BOSTON GLOBE: Massachusetts Now Investigating EmGoldEx

The EmGoldEx "program" describes gold as cash and the "new splendor."

The EmGoldEx “program” describes gold as “money” and an ancient investment vehicle available in a “new splendor.”

If TelexFree, WCM777 and Wings Network were not enough, the office of Massachusetts Commonwealth Secretary William Galvin now is investigating the “EmGoldEx” program.

The Boston Globe broke the story this morning. Galvin leads the Massachusetts Securities Division.

From the Globe (italics added):

Secretary of State William F. Galvin’s office is investigating the Andover operation of Emgoldex Team USA Inc., a company that recruits investors to buy gold online and pays bonuses for referring friends and acquaintances.

The degree to which EmGoldEx has penetrated Massachusetts is unclear. “Gold” and other shiny-object schemes typically ride on the coattails of MLM HYIP recruiting scams. Narratives surrounding such schemes often are incongruous, if not downright wild, sometimes focusing on tales of spectacular profit opportunities in Europe and the Middle East and a chance to deal with purported royal families or upstream investors interested in elevating people out of poverty.

EmGoldEx purportedly operates from Dubai. Here is a verbatim snippet of the EmGoldEx narrative as it appears in challenged English: “To become a client of the Internet – shop, it is necessary to be registered and make an Order. In the Internet shop an account will be opened for you and the purchase price will be fixed for 24 hours.”

Hidden text on the page appears to be in Russian.

As part of the TelexFree probe in April, Galvin’s office alleged a Massachusetts entity had asserted that it bought “TelexFree packages, and all sorts of real estate within the U.S.A. or foreign countries.” Investigators further alleged that the enterprise asserted it was backed by “Dubai investors.”

Regulators in Quebec issued a warning on a “program” known as Karatbars International earlier this year. Other recent (or relatively recent) gold-themed “programs” that have been targeted by regulators include Gold Nugget Invest (HYIP/shiny-object scheme that collapsed in 2010 amid bizarre, companion claims INTERPOL was investigating the SEC); and Gold Quest International (HYIP with possible links to the “sovereign citizens movement” and operated in part by a purported “Lord”).

In October 2013, the office of North Carolina Secretary of State Elaine F. Marshall announced criminal charges against Rondell Scott Hedrick, 48, of Lexington, N.C.

Investigators linked Hedrick to an alleged “precious metals scam” that involved trawling for investor cash on Craigslist.

One investor, according to the state, wired Hedrick $5,000 after Hedrick had provided instructions and claimed he’d be leaving for Dubai soon and providing the investor a return of 200 percent.

Shiny-object scams are close cousins to prime-bank swindles, which produce equally wild narratives. (See Sept. 30, 2011, PP Blog story on the experience of U.S. Ponzi schemer Marian Morgan, who was arrested in Sri Lanka.)

Read June 2014 review of EmGoldEx on BehindMLM.com.

Galvin’s office is publishing a brochure on how to steer clear of pyramid schemes.

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5 Responses to “BOSTON GLOBE: Massachusetts Now Investigating EmGoldEx”

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  2. Quick notes: Juxtaposed against Twitter reports this morning of the EmGoldEx investigation as reported by the Boston Globe are various EmGoldEx sales pitches on Twitter.

    One appears to come from EmgoldexMichigan.Emgoldex.com.

    Another appears to come from emgoldexnews.com/emgoldex-world-news/, which appears now to have a suspended hosting account.

    Another appears to come from emgoldexmassachusetts.emgoldex.com.

    Another claims “The Whole World trusts #EmGoldex. 200 countries over 450,000 customers.”

    Another claims “Proper dress code will increase the income of your business in 5 times or more!”

    Same one also claims, “Leaders and customers of Emgoldex have more credibility and trust thanks to their status business, which includes a respectable appearance. They work with gold, and this means that they have to look presentable and be confident! Leaders and customers of Emgoldex are always look nice and tidy!

    “And we wonder, how do they manage to buy high-quality and expensive clothes and always look their best?

    “The answer is very simple, because they can afford it! They are representatives of the elite international business, which is based on investment gold bars!”

    Another claims “Your Emgoldex gold is waiting for you!”

    Another claims “Growing #EmGoldex team fast here in #Massachusetts Only 14,000 members in United States.”

    Another claims “#EmGoldex Michigan spreading all over the #USA”

    Patrick

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  3. SAMUEL MOLINA:
    TO WHOM IT MAY CONCERN. I WANTED TO KNOW IF THERE IS ANY INVESTIGATIONS AGAINST EMGOLDEX IN SOUTH FLORIDA. MY WIFE AND I AND A FRIEND OF OURS WERE NEVER COMPENSATED AFTER EACH OF US GIVING 800.00 DOLLARS. WE THINK THAT WE AND MANY OTHERS WERE LIED TO AND THAT EMGOLDEX IS A SCAM. IF YOU KNOW OF ANY LAW SUITS OR INVESTIGATIONS GOING ON IN SOUTH FLORIDA PLEASE EMAIL ME THE DETAILS ASAP. THANK YOU VERY MUCH. SAMUEL AND MARIA MOLINA FROM LAKE WORTH, FL.

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  4. We (me and my wife) have the same concern about Emgoldex and we are also stuck in an order table with no hope to recover our money.what could we do? Is there any action available to pursue?

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