GMI SCAM IN PAKISTAN (GOLDMINE INTERNATIONAL)

UPON ENORMOUS REQUEST FROM OUR FELLOWS AND FRIENDS, WE HAVE INVESTIGATED THIS SCAM COMPANY IN PAKISTAN,WHICH IS ALSO OPERATING IN OTHER Asian COUNTRIES. (This investigation is carried out by Muhammad Huzaifa and Muhammad Jehanzaib)



First we have to know that how GMI (GOLDMINE INTERNATIONAL) works and what is their business structure. GMI (GOLDMINE INTERNATIONAL) works on the basis of pyramid scheme which is defined as:

"A pyramid scheme is a fraudulent investing plan that has unfortunately cost many people worldwide their hard-earned savings. The concept behind the pyramid scheme is simple and should be easy to identify; however, it is often presented to potential investors in a disguised or slightly altered form. For this reason, it is important to not only understand how pyramid schemes work, but also to be familiar with the many different shapes and sizes they can take".

The Scheme:

As its name indicates, the pyramid scheme is structured like a pyramid. It starts with one person - the initial recruiter - who is on top, at the apex of the pyramid. This person recruits a second person, who is required to "invest" $100 which is paid to the initial recruiter. In order to make his or her money back, the new recruit must recruit more people under him or her, each of whom will also have to invest $100. If the recruit gets 10 more people to invest, this person will make $900 with just a $100 investment.

The 10 new people become recruiters and each one is in turn required to enlist an additional 10 people, resulting in a total of 100 more people. Each of those 100 new recruits is also obligated to pay $100 to the person who recruited him or her; recruiters get a profit of all of the money received minus the initial $100 paid to the person who recruited them. The process continues until the base of the pyramid is no longer strong enough to support the upper structure (meaning there are no more recruits).

The Fraud:

The problem is that the scheme cannot go on forever because there is a finite number of people who can join the scheme (even if all the people in the world join). People are deceived into believing that by giving money they will make more money ("with an investment of just $100, you will receive $900 in return"). But no wealth has been created; no product has been sold; no investment has been made; and no service has been provided.

The fraud lies in the fact that it is impossible for the cycle to sustain itself, so people will lose their money somewhere down the line. Those who are most vulnerable are those towards the bottom of the pyramid, where it becomes impossible to recruit the number of people required to pay off the previous layer of recruiters. This kind of fraud is illegal in the Unites States and most countries throughout the world. It is estimated that 90% of people who get involved in a pyramid scheme will lose their money.

Multi-Level Marketing (MLM):

Legal multi-level marketing (MLM) involves being recruited in order to sell a product or service that actually has some inherent value. As a recruit, you can make a profit from the sales of the product or service, so you don't necessarily have to recruit more salespeople below you. And while you may be encouraged to recruit other salespeople whose sales would give you more profit, you can stick to just selling the product directly to the consumer if you choose.

A pyramid scheme MLM, however, will most likely sell a product with no independent value. The product could take the form of reports of some kind, for example, or mailing lists. In this kind of pyramid scheme, you would be required to recruit new members into the MLM in order to make a profit and keep the MLM alive. Joining the MLM is the only reason anyone would buy the products sold by this pyramid scheme.

Ponzi Schemes:

Named after Charles Ponzi, who ran such a plot from 1919-1920, the Ponzi scheme is a fraudulent investment plan. It is not necessarily a pyramid, which is hierarchical. In a Ponzi scheme, there is one person who takes people's money as an "investment" and does not necessarily tell them how their returns will be generated. As such, the people's return on investment could be generated by anything; it could come from money taken from new investors - which means new investors essentially pay off the old investors.

A very prominent case in history of pyramid scheme was launched by Gerald Payne in USA in 1993 details are as follows:

Founded: Circa 1993
Headquarters: Tampa, Florida
Leader: Gerald Payne
Background: Greater Ministries has run a nearly half-billion dollar pyramid scheme
Outreach: Seminars, mail and web-based solicitations
Ideology: Anti-government, conservative Christian, some white supremacist elements
Number swindled: Around 18,000

Source : (www.adl.org/Learn/ext_us/GMI.asp?LEARN_Cat=Extremism&LEARN_SubCat=Extremism_in_America&xpicked=3&item=gmi)

STATISTICAL DATA OF WWW.GOLDMINEINT.COM :

Goldmineint.com users come from these countries:

Pakistan 82.1% THE HIGHEST TRAFFIC IS FROM PAKISTAN

India8.2%

United States2.3%

Qatar1.3%

Other countries6.0%

Goldmineint.com traffic rank in other countries:

Pakistan1,496

Qatar11,030

India156,134

United States1,298,924

(Source www.alexa.com)

OUR CORRESPONDENCE WITH THE NORWEGIAN GOVERNMENT:

When we contacted to the government of Norway ,we collected enough proofs to prove our points.We sent an email to an high official in Norway concerning GMI legitimacy .In response they said that they have many registered complaints against GMI and they also warned us not to make any business deal with them.

GMI REGISTRATION AT NORWEGIAN EMBASSY :

GMI claims that they are registered at Norwegian embassy.Be sure that they are not registered and GMI also shows a fake certificate of registration on its website .This issue has been published on Norwegian embassy site.

FIGHT BETWEEN GMI OFFICIAL AND A WISEMAN:

We found an online fight of GMI official and a wiseman.For more info visit below.

http://www.onelebanon.com/forum/showthread.php?t=29119


LAST BUT NOT THE LEAST:

We are working more and more on this scam company and we are also trying to reveal the name of those people who are involved in this company in Pakistan.Till then we beg every Pakistani that please do not invest in this scam company .If we would be able to save a single penny of our brothers then we will assume that our hard work has given good results.

OPEN CHALLENGE TO GMI:

If GMI officials still think that they are doing a legal business in Pakistan than it is our open challenge to them that they should come on this blog and express their views.Although if they think people in the third world countries are stupid, then they are wrong .In the meanwhile we are also working with a local law enforcing agency to investigate the transactions made by GMI in Pakistan and INSHALLAH the GMI officials in Pakistan will be apprehended.

OUR PROMISE TO OUR NATION :

We promise every Pakistani that until we the "SCAM BUSTERS" are alive till our last breath we will save our people from these scam companies.So far we have busted many scams in Pakistan and now it's GMI's turn.