Note for victims: How to effectively enforce your rights!
Those who have been harmed by an MLM system are often stunned, disappointed and angry when they realise that the promises made by the company have not been kept. The suspicion of having become a victim of a so-called SCAM is confirmed. The advice often heard in the community is not even to try to recover the lost money, since nothing can be obtained from the companies or responsible persons anyway.
Even if this may be true in many cases, there are definitely SCAM companies that have hidden assets. Victims should be aware that these companies often know that they will eventually be confronted with recovery demands and legal problems. That is why they take precautionary measures to conceal assets.
At the national level, lawyers can often help to enforce claims. However, as soon as funds need to be secured or recovered internationally, it becomes particularly time-consuming and costly. Complex, internationally nested corporate structures often come to light. In order to effectively follow the flow of funds, a professional network with the appropriate resources and capabilities is required.
Enforcing claims against a fraudulent system may seem complicated, but victims do have a chance of getting their money back. With the right legal approach, financial losses can be compensated, those responsible can be held accountable, and assets can be secured, even if they have been moved abroad. This article shows what options are available and how you can use them effectively.
Civil law is usually the most direct way to enforce financial claims. With a contract or other evidence, you can file a lawsuit to oblige the debtor to pay or to provide compensation for damages.
But be careful: such systems are aware that injured parties could assert their claims and often factor individual lawsuits into their calculations strategically. Individual plaintiffs are often isolated procedurally, making it easier for the system to fight them in a controlled manner. These systems often do not shy away from exhausting all instances in order to wear down the plaintiff. The aim is for the individual to give up after the first instance or to settle for an unfavourable settlement. In both cases, the system retains the upper hand.
If the behaviour of the debtor goes beyond contractual failures, for example, through intentional deception, fraud or embezzlement, criminal law offers an additional option and is unfortunately necessary in most systems. Here you can file a criminal complaint to initiate criminal proceedings against the debtor. Particularly advantageous is the so-called private party connection, in which you integrate claims for damages directly into criminal proceedings. This saves time and increases the chances of financial compensation.
In international cases, victims can take action through cross-border claims management. With the support of specialised companies, collection services or lawyers, claims can also be asserted abroad. Even if assets have been shifted into complex corporate constructs, piercing the corporate veil makes it possible to hold not only the company but also the individuals behind it accountable.
Finally, we would like to point out that there are also companies and organisations that buy confirmed claims and collect them independently. We have also been able to successfully work together in this optional area.
With a combination of civil lawsuits, criminal prosecution and innovative approaches such as piercing the corporate veil or international claims management, you can be successful even in difficult cases. Seek legal advice to choose the best strategy and assert your claims in a targeted manner – because lost money does not have to remain lost.
Note: This article is for information purposes only and does not constitute legal or tax advice.
Leave a Reply
Want to join the discussion?Feel free to contribute!