Lyconet International AG now wholly-owned by General Counsel attorney Dr. Hubert Reif!

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As an extract from the companies’ register (FBA Lyoness International AG aktuell) shows that, by resolution of the annual general meeting on 4 April 2019, attorney Dr. Reif from the law firm Reif & Partner is the sole shareholder of Lyconet International AG based in Vienna. The usual suspects like Mario Kapun, Marko Sedovnik, Herbert Paierl etc. have been romping about in the different national companies for years. Periodically, the ‘personnel merry-go-round’ is set into action and positions are switched among each other.

What is new, is the all-powerful General Counsel Dr. Reif who appears now as the sole shareholder of Lyconet International AG. This might have to do with existing contracts and/or be part of the transformation process of Lyoness into MWS. This issue is very unusual since Lyoness’ lawyers always have insisted that there is only a client-lawyer relationship between Lyoness/Lyconet and the law firm of Dr. Reif and further interconnections where denied vehemently.

What has always been suspected now seems to be confirmed: Dr. Reif has been involved in Lyoness for a long while. The interconnections of his firms as well as his wife’s firms range from the scandals in conjunction with the Graz ‘construction mafia’ to connections to a much more indicative milieu.

We will see what Dr. Reif is going to achieve with Lyconet International AG.

 

INTERSPORT forbids Cashback-World the use of their logo worldwide!

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INTERSPORT is the biggest medium-sized mail order business group in worldwide sports retail. Under, 5800 locations in 65 countries are united under the umbrella of the IIC-Intersport International Corporation GmbH, the purchasing and management corporation of the Intersport group. In 2014 they generated a turnover of EUR 10,5 billion. With market shares of around 36% in Germany and over 20% in Europe the IIC GmbH is the world leader in sports retail.

On 1 October 2018 it was already reported that INTERSPORT Germany has forbidden the use of the INTERSPORT company logo.

Confessing “Lyoneses” therefore accused me of being a liar and sent me INTERSPORT logos of different countries that were used on Cashback World websites as an ostensible proof. Thereupon I asked the INTERSPORT headquarters once again.

The INTERSPORT headquarters answered on 25 March 2019:

“Dear Mr. Ecker,

thank you for your message, please excuse my late reply. As we already told you last year INTERSPORT Germany has encouraged Lyoness Europe AG to take our logo off their website immediately. To our knowledge this has happened. In the meantime, they were prompted to do so with all logos of the national companies within our group.

We therefore like to emphasise once again that there is no cooperation with Lyoness and there is no contractual relationship with Lyoness Europe AG.

Best regards

INTERSPORT eG

corporate communications

Wannenäckerstraße 50
74078 Heilbronn

Germany        ”

Time and again, it has shown, that several affiliates obviously are on the Lyoness management board’s pay roll. Also, the continuos denials of renowned companies are illustrating clearly, how low the revenue at Lyoness (Cashback World) must be.

If these enormous turnovers actually existed, large high-revenue companies would certainly be willing to be listed at myWorld/Lyoness (Cashback World).

Lyconet and its problem with age verification of its marketers!

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Making profits at all costs is the key factor for wealth, therefore information about marketers might not be checked very carefully. The legal provisions are basically clear though.

Since my article of 19 March 2019 i have been contacted by various minors who have been encouraged by other Lyconet marketers to sign up at Lyconet with false information about their age. This is suspected to have happened in agreement with Lyconet officials.

Although, Lyconet is obligated to verify the age of their customers, for example by copies of identification documents, the Post-Ident process, Q-Bit etc., the respective marketer is blamed and minor respectively their parents are threatened with legal measures.

Eg. see a letter from Lyconet: Rechtsabteilung wegen Minderjähriger 2

The respective recommendation givers refer to “consultations with their upline”. There are multiple voice mails from Lyconet marketers as a proof.

Here the transcription of voice mails in one case (the original version is in my possession):

Before the minor had signed and expressed his concerns, his recommendation giver told him:

“I already clarified that with my upline, I’ll tell you how the whole thing can be made possible. We are definitely going to handle that. There are possibilities, enough possibilities to start it though you are only 17 years old. I’ll tell you then… Rock on!”

Lyconet writes to the referrer: Minderjährige Empfehlungsgeber 2

translation: „Yo, the question is, what should I do now? Should I write that I didn’t know it, if that’s ok, or how do you                       want to handle it instead? Just asking… Greetings”

If myWorld/Lyconet approvingly accepts the registration of minors? If marketers, if they are at all, are being instructed on this and on the consequences that might follow?

Lyoness Europe AG and Lyoness Norway AS and the last round in Norway!

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Publication of the Authority dated 13.03.2019 (Norwegische Behörde 13.03.2019) in translation:

Lyoness – Request for a written confirmation that the infringement against the Ponzi scheme regulations of the lottery law has been remedied, cf. § 16 (4) of the lottery law

The supervisory authority for lotteries refers to the lottery committee’s resolution of 27 January 2019 in which the claim of Lyoness Europe AG and Lyoness Norway AS regarding the lottery committee’s resolution of 31 May 2018 was rejected. Further we are referring to the lottery office’s decision of 28 February 2019 not to suspend the resolution.

The lottery committee concluded that Lyoness is a trading system which is a Ponzi scheme according to § 16 (2) and has sustained the lottery supervisory authority’s resolution. The lottery committee has found no reason for giving Lyoness Europe AG and Lyoness Norway AS the possibility to remedy unlawful circumstances. The resolution has the consequence that Lyoness Europe AG and Lyoness Norway AS must stop the complete business, the participation and distribution of products of the company in Norway.

The supervisory authority for lotteries’ resolution of 31 May 2018 shows that the resolution for a suspend of Lyoness’ operations includes that all purchases and payments of Norwegian participants and Cashback-companies of Lyoness, Lyconet and Cashback World must be stopped. Further, the marketing of the enterprise, the use of bonus cards and the sale of discount vouchers, shares in customer clouds, gift cards, marketing material, seminars and the like must be stopped. Also, Lyoness is encouraged to stop any payment of discounts, bonuses and provisions to the Norwegian participants.

The supervisory authority for lotteries demands a prompt written confirmation from Lyoness Europe AG and Lyoness Norway AS for the remedy of the infringement of § 16 of the lottery law, cf. lottery law § 16 (4).

We refer to the resolution of 31 May 2018 and want to point out that the resolution of the stop of Lyoness’ business in Norway does not keep Lyoness Europe AG and Lyoness Norway AS from paying back the amounts, participants paid for the purchase of discount vouchers and shares in customer clouds before the day of the resolution and that were not paid back in the form of redeemed discount vouchers. Furthermore, Lyoness is not prevented from paying back the amounts participants have paid for marketing material and seminars before the day of the resolution. Also, Lyoness is entitled to pay out the amounts participants have compiled by purchasing from Cashback companies until the day of the resolution.

The lottery supervisory authority points out, that we are going to evaluate this issue precisely. An infringement of § 16 is to be seen as a gross infringement of the lottery law and can be avenged with penalties or prison sentences of up to three years, cf. § 17 (2) of the lottery law. Such a punishment can be inflicted on companies and persons that are founding, operating, participating or distributing a Ponzi scheme, cf. § 17 and § 16.

 

According to the resolution of 27 January 2019

Section  1 of the lottery law. Illegal Ponzi schemes are exposing consumers to a financial risk and further detrimental effects that have to be prevented, cf. preparatory work for Ponzi scheme regulations in the lottery law Ot.prp. Nr. 97 (2004-2005) Section 1.

The supervisory authority for lotteries urges Lyoness Europe AG and Lyoness Norway AS to in form marketing managers and Cashback companies quickest possible about the resolution and the consequences they will have to face if the business, the participation and the distribution of the illegal Ponzi scheme will not be stopped immediately.

If the supervisory authority should become aware that the company is violating the resolution we will consider a sanction of Lyoness Europe AG and Lyoness Norway AS according to § 14 c of the lottery law. The supervisory authority for lotteries will also consider filing a complaint against Lyoness Europe AG, Lyoness Norway AS, the marketing managers and other business partners of Lyoness that continue the unlawful operations.

In case of a possible trial the supervisory authority for lotteries will bring in further information and evidence concerning the case.

Best regards