Thursday, 29 September 2016

Blog statistics: 1 August - 29 September

Because I'm a transparent blogger let's have a look at my blog statistics between 1 August to 29 September. I linked my blog to Google Analytics in the beginning of August because I noticed that Blogger's statistics had been recording a lot of bot traffic. Yes, there are a lot of bots snooping around the Internet and causing additional traffic. Some sources say that half of the Web's traffic comes from bots. It might be well over half for some web pages, like my blog for instance. Google Analytics seems to be able to filter non human traffic whereas Blogger has no filter whatsoever.

Here's an overview to the statistics for the time period. The highest peak is 14 September when there was much interest towards my post about the OneCoin event in Mexico. The post in question got 245 pageviews of the total amount of 379.

All in all there has been 3696 sessions and 4778 pageviews in the time period. Most of the attention goes to OneCoin which has been the dominant subject in my posts. The other one, Zinzino, draws only a fraction of the traffic.

The top 20

Finland continues at the pole position generating most of the traffic with its 795 sessions. All in all there has been visits from 120 countries all over the world. There has been 10 or less visits from about 70 countries - the most of them have only 1-2 visits made. 

Only two visits have been made from China which has over 1 million members according to OneCoin. However Chinese people don't use Google as their primary search engine and they have a language barrier to cross to reach any information in English. Then again there are several other countries on the list that don't prefer to use the Western alphabets and have a language barrier to English. I might also add that OneCoin has only recently put an effort to actually market the ponzi to Chinese people.

Although OneCoin has clearly spread all over the world the claim about it having over 2 million members is as believable as the coin's value.

The map show the countries infected by OneCoin.

Earnings from the blog

So far I have earned 0 euros from my blog. Google AdSense doesn't pay a thing below 70 euros. Until the limit is reached I get no financial gain from my posts. However  at the moment I have a staggering amount of 11 euros and 39 cents in my account just waiting to grow. It took five months to reach that amount so with this phase it would take about 27 months more to reach the limit of 70 euros. 

I have serious doubts though that OneCoin will last much longer so most likely it will take a lot longer than 27 months to reach the required limit - unless another ponzi like OneCoin emerges in Finland and keeps me going.

Tuesday, 27 September 2016

OneCoin/OneLife - Kari Wahlroos, Tampere 4th September 2016

A OneCoin/OneLife event was held in Tampere 4th September. Present was also Mr. Petteri Järvinen, a known IT-professional and OneCoin critic in Finland. According to him the venue had a capacity of 400 seats but only 250 tickets sold. The ticket prize was 10 euros which is quite reasonable for an entertaining ponzi show but enough to limit most of the audience to the ones that truly were there to become millionaires.

I'm sorry to say that the video of the event is in Finnish, but I have translated the parts that I considered to have some significance.

15:35 "Bitcoin is old technology."
"We are already ten times bigger than Bitcoin and we're going to be twenty times bigger than it by the end of this year."
- Well the "Bitcoin Killer" certainly is a very silent killer that not many knows and no one has ever seen. And what's its weapon? Is it going to kill Bitcoin by boring it to death?

18:20 "The OneExchange is only a training platform."
"The purpose of the exchange is only to offer a training platform to the members so that they can try and train how to buy and sell coins. It's only for training purposes, nothing more."
- No wonder that the exchange sucks so badly and the members have such tremendous difficulties in trying to sell their coins. Now we know that there's actually a purpose in all this - to gently prepare the members to the harsh reality that no one is going to buy their coins.

25:40 "Moving to the new blockchain will not affect the coin value - at least not negatively."
- This is illogical nonsense because Ignatova and her partners in crime can freely decide what ever the artificial value of the coin is. Wahlroos doesn't even bother to explain his claims, but never mind that - the audience is applauding anyway.

26:50 "Charity"
"Then we have this charity. I personally like very much about it. I must have given nearly 100.000 euros there already."
- Wow, that's certainly a lot of money. Too bad the OWF can only spend 3.000 euros at most to a single project"Please, note that grants are provided only to non-governmental organizations and the budget should not exceed 3 000 EUR." - In other words: We wouldn't like to arouse any suspicion of money laundering, would we? With OWF's phase of spilling their funds to charity those 100.000 euros will last for about 33 different projects. I guess that should be enough to cover several years - unless the ponzi collapses.

28:45 "4 million members by the end of the year"
"I believe we are going to have thousands of merchants by the end of this year, or maybe even tens of thousands. And we are going to have about 4 million members by the end of the year."
- Maybe Ruja and her magic wand will double also the headcount of onecoiners in 1st of October. It's about three months till the end of the year and about two million new victims/members to lure.

29:25 "We make more sales everyday than any of 90 percent of the world's companies... We are at the moment most likely the fastest growing company in the world."
- Well, I'm surprised that media doesn't recognize this claim anywhere. In fact Ruja Ignatova and OneCoin are quite unknown to a larger audience. 

39:15 "8.000 people maxing out"

Again this same bullshit. Well, let's have it once again: "8.000 people maxing out."

For those of you who don't know what this means, "maxing out" refers to those OneCoin members who earn 35.000 euros each week. However, 8.000 people to earn this much money would require over 120.000 people to spend at least 5.500 euros in OneCoin each month. You can check my calculations here.

As far as we know, according to OneCoin 8.000 people have been "maxing out" every week since the London event in June. These past four months would have required about half million new members just to cover the commissions of those 8.000 members.

54:50 About the MasterCards
"What the hell do you need a card for when you don't even have money in your cash account? Now that I know you're nothing (referring to ranks) so what the hell do you need the card for? I have a card but I have also a heck of a lot of money."
- To explain Wahlroos's attitude and rudeness, he's pissed of because the audience didn't know about all the ranks earlier in the video. I guess he's also trying to push the audience/members to do their work as a OneCoin affiliate better because he's not satisfied about how things are going in Finland. The pyramid has been in a stagnant state for a quite some time already.
"I'm even ashamed to say how much money I make each day... And then there are people calling me a scammer and an asshole. From whom have I stolen anything?"
- Well, it's a ponzi scam. That's why they don't have to actually pick the pockets of their victims' because OneCoin lures the people to hand their money .

56:55 Doubling the coins
- Surprisingly Wahlroos is a bit skeptic whether all the coins will double at once in 1st October. He states that if the process is accomplished due the end of the year he would be extremely happy. 

1:07:40 "OneCoin is the biggest and most stable company in the world." 
"We need to make people understand that this is a new thing... such as cellphone was 25 years ago. This is a new thing! It has to be presented to people in a such way that they understand. Don't go telling about things like crypto-this-and-that... blockchain... that even I don't understand. Tell them something that they understand. Okay?"
- Wasn't this supposed to be all about education? So basically Wahlroos is educating people that he doesn't understand much about what he's selling and urges people to educate others to know as little as he does.

Bonus clips

Training Millennium Gloucester Hotel 2016 part 2

I recently found this video clip that has some interesting statements:

2:15 A man asks about the KYC and also inquires about the MasterCard situation.
"A pending approval means that it's approved. So everybody get's their approval in 24 hours. This is basic information that I should not be repeating." ... "If you have not been honest (with the KYC documents) we will cancel your accounts. You'll be frozen forever."
- So they are going to include KYC documents into all the coins whether the KYC is truthful or not. I know at least couple of photoshopped/prank KYC documents that have "pending approval". What's the point in the whole KYC process when it's clear that anyone can use a fake personality?

What comes to the MasterCard there wasn't any actual answers given.

5:30 Why was the bank account in U.K. closed?
A man - apparently a leader of some sort - explains that there were people carrying loads of money into the bank 2-3 times a day and that's why the account was closed.

Ruja Ignatova is pregnant

Okay, let's go through this video clip although there isn't much news anymore. We have two broads having a chitchat that's obviously targeted to female audience. Mariana López de Waard, a diamond of OneLife, is having a personal interview with Ruja Ignatova.

4:22 Ruja Ignatova explains the advantages of cryptocurrency versus traditional fiat money:
"You have the limited amount of coins, so you can't print as many coins as you want as a lot of... as you know national banks do."
- Well, isn't this awkward. OneCoin happens to print as many coins as Ruja wants to. And not only that, everyone's coins are doubled after 1st October.

7:30 About Bitcoin:
"... And I discovered there some very big advantages but also some disadvantages. It was created for example before terrorism attacks and all these things."
- This isn't the first time Ignatova has claimed that Bitcoin was created before 9/11 terrorist attacks that happened 2001. Bitcoin was created 2009. Apparently Ignatova not only dictates what the philosophy of cryptocurrency is, she also rewrites the history of cryptocurrency.

11:10 She's pregnant and it's a girl. She states that there are going to be some changes in the management of OneCoin. Wouldn't it be appropriate to hand the keys back to BigCoin?

Thursday, 22 September 2016

Onecoiners exploiting Huffington Post's blogs section back fires (again)

Onecoiners have recently been spreading a new blog post published in Huffington Post's blogs section 14th September by "William Morrow". The earlier blog post praising OneCoin last July was soon deleted by the author after several complaints made to Huffington Post about the questionable content. 

I'm not surprised about the eagerness of onecoiners to share the blog in Facebook because it appears there like an actual article published in the H.P. Here's an example by OneCoin's Chief Learning Officer Ed Ludbrook: 

As you can see it's easy to misinterpret a blog post being an article by Huffington Post.

The new blog post is still online despite complaints made. I would assume that this has something to do with the fact that the man who has been presented as the author of the blog post has been dead since February 2015. It appears that the actual author of the blog post is someone named Segun Onibalusi. The first explanation I can come up with is that Mr. Morrow Willis - may he rest in peace despite all of this - was resurrected apparently by Onibalusi and renamed as William Morrow for a career as his puppet blogger and twitter. Yes, Onibalusi went as far as created also a Twitter account for Morrow using a picture of Mr. Willis for the profile pic. 

As far as I know Onibalusi has already explained that this all has been just a mix up just because Huffington Post's blogs section has issues. However I have serious problems believing that Huffington Post would create a Twitter account for a dead person - an account which by the way has surprisingly similar content as the one of Onibalusi's. For a dead guy Morrow was also very swift to delete his profile picture from Twitter after he got all this attention and was pronounced dead and fake.

In addition it's quite amazing that all the blog posts I could find by William Morrow have been written about after a year he past away. Every single one of Morrow's post are linked to Onibalusi in Huffington Post. Now, I still can't be 100 percent sure that Onibalusi is behind Morrow's posts but Onibalusi sure doesn't seem to care a bit about having Morrow's face and name on all his blog posts.

Someone took extra care to remove the Twitter link yesterday after William Morrow was found a fake. So apparently Onibalusi can edit the information of the author. Why not to change the profile picture and the name as well?

Here's also BehindMLM's article of the same issue.

Ps. Thanks to those anonymous people who dug up the dirt and revealed the casket, so to speak.

OneCoin's problems with bank accounts continue

OneCoin's problems with bank accounts continue - their new Italian bank account was available only about 24 hours

After losing their Deutsche Bank account I have noticed in my blog's visitor statistics some banks trying to search information about OneCoin. Of course it could just be some bank officials killing time in their office. Then again I'd rather assume that they are interested into the shady companies behind the accounts and the large quantities of money deposited. There has been at least 10 financial institutions / banks showing interest in OneCoin since the Deutsche Bank account was frozen. Those banks include mostly banks from Europe but also from U.S.A., Antigua & Barbuda and Nigeria.

It already seemed like OneCoin managed to acquire a new bank account on Tuesday when it was announced in an Facebook page of German onecoiners:

There wasn't any official announcement about the new bank account from OneCoin yet, but later on Tuesday the new bank details of an Italian bank "Banka Monte Dei Paschi Di Siena" were also added in OneCoin's back office in The account holder is a new one: Educamax Services SRL. I tried to search information about the company but there was nothing much to find - and that was supposedly how OneCoin wanted it to be.

A seemingly popular Facebook page among a lot of onecoiners "OneCoin World" went as far as posted these instructions to the members for money depositing:

They sure are very careful not to let their victims to blurt the word OneCoin to any bank. Also they plea the members: "Never contact the banks directly." - Well, I sure contacted the bank and informed them about their new customer. I'd assume there were some other fellows who have done the same.

Late Wednesday evening someone on Murobbs discussion board informed that there was some onecoiner in German OneCoin Facebook page warning people not to use the Italian bank:

I checked the back office and noticed that they had deleted the bank details of the Italian bank. I suppose OneCoin wasn't welcomed to the Italian bank after all, even though operating behind its new shady shell company.

Monday, 12 September 2016

OneCoin/OneLife stealing pesos in Mexico - 10th September

OneCoin's circus visited Mexico 10th September and as usual we have some video clips in YouTube of the event. I have checked out the presentations of Sebastian Greenwood and Ruja Ignatova so let's go through what they had to say.

Sebastian Greenwood

Sebastian Greenwood performs like a crazy televangelist on the stage. This makes me wonder whether this is really a ponzi or an absolutely lunatic religion that costs dearly to its believers.

"That is why we wake up in the morning, we brush our teeth, we put on our clothes - and we sell three Tycoons, three Ultimate - we go to sleep. It's the most easiest job in the world! Do you agree? Brush your teeth, put on your clothes, sell three Tycoons and Ultimates!"
- In case you didn't know a Tycoon package costs 5500 euros and an Ultimate Trader package hefty 118.000 euros. Mexicans must have a lot of loose money if that's really the most easiest job in the world. That's over 370k euros of sales and Greenwood urges the people to do it daily. - You know, it's easy like brushing your teeth.

"And there will be a day when your grandchildren or your grand-grandchildren ask you, what have you done in your life. - I wrote history, I created cryptocurrency and I became a MILLIONAIRE!"
- So remember this all you onecoiners! Tell your grandchildren and your great-grandchildren that Sebastian Greenwood became a millionaire. However, I'd rephrase those first two claims if I were you.

"Now what happens if two and a half million people sponsor one more person or two more people? What happens? Anybody went to school? - So, if two people help two people help two people help two people to understand what we are doing, to understand why you can profit not only from the project, the cryptocurrency, but you can profit by really this time building a team. And a team needs a leader."
- Well, Sebastian, you sure aren't shy about describing the pyramid part of this ponzi scheme. However, I guess you are just preaching to the choir there so no harm done to the scam.

"If you sleep you die! If you sleep you die. Who wants to die in this room? When people say that Jesus Christ walked over water, I walked over fire but didn't die! I'm still here! - For you."
- Mmkay? What did I say about a crazy televangelist.

He moves on to educate the importance of ranks. Apparently it's very important to push other people to push other people to push other people to grow in ranks. And then he reminds the people that it's easy: "Wake up in the morning, brush your teeth, put on your clothes, sell three Tycoons and three Ultimates! And then go back to sleep. How difficult can it be?"

"How many of this room have done the level 6 of the OneAcademy? Anyone? Anyone? Level 6? Level 5?"
- Anyone? Yeah, OneCoin is all about the education.

Ruja Ignatova

Ignatova performs like a Mother Ponzi Teresa. She feels very passionate about the 2 billion unbanked people albeit she doesn't want them anywhere near OneCoin because no one without proper identification is welcomed to OneCoin. Also she doesn't want the members to think that this is a way to get rich quick although she's doubling the coins of each member with her magic wand in 1st October. And by the way, there's at least one split coming before 1st October, wink, wink.

"Two and a half million active members. And over 300 millionaires on commission in the last two years." ... "I would like next time when I come here to have more than 300, and to have more of them sitting in this audience."
- At least the chances of becoming a millionaire with OneLife are much better than winning in a lottery. About 0,015 % of the claimed 2 million members are millionaires. However, I wouldn't trust much to the figures presented by OneCoin, because they have a strong odour of bullshit on them.

"When you go in the Internet you can find 5000 other cryptocurrencies. But what they do not have is they do not have the users or the people. And yet we have been criticised for the distribution model we use, network marketing." ... "No other cryptocurrency has more users than us." 
- I have to mention this again because Ignatova keeps claiming that OneCoin has users. OneCoin has zero (0) users. They have only members who have bought a package of toy money. OneCoin has no usability and hence no users. Also OneCoin has not been criticised for using network marketing but for being a scam, a ponzi scheme. Let's say it also in Spanish: ponzi.

"So what is cryptocurrency? What can we do with cryptocurrency? Being very very simplistic about it, it is digital money. But it is independent from a government."
- Well, onecoin as a currency certainly isn't independent. On the contrary to every cryptocurrency out there OneCoin is ruled by the dictatorship of Ruja Ignatova. Even the coin's value is set by her dictatorship which makes the whole concept totally laughable. However, the members aren't allowed to laugh at OneCoin. Anyone criticising the coin or the company is going to have user account and any possessions there confiscated. 

"Now we are in 194 countries."
- Oh, they finally learnt that there are actually 194 countries in the world instead of 241 used in OneCoin's marketing material. For a long time OneCoin has been marketing itself by claiming to have members in 241 countries, including this official advertising video.
"So I as a merchant can have customers in 194 countries. Every person in these 194 countries can send cryptocurrency to me. It takes one minute and the cost is much lower than Visa, MasterCard or PayPal. And this is what we want to do, we want to become the number one coin for the merchants."
- Okay, where are the merchants then? Nobody seems to have any will to start using the coin and there isn't really a way to start using them.

Again we hear about Ignatova's passion to bank the unbanked. However we still get no answers how this could be possible with OneCoin's strict policy of insisting all members to send their passport copies and proofs of addresses to them. This is beyond crazy even with ponzi standards. However onecoiners don't care to question these illogical statements.

"I often hear from some of the distributors - and I don't like it - that OneCoin is an opportunity to get rich quick. And I believe that saying things like this about OneCoin just don't give the opportunity justice. Yes, OneLife changed a lot of lifes. Over 300 people got millionaires. But what we're doing, we are creating a long term value." ... "OneCoin is not a short term opportunity."
- Yes, she is talking about those 300 members who are claimed to have become millionaires with their commissions. That's really the only way to make money with OneCoin, by scamming others to join to one's downline. So at least 300 people got rich out of this and received over 300 million euros paid for the education packages (and toy money). Wasn't Greenwood just on the same stage educating the audience that you can get rich quick and it's easy? - You only need to wake up, brush your teeth, put your clothes on, sell three Tycoons and Ultimates.

"In two years we will be the biggest cryptocurrency."
- Wait a minute, isn't OneCoin supposed to become the biggest in 1st October? OneCoin has now about 840 million coins, after 1st October that sums up to about 1.7 billion. The coin's artificial value is now about 6.9 euros so OneCoin's imaginary marketcap grows to way over 11 billion after 1st October. That's much more than Bitcoin has.
"We will have 10 million users and 1 million merchants."
- Promise?
"So it's now all with you to make this concept succesful."
- Okay, now you promised that the members will do it all. That's convenient. 

Saturday, 10 September 2016

Zinzino - Checkup 2015-2016 and the current status

Let's have a peek at Zinzino's current status. Zinzino published its latest annual report 10th of June. In addition to the annual report we have big news about the police investigation in Finland. They finally published some sort of closure to the investigation of Zinzino's operation in Finland. Also covered in this blog post; Zinzino's venturing to sponsor a Finnish ice hockey team Pelicans backfires.

The Annual Report 2015

On page two there's Zinzino's CEO Dag Bergheim Pettersen giving his thoughts about the past year. "Our new IT system and web shop are now well established, and it is already clear that our work has become more efficient and simpler." Then he goes explaining: "Because of intensive work with our new IT system, we received a short-term decline in growth in the fourth quarter of 2015."

On page 10:

A major project was to implement a new web-shop. The focus has been on stability and intuitiveness. The customer is the focus of attention as the web-shop no longer requires a login. An web-shop that is easily accessible provides an even better visitor experience. New, potential customers can browse through Zinzino's range of quality products and make their personal choices."

Okay, let's try it:

To the web shop! ...
... Oh, okay, let's try again.
Well I must say that the web shop is far away from being customer friendly which is quite strange after the "intensive work" trying to make everything work smoothly. I have tested the shop several times acting like a customer going to purchase some products and I don't recall a single time without problems.

Everything looks simple at first, there's an icon directing to the web shop in the middle of Zinzino's web page. After clicking the icon there's an utterly pointless page that needs to be clicked again to enter the web shop which opens in a separate tab. The actual web shop has several issues. For instance occasionally the shopping cart was unable to show the box for typing delivery address. Entering to payment process with credit card option selected took so long that I already thought I crashed my shopping cart. Of course I wasn't going to actually buy anything, but the web shop didn't know it. It's also common that there are objects that won't load at all and even prevent the purchase from happening.

A common sight in Zinzino's web shop.
I gave up after watching over two minutes of this. This button is the last step before making a payment for the purchase. (It's still going on after about 20 minutes so it's safe to say my shopping cart crashed.)

It's soon the end of 2016 so it's not like they are only having technical issues with a newborn. Pettersen mentions that Zinzino aims to reach one million customers by 2020. However I think they are still more concentrated into recruiting new partners than acquiring customers, and it shows.

From the customer point of view the most bizarre feature of the Zinzino's web shop is that you can't purchase a product without having an independent partner and one's upline taking its toll from the purchase. While making a purchase you must select an independent partner as a "referral" before you can go forward - even if you don't know any partners. You simply can't buy any products directly from the company without a totally unnecessary third party. This is totally absurd and there's no reasonable explanation I can possible think of why I should participate in paying commissions via my purchase to an unknown independent partner while buying a product directly online.

Zinzino's web shop is a perfect example why Multi Level Marketing (MLM) just doesn't work as a cost effective distributing channel from producer to customer. While representatives of MLM businesses usually claim that their way of distributing goods to the end consumer is the most cost effective one, the reality is by far different from it. The Internet has made MLM even worse distributing channel than it ever was when shopping online has become more and more popular.

A cost effective distributing system would cut down any unnecessary levels that cause expenses whereas MLM just adds them. The way Zinzino's web shop forces all their customers to name a (non-distributing) distributor as a referral even when it's totally unnecessary just underlines this craziness.

Can you make money by being an independent partner?

Because I have mostly knowledge about Zinzino's Finnish branch I'll use it as an example. 

After publishing the Annual Report of 2014 Zinzino has not thereafter revealed how many new distributors they have recruited. However as we know according to the annual reports of 2013 and 2014 almost each and everyone of their Finnish recruits have dropped out soon after starting as a Zinzino partner. I guess it's safe to say that those thousands of recruits didn't earn much by being an independent partner and most of them must have suffered financial losses.

Well, how much can an independent partner make then? Despite those thousands of dropouts Finland has continuously had throughout the years about 1000 active partners. An anonymous representative claims that Zinzino pays 40 % of its sales as commissions to the distributors*. The sales in Finland was about 5.8 million euros in 2015. 0,4 x 5.8 million = 2.3 million euros for commissions. Let's assume that they had to pay commissions to 2.000 partners. That gives on average 1.160 euros of commission for the whole year to a single partner. A monthly income of below 100 euros isn't much for an entrepreneur - in fact it's pathetic. Even if there would be only 1.000 partners collecting the commissions the income would be on average around 200 euros for a single rep for a month. 
* source, the comment posted 22.12.2015 11:02: 
(this is a sort of Q&A page and  presumably  the answer are given by the top reps of Finnish Zinzino)

The police investigation in Finland closed

After almost three years since they started the investigation on Zinzino's operation in Finland the Finnish police and the Prosecutor's Office of Helsinki have finally ended the investigation. Zinzino's CEO released this post 23th August:

In October 2013 the Finnish Lottery administration started the police for investigation regarding Zinzino suspected violation of the Money Collection Act.Comment on the matter according to this letter, which can be found here:
Today our lawyer has informed me that the Helsinki police investigation has decided to close the case, on basis of Zinzino action is in accordance with the Finnish law and regulations. We are naturally delighted about this. The result was expected, as Zinzino has from the beginning worked prevailing in each country according to the laws and regulations and is in addition to most of the countries member of the Direct Selling associations and has thus committed itself to these rules, but after a long process it feels good to get a positive decision.

The rest of the post can be read here (English translation also available there):

Well, what does the resolution of the police say? I'm not going to translate all of it but let's go through some key points.

As a witness they have interviewed a Zinzino representative. The rep joined Zinzino 2013 paying a starter pack/fee of 912 euros. According to the witness the price range of a starter pack ranged 869-1895 euros. In addition any rep must have a registered business to receive commissions or credits. (By the way, the witness doesn't seem to be a Zinzino rep anymore.)

Although police and the prosecutor have apparently seen the starter kit to be somewhat legitimate, the percentage of starter kits cut of the total sales speaks for itself:

2011: start-up package 444.247 € / sales partners 738.796 € / commissions 243.263 €- Start-up package accounts for 60.13 % of sales 

2012: start-up package 2.175.983 € / sales partners 3.604.203 € / commissions 1.352.367 €- Start-up package accounts for 60.37 % of sales

2013: start-up package 762.417 € / sales partners 5.098.344 € / Commissions 1.761.345 €- Start-up package accounts for 14.95 % of sales

2014: start-up package 170.633 € / sales partners 6.008.976 €  / the commission does not occur- Start-up package represents 2.83% of sales

The police concludes that Zinzino's operation in Finland is based on product selling and there has not been a separate starter's fee. Therefore Zinzino's operation isn't violating Money Collection Act. At the end the prosecutor has decided that there isn't such important public or private interest that requires a preliminary investigation to be carried out.


Scam Detector's verdict

As you can see in the recent years there has been a significant drop in the cut of start-up packages of total sales after 2012. However according to the annual report of 2014 they reached probably the all time high with recruiting 1.701 new distributors in Finland. Then how come the sales of start-up packages is only 2.83 % in 2014 when it was 14.95 % of the total sales in 2013 with 1.661 new recruits? Comparing the figures to the ones in 2012 raises even more questions. Those numbers just don't make sense and it's very suspicious that this drop happened just after police started the investigation in the end of 2013. They recruited over 3.000 new distributors during 2013 and 2014 and yet they claim that the sales of Start-up packages was very low.

In my opinion the massive percentage of the Start-up package sales in 2011-2012 just show a clear pattern of pyramid scam building. Now, I'm not saying that Zinzino did anything illegal. In the end the people who conduct the pyramid building are the ones responsible. The rush to join Zinzino's distributor network rose from Finnish top reps giving false promises of massive and easy incomes and exaggerated chances of becoming "a top leader". This has been the cause for Zinzino's bad reputation in Finland and of course also the reason why so many recruits have quit working as a distributor soon after finding out that there was no passive income to gain nor a financial freedom to obtain.

Reading between the lines that document from the Prosecutor's Office of Helsinki it seems like the prosecutor just didn't see Zinzino worth wasting any more time. I guess the massive case of Wincapita - the largest ponzi scam ever in Finland - has set the bar quite high for the prosecutor's office to launch actions. After Wincapita trials there has been for example clear pyramid-ponzi scams such as Emgoldex and OneCoin which both had police investigating them without any actions taken to stop them. Authorities seem to be very reluctant to interfere pyramid/ponzi scams in Finland nowadays - especially when they are international.

Zinzino's coffee business fading away

In 2013 Zinzino's coffee business had total sales of 2.5 million euros and it was still the dominating product line for the company. However in 2015 the sales was only 1.2 million euros. Zinzino's salvation was the health related products they introduced when the collapse of coffee business started. It remains to be seen how long they can keep it going with the supplements. Their distributor network seems to be in a stagnant state here in Finland. A network built like a pyramid will usually start crumbling as soon as the growth stops. I'd bet that the situation is similar in all other countries that the company invaded years back.

Zinzino announced a sponsorship deal with ice hockey team Pelicans

Zinzino has been making some sponsorship deals with European football clubs. Pelicans is the first Finnish sports clud they managed to have a sponsorship deal with. These are the soccer clubs with whom Zinzino informs having some kind of arrangement:

When the decision to announce the deal between Pelicans and Zinzino was made they sure didn't expect the response the sponsorship deal received from the fans and also from some media representatives. The reaction of some of the fans was even hostile and many were devastated by the club's new sponsor because of its bad reputation. Also some sports journalists were mocking the deal.

It's very rare in sports that such small time sponsorship deal raises any reaction whatsoever. Thus it's interesting that this deal caused such a stir that Pelicans needed to explain themselves. The actual deal consists the following: Zinzino provides fish-olive-oil supplements to the team. Zinzino is given an ad space on the team's training jerseys and an ad space in the club's arena. Apparently the club receives no financial gain from the deal.