BECM Inc. pays out Lyoness victims!

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So far, BE Conflict Management Inc. has made payments to Lyoness/Lyconet/myWorld victims 311.837,91 AUD (Australia), 47,234.08 GBP (England/Northern Ireland), 37,837.19 EUR (Ireland) and 242.786,07 ZAR (South Africa). German injured parties have not yet been published due to the current investigations of the public prosecutor’s office in Cologne.

BE Conflict Management Inc., which is listed in the commercial register under the registration number P19000039786, is operating internationally in order to deal with the damages the snowball system Lyoness has caused worldwide. Surprisingly, a lot of victims from the USA have contacted us. Promises and sales forecasted by the myWorld group are not becoming reality. Also, the marked was too weak and the main concern was recruiting new paying members.

Currently we, we have open claims against the snowball system Lyoness of about 6.5 million Euro.

Thank you for the many thank-you letters and videos of thanks, for which we will create a separate section. 

Austrian Grand Prix sponsor “myworld”: What lies behind this?

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Even if myWorld/Eyetime/Lyoness/Lyconet etc. is being renamed on a regular basis, the product remains the same with changed or amended sets of agreements.

“Speedweek” used to be a weekly issued motorsport magazine and was converted to a pure online medium, which inter alia contains a database of more than 70 racing series.

Already in August 2019, they published an article headlined “Lyoness – an obscure new partner of Dorna”.

Since then, myWorld/Eyetime etc. has not become less obscure. Far from it!

The following article by Oliver Feldtweg of SPEEDWEEK puts it succinctly!

By Oliver Feldtweg – 16 August 2019 11:12 a.m.

At the Austrian Grand Prix, we met again another “naming rights” sponsor of Dorna, since the company “myworld” or “myWorldsolutions” has bought the naming rights for the motorcycle GP in Styria. Whatever this company concretely produces, renders, offers or sells can only be guessed with plenty of imagination.

Behind the company name, there are the same contemporaries as once were behind the company Lyoness which had bought banner advertisements at the Grand Prix in Spielberg in 2016. In 2017, “MotoGP cashback” bought the naming rights for the Austrian Grand Prix, in 2018 it was “eyetime” and this year it is the turn of “myworld”.

Whoever wants to look behind the scenes of this illustrious business model, will find an obscure type of shopping community. Members receive 3 or 5 percent “cashback” per transaction, as long as enough new members are recruited. Critics speak of a snowball system.

In some European countries like Switzerland, there had been legal proceedings, it was said that there was a diffuse company construct. The business cards of the top employees showed quite different company addresses in different countries. Surprisingly, the Chief Executive Officer (CEO) of all companies from Lyoness to eyetime to myworld is always the same – it is Hubert Freidl. In 2003, he founded Lyoness International AG in Buchs, Switzerland. Operational business activities are primarily conducted from Austria. In 2018, the company was renamed to myworld.

In 2016, Lyoness announced that it was operating in 47 countries and had more than 130,000 partner companies, 13 million customers and 250,000 points of acceptance worldwide. These statements are not verifiable.

The obscure business model lead to numerous actions and investigations against the company. In Norway, Lyoness respectively Cashback was banned because it was classified as “illegal pyramid scheme”. Also in Italy, the antitrust authority stated that Lyoness was a pyramid scheme and the company was sentenced to a fine of 3.2 million Euros.

In 2011, was a trial in Austria. In this context too, there was the allegation of “financial malversations” in the form of an “illegal profit forecast system” respectively of a “pyramidal built snowball system”, but the case was closed. Lyoness calls his business model a service company.At the request of the Austrian Press Agency, the company founded by Hubert Freidl stated, that myWorld Solutions provided its “know-how for various international companies and organisations”. One was offering solutions in the fields of product development, product management, IT, marketing, PR and communication as well as fan and customer loyalty.

As a Grand Prix name sponsor of the Motorcycle-GP 2019 in Styria, myworld also bought the tickets of a complete tribune with approx. 3,000 seats in the finish curve, but most of the time it was quite unfrequented.

Already a year ago, the marketing specialists of Dorna were wondering about the surprisingly small number of VIP guests of the GP sponsor.

But invoices are paid promptly by this cashback companies with changing names. In Formula 1, this ominous shopping community also was a GP name sponsor at Spielberg. On this occasion, the cashback company also did not appear very pompously, it only put up an inflatable tent and two rollups. Such an appearance was unworthy of a Formula 1 title sponsor, so it was to be heard. Because such a deal costs about 2.5 million.

But “myworld” is also annual partner of the Red-Bull-Ring racing track in Styria. Although no bustling marketing crew can be spotted and the backgrounds of the business model remain obscure, “myworld” spends ludicrous piles of money for the promotion of the company name.

Public Prosecution Cologne (file nr. 115 Js 424/19) starts again with preliminary proceedings against Managing Director of Lyoness Deutschland GmbH Guido van Rüth!

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With a letter of 12 July 2019, the initially closed proceedings (file nr. 115 Js 915/16) were have been resumed and preliminary proceedings due to infringement of § 16 UWG (Unfair Competition Act) were initiated (file nr. 115 Js 424/19).

Writing the prosecutor’s office translated:

“Preliminary proceedings against Mr. Guido Josef van Rüth a. o.

Alleged crime: Fraud

Dear Mr. Ecker,

I hereby inform you, that in accordance with your letter from 13 May 2019, new proceedings against the accused von Rüth because of an infringement of § 16 UWG (so-called snowball system) in connection with Lyconet’s Terms and Conditions of 2014 were initiated and are being worked on under the file number 115 Js 424/19. In regard to your further complaint, I submitted the file to Prosecutor-General of Cologne.

With best regards

Prosecutor”

With his letter of 13 May 2019, Bernhard Ecker lodged a 17-page complaint against the closing of the proceedings. Within this complaint, indications and facts concerning Lyoness, that obviously have not been further investigated before, were highlighted and reasoned in detail.

In particular, attention was drawn to the fact, that Lyoness has not – as alleged to the Public Prosecution – stopped to apply certain business practises. Nothing could be further from halting this business practises. They only were redrafted even more opaque and confusing.

Under item 8 of the claim of 13 May 2019 it is, inter alia, explained:

The business practices under examination have not been stopped but are being pursued with a construct that is even more opaque.

Compared to the previous “advance payment system” de facto nothing has changed but, in principle, only the wording was changed. Until November 2014, Lyoness named their investments “Advance payments on vouchers”, with which members basically only could obtain considerable profits if they recruited new investors. Later, when the WKStA (Public Prosecutor’s Office against Corruption) investigated against Lyoness because of the forbidden snowball system according to § 168a StGB (Criminal Code) as well as because of serious commercial fraud, and the first judgement of Civil Courts obligated them to make repayments, Lyoness drafted new Terms and Conditions and renamed its distribution from Lyoness to Lyconet, since the name Lyoness – especially in the media – already had become very negatively attributed. The conversion to the new Terms and Conditions was forced since members could only log in to their online member account if they had accepted the Terms and Conditions. Meanwhile, also Lyconet has fallen into disrepute so that the term “Cashbackworld” was chosen.

We welcome the well implemented and renewed measures of investigation as well as the transmission of further critical issues to the General Public Prosecution of Cologne.

We advise all German Lyoness victims to directly contact the Public Prosecution’s Office Cologne under the file number 115 Js 424/19 and to lodge possible claims against Lyoness in a well-documented way.

Swiss judgement of 4 June 2019 complete! Lyoness Chief Legal Officer Dr. Hubert Reif asks for a supplement to our Article!

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Of course, we can understand the deep concerns of Lyoness since the extensively reasoned Swiss judgement causes the already internationally devastating reputation of Lyoness to slump to bottomless depths.

It was therefore no surprise when Lyoness Chief Legal Officer and sole shareholder of Lyconet International AG, Dr. Hubert Reif approached BECM Inc. in writing and “invited” us to point out in our article “New Swiss judgement of 4 June 2019! Legal disaster for Lyoness!”, that this judgement has “not yet” become legally effective.

We are pleased to take up this “invitation”, as in our article, we did not claim the judgement to be legally effective. Solely the enforceability of the judgement was reproduced, and this can be read on page 26 of the judgement.

The legal remedies point out the common 30-day time-limit for an appeal. So far, Lyoness has always filed such an appeal to first-instance decisions but has never been successful. Primarily, this is aimed at delaying the inevitable occurrence of another legally efficient conviction as a snowball system. Perhaps, for the first time, Lyoness’ responsible persons are able to present current court decisions that acquit Lyoness of applying a snowball system’s business practises? For commissioned and payed reports, as supplied before, we ask to be abandoned.

However, we are able to show numerous reference numbers and business numbers with final convictions, without consideration of decisions of Norwegian and Italian authorities.

Dr. Hubert Reif would do well to stop his client and Swiss marketer Eduard, or as he calls himself, “Ede” Buser. He alleges on his website: ( Ede Buser nonsense , please note red arrows! )

“Where does the decision say, that we are ILLegal or a pyramid system or a snowball system” (Spelling so from the website of Ede Buser).

Additionally, Ede Buser posts – which is of almost unrivalled failure – the last page of the judgement of 4 June 2019. But see yourself: ( Judgment Switzerland 04.06.2019 )

The value of Ede Buser’s publications is also reflected in his alleged research for BECM Inc. The much-praised “Swiss precision” does not seem to be a characteristic of Ede Buser. The company BECM Inc. is duly registered, only man called Ede Buser says that he could not find it.

Dr. Hubert Reif would to very well to keep the reins on his out-of-control “leading Swiss marketer Ede Buser” since his erratic and unworldly publications are damaging the already tarnished image of the snowball system Lyoness.

New Swiss judgement of 4 June 2019! Legal disaster for Lyoness!

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To begin with, here is the best phrase from the current Swiss judgement (Country Court of Werdenberg-Sarganserland, reference number: VV.2018.82-WS1ZE-HWI). The judgement shall be enforceable.

“The lack of transparency of the defendant’s (Lyoness) business model does not mean that its unfairness is not detectable. In this sense, the unfair snowball system is transparent.” Or in short: “The only thing that is transparent concerning Lyoness is the snowball system!”

The currently legally binding judgement (reference number VV.2018.82-WS1ZE-HWI) of 4 June 2019 of the Swiss court notes:

Already the minutes of hearings recorded the statement of the Swiss Lyoness lawyer Adrian Bieri: “Furthermore, the […] plaintiff’s allegation, that Lyoness was operating a snowball system, will have devastating consequences for the reputation of Lyoness, in case of an approval of this legal action.”

With the judgement of 4 June 2019, the court did approve the action and did not let itself be blinded by the lawyer’s weepy objection. In this case again, the court decided in favour of the plaintiff and imposed a five-figure amount of CHF. Furthermore, it was clarified once more that Lyoness is a snowball system.

The worldwide reputation of Lyoness already is, to put it in the words of the Lyoness lawyer, so “devastating” that this judgement may hardly carry any weight. The deception of the bought sports sponsorship anyway only works for people who think that power simply comes from the socket.

The plaintiff had registered himself as a private person and his company with Lyconet and had agreed to the new Terms and Conditions and the Lyconet Agreement including the Compensation Plan. The grandiosely announced participation in a worldwide dealer network once more turned out to be pure “Lyoness propaganda”.

This also shows the increasing dissatisfaction and disappointment of the SMEs. As soon as the forecast sales are not emerging and questions are being asked, the global company Lyoness quickly becomes silent towards its members. But as soon as a new idea for filling up the coffers is concocted by Lyoness’ creativity department, Lyconet marketers will pounce on the SMEs using the tried and tested wording “…now everything is going through the roof”, “whoever is not taking part right now, is going to miss a lifetime opportunity” and so on. By the continual renewing and advancing the Terms and Conditions and the implementation of further Additional Agreements, SMS are more and more getting enmeshed in an opaque network of contracts. Apart from numerous Austrian courts, Norwegian and Italian authorities, once more that is also the view of the Swiss courts.

With the judgement of 4 June 2019, the court states:

(Notice: Within the excerpts from the 26-page judgement text, we will add the company’s name “Lyoness” to the word “defendant”, so that even the self-proclaimed “Lyconet Chief Manager” Ede Buser will understand it! It will be rather interesting, how he is going to interpret this judgement towards his followers via his fake website www.basel-lyconet.ch.)

……According to Article 2 UWG, every business practice, that is deceptive or violates the good faith principle and affects the relationship between competitors or between providers and customers, is unfair and unlawful. According to Art. 3 (1) lit. r. UWG, a person is in particular acting unfair, if he/she offers the supply of goods, the payment of premiums or other services on terms that mainly imply a benefit obtained by the recruitment of further people and to a lesser extent by the sale or consumption of goods or services (snowball scheme or pyramid scheme)…..

Starting with page 15 (and others), the court further notes:

…..Despite the theoretical bisection and the mostly confusing information in the Terms and Conditions and the Additional Terms and Conditions, the economically relevant payment depends on the payments of new members of the defendant’s system (Lyoness)…..

…..Thus, there is a redistribution from the pyramid’s base up to its top. This is demonstrated by the remuneration structure of the business model which almost exclusively comes from a member’s Lifeline. The Lifeline of a member consists of the new members he/she recruited (2nd level) and the members recruited by them (3rd level)…..

….. After the 3rd level, the Terms and Conditions and the Additional Terms and Conditions draw an artificial barrier and try to disguise or shorten the pyramid structure inherent to the business model. And so is written in the Terms and Conditions, that no friendship bonus can be obtained for other indirectly recruited members. “Other indirectly recruited members” are the members acquired by indirectly recruited members and so on. In other words, the member will not obtain remunerations for payments made by members lower than the 4th level of his/her Lifeline…..

….. The generated advanced member bonuses are not paid out by the defendant (Lyoness) but can only be used within the System of the defendant (Lyoness) by converting them to so-called units that can be used for purchases at partner companies in the form of vouchers. The use of the vouchers for purchases at partner companies effects the remuneration of the upper levels of the member who purchases. The system ligation of the defendant’s services (Lyoness) effects the dissolution of the artificial barrier between the 3rd and the 4th level and allows the money flow from the base to the top. …..

…..Only for the sake of completeness, it should be mentioned, that all new recruited members are contracting with the defendant (Lyoness) respectively the initiator of the system, which makes the system of the defendant (Lyoness) a snowball system in the proper meaning of the word. As a summary, it can be stated, that the first offence prerequisite of Art. 3 (1) lit. r. UWG is fulfilled……

…..The lack of transparency of the business model or its remuneration structure is a further indication of the existence of an unfair snowball system according to Art. 3 (1) lit. R.UWG. Both the business model of the defendant (Lyoness) and its remuneration structure are opaque. The opacity touches not only individual components, but rather also their overall structure respectively their economical interaction.…..

…..In summary, the business model of the defendant (Lyoness) is an unfair snowball system, pyramid scheme or Ponzi scheme according to Art. 3 (1) lit. R. UWG…..

….. Contracts closed on the basis of an unfair snowball system are ethically unacceptable…..

…..The business model as a whole is unfair…..

Note: If one compares all previous judgements, it has to be stated that judgments are becoming more concrete and that the so-called improved or adjusted Terms and Conditions and Additional Terms and Conditions, Lyoness uses to eliminate the problem, are only giving them a little more time. An appeal may be lodged against this judgment.