Beautifully Giftwrapped In A Very Clever MLM.
Before I start, I would like to say that at the time of publishing this post, I still do not know what is going on with D9Clube. The Site has been down for some time now and access to the back office is non-existent.
What can one do when they shut you out and run away with the bitcoin and the
- The History Of Ponzi
- His Early Days
- From Rags To Riches
- What Is A Ponzi/Hyip?
- Bitcoin Is Being Exploited
The History of Ponzi
The Namesake: Carlo (Charles) Ponzi
The most famous financial pyramid.
The ‘King of getting Rich Quick,’ Charles Ponzi became a millionaire in just six months back in the early 1920s.
Charles Ponzi was best known for the financial crimes he committed when he conned investors into giving him millions and paid them returns with other investors’ money.
Although he did not invent the scheme that later came to bear his name, Charles Ponzi’s scam was so extensive and initially lucrative that it brought national attention to the fraudulent operation for the first time.
Born Carlo Ponzi on March 3, 1882, in Parma, Italy, he arrived in Boston, USA aboard the S.S. Vancouver in November 1903.
He later told the New York Times that he had gambled most of his money on the voyage to America.
“I landed in this country with $2.50 cash and $1 million in hopes, and those hopes never left me.”
This young immigrant had charm, charisma, and confidence. The details of his early life are difficult to verify but it is believed that he was fairly well educated having attended the University Of Rome La Sapienza.
His Early Days
He began working his way taking odd jobs throughout the East Coast. On one particular job, he worked as a dishwasher in a restaurant sleeping on the floor, and gradually became a waiter. He was fired because he was caught shortchanging the customers and stealing from the restaurant.
In 1907 Charles Ponzi arrived in Montreal, Canada, and found a job working as a bank teller for Banco Zarossi. This bank was owned by Louis Zarossi and was very popular with thousands of Italians who had immigrated to Canada. Ponzi charmed his way and rose to become a manager at the bank where he later learned that the bank itself was in trouble.
The bank had made some risky loans that were not being repaid and desperately needed an influx of cash. He also learned that the bank was doing its own early version of a Ponzi Scheme by promising to pay the desperately needed investors 6% interest while the bank was only earning 3%. He realized that Zarossi had started dipping into the accounts of his customers to pay the investors.
From Rags to Riches
Ponzi eventually found his way to get rich quickly using a ‘loophole’ within the postal system. It was completely legitimate and involved the concepts of ‘Arbitrage.’
At the time, it was common for letters going abroad to include an international reply coupon ‘Voucher.’ This voucher could be exchanged for minimum postage back to the country from which the letter was sent. Thus, for example, if I sent my friend in England a letter, I could include a coupon so that he could respond back.
However, because exchange and postal rates fluctuated, there was an opportunity to make a profit. You only had to purchase postal reply coupons cheaply in some foreign country, send them back to the U.S. to swap them out for American stamps of a higher value, then sell these stamps. This arrangement was perfectly legal; it was just cleverly gaming the system. Ponzi started buying and selling postal reply coupons using agents in his native Italy, and he was making a good living doing it.
Unfortunately, whatever mental defect made Ponzi steal from his employers and pass bad checks in the past prompted him to get greedy here, too. He started to recruit investors into his system with the promise of huge returns. He borrowed $500 and with what he had learned at Banco Zarossi, he opened up a Credit Bureau of sorts and began to give obligations to pay $1500 for every $1000 invested within 90 days. The Scheme lasted only about one year.
Read the rest of this intriguing story <<<HERE>>>
And read another version of the same story <<<HERE>>>
Was D9Clube a Ponzi Scheme?
“HYIP” stands for a ‘high yield investment program.’ Here are the Mechanics.
Making it simpler, HYIP in the eyes of the novice investor represents a way to make huge amounts of money in a very short period of time without having to do anything but invest some hard-earned money.
In a Nutshell, D9 lured their victims into the program under the guise that the D9 club Executive Team was a team of highly trained and respected “Arbitrage Sports Trading’ professionals that could provide an average daily return of 1.8%.
This actually made sense.
The Internet says that Long-term HYIPs are projects calculating 0.01% to 5.00% daily. D9 was claiming 1.8% daily.
Any project giving 5.00% or more can be considered short-term. So what is the attraction? I’ll tell you in a nutshell…This is a very dangerous game to play.
What is an HYIP/PONZI?
Nearly all HYIPs work as a Ponzi scheme, meaning they are all pyramids in set-up. More often, an HYIP is closed when the payment amount reaches 85% of the entire amount. What do I mean by this?
When the amounts that need to be paid outreach 85% of the maximum income of the HYIP Company…It is time to shut down. It is no longer sustainable. The primary reason for this is that these HYIP start-ups are not performing the way they promise to perform. They are not Trading to generate profits.
The more interest rate (return to novice investors) that is offered, the shorter the term of the HYIP run.
The average “lifetime” term of long-term HYIP is about 1 year.
We have all encountered this here at D9.
Actually, they made it past the year mark (approximately 16 months) and they did most of their damage in the last 2 months of their existence orchestrating their exit plan.
The short-term HYIP’s “lifetime” cannot be defined in my opinion but can be verified by my 85% assertion.
Every HYIP has its own lifetime. It’s hard to predict the end. That is why short-term HYIPs are considered to have a higher risk degree than long-term ones and offer a higher rate of return.
Bitcoin is being exploited – HYIP
High yield investment programs, also short HYIPs, may pay you high returns for a small amount you invest in them.
These programs are supposed to get profits by trading forex, stocks and bonds, sports betting, and others.
HYIPs pay hourly, daily, weekly, or monthly. The daily income rates depend on the HYIP itself and range from 0.5% to 6%. Some even go as far as to claim 10% per day.
D9Clube was offering a daily return of 1.8% on the purchase of each $2046.00 package based on Sports Trading.
I said from the beginning, that if D9 does successful ‘Arbitrage Sports Trading‘ then there will never be a problem. Their Trading Objective is to earn 1.8% per every day of work.
Phase 1: The Launch after The Pre-Launch
Pre-launch is where people can join for free to position themselves within the organization. In other programs, they can invest a minimum to a maximum amount and have for example, ‘founder’ or ‘Premier’ status.
Investors invest Bitcoin through cash and the Admin pays the promised percentages. Admin is essentially paying out from their own pocket and the pockets of the founders and early investors at this time and are incurring losses or just breaking even.
Phase 2: The Upswing.
Enough Momentum has been acquired through the planning stages and it is time to pull the trigger.
The SCHEME is now booming and many people are signing in and investing. Many with up to One Hundred Thousand USD plus.
The potential profit of the admin now grows faster than the amount they need to pay daily to the investors. They have reached the Pinnacle. They finally have the money to do for the people what they promised. To turn the investment into regular profit.
And then that’s when most of these ponies fall apart.
They have made it this far with their shenanigans but now the game is real.
They have sold us on the idea that they are professional traders. But they are not.
Sooner or later, the payouts will stop.
They plan their exit strategy. Can take anywhere from 10 to 40 days plus. D9 was about 40 if not a few more.
During all this time they keep you handcuffed and at ransom while at the same time encouraging you to continue to invest and reinvest.
Phase 3: The Fall.
Over time, fewer and fewer people continue investing in the platform. This means, that the potential earning is getting less, due to the fact that the admin needs to pay out a profit daily plus the MLM Bonuses. Admin decides, that now is the point of maximum earnings for them.
First, the admin stops all the payments out of the website, but allows continued investment into the program (sound familiar)?
Remember at D9…Nobody got paid for almost two months but they encouraged people to continue to purchase packages under the guise that they were making the platform even better. Then when they had ‘milked’ the program to the maximum they ran away and closed the website. So they had a run from January 2016 to approximately September 2017.
Note: Most Hyip’s hiding behind an MLM or Network Marketing structure will last much longer than an HYIP on its own.
This is why the next question is very important:
How To Minimize The Risk?
As seen in the upper graphic, the periods you are going to earn are phase 1 and 2. This means you need to join as early as possible, equivalently, you need not join too late. To find out if the HYIP is in the beginning of phase 2 or at the end is not easy.
Therefore, there are some common rules of thumb on joining hyips:
- Do your homework. Especially if they are promoting the program through the issuance of a new Alt Coin or new Blockchain Technology. With these, you want to see ‘The White Paper.’
- Be wary (Like D9) of Company Communication done in only one language other than English.
- Have anyone that is recruiting you to show the validity of the program.
- Establish if the program is a HYIP or a HYIP disguised as an MLM. Remember, the ones hiding behind an MLM structure will last much longer.
- If the Hyip is just a Hyip paying more than 5% daily, then don’t join it after it has been there for more than three weeks.
- If the hyip is paying between 2.5% and 5.0%, then don’t join it after it has been there for more than five weeks.
- If the hyip is paying less than 1.5%, then the choice is even harder. The website might pay for a very long time like HashOcean (more than a year), or stop like Business Angels (less than three months).
- Don’t get Greedy. Most HYIP’s want you to continue to roll over your gains back into the program. Would a better approach not be to extract your initial money and then play their game with their money? and finally,
- Don’t forget to request your withdrawls as soon as they become available.
Note: Do not be afraid to ask for a white paper from company’s dealing with Cryptocurrency, Mining and Blockchain programs. You can read the Bitcoin White Paper <<<HERE>>>
Any information found on this site is not to be construed as ‘Investment Advice.’ The content on this site is provided for information and educational purposes only. Read the Full Disclaimer <<<HERE>>>.
I’ll give you as much information as I can, so you don’t have to run around looking for it. Please share with your friends and other users.
Please share this information with others that have been damaged by this D9 farce. Even though the D9 Club is now gone, I am going to keep this site open in case there is a recourse for all of those that got hurt. Subscription to this information site is free. All you need is to create a username and have a valid email.
‘Get Rich Quick’ Schemes have mutated into an Online Monster. A ‘Network of Pitchmen’ and self-proclaimed “Guru’s” have used and are still using The Internet and the ‘Fear of Failing economies’ to play the ultimate ‘Long Con’ on innocent and unsuspecting people all around the World.
Internet Marketers that are trying to earn a living honestly are very small fish in a very large pond. We are basically just the small guys that work under a much larger business group called “The Syndicate.” Yes there is actually such a thing. Read on. This is going to blow your mind.
The Syndicate (Business Group)
Scamworld: The Video
Members of the Syndicate use online advertising, email marketing, affiliate marketing and multi-level marketing to sell “info products”, such as self-published books and videos that purport to teach customers how to get rich through online business. They also do lead generation for pressure-sales telemarketing companies called “boiler rooms“. The Syndicate’s members use the group as a way of coordinating product launches and release dates, and of enhancing perceived credibility through social proof. According to Syndicate member Frank Kern, “We all work together, all the top people work together.”
Critic Jason Jones, who blogs as The Salty Droid, has accused the Syndicate of being a cartel that harms customers through price fixing and unfair competition.Syndicate member Frank Kern denies this, and claims that the Syndicate’s purpose is to “help the customer have a great experience”.
–Source Wikipedia (you are going to see some names that you wouldn’t think would be involved).
Such is the World of Internet Marketing. Be careful which sandbox you play in. The syndicate do not promote MLM’s (as far as I know), they focus more on products and services.
HYIP Administrators & HYIP Operators
High Yield Investment Program’s Admin. This term is very common because HYIP Admin is a key person in a high-yield investment project. The term HYIP Admin implies chief executive and even the technical administrator of the site. HYIP Admin is the most important person in the project. Very often a few people hide behind a HYIP Admin. However, the opposite scenario is also true: one person often hides behind many people. Therefore, despite the fact that many programs have pretty solid legends, developed infrastructure and a lot of convincing names, most of the regular online investors do not believe in them. Moreover, because of established attitudes to the “teams” of high-yield investment projects, the concept of “administrator” is also used as regards to the services operating in the HYIP Industry (monitors, forums, blogs, etc). Therefore, very often the employees of such services are called “admins”: Monitor Admin, Forum Admin, Blog Admin.
High Yield Investment Program Operators .
At least half of the programs that operate in the market were created by professionals in this business. They launch one pyramid after another and sometimes reach the fanatical zeal in cloning and copying projects. By saying “HYIP operators”, I mean those who are engaged in systematic and consistent creation of HYIPs.
HYIP Operators differ from each other and each of them creates projects with their own distinctive features. Some of them prefer having one type of program, some prefer the simultaneous operation of programs of various types. Others do not have more than one project at a time. Fortunately, some HYIP Operators adhere to certain principles in their work and thus it is possible to determine the prospects of such operator’s programs quite accurately.
Read 10 Facts HYIP Adminstrators hide from you <<<HERE>>
Are HYIP’s similar to a Ponzi or Pryamid Scheme?
Pyramid schemes and Ponzi schemes share many similar characteristics in which unsuspecting individuals are fooled by unscrupulous operators who promise extraordinary returns. However, in contrast to a regular investment, these types of schemes can offer consistent “profits” only as long as the number of investors continue to increase. Ponzi and pyramid schemes are self sustaining as long as cash outflows can be matched by monetary inflows. The basic difference arises in the type of products that schemers offer their clients and the structure of the two ploys.
Ponzi schemes are based on fraudulent investment management services – basically investors contribute money to the “portfolio manager” who promises them a high return, and then when those investors want their money back they are paid out with the incoming funds contributed by later investors. The person organizing this type of fraud is in charge of controlling the entire operation; they merely transfer funds from one client to another and forgo any real investment activities.
On the other hand, a pyramid scheme is structured so that the initial schemer must recruit other investors who will continue to recruit other investors and those investors will then continue to recruit additional investors and so on. Sometimes there will be an incentive that is presented as an investment opportunity, such as the right to sell a particular product. Each investor pays the person who recruited them for the chance to sell this item. The recipient must share the proceeds with those at the higher levels of the pyramid structure.
There are two additional important factors to consider: the only guilty party in the Ponzi and pyramid scheme is the originator of the corrupt business practice, not the participants (as long as they are unaware of the illegal business practices). Secondly, a pyramid scheme differs from a multi-level marketing campaign which offers legitimate products.
Define a Pyramid Scheme
A pyramid scheme is defined as an illegal hierarchical business model encouraging investors to recruit new members to the business model by requiring them to invest massive sums of money and then using the money from those new members to pay earlier investors. The base of the pyramid scheme consist of all the new members who provide the majority of the funds which are then given to the earlier investors who are above them, thus you have the pyramid scheme definition
In March 2014, Herbalife, a Los Angeles-based nutritional supplement company, became the newest likely pyramid scheme to be exposed when an official investigation by the United States FTC (Federal Trade Commission) was launched. The investigation began when billionaire hedge fund manager Bill Ackman accused Herbalife of misleading the distributors, selling commodity products at excessively overinflated prices and a huge misrepresentation of sales figures.
Sources indicate that the government will most likely not shut down Herbalife, but instead sanction them with fines up to $50 million dollars for false claims of excessive income to their new investors while refusing to provide documentation to support their claims, unethical lead generations, and false product claims. If nothing else, Herbalife will most likely have to pay for their sins of the past. The FTC is not the only agency that is investigating Herbalife for operating under a pyramid scheme. The Federal Bureau Investigation (FBI) is also investigating Herbalife as well as other entities.
Source: Define Pyramid Scheme | Legitimate Online Opportunity
Steph Hill: https://legitimateonlineopportunity.com/pyramid-schemes-defined
The American Dream Denied Herbalife Victims Speak Out
This is Part 1 of D9clube is a Ponzi/Hyip
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