Maybe you’ve heard, but gold-selling MLM company Emgoldex is suffering its share of legal problems lately.
Specifially, Emgoldex Team USA has pretty much been shut down on allegations of fraud brought on by the Massachusetts Attorney General (they’re registered in Andover, MA). Also, Emgoldex Philippines is in trouble with the SEC, although Emgoldex HQ denies any affiliation with Emgoldex Philippines (you’re on your own, buddy!).
What we want to know is whether Swissgolden, who also sells gold bars via a table-based recruitment structure, will soon suffer the same fate as Emgoldex. After all, the two companies are extremely similar.
Swissgolden, Emgoldex, What’s the Difference?
There’s a handy YouTube Video showing how similar the two companies really are. Their payout structures are almost identical, although the video points out that Swissgolden is a better deal.
But we’re not looking at either company as potential money makers today…we’re here to find out if Swissgolden will soon be investigated for the same things for which Emgoldex finds itself under scrutiny.
The basic similarities according to this Swissgolden review:
- You pre-pay for your gold.
- You only get paid when you fulfill “marketing requirements”, which is other words for recruiting requirements.
Seems if there really was a true product structure, you’d pay for your gold and get your gold, straight up. What if you just want to flat-out buy some gold bars? Can you just pay full price and get your bars, without entering the wait-and-recruit system before getting your product?
The answer is no. The whole point is to recruit. You cannot simply buy gold…you must “invest” in Swissgolden and be placed in the recruitment structure and only after filling some tables with recruits will you realize your investment. Similar to the compensation plan with My Advertising Pays, recruit 2 people, and hope they and subsequent generations do the same until your matrix is full, and then you get your investment back.
When Recruitment is the Point…
Doesn’t sound like a product-driven system, and the Massachusetts Secretary of State agrees on that count, as far as Emgoldex USA is concerned. That office has filed suits against the owners of Emgoldex USA because it reeks of “Pyramid Scheme”.
The actual charge is “fraudulently” (their words) offering and selling unregistered securities in Massachusetts. They are supposed to register as broker-dealers, broker-dealer agents, investment advisers, or investment adviser reps. Just to be fair, the term “fraudulently” refers to the fact that they’re not registered, not to their product. The lawsuit does allege that Emgoldex Team USA is a Pyramid scheme and that’s the bottom line for Swissgolden.
So, if Swissgolden operates under the same structure is it only a matter of time that they too are under investigation?
The trouble for investors is, even if a company wins such a case, the terms of the lawsuit dictate that they cease and desist immediately all actions. That means, if you’ve invested and are currently working on filling your tables when that cease and desist order comes through, you’re screwed until it all gets settled.
Chances are, you won’t be getting that money back and even if you do, it won’t be any time soon. Can you spare (investment amounts for entry into the Swissgolden structure) $230 or $10,369 to be tied up indefinitely?