This multinational MLM organization has developed 210,000 ＂members＂ with a total of 500 million yuan in half a year.
The amount involved was 520 million yuan, and 210,000 "members" were developed in just half a year. A few days ago, the Sichuan Provincial Public Security Department informed the public about the "12.18" organization and leadership pyramid scheme that was listed as the No.1 campaign of the "Cloud 2017" special action by the Ministry of Public Security, tearing the mystery of the "Five-oriented Alliance" of the mega-multinational network pyramid scheme.
"Five-oriented Alliance" draws people to join the club
The 44-year-old Zhang Hongbin (pseudonym) comes from Danling County, Meishan City. He once did a small business in Chengdu. Due to his meager profits, Zhang Hongbin turned to the "Internet economy" in 2016 and became the general agent of Danling, the "five-industry alliance".
In the video sent to him by netizens, Zhang Hongbin learned that the "Five-oriented Alliance" is a company with a "sacred mission". After becoming a member of the "five-industry alliance", you can not only enjoy the company’s stock income, but also receive rewards according to the number of developing members.
In April 2016, Zhang Hongbin transferred 500 yuan to join the club through WeChat. With an investment of 500 yuan, two people can return to their capital by joining the club, and they can also enjoy dividends and equity incentives, which makes him deeply feel that "the investment is small and the return is fast". In just half a year, Zhang Hongbin has developed more than 200 members in Danling County and earned more than 5,000 yuan.
The police investigation found that Song, the founder of the "five-industry alliance", created a set of "cloud digital trade" network pyramid scheme in 2012, with high rebates as bait, requiring participants to pay different amounts of fees to become individual certified merchants, enterprise certified merchants and alliance certified merchants, and then make rebates according to the development of "offline".
In 2013, after the "Cloud Digital Trade" was investigated and dealt with by the police, Song sneaked into Myanmar, and then moved to Malaysia and other countries. In 2014, he was sentenced to prison in Thailand for holding illegal documents.
While serving his sentence in Thailand, Song’s confidant Si Mou visited Thailand, and the two conspired to build another "cloud number trade investment disk" in order to make a comeback.
Circle 500 million yuan in half a year
After Simou returned to China, he worked with Kangmou in Zhengzhou, Henan Province to make an operation plan of "Five-oriented Alliance" including membership development mode and salary reward system.
Subsequently, Kang found Yue, a network system programmer, and compiled the website system program and website page of the "Five Industrialization Alliance". Subsequently, Kangmou established a domain name with his own name, and Yuemou rented a server overseas through an American company, which was responsible for maintaining and upgrading the system and strengthening the automatic settlement function of the system.
In May 2016, the website of "Five-oriented Alliance" started to run. Kangmou produced various publicity materials, called key members such as Xiao Moujun and Chen Mou to give lectures in Shenzhen and Zhuhai, and publicized the pyramid scheme of "Five-oriented Alliance" of cloud digital trade.
From May 2016 to December 2016, the organization has developed more than 200,000 registered members through QQ, WeChat and other channels, reaching 130 levels, involving 520 million yuan, involving 34 provinces in China and 8 countries including Malaysia, Singapore, South Korea, the United States, Britain, Canada, Italy and Australia.
The police investigation found that the "Wuhua Alliance" company does not have any economic entity or any equity, and the income obtained by the MLM organizers and participants is the high threshold fee paid by the offline personnel at all levels when they join.
After the website is closed, promote the "five-element currency"
In December 2016, after Song was released from prison in Thailand, he thought that the characteristics of the MLM organization of the "Five-oriented Alliance" were too obvious and easily attacked, so he instructed Kang and Si to close the website of the "Five-oriented Alliance".
They declared to the members that closing the website is to handle the share warrants for members, and the share price will increase exponentially after the company goes public.
After the website was closed, this criminal group relied on the original system and key members to promote the "five-element coin".
According to the victims, the promoters told them that "Five Elements Coin" is a limited edition, with a total of 500 million issued, which will completely replace paper money in the future. The promoter promised that the price of "Five Elements Coin" would increase by five times every two or three months, the issuing company would send a new digital currency with dividends, and the participants would reinvest with the donated currency, and the static income of "Five Elements Coin" bought by 5,000 yuan would reach more than 4 million yuan within one year.
In April 2017, after more than a month of investigation, the task force grasped the criminal evidence of the network pyramid scheme and basically found out the criminal facts.
Subsequently, Meishan police arrested Kang Mou, technicians Yue Mou, Yang Mou and senior members Xiao Mou, Chen Mou, Wan Mou, Li Mou and other 14 people in Zhejiang, Henan, Chengdu, Meishan, Ya ‘an and other places in Sichuan, frozen more than 10 million yuan in bank accounts, and seized a large number of evidence such as account books, computers, USB flash drives, mobile phones and more than 100 "five-element coins". After the case was cracked down in 29 provinces, municipalities and autonomous regions across the country, 132 suspects were arrested, which achieved great results in cracking down on pyramid schemes. At present, the case has been transferred to prosecution. Text/Xinhua News Agency