Emex FTM: New Money Circulation Scheme Spreading Wings in Southern States?
Mumbai-based Emex Fundamental Tradez Marketing International Pvt Ltd (Emex FTM) is the new entrant in the world of money circulation schemes that promises exaggerated assured returns on increasing new recruits in binary mode. While Emex FTM's website shies away from providing any information about its activities, there are a number of videos and messages on social media that highlight how people behind this company are running a collective investment scheme (CIS) without obtaining any permission from the regulators, which can be seen from the fact that the Emex FTM website does not display any registration number or certificate obtained from Securities and Exchange Board of India (SEBI). Under the pretext of CIS, Emex FTM is actually running a money circulation scheme that will collapse the day when there are no investors joining as new members. 
 
Emex FTM offers five different plans based on the amount invested ranging from Rs5,000 to Rs1 lakh and promises assured weekly returns on its Facebook page. For an investment of Rs5,000, it offers weekly returns of Rs375 over 40 weeks. This amounts to Rs15,000 or a return of three times over 9-10 months. In short, to those investors who remain invested for 40 weeks, Emex FTM is offering three times returns on the invested amount.
 
Returns of such a magnitude are not possible in regular or legally valid investments. For example, provident fund (PF) gives an interest of around 8.50%, which in other words mean an amount invested today would double only after more than 11 years.  
 
 
In addition, it offers 10% additional income each for binary (recruiting new members as your sub-associates) and direct referral. Emex FTM also has a mobile app FTM International, which it claims provides updated information to members. 
 
 
Several videos on Emex FTM scheme are available on YouTube. While a few have been deleted, there still are some that promote the scheme. Here is one such video posted by someone with a username The Rich Story...
 
 
Another user Bedra Media has posted several videos on Emex FTM schemes. This video below explains how the direct referral, binary system works and what is the ceiling in this money circulation scheme.
 
 
 
One member of the scheme, Sheikh Askan even made a video explaining how the mobile app of Emex FTM works, wherein he shows hyped claims of investment returns. In one screen, he shows invested amount as Rs1.60 lakh, return on investment (RoI) received at Rs23,630 and the credited amount of Rs9,73,130! There is no logical explanation for this type of extravagant earning given by Sheikh Askan. 
 
 
 
Interestingly, on its portal, Emex FTM says it has a few businesses such as the e-commerce venture Emex India that sells gold, diamonds, homecare products, cosmetics and consumer electronics items. Another business listed on its website is real estate.  It says, “Emex Builders and Developers is one of the fastest growing chains in the infrastructure building industry in the country."
 
FTM International, it says, deals in providing services to retailers. However, what service it provides is not clear. All it says is, "We help you take advantage of technology to get the best out of your retail businesses. Further, FTM practically proves that the best way to climb the echelons of profit is to buy and sell the shares of a brand rather than engaging in retail business of the same brand. This too we cover for you."
 
Lastly, Emex FTM claims to be operating a fleet of "India's first online taxi service". "...the speciality is that it runs on self-financed taxis as well. It also includes a wide variety of vehicles like cars, autos, bikes, etc. Giving customers a heads up in growth, Flykab offers cashless rides to them as well," it says. 
 
 
However, for such a 'classy businesses' Emex FTM shies away from disclosing information or even names of its promoters and directors on its website, except for Ratheesh Raveendran, who is managing director.  
 
 
In some of the messages shared by people who had 'invested' money in this scheme, Emex FTM is said to be earning money from stock market investment through Motilal Oswal Financial Services Ltd (MOFSL). However, the brokerage denied having any relationship with Emex FTM. MOFSL has initiated an enquiry in this matter, an officer from MOFSL told Moneylife.
 
  
Similarly, some agents of Emex FTM were found linking the company with Geojit Financial Services Ltd. But Emex FTM had to issue a clarification on its website as well as in a newspaper stating that it is not into any business relationship with Geojit. 
 
 
Moneylife sent emails to senior officials of SEBI and Emex FTM. However, we have not received any reply from them till writing this story. We will update our readers as and when a response is received from them.
 
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    COMMENTS

    imrankhanh8

    1 month ago

    Lot of innocent people have invested from my city, if its illegal people have to be alerted.

    Newme

    2 months ago

    I don\'t know about other states but in Tamilnadu every few years fly by night finance investment companies crop up, collect the money and vanish. Then the investors name a beeline to EoW Police. Police catch the fraudsters and get their share and let them go. Cheated investors form an association and fight the case in court. Judges get their share and put the case into hibernation and finally everyone forgets it. Then another set of finance companies arrive and carry the baton and they attract new set of beguile investors. Cycle continues.

    Rupesh Chatterjee

    2 months ago

    2 of their videos posted here are already offline by now.

    Waiting to see what else will be gone by tomorrow.

    Deceptive Income Claims – How Not to Market Your MLM, Ponzi Schemes
    When promoting the business opportunity, multilevel marketing (MLM) companies and their distributors should generally avoid making any income claims. Why? Because most MLM distributors make little to no money, and touting the possibility of making bank is just plain deceptive.
     
    The law on income representations is really pretty simple: one cannot make an income claim that is not representative of what a typical distributor will earn. (Note: what the typical distributor earns is not the same as average earnings.) As a general matter, the typical distributor earns nothing – especially after taking expenses and costs into consideration – so most MLM income representations will violate FTC law.
     
    In 2016, former FTC Chairwoman Edith Ramirez explained that:
     
    multi-level marketers should stop presenting business opportunities as a way for individuals to quit their jobs, earn thousands of dollars a month, make career-level income, or get rich because in reality, very few participants … do have success of this type, testimonials from these rare individuals are likely to be misleading because participants generally do not realize similar incomes.
     
    That means that even truthful testimonials from top-earning distributors are not acceptable. About three months after Ramirez’s statement, in January 2017, the FTC cautioned that (emphasis in original):
     
    it’s unwise for MLMs to make earnings claims – expressly or by implication – that don’t reflect what typical participants achieve.
     
    Since then, in January 2019, the Direct Selling Association (DSA) in conjunction with the BBB National Programs launched the Direct Selling Self-Regulatory Council (DSSRC), which primarily monitors the direct selling channel for inappropriate product and income claims. In July 2020, the DSSRC issued Guidance on Earnings Claims to “ensure all representations made by direct-selling companies or members of their salesforce comply with legal and self-regulatory standards.”
     
    Further, since the COVID-19 pandemic the FTC has sent more than 10 warning letters to MLM companies concerning deceptive earnings representations. In those letters the FTC has noted that “claims about the potential to achieve a wealthy lifestyle, career-level income, or significant income are false or misleading if business opportunity participants generally do not achieve such results.”
     
    Below is a compilation of misleading income claims derived from FTC letters, decisions, statements and guidelines, as well as DSSRC guidance and decisions. It is an authoritative list of unlawful income representations used to promote MLM businesses. While direct selling companies and their distributors should avoid making atypical income claims altogether, the following language and visual imagery is sure to get those using them in trouble:
     
    participants can be “set for life
    you can “quit your job,” “fire your boss” or “retire from your job
    make more money than you ever have imagined or thought possible
    earn millions of dollars, “creating millionaires
    become a stay-at-home parent
    images of large checks (both in size and amount)
    pay off debt or student loans
    “Connect with me to talk about earning $500-$1500 a month from home.”
    “turn a small investment into six figures
    made $100 yesterday just by following the plan”
    retire
    have the time and money to enjoy the finer things in life
    images of a lavish lifestyle including but not limited to expensive houses and opulent mansions, luxury or exotic cars, private helicopters and jets, yachts and expensive vacations
     
    While some income and lifestyle claims may be permissible if they are accompanied by a clear and conspicuous disclaimer indicating what the typical distributor earns, many of the examples above highlight wealth that is so extraordinary that they cannot be effectively qualified by a disclosure of generally expected results. Which brings us back to where we started:
     
    MLMs and their distributors should generally not make income representations when promoting the business opportunity.
     
    For more of TINA.org’s coverage of MLMs and income claims, click here.
     
     
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    COMMENTS

    Ramesh Popat

    2 months ago

    India is in no way much behind!

    Bike Boat Ponzi Scheme: Two held for duping investors of Rs42,000 crore
    Two persons have been arrested on the charge of cheating people out of approximately Rs 42,000 crore in different states on the pretext of good returns through a ponzi scheme 'Bike Boat', Delhi Police said on Friday.
     
    The Economic Offence Wing arrested CMD Sanjay Bhati and Director Rajesh Bhardwaj of M/S Garvit Innovative Promoters Ltd, who induced their victims to invest Rs 62,000 for a two-wheeler for an assured return of Rs 9,500 per month, including the principal amount and rental income on the bike, for one year.
     
    They duped a number of people who invested their hard-earned money in this scheme. In January 2019, the company also launched the e-bike scheme, wherein an investment of Rs 1.24 lakh for a motorcycle would get a return of Rs 17,000 per month for one year.
     
    The accused initially paid the assured amount to the investors to win their trust, but later defaulted on payments and absconded.
     
    Many cases stand registered in Uttar Pradesh and other states on the basis of complaints by their victims. A number of persons had filed police complaints against Bhati, whose company had a registered office at Plot No. 1, Chiti, Dadri, Gautam Buddh Nagar district, Uttar Pradesh.
     
    "During the course of investigation, we found that approximately 8,000 complainants from Delhi were cheated out of around Rs 250 crore. The Reserve Bank of India had informed us that the said firm was not registered with the apex bank as a NBFC and thus not authorised to collect money from the public," said OP Mishra, Joint Commissioner of Police (EOW).
     
    The EOW said that the number of properties worth hundreds of crores of rupees connected to the case were identified and a verification of the same was on. It further said that the Directorate of Enforcement, Lucknow Zonal office, was investigating this case.
     
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    sureshnair.trivandrum

    3 months ago

    Rs 42000 crores! I think you got the figures wrong! Simply not possible!

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