Is Hong Kong Excellence Asia a pyramid scheme?

Hong Kong Excellent Asia (Liangbisi) has been identified as a pyramid scheme by the Chinese police and arrested. The following is a news report:

On March 4, 2017, Ms. Jiang and others went to Futian Police Station to report that they had been defrauded of personal property by a man named "Dong" on the pretext of participating in the Liangbisi event in Hong Kong. Several. Subsequently, the same police information came one after another, and many of them were involved in the "Great Winter".

According to the police, most of these victims were introduced by relatives and friends, and paid thousands of dollars to go to Hong Kong with them in the name of going to Hong Kong to inspect import and export business or engage in purchasing agents. During their stay in Hong Kong, they learned about the milk powder, red wine, and essential oil lamp products produced by Liangbisi. They met dealers who had become "prosperous" by selling Liangbisi products. They were also brainwashed by classes and persuaded by relatives and friends from time to time. After completing a three- or four-day course aimed at selling products, the victim was persuaded to pay a fee of tens of thousands of yuan to become a distributor of Libis.

While in Hong Kong, the middlemen watched the customers anytime and anywhere, ate and slept together, and actively chatted, making the customers unable to calm down for a moment, and their minds were always being bombarded. The so-called "classes" did not involve products, but mostly just some successfully learned content. In addition, they also prepared a complete set of rhetoric to deal with many doubts raised by customers at any time, allowing many customers to finally make up their minds to "invest". .

“Liang Bisi legally registered a company in Hong Kong and used luxury cars to transport ‘investigators’ to Hong Kong.” According to the police, this can easily give people the illusion that this business is very profitable.

After receiving the report, the Economic Investigation Department of the Futian Police quickly intervened and established a task force together with the Futian Police Station. Based on the clues provided by the reporter, 12 suspects including "Dong" were arrested immediately. . Subsequently, the Futian Police Economic Investigation Department teamed up with five police stations including Futian, Shatou, Jingtian, Tianan, and Fubao, and finally captured 13 other members of the "Dong Dong" gang.

The police have now found out: Hong Kong Liangbisi Company develops a sales network in the mainland in the name of direct selling company products, and determines the level and level within the company based on the amount of funds invested by participants and the number of people they recruit. Receive rebates and commissions stipulated by the company.

It is reported that people from Liangbisila adopt the mode of association and invitation when joining the group. The middlemen will target people who have suffered setbacks in their relationship, career, or family, or who are unwilling to accept the status quo and hope to get rich quickly. After transforming their image and temperament, they take the initiative to care and make the other person feel warm and safe, and then collect personal information about the other person's family, career, ideals, etc., and then start taking action.

"Liangbisi" divides "dealers" into levels such as knight, earl, quasi-marquis, marquis, duke, lord, lord, etc. After the victim invested several thousand yuan to become a "Jazz", if he is not satisfied with the status quo, he needs to introduce 5 more people to join the association and be promoted to "Quasihou", with each person's membership fee being 50,000 yuan.

While handling the case, the police found that only a small number of people were promoted by developing a sufficient number of members, and most of them were promoted by purchasing several "big orders" at the same time. Many victims borrowed money from relatives and friends and invested hundreds of thousands of yuan at one time. It wasn’t until the capital hole couldn’t be filled that I realized something was wrong, but the investment had been lost.

After seven years of joining Liangbisi, "Dong" not only failed to make a fortune, but was in debt and unable to extricate himself. According to his confession, after Liangbisi became synonymous with pyramid schemes in the mainland, he has been forming multiple companies and teams under other names. When victims went to Hong Kong to attend classes, other teams would contact them, and "Liangbisi" was just their business. The brand of the product being sold.

However, these teams have been changing their names, including SPN (also known as BV, APEX), Mingsheng (also known as Francine), THY (also known as Seberang) and SGB. These branch teams All over the provinces and cities in the mainland.

"Dong" (male, 35 years old, registered in Shenzhen) is currently the leader of Group C of the Liangbisi Shenzhen team, at the Duke level. According to the police, "Da Dong" previously operated electronic components in Huaqiangbei. He joined Liangbisi in 2010 and began to lead his own team in 2013 to develop offline. In order to distinguish itself from other teams, "Dong Dong" registered multiple companies in Hong Kong and began to develop its own team in the name of companies registered in Hong Kong.

Although "Big Winter" seems to be well-dressed and successful in career, in fact, it is just an illusion deliberately created to attract people to join the team. Since I had to borrow a lot of money to join the Liangbisi team in the early stage, I could only continue to recruit relatives and friends to join the team in the later stage of the "Great Winter" to "remove the east wall to make up for the west wall." From March 5, 2017 to July 11, 2017, all 25 people involved in the case were arrested with the approval of the Futian District People's Procuratorate. It was initially estimated that the amount involved was as high as 200 million yuan.

Extended information:

Develop downline sales by attracting people, bring them to the Hong Kong headquarters for "brainwashing", and then return to many provinces and cities in the mainland to attract more people. A MLM gang headed by Huang Moudi, Ye Mouchu, and Yang Mouhu organized and led more than 20,000 people in Hunan, Guangdong and other places to engage in MLM criminal activities under the guise of selling "Liangbisi" related products, with the amount involved reaching more than 1 billion Yuan.

A company called Liangbisi Group, based in Hong Kong, uses the banner of trade and investment to lure mainland residents to cross the border to Hong Kong to participate in pyramid schemes. Transfers in and out of the hotel by luxury cars, and accommodation in five-star hotels.

With a show-off reception and the alluring slogan of "invest 50,000 yuan, get your money back in four months, and become a millionaire in two years", this pyramid scheme attracted a total of more than 20,000 people from Hunan, Guangdong and other places. Offline organizations, involving more than 1 billion yuan.

It is different from ordinary pyramid schemes that restrict personal freedom. As long as there are newcomers who are interested in investing, "Liangbisi" will organize them to visit the Tsuen Wan Plaza office building in Hong Kong to study and pick them up in Mercedes-Benz luxury cars, and arrange to stay in high-end hotels. The bustling commercial plaza, the grand scale of the enterprise, the thoughtful reception service, and the simple ways to make profits make those who want to "get rich overnight" like a dream. MLM personnel gradually pull these newcomers into the "mirage" of "Liangbisi".

In order to control and manage the huge MLM team, headed by Huang Moudi, Ye Mouchu and Yang Mouhu, the "THY" MLM team was established in 2010. This team includes dozens of people each. People’s “Victory Glory”, “Dreams Come True” and other MLM team branches. At the beginning of the establishment of the "THY" MLM team, Huang Moudi, Yang Mouhu, Ye Mouchu and others raised funds to rent lecture venues in Hong Kong and advance hotel expenses for newcomers in Hong Kong.

The team holds duke-level meetings every month. The main content is to manage the team and the "order" plan and formulate a monthly schedule. The duke is also used as a unit to organize downlines to pay learning fees, and MLM members develop through Downlines receive capitation fees from the company according to the company's system. The entire "order issuing" process is carried out by the team's MLM personnel.

Investigation by investigators revealed that “Liangbisi” has been developing a sales network in the mainland in the name of direct selling company products since 2003, and decided on the level of the company based on the amount of capital invested and the number of people offline in the development network. Get the "capitation fee".

Earl, marquis, duke, lord, lord... the original title system under the feudal enfeoffment system was applied to the internal hierarchy of this gang. If you want to obtain a "title" or "promotion", you need to pay a certain amount of fees to the company and continue to attract offline members.

"The nominal profit model of 'Liangbisi' is to make profits from selling the company's products, but in reality it makes money through the 'head-pulling' method of developing online and offline, and then developing offline and offline." Handling the case Personnel said that this gang has a strict "pyramid" hierarchical management model, and all uplines can only manage their own downlines.

Defendant Huang Moudi and his downlines Ye Mouchu, Yang Mouhu, Li and others used the method of soliciting sales to develop downlines and brought them to the Hong Kong headquarters for "brainwashing" pyramid schemes in Hong Kong. , Macau, Zhuhai and other places have developed more than 30 people to become key members of the "Liangbisi" MLM organization, and organized and led more than 20,000 people in Hunan, Guangdong, Jiangxi, Hubei, Guangxi, Anhui, Heilongjiang, Hong Kong, Macau and other places to sell "Liangbisi" "Related products were used as a cover to engage in pyramid schemes, and the amount involved amounted to more than 1 billion yuan.

On March 5, 2013, the victim Mr. Ma called the police to the Ningxiang County Public Security Bureau. After nearly 10 months of collecting personal and material evidence in many provinces and cities, the Ningxiang County Public Security Bureau finally arrested and brought to justice 18 suspects including Huang Moudi, Ye Mouchu, Yang Mouhu, and Zhou Mou. The case was transferred for prosecution by the Ningxiang County People's Procuratorate, and the verdict was pronounced at the first instance by the Ningxiang County People's Court:

For committing the crime of organizing and leading a pyramid selling organization, the main members of "Liangbisi" Huang Moudi, Ye Mouchu, Eighteen defendants including Liu Mouxia and Yang Mouhu were sentenced. Among them, the defendant Huang Moudi, a senior manager of "Liangbisi", was sentenced to four years and two months in prison and fined RMB 2 million; Ye Mouchu was sentenced to four years in prison and fined RMB 2 million; Yang Mouhu was sentenced to three years and five months in prison and fined RMB 350,000.

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