Was An Unlicensed Money-Services Business In The United States Gathering Funds For The Alleged UFunClub/UToken Ponzi Scheme In Thailand?

This screen shot from the "shop" section of website of UTokenUSA shows that orders were being solicited for UTokens and prices between $635 and $12,100.  Not shown is a solicitation for orders at a level of $57,500. Whether orders successfully were placed is unclear. At some point, these words appeared on the site: "?01-31-2015? In order to work with the system planning, the Utrade trading system will pause for 7 days, from 00:00am, 1st February 2015 and re-open 00:01am 8th February 2015 for system upgrades and conversion of tradable UToken for investment liquidity planning. We will still be able to create membership accounts, but you will not be able to buy, sell, or trade Utokens until February 8, 2015."

This screen shot from the “shop” section of website of UTokenUSA shows that orders were being solicited for UTokens at prices between $635 and $12,100. Not shown is a solicitation for orders at a level of $57,500. Whether orders successfully were placed is unclear. At some point, these words appeared on the site: “[01-31-2015] In order to work with the system planning, the Utrade trading system will pause for 7 days, from 00:00am, 1st February 2015 and re-open 00:01am 8th February 2015 for system upgrades and conversion of tradable UToken for investment liquidity planning.
We will still be able to create membership accounts, but you will not be able to buy, sell, or trade Utokens until February 8, 2015.”

In March 2015, as part of its coverage of the WCM777 cross-border scam operating out of the United States, the PP Blog reported that court-appointed receiver Krista L. Freitag said this in a Feb. 27 court filing (italics added):

“Many investors gave cash to the company and to their leaders (or upline sponsors) who then deposited the cash along with other investor funds.” (Click here to read “WCM777: More Theft And Money Laundering MLM-Style.”)

Back in 2010, something similar happened in the deeply disturbing Imperia Invest IBC scam that appears to have operated offshore and definitely targeted people with hearing impairments. The SEC first charged Imperia and, in 2011, charged alleged pitchman Jody Dunn. Millions of dollars went missing.

Dunn may not have learned his lesson. His name later appeared as an alleged “winner” in Zeek Rewards, yet another cross-border MLM/network-marketing debacle. Zeek, operating from the United States, allegedly plucked $897 million. Some of the money allegedly ended up in places such as Moldova, the Cook Islands and the Turks and Caicos.

Moving forward to the 2014 TelexFree scheme taken down by the SEC and the U.S. Department of Homeland Security, what do we see? Well, allegations that TelexFree, too, had created conditions under which promoters were collecting money for the scheme and effectively becoming money mules.

TelexFree may have gathered $1.8 BILLION — yes, billion with a “b.”

Welcome to the black markets of MLM/network marketing. The schemes may feature in-house transfer vessels in which participants can transfer money or cash-earning investment points to other members in underground fashion. Promoters also can do back-alley deals with recruits, opening up second and subsequent black-market tiers.

BehindMLM.com reported yesterday that INTERPOL was about to become involved in the cross-border investigation into UFunClub/UToken that originated in Thailand. If it happens, it’s an encouraging sign.

UFunClub/UToken may have plucked more than $1.17 BILLION.

Separately, the PP Blog learned yesterday that a UFunClub/UToken promoters’ group known as UFUN Team USA had published a promo that claimed this (italics/bolding added):

We blog, tweet, and write about the latest news on UFUN and UTokens. Our team provides secure transaction exchange of physical currency to UToken digital currency from all around the world. Our service at UTokenUSA includes:

1. Purchasing UTokens through our website.
2. Guaranteed safe transfer of payment to UFUN.
3. UFUN Account Setup – **Setup time varies 1-5 business days.**
4. UToken & UFUN Support.
5. Referral/Downline Support – We help setup up your referrals under you.
6. Latest News and Updated on UFUN & UTokens.
7. Discount Coupons for you to offer to future members.

This UFunClub/UToken promoters' group claimed recruits could purchase UTokens through its website and that the promoters "Guaranteed safe transfer of payment to UFUN."

This UFunClub/UToken promoters’ group claimed recruits could purchase UTokens through its website and that the promoters “Guaranteed safe transfer of payment to UFUN.”

This leads to questions about whether an unlicensed Money Services Business was gathering funds for another unlicensed Money Services Business. UToken promoters claim the value of the purported digital currency only can rise and never can fall.

The UFUN Team USA site published a phone number with the 323 Area Code in Greater Los Angeles. That’s the same area from which WCM777 was operating.

Like any number of schemes, UFunClub/UToken has been positioned as a “passive” investment opportunity that already has created anywhere from 200 “millionaires” to 5,000, depending on the source of the claims.

This brings questions about an offering fraud and the sale of unregistered securities into play. The same sorts of questions existed with WCM777, Imperia, Zeek and TelexFree.

As the screen shot below taken from a YouTube promo shows, UFunClub/UToken did an in-house announcement about the “THE CONVERSION OF TRADABLE UTOKEN TO INVESTMENT POINTS” — apparently on Jan. 31.

Source: Screen shot from a YouTube video with a publication date of Feb. 10, 2015.

Source: Screen shot from a YouTube video with a publication date of Feb. 10, 2015.

Some American MLMers/network marketers have claimed they traveled from the United States to Thailand to vet UFunClub/UToken and found the “program” to be legitimate.

The Thai police say the “program” is an international fraud scheme.

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5 Responses to “Was An Unlicensed Money-Services Business In The United States Gathering Funds For The Alleged UFunClub/UToken Ponzi Scheme In Thailand?”

  1. They’re tough to reach by email, but I did report the utokenusa site to PayPal. Doubt I’ll hear back, but at least they’ll be aware.

    Jerry

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  2. @ LuvNLife,

    If UTokenUSA was using PayPal to collect money that would be forwarded to UFunClub/UToken, it might mean that an unlicensed Money Services Business was using a licensed Money Services Business to send money to an unlicensed Money Services Business.

    I now see that that there is a PayPal button on the “checkout” portion of the UTokenUSA site.

    This reminds me a bit of when AdViewGlobal, in 2009, appeared to have arranged to hire someone in Canada with a PayPal account to create a means by which AdViewGlobal could sell third-party debit cards that would be used for AVG members to offload purported profits.

    The theory behind that one was that these debit cards would provide a revenue stream that would be shared with the membership. AVG disappeared shortly thereafter — after its name popped up in a RICO lawsuit.

    AVG, which was getting choked out of the U.S. banking system and had ASD’s Andy Bowdoin as a silent partner, appeared also to have tried to funnel money through a shell company in Florida.

    http://patrickpretty.com/2009/05/07/breaking-news-kingz-capital-management-corp-denies-any-ties-to-adviewglobal-autosurf-launches-investigation-into-avg-claim/

    Also see:

    http://patrickpretty.com/2009/05/05/priceless-adviewglobal-announces-wire-deal-with-offshore-bank-on-day-white-house-announces-crackdown-on-offshore-tax-havens/

    Also see:

    http://patrickpretty.com/2010/05/04/flashback-year-ago-today-adviewglobal-announced-offshore-wire-facilitator-on-same-day-obama-announced-crackdown-on-international-fraud/

    Also see:

    http://patrickpretty.com/2010/01/28/ka-boom-offshore-firm-to-which-adviewglobal-claimed-wire-tie-booted-from-national-futures-association-after-investigators-discover-ponzi-figure-trevor-cook-was-managing-an-investor-pool/

    Also see:

    http://patrickpretty.com/2009/05/31/is-it-a-ghost-top-5-reasons-to-avoid-adviewglobal/

    Patrick

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  3. Alerting Paypal to UFUN’s problem in Thailand should cut off that avenue immediately.

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  4. From Nation MultiMedia, dated May 1: Headline: “UFUN case a transnational crime: police.”

    http://www.nationmultimedia.com/national/UFUN-case-a-transnational-crime-police-30259107.html

    SNIPPET:

    ____________________________________________________

    “[Assistant national police chief Pol Lt-General Suwira Songmeta] . . . quoted prosecutors as saying that the UFUN case would be regarded as a transnational crime if police were able to present to the OAG clear evidence that the company had been involved in similar criminal offences outside the country as well.”

    ____________________________________________________

    Patrick

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  5. Rodney Burton had been caught on FB claiming that a Thai video proves “NO CASE AGAINST UFUN!! NOT ENOUGH EVIDENCE!!” when the video was actually talking about Thai Police needing more non-Thai victims to come forward so they can escalate the case to “transnational crime”, which has stiffer penalties, as they currently don’t have enough non-Thai victims for Office of Attorney General to make the escalation official.

    http://amlmskeptic.blogspot.com/2015/04/more-idiots-who-dont-check-information.html

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