Type of Business: Ponzi scheme or pyramid scheme
Founder and CEO of Lyoness: Hubert Freidl, Austrian
Management of Lyoness: Marko Sedovnik, Werner Kaiser, Alexander Lerch, Bernhard Koch
Management Principles: Principles are not consistent with traditional free market principles of legitimate business
Promises: High Return
Motivation: Profits are derived from recruiting new members, and not a sale.
Complaints of Fraud: Yes
Collapse of the System: Once resources exhausted, everything collapses.
Laws: Law explicitly prohibits ponzi/pyramid systems.
Partners of Lyoness:Tzvetan Streif and Hubert Wagner
Partners Work Experience: Experts on Casino/Chance Games
Money Movements: Yes-Mysterious Child and Family Foundation of Lyoness. Foundation and members accounts are used to move money from one country to another.
Methods Used: Banks and Non-Bank Financial Institutions (EFT, Structuring, Money Remitters and Money Exchange Houses) Gatekeepers
Headquarters: Switzerland and Austria (Luxembourg)
Fraudulent Activities: Complication of the legislative procedures-Tax Fraud
Risk Level: Very High
Source:
http://www.gundemkibris.com/-kuzey-kibris-bankalar-birligiden-saadet-zinciri-uyarisi-25092h.htm
http://www.hebdo.ch/lyoness_ou_facile_148071_.html
http://www.businessforhome.org/2012/02/swiss-newspaper-crushes-lyoness/
http://www.fbi.gov/scams-safety/fraud/fraud#pyramid
