By: Brian Garvin
Submitted: 2008-09-13 20:54:47 | Word Count: 503
The following article is going to discuss the Le Club Prive income opportunity. The idea behind this income opportunity is that you invest $3500 in the start up of a turn key home business that works with automated programs.
You are able to invest the amount of money into the program to get everything you need to start the actual process of your home business. With this Le Club Prive opportunity you are supposed to be able to make $25,000 in a monthly income.
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You may be thinking that this sounds like an awful lot of money for one month with just a $3500 investment and according to the websites I have found you would be right. Currently Le Club Prive is undergoing a court action against them for a fraudulent pyramid scheme.
According to the United States Securities and Exchange Commission they have filed a civil action against Le Club Prive for the internet pyramid scheme that uses an off shore account to take individuals money and hide it rather than pay out the supposed $25,000 monthly income the company purports an individual can make.
According to the information I have found there is a perpetrated amount of $5.6 million unregistered offering fraud against more than 2,000 US investors. In other words Le Club Prive has been offering a membership, according to the SEC, for a multilevel marketing commission scheme in which shares of three domestic or offshore mutual funds have been promised to make huge returns. The civil action has frozen the assets of the company in order to provide a receivership for those caught in the scheme.
Apparently the investors were supposed to invest their $3500 to gain a monthly income of $25,000, but the company failed to payout in their pyramid scheme. The idea of a pyramid scheme is that a person signs up for the offer in order to gain a return on their business investment, in this case it was with mutual funds with Le Club Prive. As the initial person, such as you signs up, you try to get more individuals to sign up on your referral.
The more individuals you have under you in the pyramid the more you are supposed to be able to make. The person at the top of the pyramid makes the most money. According to the information I found the LCP or Le Club Prive member who signed up a new recruit was supposed to make $500 each time a new member joined.
The member was also supposed to be privy to the backroom were recommendations regarding investments were given. The more money a member shelled out the more they were supposed to have a higher membership. For instance a person that did pay the $3500 would have a premier membership over someone who paid less.
Added to the scheme was the returns promised at 6 to 40 percent depending on where you were located on the pyramid. Look on Quatloos for more information regarding the current fraudulent charges the company is supposed to be responsible for and make your own decision.
