LifeWealth8: INVESTOR WARNING
Tuesday 4 March 2003
Anyone thinking of sending money overseas to an organisation called LifeWealth8 should think carefully, according to a warning issued today by the Australian Securities and Investments Commission (ASIC).
‘This scheme’s website has some information that concerns ASIC, and it should be a red flag to anyone thinking of joining up’, ASIC Director of Consumer Communication, Dr Michael Dunn said.
‘Number one, the company appears to be located offshore. Number two, it claims that people can earn money by recruiting their friends. And number three, it seems to be offering financial products to Australians without a licence’, Dr Dunn said.
‘Based on the information we have, ASIC is concerned that this scheme could be a pyramid-selling operation. Pyramid selling is illegal in Australia. But more importantly, because the company isn’t licensed to operate here, if you send your money to them and something goes wrong, you could lose the lot’, he said.
ASIC has received complaints which seem to indicate that memberships have been promoted through ‘recruitment meetings’ in clubs and other venues across Australia.
The organisation’s website claims that the company is incorporated in Malta, where it operates a ‘Relationship Marketing’ business that promotes ‘digital products’ to its members and customers.
To log into the site you have to register and pay a fee of 25 Euro – about $50 AUD. The site mentions a virtual stock market ‘game’, where members can obtain ‘shares’ for signing up new members. Members can also apply for their own ‘international bank account’.
If anyone has information on the scheme, please contact ASIC by phoning 1300 300 630 or by emailing firstname.lastname@example.org.
ASIC’s investor website FIDO has tips and safety checks for anyone thinking about investing overseas.
Your comments please on the following received about two weeks ago from Australia.
We are on a long road back to a reasonable financial situation after being seriously burned by SX Trading.com and Virtual Games Global (vgglobal.com) The same guys have had the thick hide to recently approach us about a supposed new start up MLM gaming site called Fortunes8.com which we have the same reservations.
You think the boys would learn.
If anyone asks you about these opportunities I would strongly recommend against any involvement. Management, ownership transparency and unpaid commissions, amongst many other unresolved issues, including fraud, which is being investigated by the Queensland Major Fraud Investigation Squad, should prevent any sensible person from getting involved.
We should have known better! A major waste of time and money.