Schemes That Scammed Billions - Exposed by DANNY DE HEK & ROB WOOLLEY

In today's video, we're diving deep into 20 of the most infamous Ponzi and MLM schemes that have scammed billions of dollars from unsuspecting investors. These cases highlight the lengths to which scammers will go to deceive people, and they serve as a stark reminder of the importance of vigilance in investment opportunities. Joining me in this discussion is my good friend and fellow scam-buster, Rob Woolley.

TIME STAMPS / CHAPTERS

Reed Slatkin - 00:00:00
Scott Rothstein - 00:00:00
Tom Petters - 00:00:00
Gerald Payne - 00:00:00
Allen Stanford - 00:00:00
Lou Pearlman - 00:00:00
Barry Tannenbaum - 00:00:00
Charles Ponzi - 00:00:00
Michael Eugene Kelly - 00:00:00
TelexFree - 00:00:00
Herbalife - 00:00:00
Amway - 00:00:00
LuLaRoe - 00:00:00
Vemma - 00:00:00
AdvoCare - 00:00:00
Nerium (Neora) - 00:00:00
Fortune Hi-Tech Marketing - 00:00:00
BurnLounge - 00:00:00
ZeekRewards - 00:00:00
ACN - 00:00:00

Ponzi Schemes:

1. Reed Slatkin (EarthLink Co-founder)

Reed Slatkin defrauded approximately 800 investors of around $593 million through his Ponzi scheme from 1986 to 2001.

2. Scott Rothstein (Rothstein Rosenfeldt Adler)

Florida lawyer Scott Rothstein ran a Ponzi scheme involving fake legal settlements, scamming investors out of approximately $1.4 billion.
Tom Petters (Petters Group Worldwide)

3. Tom Petters defrauded investors of $3.65 billion through fake electronics sales, leading to a 50-year prison sentence in 2010.

4. Gerald Payne (Greater Ministries International)

Gerald Payne's church-based Ponzi scheme defrauded investors of $500 million by promising to double their money.

5. Allen Stanford (Stanford International Bank)

Allen Stanford's Ponzi scheme through his offshore bank defrauded investors of $7 billion, resulting in a 110-year prison sentence.

6. Lou Pearlman (Trans Continental Airlines)

Lou Pearlman, known for managing famous boy bands, ran a Ponzi scheme through his company, defrauding investors of over $300 million.

7. Barry Tannenbaum (South African Ponzi Scheme)

Barry Tannenbaum's $1.2 billion Ponzi scheme promised high returns on pharmaceutical import investments in South Africa.

8. Charles Ponzi (The Original Ponzi Scheme)

Charles Ponzi defrauded investors of $20 million in 1920 by promising a 50% profit within 45 days through arbitrage of international reply coupons.

9. Michael Eugene Kelly (Universal Lease Programs)

Michael Eugene Kelly's timeshare investment Ponzi scheme defrauded investors of over $428 million.

10. TelexFree (Carlos Wanzeler and James Merrill)

TelexFree's MLM Ponzi scheme, disguised as a telecom business, defrauded investors of approximately $3 billion.

Multi-Level Marketing (MLM) Schemes:

1. Herbalife

Accused of operating a pyramid scheme, Herbalife settled with the FTC for $200 million in 2016 without admitting wrongdoing.

2. Amway

Amway, one of the largest MLMs, has faced numerous lawsuits and scrutiny for its business model, which critics argue relies heavily on recruitment over product sales.

3. LuLaRoe

The clothing MLM faced a lawsuit accusing it of being a pyramid scheme, resulting in a $4.75 million settlement in 2019.

4. Vemma

The energy drink MLM was shut down by the FTC in 2015 for operating a pyramid scheme focused on recruitment over product sales.

5. AdvoCare

In 2019, AdvoCare agreed to pay $150 million to settle FTC charges of operating a pyramid scheme and shifted to a direct-to-consumer sales model.

6. Nerium (now Neora)

Sued by the FTC in 2019 for allegedly operating a pyramid scheme, Nerium continues to operate while denying the allegations.

7. Fortune Hi-Tech Marketing

Shut down in 2013, this MLM was accused of being a pyramid scheme, promising significant income through recruitment.

8. BurnLounge

The music-related MLM was shut down by the FTC in 2007 for operating a pyramid scheme focused on recruitment rather than product sales.

9. ZeekRewards

This penny auction MLM was shut down by the SEC in 2012, defrauding nearly a million people out of $600 million.

10. ACN

ACN has faced accusations of being a pyramid scheme due to its focus on recruitment and exaggerated income claims, but it continues to operate while denying the allegations.

Conclusion:

These 20 cases are just a glimpse into the deceptive world of Ponzi and MLM schemes. Each story highlights the importance of vigilance and skepticism when confronted with investment opportunities that seem too good to be true. Remember, if something sounds too good to be true, it probably is.

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