Celebrities Promote MLM Suspected of Being A Pyramid Scam

Celebrities Dennis Trillo, Tom Rodriguez and Daniel Matsunaga promote GoldXtreme, an Multi-Level Marketing (MLM) company, that is a subject of a Securities and Exchange Commission (SEC) advisory against illegal investments.

In your opinion, why do you think these celebrities are promoting GoldXtreme? Type your answer in the comments section

 

 A. They think this is legit, and they are probably investors themselves

B. They may not be that smart

C. They don’t read or watch the news

D. They’ll do any gig that pays a lot of money

E. All of the above

 

See the photo proofs, courtesy of Instagram

 

Dennis Trillo for GoldXtreme:

Dennis Trillo for Goldxtreme
Did Dennis Trillo’s performance for Goldxtreme resulted into new recruits? The hashtags for these images are #DennisTrillo and #GoldExtreme. FYI, there is no first E in Goldxtreme. Image from @ilovetomden Instagram account; posted July 30, 2015

 

Daniel Matsunaga for GoldXtreme:

Daniel Matsunaga for Goldxtreme
Did Daniel Matsunaga’s smile resulted into new recruits for Goldxtreme? The hashtags for this include #5Kturns75K – really? Image from goldxtreme_smartwork Instagram account; posted July 24, 2015

 

 

Tom Rodriguez scheduled to appear at GoldXtreme’s office this Friday:

Tom Rodriguez scheduled to guest in Goldextreme
Will he show up? Tom Rodriguez scheduled to guest in Goldextreme’s office on August 14, 2015. The quote says (in English) “Use common sense… if actors come here to visit, does this seem like an unlicensed company?”. Image from goldxtremesouth Instagram account, posted August 12, 2015

 

As a reminder, this is how you make money with GoldXtreme:

Goldxtreme how it works
They are gold traders but they also sell prepaid load? Wow! That’s diversification for you! GoldXtreme compensation plan. Image from GoldXtremePH Facebook page

 

SEC issued an advisory on GOLDXTREME Trading Co. on June 4, 2015, which was posted on SEC’s website on June 11. Read advisory here.

Read  Distinguish Between Legitimate Multi-Level Marketing and A Pyramid Scam here.

 

GoldXtreme denies it deals in investments and that it promises guaranteed returns. However, images with the hashtags #goldxtreme or #goldxtremeph in Facebook and Instagram reveal  promises of  “650 turns to 5K” or “5K turns to 75K” by recruiters.

The “gold bar”of GoldXtreme is made only of 14k gold (58.3% gold) and weighs only 15gm. This is NOT the bar that is used in international gold bar trading.

GoldXtreme 14K 15gm gold bar
Sorry but this bar doesn’t meet the international standard for gold trading. The poster has the audacity to call herself goldtrader. Legitimate traders of gold bullions don’t trade with substandard bars such as this. Image from @shannrhea Instagram account

 

The standard gold bar held by banks and traded internationally should have a minimum of 99.5% gold content. The weight of the standard bars are usually 1000 gms or 12.4 kilograms. GoldXtreme claims their revenues come from gold trading; however, the GoldXtreme bars do NOT even remotely meet international trading standards.

According to GoldXtreme’s SEC registration, the company trades gold… and cellphone prepaid loads (seriously!). Do you think international gold traders will bother with selling cellphone loads?

 

If GoldXtreme eventually turns out to be a scam, are these celebrities willing to face the recruits who will lose money?

 

 

 

– Finance, M.D.

thefinancemd.com

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Finance, M.D.

Finance, M.D. is a practicing physician who dabbles in finance and investment. He has passed all three levels of the Chartered Financial Analyst (CFA) exams, all in his first attempts. thefinancemd.com

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