Interesting article in major daily newspaper! “How Lyconet rip off their customers with discounts!”

Ban in Norway, tax debt in Turkey, penalties in Italy: despite many conflicts with the authorities, Lyconet and My World continue to solicit members to generate income via vouchers!

On July 23, 2021, this article appeared in one of the largest daily newspapers in Austria!

Here is the link to the original and below the translation: Wie Lyconet und Co ihre Kunden mit Rabatten abzocken – Geld – derStandard.at › Wirtschaft

Original newspaper “Standard” July 23, 2021

Money back when others shop? What sounds too good to be true, usually is. Lyoness, Lyconet or MyWorld still attract customers with this scam to earn money on “clouds” and points. What remains are mostly lawsuits for damages.

Nina G.* wanted to actually invest her money well: The savings interest rates were in the cellar, shares were too unsafe for her, so the 42-year-old supermarket employee from Lower Austria invested in offers from the discount company Lyoness. It sounded tempting: With cloud packages, she was promised shares in a shopping volume that customers in other countries generate by participating in a cashback system. In other words, anyone who shopped at furniture stores, supermarkets or restaurants in the Lyoness network would ensure that G. received virtual points, which in turn would guarantee a regular, “passive income.” This was the promise.

Of the more than 35,000 euros that Nina G. invested within a year, she did not see a cent. According to Lyoness, G. would have had to recruit more people or buy more clouds to avoid being demoted in the internal “career system.” Only after a grueling trial was she awarded the full amount by the Vienna Higher Regional Court in February. The court found that the money was “trickling away.” Lyoness’ compensation rules were “highly non-transparent.”

Several aggrieved parties

G. is not alone: Lyoness’ cashback program, which now operates under the name My World, claims to have around 15 million shoppers worldwide. More than 600,000 are said to be in Austria. Lyconet is the name of the current company responsible for marketing. According to its own information, it counts half a million marketers, 13,700 of them in Austria. According to Lyconet, these are independent entrepreneurs who recruit other people for the discount system, but also invest themselves. In the case of G., the court ruled against this entrepreneurial construction: G. was to be considered a consumer who purchased vouchers in order to receive promised compensation.

In October 2018, the OGH already ruled that Lyoness’ business practice at the time before 2014 was a pyramid scheme. The companies gradually gave themselves a new coat of paint. Officially, Lyconet and My World deny being legal successors of Lyoness. However, the company register shows: Lyoness founder Hubert Freidl of Graz – who resides in Monaco – is currently the sole shareholder of Glenside Holding GmbH, which used to be called Lyconet. And My World AG 360 historically called itself Lyoness Group AG and Lyoness Cashback AG.

Viennese lawyer Josef Fromhold, who represented G. and around 2500 Lyoness victims, also sees similarities in business practices: Lyoness, Lyconet and My World would work with terms and conditions that they change at periodic intervals to the detriment of their customers. The advertised “shopping community” was a “Potemkin village” and only the “façade for a concealed capital investment model”.

In the case of G. it was also opaque: Lyoness was the contractual partner for the clouds, other agreements were titled Lyconet, and My World was stated for the cashback program. In response to a STANDARD inquiry, a PR agency at Lyconet, My World and Lyoness answered for all companies, but at the same time emphasized that they were not related. Moreover, Nina G. was an isolated case and the affected products of Lyoness Europe AG were no longer on offer, Lyconet and My World had never offered these products.

Source:: iStock/agrobacter

High penalties in Italy

In Austria, aggrieved parties are constantly fighting their claims in court, while in other countries the authorities are taking action. In Italy, the competition authority imposed a fine of three million euros on Lyconet Italy and My World Italy last December. The authority concluded that the cashback service was just a pretext to recruit others and to sell Lyconet products such as cloud investments. However, these clouds had no relation to any real economic activity: a pyramid business model that should be discontinued, the authority said. In Austria, the companies commented: The decision concerns only one product, which is no longer offered since March 2020. In Norway, the lottery authority also concluded that the activities of Lyoness, My World, Lyconet and Cashback should be discontinued. It was an illegal pyramid-like revenue system. The authority says that there are around 16,000 aggrieved parties in Norway alone and that people are still complaining. Lyconet itself had announced to the authority that it wanted to continue the business. When asked, the companies let it be known that the ban only affected Lyoness Norway and Lyoness Europe AG, but not My World Nordic AS or Lyconet Global AG.

Source: Tax office Istanbul

Tax debts in Turkey

In Turkey Lyoness is deeply in the chalk: The tax authorities demand about 17 million euros of taxes from Lyoness. The STANDARD has received corresponding documents from Turkish authorities. Investigations from 2011 to 2013 show that the Turkish branch of Lyoness is wholly owned by Lyoness Europe AG, based in Switzerland, and that it operated as a pyramid scheme. No taxes are said to have been paid in the period under review. From the groups it is said in addition that it concerned only the Turkish branch of Lyoness and the incomes in Switzerland were balanced and taxed.

While the noose for Lyoness founders Freidl and Co tightens ever further, My World sees only one “next logical step”: the IPO. In an online seminar at the beginning of July, in which DER STANDARD participated, future shares were advertised: Those who buy virtual points in the form of clouds or discount vouchers now could exchange them directly for shares at the IPO. Every month there would then be distributions. My World was compared with no lesser companies than Apple or Google. However, the seminar leader also warned that the word “share” should not be used externally, as this would be liable to prosecution.

DER STANDARD also asked for a statement here and learned that these points are converted into company shares regardless of the planned IPO. However, the points could not be bought, only vouchers. The points are a “free incentive,” he said.

Internal IPO documents, dated February of this year, mention international business consultant Deloitte. In an online video, Freidl said “Deloitte’s stock market experts” expect My World’s IPO to be worth “tens of billions.” When asked, Deloitte denied an alleged assignment. MyWorld’s response to the STANDARD inquiry: Deloitte Austria handles the tax audit in Austria and has very well delivered first calculation models.

Under observation

In Austria, the Economic and Corruption Prosecutor’s Office (WKStA) has already become active against Lyoness. Investigations on suspicion of fraud and pyramid schemes were discontinued in 2016 for lack of provable intent. In 2019, the WKStA also discontinued its investigations into an alleged violation of the Capital Markets Act. Conflict manager Ben Ecker, who had access to the files at the time, locates failures on the part of the authorities: For example, a planned house search was canceled on short notice, an expert economic opinion commissioned by the WKStA was ignored, and investigations in general were sloppy. In Germany, too, investigations against an ex-head of Lyoness were discontinued. However, the public prosecutor’s office in Cologne resumed this in July on suspicion of criminal advertising. All those named are presumed innocent.

Source:: Prodecteam

In 2017, the Association for Consumer Information (VKI) organized a class action lawsuit against Lyoness following an OGH ruling. Since then, the focus has been on monitoring: Lyoness has been an issue for around 15 years, and there have also been exchanges with international authorities, according to the ministry of Wolfgang Mückstein (Greens). The VKI welcomes the ruling in the case of Nina G.: “The new Lyconet conditions are just as non-transparent as those that the OGH already declared null and void,” says Ulrike Wolf from the VKI (Association for Consumer Information)

  • The name has been changed by the editors.

Many thanks to the editor Mr. Laurin Lorenz for his accurate research!

Are the top marketers leaving the bubble? Andreas Matuska, Giuliano Esposito, Ferhat Güngor and others are no longer part of the snowball system Lyoness/Lyconet/myworld.

“Dear Leaders,

please direct all questions to Markus Käfer or “Sciby” in future, I will no longer do anything on the network.

Questions about this will not be answered, everything is still good between me and everyone – I just want to do my own thing 100% now.

I wish you all the best for the future, and only the best!”

Apparently anyone make millions, even quicker so as a member of the “Elite Club”, using Freidl’s snowball system with their planned IPO, the launch of the ultimate Media-Box and the real estate imperium, that the company claims to have built.

Entering this new age of prosperity and vision it seems rather strange for the top marketers Andreas Matuska, Giuliano Esposito, Ferhat Güngor to stop collaborating with myWorld. Even the simplest of marketers would be wondering why they are leaving now, besides everything being “super cool and sick af”, as Matuska would phrase it.

This has been announced recently in Andreas Matuska’s online group, but it doesn’t come as a big surprise, since it has become quiet around the marketer in the recent months. Our team will genuinely miss following his loud and showy online appearances.

We wish these online marketers the best of luck in finding a serious job.

Lyconet President: Terje Duesund “Shame on you!” TV feature 04.07.2021 in Norway: “Lyoness/Lyconet/myWorld and the business ban!”

Hello & Goodbye: Our new moderator at BEKM!

Our MSc. Laura Husar moves to another media company and hands over to MSc. Nadja Messinger!

“eCredits”: Failure with ECR AG at the FMA Liechtenstein! FINTECH LAUNCHPAD LIMITED is now attempting it in London?

ECR AG i.L. (we are currently reporting, Financial Market Authority (FMA) Liechtenstein officially warns against “eCredits”! – BE KONFLIKTMANAGEMENT (bekm.us) failed “eCredits” at the FMA Liechtenstein. On June 18, 2021, the FMA Liechtenstein officially warned on their website against “eCredits”.

On July 5, 2021 FINTECH LAUNCHPAD LIMITED (Registered office address: 8th Floor, 20 Farringdon Street London, United Kingdom EC4A 4AB) with a share capital of 100 GBP was registered under the company number 13492201 and can also be found on the website of “eCredits” as an operator. As can be seen from the registration certificate, the company was registered with the TMF Group, an office center.

There is not even a partnership agreement for FINTECH LAUNCHPAD LIMITED. A “Model articles adopted” was specified during registration. This is a simple nameless model agreement.

“eCredits” does not want to be officially associated with the myWorld group, but connoisseurs of the matter know about the actual internal circumstances and the proximity to the self-proclaimed visionary and Hubert Freidl. The indirect connection with the myWorld group is beyond question.

It was to be expected that “eCredits” would try to do business outside the EU, as it has failed miserably to gain approval from the EU’s financial market regulators.

Whether with the “official founder” of FINTECH L. Ltd., Mr. attorney Dr. Thomas Ruhm (partner attorney with SCWP Schindelhelm) from Vienna, a new player of the playing field of “Freidl’s pyramid- and ponzi scheme branch” is, remains to be seen. We will ask and report if necessary. No law firm with basic legal ethical principles and/or a lawyer of clear mind would allow itself to be associated with a company that is directly or indirectly connected with the myWorld Group or Hubert Freidl, let alone represent it.

From the environment of the previous general counsel attorney Dr. Hubert Reif of Lyoness/ Lyconet/ myWorld/ we were informed that he wants to withdraw slowly from “his business with myWorld and Hubert Freidl” at the end of the year 2021. Let’s wait and see.

What will now be revealed on 24 Juli 2021 to the “eCredits”, it will probably not be a licensing at the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). We have already contacted the London authorities by phone and in written form and will of course publish the response immediately as soon as it can be documented.

And as always, the Lyoness/Lyconet/myWorld press office is welcome to comment, or if anyone has more or different information on this, please feel free to let us know. We are not interested in making false statements and our primary goal remains to provide the full documentation.

Lyconet President: Terje Duesund “Shame on you!” TV feature 04.07.2021 in Norway: “Lyoness/Lyconet/myWorld and the business ban!” Part 1

Lyconet level 8 Terje Duesund tells TV station: “…….that the Lyoness company behaved illegally. He believes he did not defraud or deceive the participants himself”. 

(Detailed contribution from BE-TV will follow shortly!)

TV report on the Lyoness/Lyconet/myWorld Ponzi scheme!

Link: Yvonne har tapt 230 000 kroner – nå saksøker nordmenn shoppingnettverk (tv2.no)

The callousness of Lyconet President Terje Duesund toward the problems of the myWorld group in Norway is indeed a typical Lyoness/Lyconet/myWorld crisis wording. At first cashing in, presenting themselves as big creators in public by flaunting, but as soon as they are caught, everything is sugarcoated, downplayed and blamed on others. “Shame on you, Terje Duesund.”

The Lyoness/Lyconet/myWorld shopping network is also being sued in Norway by former members who have lost large sums. In total, the Norwegians invested half a billion kroner (about 49 million EURO or about $57 million) alone, probably even more. The money ended up in the distribution network at Lyoness, organized by Lyoness Europe AG, based in Switzerland. As in all the other countries, people in Norway believed in financial success. In  just a few years a multiplication of money, as a return on an investment, has been promise, so the accusation of the aggrieved parties.

Lyoness Norway was founded in Norway in 2012, and in the following years the business grew rapidly at first, as it did in the other 50 or so countries, which is the initial nature of any pyramid and snowball scheme. Siblings, parents, colleagues, friends and acquaintances recruited each other. The concept is the same as in all pyramid and Ponzi schemes: promising high profits.

Source: “TV 2”

Only a few have become rich. Most have lost all or most of what they have invested.

Inherited money and savings have been depleted. Even expensive loans that had been invested in Lyoness/Lyconet/myWorld continued to have to be paid off. And when things went downhill financially for members because they trusted those who recommended the investments, many friendships broke off and families fell out.

A Norwegian court will now investigate whether there is fraud regardless of civil claims!

On May 31, 2018, the Norwegian Lottery Authority decided that Lyoness must stop all activities in Norway, as the business is an illegal pyramid-like trading system.

The global network company Lyoness/Lyconet/myWorld is now being sued. Currently, dozens of people are officially involved in the lawsuit, according to a Norwegian law firm.

A lawyer at the firm explains, “However, it is expected that far more people will follow after the case could now be presented by the Oslo District Court’s ruling on May 21. The main reason for filing a lawsuit, he said, was the Lottery Authority’s conclusion that the business was illegal within the period in question. Lyoness wanted the case to be handled in Switzerland, which is also pointed out in the members’ contract. We felt that the contracts cannot be used as a basis for a compensation case, as the case is based on the fact that the business was built on illegal contracts,” as she explained to the TV station.

The law firm is satisfied that a lawsuit will now also be filed in a Norwegian court, as the plaintiffs are Norwegians, and the business is geared and adapted to the Norwegian market.

The company’s development and operations in Norway and Northern Europe are centered on TERJE DUESUND, a Norwegian.

Terje Duesund has so far revealed little to the press about his role in the purchasing network. And just as very little about the millions he has earned.

For many who have invested money in Lyoness, the Norwegian is a household name. For a time, Duesund was the head of the company’s marketing network throughout Northern Europe. Likewise, he ran Lyoness Norway for a period of time.

Duesund is an experienced network builder with a past. Already in the 90s he had played a central role in the MLM company “Natures Own”. A few years later, however, “Nature Own” and Mr. Duesund were history again.

Source: “TV 2”
Souce: “TV 2”

It was not until 2007 that Terje Duesund reappeared with the company “Procando”. He held significant shares in this company, which managed funds, including the “Fond24”, described as a savings fund. According to the Norwegian newspaper “Bergens Tidende”, the money was spent on soccer bets in Europe. For consumer protection, the company “Procando” was a “gambling fund and speculative gambling.” The investors who had invested in “Procando” lost money.

The operation of “Procando” was discontinued in Norway and then continued in Malta. Terje Duesund moved on and started his career in the “global corporation Lyoness”. Here he quickly became successful, Lyoness offered him the perfect platform for his kind of work.

In the initial phase of Lyoness, the distribution of Lyoness in Norway and Northern Europe was coordinated by Terje Duesund. He has officially left the company in the meantime but continues to be a key figure in the distribution of the network concept.

Source: “TV 2”

His accumulated and flaunted ostentation is used as a model for what can be achieved as a member of Lyoness/Lyconet/myWorld. At the “Lyconet Elite Seminar” in May 2017, for example, Duesund received a Ferrari from self-proclaimed visionary and Lyoness founder Hubert Freidl. With a spectacular session of sound, lights and deafening cheers from thousands of members in Prague, everyone watched as a Ferrari was lowered from the roof of the huge hall before being handed over to Duesund.

A reward that the Terje Duesund received for reaching the top as a marketer in the Lyoness network. According to the magazine “Bergensavisen”, which followed the doings of Lyoness intensively for some time, Terje Duesund is one of the few Norwegians to belong to the so-called “President’s Team” in 2017 and is thus one of the leaders of the pyramid, ponzi scheme of Lyoness/Lyconet/myWorld. And now he wants to no longer know of anything?

The editorship of TV 2 stepped up to date with Terje Duesund in contact, who explains immediately that he would not like to be interviewed before the camera. What is surprising, because he usually presents himself gladly with splendor and pomp in public.

TV 2 sent several questions by mail to Mr. Duesund, in which he was asked to answer some questions, among other things, whether he does not think that Lyoness was operating illegally in Norway.

Duesund, who was essential to the construction of the network in Norway and Northern Europe and points out “that the Lyoness company behaved illegally. He believes he did not defraud or deceive the participants himself.”  So he confirms that Lyoness has behaved illegally?

“I have always believed that the Lyoness company has operated in accordance with Norwegian laws, starting from the opening in 2013 until the cessation of operations after the decision. Personally, I started as a Lyoness marketer in 2013 and built an international trade network by working in 33 countries worldwide for many years…….my main task was to expand my team internationally, and I did a little in the Norwegian market,” he wrote in an email to TV editorial.

But where is all the money now, please?

In Norway alone, half a billion norwegian kronen (approx. $ 57 million), probably much more, was invested in the purchasing network.

When asked where all the money had gone, Duesund, suddenly miming the little marketer, said, “Questions about details of cash flow and money dispositions must be directed to the company by TV 2, as a marketer I have no access to this information.”

By the time he is being pointed out with a new email that he played such a central role in the company that it seems strange that he can’t explain cash flow, he responds:

“I urge you to respect my repeated answer – I have NO in-depth knowledge of the company’s international cash flow, how the money is distributed and used.”

Senior Adviser lawyer the Lotteries and Competition Authority Monica Aisoy Kjelsnes stated, “Many Norwegians have also lost a lot of money through Lyoness/Lyconet/myWorld. Some have taken out mortgages on the house and are in danger of losing their property because they have not received the expected income. What also makes the case particularly tragic is that many people have recruited close family, friends and work colleagues in the belief that this was legal and appropriate.”

She tells of tragic stories of people losing their money on Lyoness and of broken family relationships and friendships.

“Both resourceful and vulnerable people, young, sick, disabled and elderly, were tricked into participating in Lyoness, believing it was legal and that they would get ten times more out of their money back in a few years if they invested in the business. As far as we know, very few have gotten anything back, and the Norwegian Lottery Authority sees reason to warn against Lyoness, myWorld, Lyconet and Cashback,” she continued.

Some young people have given up their education to work for Lyoness, and several family relationships and friendships have been damaged by the business, she continues in the TV report.

In general, most of the victims feel shame and think that they are to blame for the misery. That is why many choose not to go public. This is likely to change now.

More about the injured parties and the Norwegian lawsuit in Part 2.

And as always, the Lyoness/Lyconet/myWorld press office is welcome to comment, or if anyone has more or different information on this, please feel free to let us know. We are not interested in making false statements and our primary goal remains to provide the full documentation.

BEKM on Tour: A visit to myWorld Italia in Verona!

We from BEKM were in Italy doing research. The aim was to meet the people in charge of Lyoness/Lyconet/myWorld there, as we had many questions.

In Verona we were able to talk to the CEO of myWorld Italia, Eduardo Moretti, via the intercom. He offered us several times that he would be willing for an interview appointment. PR Laura Husar then contacted Mr. Moretti via email and was also able to reach him by phone. We were promised another reply…. but so far there has been no response from Mr. Moretti.

Swiss business newspaper “Inside Paradeplatz” headlines: “High-ranking CS director advertises lousy companies!”.

link to the Swiss newspaper: Hoher CS-Direktor macht Werbung für lusche Firmen – Inside Paradeplatz

(A TV report with the excerpts of the marketing speeches of Jürg Kränzlin will follow shortly!)

This particular high-level Credits Suisse director is in fact Mr. Jürg Kränzlin, Director, Head of Finance & Operations at Bank Credit Suisse.

The “senior (CS) Credits Suisse

Director” means Mr Jürg Kränzlin,

Director, Head of Finance &

Finance & Operations at Bank Credit Suisse.

In the said “Presidents Call” on 24.06.2021 the TOP banker J. Kränzlin spoke right next to the most famous TOP Lyconet/myWorld presidents Gerry Seebacher, Walter Seebacher and Helmut Freydl. After all, there has never been a shortage of TOP leaders. Gerry Seebacher announced director J. Kränzlin during the call as a “Swiss banker of high finance and an enthusiastic myWorld marketer”.

After the call, the TOP marketer Markus Käfer appropriately highlighted Jürg Kränzlin’s strong statements on social media by means of video viewings and messages.

Source: Anonymously delivered by stick

Source: Anonymously delivered by stick

In the “Presidents Call” starting at hr 01:03, however, Director Jürg Kränzlin really has it going on. The “lousy” companies “eCredits” and “Blocktrade” as well as the mSP (myWorld Share Points) are praised by him in the highest tones and the potential is emphasized. The fact that the Financial Market Authority of Liechtenstein now officially warns the public on its website against “eCredits” and that the activities of “Blocktrade” are still prohibited is completely ignored.

see also: Financial Market Authority (FMA) Liechtenstein officially warns against “eCredits”! – BE KONFLIKTMANAGEMENT (bekm.us)

The Vimeo video ( https://vimeo.com/567642862 ) on the “Presidents Call” has been deleted upon request of the Swiss editor. But why if everything is so unbelievably great?

Here some statements by Director Kränzlin excerpted from the transcribed call to start with:

“See huge potential for MyWorld and that “eCredits” will become another cash cow.”

“Everyone is craving a simpler, efficient, fast and inexpensive method for payments…….will become a huge hit.”

“…… am convinced this will be brilliant. Crypto is often being equated with speculation, not here, therefor a stablecoin, that is coupled one to one with euros, it’ s so easily integrated and done well.”

“Kudos, let’s get it going, as quickly as possible.”

And of course, the comparisons to the actual superlatives can’t be missing:

“With BTC (Bitcoin) there is nothing behind it, merely technology……they must also have “eCredits”.”

“The Coinbase was valued on Nasdaq 2021 by the direct listing, with a value of 100 trillion (bn) USD, 3 years ago with 8 trillion (bn), in 3 years the value has increased more than a tenfold. The profit of 2020 stood at 320 million (M), (the valuation at) 100 trillion (bn), the factor lies at 300.”

It remains to be seen what the future holds for Director Jürg Kränzlin in terms of his career at Credit Suisse. Financially, however, he should be very well secured. Aren’t the enthusiastic marketers all doing splendidly, only having to hold out until the Hubert Freidl IPO in 2023, by that time they will all be multimillionaires, or rather, multibillionaires? 

“BEKM on Tour” Day 3: A visit at Cryptix AG in Zug!

We from BEKM were in Switzerland on research. The goal was to meet the responsible persons of Lyoness/Lyconet/myWorld there, since our press inquiries have not been answered so far.