https://www.facebook.com/Ultrasonic2012
https://www.facebook.com/Ultrasonic2012
Like many other concerned public who have written about Galaxy Trio and Ultrasonic on the Internet, I was threatened, my family was harassed, and we were thrown with numerous insults when discussing about the legitimacy of their money making business which solely requires recruiting new members. We have contacted the police regarding these harassments and threats. However, this does not mean I will stop trying to make people understand what they are getting themselves into.
MLM, pyramid, matrix board, pigeon chess, you name it – these are Get-Rich-Quick schemes disguised in many fancy names. The only common factor is recruiting new members and this cannot stop. Once recruitment stops, the entire business model will collapse.
If there are more reward based on recruiting than reward based on selling, then there is a high suspicion of a pyramid scheme. The reason is simple: where is the money coming from, if not from sales? The only other source of income is from the membership fees, and that makes this a Ponzhi or Pyramid scheme/scam. A pyramid scheme is an operation where you have to recruit two or more people into the system to get paid.
The “recruiting” angle uses a lot of fancy words like “forced matrix” “matrix board” or “cycling the matrix”. In truth, a “matrix” is just another name for “pyramid”. If you have come across phrases like “cycling out of the matrix” or anything along those lines, be suspicious because you can only “cycle out” by filling the matrix with members “promising” large bonus paid for “filling the matrix”.
As long as there is a recruitment of at least two members, it is a scam.
In other instances, new recruits or members were offered “golden opportunities”. Some even go to the extend of telling those who did not sign up as “lazy” or “idiots”. There is no mention of membership at all at first look. Another way to disguise recruiting is by “selling” the opportunity’s “joining gift”, and not mention the membership at all.
In other instances, some give you an impression that you are buying an “item X”, when in fact, you actually paid for the membership, which gets you item X. Before you join, you have no idea or in most cases were not informed about the need for new recruits to “cycle out” the matrix or the hassle of redeeming your bonuses.
Yet another way is to disguise the recruiting by making the compensation for sales very vague, but how you get the big payout, by recruiting a lot of people, is crystal clear.
Hard to sell products and services
Can you sell ebooks or videos or poor-quality non-consumable products/services to friends which costs a few hundred dollars? Don’t you find it hard to sell such items? Besides such products/services can be easily purchased online at much cheaper deal. These days, ebooks and online videos are easily downloadable either free or a small sum of payment usually less than $10.00. Take the time to browse through Amazon and you will be amazed at the awesome collection. Way much better than the ebooks or video sold to you by Ultrasonic and Galaxy Trio, judging by the quality of the products shoved at your face.
Membership fee
You receive some physical or virtual products to sell, or any equipment and such to sell the “service”, or some tangible training for your membership fee. If all the fee does is “qualify” you to get paid by recruiting, you are definitely a victim of a pyramid scheme.
If you just receive a bunch of links to video lessons of dubious value, or an e-mail, or a catalog, or dodgy ebooks which you asked yourself what is the worth in such badly created products, you are probably looking at a scam.
If you do get a worthwhile bonus, such as free vacation, check to see how you actually “use” or redeem the vacation. There have been scary sounding reports such vacations never existed, or the redemption process is so tedious, or it numerous excuses were given so that you will not be able to go for the free holiday trip. Many times, the company kept insisting that due to “explosive demand” they cannot send you for the free holiday trip. Don’t let that “bonus” be main reason to join, instead of the real business opportunity.
No real money yet
To convert all your credit into “real dollars” you have to pay all sorts of crazy fees, like wire transfer fee, debit card fee, transaction fee, conversion fee, and so on and so forth, and wait weeks or months. That is a sign of a scam. Some companies pay you vouchers which you sell to new recruits, and you are actually getting paid by new recruits. This is a pyramid scheme. What’s worse, that actually makes YOU a part of the scam, as you benefited from it. It is basically a money transfer scheme.
Lastly, look out for businesses operating offshore (British Virgin Islands, BVI) and only accepts “payment processors” who will take your money for “conversion” and send it off. Once you’ve transferred the money, you cannot rescind the transfer, no matter what valid mode of payment you have done. The payment processors, such as AlertPay, Solid Trust Pay, Liberty Reserve acts like banks. You pay the processors money to open a temporary account, and you pay someone else from that temporary account. Once the money is gone from the temporary account it cannot be rescinded, even if you have a complaint. By adding that extra layer, the offshore company can be sure that even if you had second thoughts you will have a hard time getting your money back.
No info on management
If the opportunity is run by an unknown, with no background information for you to check, or there is no name anywhere attached to this “opportunity”, you should run away. Logically speaking, you simply don’t loan money to total strangers and expect it to be returned.
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The investor may have asked – if this is really a ponzhi scheme, why is the Monetary Authority of Singapore or the Commercial Affairs Department not taking any action to stop it?
Do not be disheartened by the lack of action by our authorities. The MAS has already put an alert on their website and asked the public to lodge a complaint with CAD, if they suspect any fraud. I do not know why MAS expects the public to do the investigation. It is quite easy for MAS to engage an investigator, at the cost of the Government, to see if there is any risk of a fraud, rather than wait for it to happen. Same goes to the Commercial Affairs Department. They have the power, authority and the resources to carry out an investigation. They only need to have reasonable grounds to make an investigation into a potential ponzhi scheme.
Here are some signs that you need to watch for, to make sure that matrix board opportunity you may be thinking about joining is not actually a pseudo-MLM/pyramid scam designed to take your money.
Warning Signs
- If it looks too good to be true—it probably is.
- Use your common sense: the offer may be a scam.
- Do not let anyone pressure you into making decisions about money or investments: always get independent financial advice.
- You can contact Commercial Affairs Department (CAD), CASE or the Singapore Police Force if you notice something is amiss.
- Beware of products or schemes that claim to guarantee income or winnings.
- Remember that family members and friends may try to involve you in a scam without realizing that it is a scam: you should seek independent advice (from a lawyer or financial adviser).
How you can Protect Yourself
- Do not let anyone pressure you into making decisions about money or investments: always get independent financial advice.
- Read all the terms and conditions of any offer very carefully: claims of free or very cheap offers often have hidden costs.
- Make sure you know how to stop any subscription service you want to sign up to.
- Be very careful about offers for medicines, supplements or other treatments: always seek the advice of your health care professional.
- Remember there are no magic pills or safe options for rapid weight loss.
- Beware of products or schemes that claim to guarantee income or winnings.
- If someone offers you an investment or other financial service, ask for their Financial Services Licence number.
- Be wary of investments promising a high return with little or no risk.
- Beware of job offers that require you to pay an upfront fee.
Authored by Zainal Ariffin
Photos: Readers’ contribution
EDITOR’S NOTE
More and more readers are writing to Rilek1Corner to share information about the Get-Rich-Quick scams. We thank you for the contribution and we assure you that identities will be kept secret. We were also informed that readers who had openly share their grievances/concerns were harassed and threatened. We urged those affected parties to contact the authorities immediately. If you are uncertain on how to go about doing it, please do contact Rilek1Corner and we will gladly be of assistance to you. Otherwise you can do so by:
You can lodge a complaint with the Commercial Affairs Department either in writing or in person:
Complaint via Electronic Police Centre
The complaint letter may be submitted to:
Director
Commercial Affairs Department
391 New Bridge Road #06-701
Police Cantonment Complex Block D
Singapore 088762
The following information should be contained in the report:
- An account of the relevant facts;
- Copies of the relevant documents, if available; and
- Your name, NRIC / passport number, contact number and address.
You may appear in person at the above address. To avoid any inconvenience, you are advised to call the Department at 1800-325 0000 (Toll-Free) to make an appointment. Our office hours are as follows:
Monday – Friday (8.30am to 5.30pm)
Complaint via Electronic Police Centre
Alternatively, you may lodge an online complaint via the ePC at the following web-site:
In order to lodge an online complaint, your NRIC Number, Date of Birth and Email Address are required.
READ MORE ON GALAXY TRIO, ULTRASONIC AND PONZhI/MLM/GRQ RELATED ARTICLES HERE
