Zhunrize has become another casualty from the SEC.
On 9-23-2014 the SEC shuts down operation of Zhunrize which to many was a big surprise.
Here Are Some Details
Zhunrize, launched in 2013 is a shopping and savings portal and offers affiliates a replicated shop, which the company has branded “ZhunCity”. The shopping portal starts at $99 and $30 a month, up to $3,000 and $100 a month.
Now What… Learn About Plan B
According to a SEC Press release:
“On September 22, 2014, the Securities and Exchange Commission filed a civil injunctive action in the Northern District of Georgia versus Zhunrize, Inc. (“Zhunrize”) and its CEO, Jeff Pan (“Pan”). In connection with the filing of this action, the Commission obtained a short-lived restraining order against the accused and an order freezing all accuseds’ possessions.
The Commission alleges that Zhunrize, an Atlanta-based multi-level marketing company, and Pan have been running a deceptive pyramid scheme that has raised over $100 million from investors worldwide.
According to the Commission’s grievance, Zhunrize professes to be a legitimate multi-level advertising business by which members purchase online shops then offer product with them, while making commissions on products purchased by their consumers and with store sales to other members and hosting costs paid by those members.
The business is running as a pyramid scheme since its commission structure is based on the continuous recruitment of new members, with the most profitable returns dependent on the downline recruitment of other members with store sales regardless of any product sales. To this day, the business has actually taken in approximately $105 million from roughly 77,000 investors given that 2012.
The Commission’s grievance further alleges that in its advertising materials, Zhunrize promotes the ability to make commissions from the sale of items, both with the owner’s shop and through downstream owners’ stores. For example, a Zhunrize advertising video differentiates Zhunrize from other online multi-level marketing strategies, asserting that Zhunrize has “sustainability.”.
According to the video, the Zhunrize “model will certainly sustain itself because we will have millions more consumers than representatives.” Later on, the storyteller in the video asserts “we have the Vendor Relationships, the Logistics, the Payment Gateways to reach millions of new clients monthly.”.
The Commission’s problem also alleges that Zhunrize does not disclose, however, that to date substantially all of its earnings has comes from the sale of subscriptions (described as stores) and the matching regular monthly internet hosting fees connected with operating those establishments, as opposed to the sale of items.
Both Pan and a Zhunrize vice-president affirmed that the company presently obtains 80-90 % of its revenue from offering online shops and the month-to-month internet hosting costs for them, as opposed to real items from these stores. Therefore, contrary to the representations to possible investors, Zhunrize is really a fraudulent pyramid scheme.
The Commission’s problem, submitted in the United States District Court for the Northern District of Georgia, alleges that each accused breached Sections 5(a), (c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5 thereunder, and looks for versus each defendant irreversible injunctions, disgorgement with prejudgment interest and civil financial fines pursuant to Section 21A of the Exchange Act.”.
In conclusion, I don’t think many people seen this one coming, so I really feel bad for the individuals, and families that participated and relied solely on the income generated from Zhunrize.
I personally didn’t participate in Zhunrize but I had some good friends and colleagues that were in this program and had lost big.
We as entrepreneurs need to understand the risks to any business opportunity that presents itself, we all must understand that things might not work out in the end, and to always have a plan B.
Don’t worry Zhunrize distributors, their is always light and the end of the tunnel when their seems to only be darkness.
A new opportunity has presented itself in the world of cryptocurrency also known as digital currency. This opportunity runs in a similar manner as a Forex day trader does in the idea to find a low in the market and to sell high when the market does better.
Imagine all these transactions, or in this case… mining, done for you on complete auto-pilot giving you a legitimate form of passive type income in the fact that the mining machine softwares does all the work for you!
This is what the light at the end of the tunnel is for you.
Here is some more details about how you can recover fast from this unfortunate Zhunrize loss: