Tuesday, 22 May 2012

Warning: 'Lyoness' is yet another 'Prosperity Gospel' cult and 'MLM income opportunity' fraud


The free-thinking readers of Corporate Frauds Watch should be interested to learn that a person signing himself/herself, Carmel Muggeridge from Australia, has attempted to post (in the form of a comment) propaganda on CFW for an 'MLM income opportunity' fraud known as 'Lyoness.' The boss of this blame-the-victim 'Prosperity Gospel' cult, is an Austrian, Hubert Freidl.
The following, is an English translation of an article (recently published in Switzerland) which begins to expose 'Lyoness' as an 'Amway' copy-cat, i.e. a reality-inverting organized crime group that peddles a plan to achieve 'Utopia,' but actually steals its victims' money and tears their families, and friendships, apart (for legal reasons, some of the names of the dangerously-deluded 'Lyoness' recruiters, described in this article, have been changed): 
L'Hebdo / Switzerland, 16 feb. 2012, by Clement Bürge http://questions-lyoness.weebly.com/hebdoen.html

' "Are you interested in earning thousands of francs? Join Lyoness." announces *Angelo, with an assured voice and a charming smile. The handful of onlookers, gathered at a hotel in La Chaux-de-Fonds, listens to this modern-day prophet open-mouthed. Armed with a polished PowerPoint, this thirty-something presenter gives the recipe for his miracle solution: join the Lyoness community of buyers. Native to Austria, the company claims to have attracted two million people in twenty-three countries, including 12,000 in Switzerland. It promises its members to get discounts, to recover money on their purchases, or to even earn tens of thousands of francs in cash.
Members can choose: to make money slowly, quickly hit a jackpot, or both. The first method is to acquire a membership card that Lyoness says is free. In reality, it is obtained against the purchase of CHF 450 of gift vouchers in partner companies and offers 1% to 6% discounts from these brands. In this network, which is poorly developed in Western Switzerland, there are small traders, such as service stations Jubin in Jura or Boky, a Chinese restaurant in Lausanne.
A robust approach is applied to converting people into business partners. By investing 3,000 francs in the company, members can withdraw 25,000, provided in turn they recruit a number of investors. That February night in La Chaux-de-Fonds, we will not know exactly how many, such is the apparent complexity of setting up the system. Presented in diagrams, Angelo is excited about the system’s miraculous formula. "It's very complicated," says Josiane*, a lady in her sixties. "No need to understand, it works by itself," interjects an associate of Angelo. "It's fantastic", she says finally. Too fantastic.
Complaints of fraud are springing up everywhere, including in France, Austria and Switzerland. "Very often, people get a few hundred francs, but never more, said Eric Breiteneder, an Austrian lawyer in charge of more than 50 cases related to Lyoness. To our knowledge, nobody has got the famous 25,000 francs."
The problems go back to the heart of the system. "The return of money from the entry of new investors reflects the principle of the Airplane Game," said Fabien Rouiller, a lawyer in the The Commission on Lotteries (Comlot). Also called a Ponzi scheme or pyramid selling, the system is based on the fact that profits are derived from recruiting new members, and not a sale. As long as new members are available, it works. Once the resources are exhausted, everything collapses, leaving those at the top of the pyramid with the most money.
How has the company survived until today? "The law explicitly prohibits this system”, explains Yannick Buttet from the commercial enforcement authority in Valais. “But in addition to the Airplane Game, Lyoness can get discounts. The combination of the two confuses the issue. We are in the grey area. It's very clever." The Austrian Eric Breiteneder agrees: "To launch a trial is often more expensive than the amount invested, hence the longevity of Lyoness (founded in 2003, ed.)"
The damage being caused by Lyoness exceeds the monetary losses, tearing apart families and friendships. "The group works on sponsorship”, attests Anne-Valérie Pinet, a French lawyer who represents the first complainant. “Members are trained by relatives, who are not wary of anything. But once the scam is revealed, the links break." From the outset of the proceedings, the lawyer and his client were subject to threats from the victim's relatives.
Emotion is intensified because of the close relationships that are integral to Lyoness. "These people are fanatics or religious," says Eric Breiteneder. Rituals, a dress code to follow – wearing badges is obligatory - Lyoness regularly organises international meetings. "It sounds like a great mass," said the lawyer. Dance, song, it is a moment for worship. The founder and CEO of Lyoness, the Austrian Hubert Freidl, also engages in the show. Always present in the company's communications, the balding orator is the subject of boundless admiration. "This is our benefactor," said Angelo. Little information is known about the guru. His two partners, Tzvetan Streif and Hubert Wagner, come across as experts in casino games and chance. The three chair the mysterious Lyoness Child and Family Foundation. "This foundation is used to move money from one country to another. But nobody really knows where his money comes from and where it goes," said Eric Breiteneder.
The international headquarters of the company is based in Buchs (SG) "for tax reasons," according to Angelo. But Eric Breiteneder emphasizes its other function: "All contracts of overseas members are signed with the Swiss entity. Swiss members sign a contract with the Austrian group. The reason: they seek to complicate legislative procedures in the event of a trial. "A Swiss firm has received a complaint from former employees of the firm who would have had access to documents proving the fraudulent activities of Lyoness." Today, the law does not allow the Swiss authorities to actively fight against the company. But the State Secretariat for Economic Affairs [SECO] will soon be able to get involved," says Fabien Rouiller of Comlot. From 1st April, the change in competition law will provide SECO with new legal powers, which will finally allow it to seize the files. When contacted by L'Hebdo, SECO said it could not rule before the new law comes into force. But the lawyer in charge of the Swiss case revealed: "Lyoness is frightened, and is seeking to move its headquarters to Luxembourg before the deadline." Lyoness was contacted several times at its bases in Switzerland and Austria, but refused to respond to our questions.'
Corporate Frauds Watch (2012)

17 comments:

hare krishna said...

What about'forever living products'

These people saying amway gone(Amway making much business still),rmp gone,rcm gone .... all are gone but FLP(forever living products) are FOREVER. Is this any ethical MLM(of course mlm itself is not ethical) company? Also They comparing what is use in support of hindustan unilivers(HUL) products they giving u r money t models cine actors by ad s give u r money to u r relatives and friends by using flp products? also saying we r not taking money in advance so we r not doing fraud? is this worthy as they don't take money in advance to be in an mlm company (i thinking u got my point i m weak at english)

Shyam Sundar said...

The FLP claims many things. But the secret lies in the exorbitant prices. There lies the money circulation scheme and everyone who attends the meeting could hear the speakers say that the members would receive commission through out their life and their children would receive after their death.
From where do you get this money? Money won't grow on trees.

sirrell said...

It comes from the Merchants plain and simple...its called advertizing..

Peter said...

If you don't know Hindi Shya, just get lost and stop blogging, You are an Indian you fool by Born or what??? Were you born in Shri Lanka?? hahaha..

Stupid fellow, at this time you have created a controversies, at one place this country is fighting to Kill Un employment and at the other End, Brain Less like you have put a Question Mark on the Future of more than 3,000 employees of Nmart who earn more than 5,000 a Month to run their Houses.. Bull Shit Bull Shit Bull Shit

People like you, should Join TEAM ANNA, they give free Food too.. If you think you have done something nice, just Get up, look your Damn face in the Mirror, and Ask Yourself, how many Kids, How many families will crave for their Salaries this month to feed their families? ever thought of that??? No you never nor your SP have ever thought, do you know that India is the only country these days who is fighting for the economic growth??????? and due to you kind of people, more people will become jobless, homeless and food less.. Just think, your own Kids are asking to get a glass of milk and you have't been paid for this month, you don't have 2 rupees to buy a milk for them.. ever thought of that? there are families like these who are working at Nmart, you have spoiled their days, their month and their hunger..

You might be a crore pati or millionaire, but not every man or woman who work at Nmart are, you speak of Speakasia, you have tried to close the company and guess what??? You have nabbed the throat of the company through that many people who invested money in that, they just died, their money just went to the Govt., in fact you are the one who is responsible to spoil the working lives of poor people, you don't see Future cuz you can't see it, you don't see how many people earn, how many people buy products free every month just to get their expenses lowered, what do you say?? don't you run to sip a cup of tea or coffee just when you get that free?? Don't say no as no one is true by heart, not even you, not even Anna.

When you wake up tomorrow, Go to the Mirror, look at your face, and ask, How many families have you feeded yesterday and how many you will feed today, how many families will you be able to feed them whose lives you are just rolling them by creating these un employments...

Else, i believe God is in everyone, the moment the God will knock the doors of your Heart, you will be the one to see the world, else your are just a dead man, born to spoil the lives of others.

For me, You have spoiled my life at this Date.. Will meet you some day.

Liz said...

You just don't get it! The merchants pay to get new shoppers... The recomenders get paid for finding new shoppers. It is simple, it works and if you don't like it, that's good for us!

Sandy said...

Lyoness is an accredited corporation.

In 2010 Lyoness was successfully audited by Quality Austria according to the ISO 9001:2008 certification. The series of standards starting at ISO 9000 document the principles required for quality management measures. In the case of Lyoness, the issued certificate proves the company has outstanding quality management and standardized workflow structures in all departments.
As part of the ISO certification conducted by Quality Austria, Lyoness was also awarded the internationally recognized IQNet certificate as additional confirmation of its quality management. The best-practice model, used for the assessment, supports the continuous improvement of work processes and as a result, customer orientation at Lyoness. IQNet certificates are awarded by national representatives, in Austria this is Quality Austria. IQNet is the world’s largest provider of certified management systems and is involved in the international standardization, certification and award of companies.

In 2010, Lyoness was inspected by TÜV Rheinland and awarded the certificate “Service-tested shopping community with proven price benefit/CASHBACK” for the service companies Lyoness Management, eBiz, Dataservice and the national offices Lyoness Austria, Lyoness Suisse and Lyoness Deutschland.
TÜV Rheinland verified the promised price benefit for Lyoness members and objectively certified the benefits to be accurate. This independent and voluntary inspection of Lyoness included, among other things, an analysis of the quality management processes and member satisfaction as well as the drafting of contracts with trade partners and end users.

Lyoness is an industry leader and member of Leitetriebe Austria! The business organization Leitbetriebe Austria bestows their seal of approval on the top 1000 companies of Austria. Their two-step, thorough evaluation process assesses many factors including but not limited to business innovation, sustainability practices and social responsibility. As part of the top 1000 businesses, members benefit from the Leitbetriebe Austria network’s knowledge and continued success.
Perhaps this will put paid to the previous incorrect claims.

SMRnana said...

Well, as a FREE Lyoness Member in the USA All I do is shop using Lyoness web site or gift cards that I purchase through Lyoness, and I have received cash back every time. Sure the option to make a partial gift card payment is available, but is not required to receive cash back into my Bank Account. Either the person who wrote the article has personal issues against Lyoness or is Not well informed on how Lyoness works.

Aurore Jones said...

What a lot of rubbish. Lyones is not a scam. Do a more thorough due diligence please. TUV Rheinland ... and ISO 9000. Have you heard about it. Lyoness got accredited both certificates.

As for MLM network marketing, come on everybody know is not a scam. Robert Kyosaki and even Donald Trump promote it.

Now if you want to stay for for the rest of your rife and make your boss happy whilst he is enjoying life.. well just go for it but do not complain if you get sacked or have no payrise.

Network marketing allows you to make money when do it as a business and not as a hobby.

This article is doing a REAL deservice for anyone who want to get out the rat race

Lyoness works! aurjones1@gmail.com for more info

sophi said...

you do not have to pay anything in order to get cash back--that is the most important point for those who are only interested in saving money while they shop--just like any cash back cards, such as costco amex. etc.. for those who are taking it as a business opportunity then there are more options yo can go for.
yes money do not grow on trees and they are coming form the participating merchants.

( ALIMENTI E TECNOLOGIA ) said...

promote your Lyoness activity in Italy on My blog http://cashbacklyonessconviene.blogspot.it

Carol said...

Interesting that a comparison is made between Lyoness and Amway when they are totally different businesses?

Kazys Butkus said...

“If you have a golf-ball-sized consciousness, when you read a book, you'll have a golf-ball-sized understanding; when you look out a window, a golf-ball-sized awareness, when you wake up in the morning, a golf-ball-sized wakefulness; and as you go about your day, a golf-ball-sized inner happiness. But if you can expand that consciousness, make it grow, then when you read about that book, you'll have more understanding; when you look out, more awareness; when you wake up, more wakefulness; as you go about your day, more inner happiness.”

Anonymous said...

To get some serious information also take a look at the <a href="http://en.wikipedia.org/wiki/Lyoness>Wikiepdia entry</a> about Lyoness.

Anonymous said...

To get some serious information also take a look at the Wikiepdia entry about Lyoness.

Anonymous said...

you people really do not know what you are talking about. The ISO mentioned and the TUV mentioned is not related to the winnings you make with Lyoness, they are just related to processes. It is simple, if I make a car, the process I use to make that car is being certified by TUV and ISO but TUV and ISO do not certify the fact that the car is a good one. Same principle here. TUV and ISO do not certify that Lyoness makes you win money nor that Lyoness is not a scam. Please do not get fooled people.
And if I hear another Lyoness person contradict me I recommend he or she to read some other posts from Austria.
The scam is not with the cashback card, that is pretty standard and we have products like this in Germany since many years. The scam starts when you have to put extra money in Lyoness to get that wonderful, extraordinary win.

Tabitha Nickens said...

Whoever is in America knows this is where it got shut down and the money just went to the government this is not the only company this has happen to and wont be the last we need to change the laws here in America becuse they say its the land of the free but its not if they keep taking our money if you all want change contact me if you're tired of this happening im sade1849@aol.com im sick and tired and im saying no more lets take this country back so everyone can thrive not just the rich

sick n tired said...

Whoever is in America knows this is where it got shut down and the money just went to the government this is not the only company this has happen to and wont be the last we need to change the laws here in America becuse they say its the land of the free but its not if they keep taking our money if you all want change contact me if you're tired of this happening im sade1849@aol.com im sick and tired and im saying no more lets take this country back so everyone can thrive not just the rich