Is Abranetwork reliable? Be sure to read before investing
Abranetwork says it fights financial pyramids, but affiliated with suspected pyramid companies. The association defends the interests of Multilevel Marketing and has a black list to publicize possible pyramids in Brazil.
However, the company was investigated by the CVM, after several companies that had the seal Abranetwork have been accused of pyramid. The reliability of the Association's quality seal was questioned by the Public Ministry and the CVM.
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What is Abranetwork?
A Abranetwork is Brazilian Association of Network Marketing. Its objectives are:
- Helping a Multilevel Marketing entrepreneur to act professionally in companies that are affiliated.
- Regulate Multilevel Marketing in the Brazil.
- Combat financial pyramids in the Brazilian market.
A Abranetwork is an association that defends the work of multilevel marketing. On the Abranetwork they say they fight illegal practices and scam pyramid in Brazil.
Monthly to Abranetwork publishes a black list of suspicious companies that may be possible pyramids. However, Abranetwork already gave its seal of quality antipyramid for companies that were investigated by the financial pyramid by the CVM.
The Association's vice president tried to defend himself, said he has more than 30 affiliates in Brazil and that they have done their best to protect people from acquiring fake multilevel marketing services.
How it works Abranetwork?
A Abranetwork issues a seal for multilevel marketing or network marketing companies. But for the seal to be issued, the company must send documents and audits every 6 months.
The quality seal of Abranetwork they are only for a company with one year of operation.
18k Ronaldinho Abranetwork
18K Ronaldinho is one of the associates of Abranetwork, the company promised 400% profit in less than 1 year. 18K Ronaldinho “did arbitrage in cryptocurrencies” and generated a profit of 2% a day for its investors.
They had the seal Abranetwork and yet they were accused of pyramid financial.
In the complaint here there are more than 300 complaints involving 18K Ronaldinho. Many of these complaints say they failed to recover their investments in 18K Ronaldinho, even with the seal Abranetwork quality.
Abranetwork hymn
A hymn is one of the largest Multilevel Marketing company in Brazil. It does direct sales, Abranetwork they support multilevel marketing companies with the intention of strengthening the segment and professionalizing entrepreneurs.
A Abranetwork represents about 5 million multi-level marketing entrepreneurs in Brazil. One of the biggest entrepreneurs in hymn is Marco Antônio.
Marco is president of human development, he owns 90% of the entrepreneurs of the hymn on your network. Today, it is the largest leadership bonus in Brazil.
Abranetwork and CVM
CVM Securities and Exchange Commission investigated the company's actions in Brazil. You can consult the process through SEI: 19957.009861 / 2019-09 of CVM against the Abranetwork.
CVM opened the process shortly after a user complaint. This user reports that he invested in a company with a seal Abranetwork and lost his money.
A Abranetwork has been associated with several companies suspected of financial fraud in the investment sector. Companies that did not have the CVM registration to operate, for example: Dream Digger.
Companies Abranetwork
The companies Abranetwork are associated, have quality seal of Abranetwork, this ensures more credibility for the brand, mainly to differentiate these companies from pyramids financial
There are requirements for companies to have the seal of Abranetwork, for example:
- Owning a year of operations
- Have representatives or employees responsible for the company's code of ethics and conduct Abranetwork.
- Have 80% of resolutions in the governing body defense consumer
Associated companies need to have the above requirements and undergo analysis. After the final results and the approval to Abranetwork generates a monthly fee for the company plus a membership fee.
Who has the quality seal Abranetwork they are associates who would be in accordance with the ethical principles of multilevel marketing and who would respect Brazilian consumers. But it was not the case for some companies with the seal Abranetwork.
The code of ethics of the Brazilian Association of Network Marketing looks after the interests of multilevel marketing, so that companies are not confused with pyramids. The network service model (multilevel marketing) allows the company to build an independent distribution of its sales.
It is as if the company has independent distributors, the company pays those distributors with sales compensation. The independent distributor has no business relationship with the network marketing company.
Within network marketing, agreements that violate the code of ethics of the Brazilian Association of Network Marketing are prohibited.
Examples: promise abnormal discounts to customers, negotiate financial offers in order to bring other distributors into the network and make misleading statements.
Midas Trend Abranetwork
Midas Trend is a financial pyramid in Brazil that has already broken. She's blacklisted by Abranetwork. Along with companies such as: Bits2u, D9 Clube de Empreendedor e nick.
All if titled like network marketing companies, but they were a fraud.
youxwallet Abranetwork
A youxwallet had the “seal” of Abranetwork, the company was investigated by the CVM and convicted of operating irregularly in Brazil. The Youxwallet not possessed the right to offer real estate investment securities.
The returns from youxwallet were high, about 400% more bonuses for the indications. The company said it was specialized in multilevel marketing, the seal of the Brazilian Network Marketing Association they guaranteed this reliability, but it did not regulate investment operations.
O seal of Abranetwork does not regulate Youxwallet investments in Brazil. THE youxwallet needed authorization from the CVM to work with investments.
Unfortunately the combination of multilevel marketing and cryptocurrencies is famous in the Brazilian pyramids. There are other companies that did “marketing multilevel ” but they were financial pyramids.
Abranetwork DD Corporation
A DD Corporation was another financial pyramid, it was in the process of affiliation with Abranetwork. Many other member companies underwent an investigation at the Public Prosecutor's Office on suspicion of a pyramid, companies similar to DD Corporation.
Leonardo Araújo, owner of DD Corporation, sported a luxury life in Europe while leaving his customers unpaid in late 2019.
DD Corporation went bankrupt in 2019, admitted bankruptcy to all investors, but said it will pay off debts by 2021. The Public Ministry condemned DD for expectations of unrealistic gains and ensures the scheme was fraudulent.
Abranetwork it's trustable?
The membership process at Abranetwork it didn't work out for 18K Ronaldinho and youxwallet. Both accused of financial pyramid and with the seal of the Brazilian Network Marketing Association.
Another company already condemned to Binary Bit generated a loss of 80 million reais, the company was in the process of affiliating with Abranetwork also. About 27 thousand customers Binary Bit are unpaid.
Another company that has the Abranetwork quality seal and is being investigated in Paraguay is Credminer.
The vice president tried to defend the above companies by saying that the investigation does not say that they are guilty. However, the complaint here has several examples of how these companies could not be trusted.
nick Forex
A nick Forex is one of the most famous examples of financial pyramids that passed for multilevel marketing companies.
A nick she was also accused of currency evasion and money laundering. It adopted some multilevel marketing strategies and promised high profitability for investors.
But it was a pyramid, the Operação Lamanai federal police arrested 10 partners da nick Forex .
Abranetwork is pyramid?
The Brazilian Association of Network Marketing was accused by the Public Ministry of being a financial pyramid. The prosecutor's office accused the Association of sponsoring and creating pyramids financial.
The Brazilian Association of Network Marketing countered the accusation on the website. Said:
"The institution's objective is to defend the interests of people who work with multilevel marketing in Brazil".
But unfortunately, multilevel marketing and its strategies help to mask the financial pyramids. Have the seal of quality did not guarantee that some companies were not pyramids.
Abranetwork complain here
There are several complaints from investors saying that companies had the seal of the Brazilian Network Marketing Association they were pyramids.
One of the complaints addresses the fact da Association having a process at CVM. See:
Difference between multilevel marketing and pyramid consultant
Multilevel marketing generates commissions for the number of sales and not for referrals. In the pyramid scheme, people win with the entry of other people, that is, by referral.
Multilevel marketing makes an affiliate network, but that network must market the company's product, so affiliates earn a fee.
In the scheme of pyramid people are usually attracted by the promise of quick and easy money making, that is, exorbitant profits. However, the first contact they have to earn bonuses within the pyramid is to indicate new people, that is, they do not sell a product or service.
Multilevel marketing is mistaken for a financial pyramid, as both work with sales networks. The problem is that in the pyramid system people make money from the entry of new members and not from the company's product.
The pyramid always breaks when the number of people who enter can no longer pay the people above. That is, if few people enter it breaks.
Conclusions
A Abranetwork was accused by the CVM for denying fraudulent companies in Brazil. The seal of the Brazilian Network Marketing Association it did not prevent financial fraud.
Do not make any kind of investment in companies that are not regulated, the seal of Abranetwork is for operations multilevel marketing only.