Pyramid Schemes in 10 Questions

World Of Direct Selling Provides The Answers Pyramid Schemes

Legitimate direct selling and pyramid schemes have often been confused. While there are clear distinctions between the two, pyramid scheme promoters do everything possible to disguise what they really do and to represent themselves as legitimate network marketing activities.

This week we will go over some of the most frequently asked questions on this topic:

1. What Is a Pyramid Scheme?

Lyoness America Violating Pyramid, Ponzi, Business Opportunity & Security Regulations?

I was in Dallas a few months ago, and received an envelope with a document titled “Notification of Lyoness America violation of Pyramid, Ponzi, Business Opportunity and Security Regulations. Even though this two page document came from a very well-known direct sales, MLM, Network Marketing expert, we waited and continued to research the regulations and what regulators have been doing to close down money schemes in the USA.

Editor’s Update: It was pointed out to me by Jack Weinzierl, that I stated Lyoness was based out of Australia. I should have stated Austria.

Currently the Financial Fraud Enforcement Task Force, is moving throughout the USA closing down and getting solid convictions and settlements for the consumers. If  Lyoness is found to be a Pyramid or Ponzi, then you can bet the settlements will be in the multi-millions of dollars. Hopefully, it will not be another Zeek Rewards!

Financial Fraud Enforcement

The Financial Fraud Enforcement Task Force is made up of the senior-level officials from the following federal departments, agencies and offices for Best Tig welder:

This type of collaboration between agencies may be the biggest in history and is driving the activity we are currently seeing. Sadly, short sellers, critics and many in the media have not yet figured out, that agencies like the FTC (Federal Trade Commission) is not going easy on network marketing companies. Instead they are using their resources to truly nail the contrepreneurs — (marketers who use hyped-up promises to sell business opportunities to people eager to be their own boss.) That term was first used by Lesley Fair in the article titled: Cracking down on contrepreneurs.

So, back to Lyoness…



So even though Lyoness International have been around for 10 years, that doesn’t make it legal in the USA, and they may have to defend their compensation model if the alligations below are found to be true. This same issue has happened to US based companies who have gone into Great Britain, Austraila, China, and other counties.

Lyoness Cashback - Money Back With Every Purchase - Lyoness US

The following are links to other investigative editorials which seems to strengthen the purported alligations I received. I pulled from BehindMLM, not because I always agree with Oz, but because I trust him to report the facts… And a little subjective opinion from time to time 🙂


May 2012: Lyoness US Review: Cashback and investment returns?

April 2013: Lyoness lawsuits and investigation in Austria

May 2013: Lyoness CEO: “It’s all about positions!”

May 2013: Lyoness 2012 Income Disclosure Statement analysis

June 2013:  Lyoness corporate webinar spells out Ponzi scheme

Complaint Centre Lyoness

The above website is dedicated 100% to covering the Lyoness Company worldwide!

Here is the one article I have written over the last couple of years on Lyoness:

May 2012: MLM News Update: Lyoness Hires MLM Law Firm Grimes & Reese To Represent Them In The USA

You can review the alligations below! We will continue to follow Lyoness and update this community as more info on Best Tig welder is published.

Lyoness America

Lyoness America