METABANK


METABANK’s Confidence Scam, Pyramid Scheme, Ponzi Schemes: The common factor is simply that the victim relies on the good faith of the con artist.

Pyramid Schemes in American Business Practices

And As we have observed them at METABANK

Franchise fraud

(or ‘franchise churning‘) is defined by the U.S. Federal Bureau of Investigation as a pyramid scheme.

The FBI website states:

pyramid schemes :—also referred to as franchise fraud or chain referral schemesare marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses.[38]

METABANK gets partner companies or partner banks to push their product for them using the partner company’s customer base. However, this relationship with METABANK may and most likely will destroy that partner company’s customer base for them and put them out of business.

Time and time again, we have observed that METABANK is really nothing more than a collections agency. Even when METABANK seeks employees, they anticipate that relationships with the customers will be stressful. It is stressful by design; METABANK from the outset plans to scam customers to make a quick profit.

One of Pearlasia Gamboa’s (president of the micronation of Melchizedek) franchise fraud schemes was described by the Italian newspaper La Repubblica as “one of the most diabolical international scams ever devised in recent years.”[39]

38. ^ http://www.fbi.gov/scams-safety/fraud

39. ^ “A trap of luxury for the victims of one of the most diabolical international scams ever devised in recent years”, “Dominion of Melchizedek” Ghost State, (”una trappola di lusso per le vittime di una delle piu diaboliche truffe internazionali mai escogitate negli ultimo anni”, ‘Dominio di Melchizedek’ Stato Fantasma Sull), La Repubblica, Massimo Lugli, March 15, 2002 (15 maggio 2002), page 5 (pagina 5), Section:Rome, (sezione: ROMA),

Make Money Fast

[ METABANK Brags that they are fast paced, but is what METABANK actually practices illegal as well as being immoral and unscrupulous?]

Originally M.M.F. was promoted through the internet. This only served the perpetrator by allowing them to avoid using the US Mail.

Most of what METABANK does is also online. Customers have complained over and over again and now for a period of years about the abuse they received as a customer of METABANK.

How is what METABANK different from what “David Rhodes” did online? It really isn’t.

The network marketing or multi-level marketing (abbreviated MLM) business has become associated with pyramid schemes as “Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure.”[30] and the fact while some people call MLMs in general “pyramid selling”[31][32][33][34][35] others use the term to denote an illegal pyramid scheme masquerading as an MLM.[36]

The United States Federal Trade Commission (FTC) warns “Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It’s best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products.”[37] and states that research is your best tool and gives eight steps to follow:

1. Find — and study — the company’s track record.

2. Learn about the product

3. Ask questions

4. Understand any restrictions

5. Talk to other distributors (beware shills)

6. Consider using a friend or adviser as a neutral sounding board or for a gut check.

7. Take your time.

8. Think about whether this plan suits your talents and goals[37]

[Had the partner company that sold me a METABANK prepaid card only done their homework!!!!!!]

Some believe MLMs in general are nothing more than legalized pyramid schemes.[25][26][27][28]

25. ^ a b Carroll, Robert Todd (2003). The Skeptic’s Dictionary: A Collection of Strange Beliefs, Amusing Deceptions, and Dangerous Delusions. Wiley. pp. 235. ISBN 0-471-27242-6.

26.^ a b Coenen, Tracy (2009). Expert Fraud Investigation: A Step-by-Step Guide. Wiley. pp. 168. ISBN 0-470-38796-3.

27. ^ a b Ogunjobi, Timi (2008). SCAMS – and how to protect yourself from them. Tee Publishing. pp. 13–19.

28. ^ a b Salinger (Editor), Lawrence M. (2005). Encyclopedia of White-Collar & Corporate Crime2. Sage Publishing. pp. 880. ISBN 0-7619-3004-3.

^ Pyramid Schemes, May 13, 1998″ Federal Trade Commission

31. ^ Edwards, Paul (1997). Franchising & licensing: two powerful ways to grow your business in any economy. Tarcher. pp. 356. ISBN 0-87477-898-0.

32. ^ Clegg, Brian (2000). The invisible customer: strategies for successive customer service down the wire. Kogan Page. pp. 112. ISBN 0-7494-3144-X.

33. ^ Higgs, Philip; Smith, Jane (2007). Rethinking Our World. Juta Academic. pp. 30.ISBN 0-7021-7255-3.

34. ^ Kitching, Trevor (2001). Purchasing scams and how to avoid them. Gower Publishing Company. pp. 4. ISBN 0-566-08281-0.

35. ^ Mendelsohn, Martin (2004). The guide to franchising. Cengage Learning Business Press. pp. 36. ISBN 1-84480-162-4.

36. ^ Blythe, Jim (2004). Sales & Key Account Management. Cengage Learning Business Press. pp. 278. ISBN 1-84480-023-7.

37. ^ a b Facts for Consumers; The Bottom Line About Multilevel Marketing Plans and Pyramid Schemes Federal Trade Commission

SHILL

shill, also called a plant or a stooge, [partner companies selling METABANK’s PREPAID CARD are used as a stooge.] is a person who publicly helps a person or organization without disclosing that he has a close relationship with that person or organization.

“Shill” typically refers to someone who purposely gives onlookers the impression that he is an enthusiastic independent customer of a seller (or marketer of ideas) for whom he is secretly working. The person or group who hires the shill is using crowd psychology, to encourage other onlookers or audience members to purchase the goods or services (or accept the ideas being marketed). Shills are often employed by professional marketing campaigns. “Plant” and “stooge” more commonly refer to any person who is secretly in league with another person or organization while pretending to be neutral or actually a part of the organization he is planted in, such as a magician’s audience, a political party, or an intelligence organization (see double agent).

Shilling is illegal in many circumstances and in many jurisdictions

[1] because of the potential for fraud and damage, however, if a shill does not place uninformed parties at a risk of loss, but merely generates “buzz,” the shill’s actions may be legal. For example, a person planted in an audience to laugh and applaud when desired (see claque), or to participate in on-stage activities as a “random member of the audience,” is a type of legal shill.[citation needed]

“Shill” can also be used pejoratively to describe a critic who appears either all-too-eager to heap glowing praise upon mediocre offerings, or who acts as an apologist for glaring flaws. In this sense, the critic would be an implicit shill for the industry at large, possibly because his income is tied to its prosperity. [Income tied to the other’s makes the company that sells METABANK PREPAID CARDS to be a Shill.]

The origin of the term “shill” is uncertain; it may be an abbreviation of “shillaber.” The word originally denoted a carnival worker who pretended to be a member of the audience in an attempt to elicit interest in an attraction. Some sources trace the usage back to 1914

Pyramid Schemes:

A successful pyramid scheme combines a fake yet seemingly credible business with a simple-to-understand yet sophisticated-sounding money-making formula which is used for profit.[ Wow! This is METABANK “to a “T”]

…..

…. To enhance credibility, most such scams are well equipped with fake referrals, testimonials, and information.

[ METABANK clouds their publicity so that it is made to look like genuine information, but METABANK’s practices indicate that what they do best is publicity.

METABANK on several occasions appears to have created the organization that gives them an award for their customer service while elsewhere online customers, many customers continue to complain about METABANK’s customer service. On their website, METABANK posts testimonials by happy customers. These are not real customer comments, but publicity.]

The flaw is that there is no end benefit. The money simply travels up the chain. Only the originator (sometimes called the “pharaoh”) and a very few at the top levels of the pyramid make significant amounts of money. [ We believe that partner companies are used so that METABANK can access their customer base. Ultimately the way that METABANK does business will drive away that partner company’s customer base. I can’t trust the company that sold me a METABANK prepaid card anymore although I had been their customer for many years. They hadn’t properly checked out METABANK to protect me and I was really abused by METABANK. I can’t trust the partner company anymore based on that one horrible experience with METABANK. I no longer do business with the partner company….Potential Partner Companies, please be cautious. What METABANK promises is an empty promise. Only you can protect yourself. METABANK is only planning to use you.]

The amounts dwindle steeply down the pyramid slopes. Individuals at the bottom of the pyramid (those who subscribed to the plan, but were not able to recruit any followers themselves) end up with a deficit.

[ This would be many of the customers and all those who have been complaining about how they were abused and taken advantage of by METABANK. Part of the gimmick is that METABANK uses the term “BANK” to describe themselves. Americans have believed and in the past experienced that banks allowed them to save money and that US Banks served the needs of their customer base.

The dictionary describes “Bank” as a noun as being  

A business establishment in which money is kept for saving or commercial purposes or is invested, supplied for loans, or exchanged.  

The offices or building in which such an establishment is located. 

Variances for the meaning of “Bank” imply 

a. A supply or stock for future or emergency use, for example, a grain bank. b. Bank in regard to medicine is a supply of human tissues or other materials, such as blood, skin, or sperm, held in reserve for future use. 

These items are held safe for when they are most needed. Another meaning for bank that has come about is when it means, “a place of safekeeping or storage: a computer’s memory bank.” 

Unless, one enters into a casino, “Bank” implies a place of safekeeping with the intent that what is stored will be available when needed for the customer.

METABANK keeps the cash money of their own customers from that customer when the customer needs the money the most. This amounts to an interest free loan to METABANK. METABANK lies to the customer for why they can’t access their own money. This is by the design of their internal operations. 

The METABANK customer representatives who are hired to lie to us as METABANK customers have been given a list of lies for why customers can’t access their own cash money. The lies are bold and brazen. The people telling these lies are most likely the lowest paid personnel working at METABANK. 

Also part of the lying done by METABANK involves pushing all the blame back off onto their customer. The METABANK lies are so bold, so brazen that no one actually believes these lies. The problem is that METABANK when they lie also has full control of the money in question and the customer has no control at all of their own money. This is how METABANK does their scam, over and over again; customers have been sharing their complaints for years and it is always the same scam. METABANK often operates using other names and partner companies to pull off their scam.

Some of the customer representatives at METABANK have GEDs or a high school diploma; they are just following instructions. Most of them, we rationalize, can’t see the big picture to know that they are doing the dirty work that makes METABANK’s CEOs super rich; they are paid wages that are below or close to the poverty level and in a survival mode of their own. Otherwise, many of the entry level employees must themselves be in such an economically fragile condition that they feel this is the only place where they can get a job, and they do need a job.

The term “to bank on” implies “To have confidence in; rely on.” The verb “to bank” means as a transitive verb to “deposit in or as if in a bank.” As an intransitive verb, “to bank” means  “To transact business with a bank or maintain a bank account,” or  “To operate a bank.” METABANK refers to themselves as  being “a bank” but in reality, METABANK/META FINANCIAL GROUP, INC. is nothing more than a collections agency. METABANK plans to operate as a collections agency and not as a bank in the sense that most people think of a bank which would be a safe place to put their hard earned cash money. And, METABANK only accepts cash money. Yes, METABANK is putting their interest first. The problem is that METABANK fails to keep the customers’ cash money safe and secure for their customers. The customers’ money is only a scheme to take money from customers and to keep it from their own customers. ]

[METABANK actually operates what amounts to being a form of a PYRAMID SCHEME in practice.

METABANK enlists partner companies to promote and to sell the METABANK PREPAID CARD to that partner company’s customer base. METABANK then takes over the management for how the card works.

We have observed that the partner company first is encouraged to use the METABANK PREPAID CARDS themselves to give corporate gifts. The METABANK PREPAID CARD may work quite well for that company’s personnel. Once the partner company’s personnel have had a positive experience using the METABANK PREPAID CARDS, then they are asked to push the card to that company’s customers. The CEOs of that partner company has basically been wined and dined and convinced that the METABANK PREPAID CARD is a real financial solution for them. In the short term, that company may see some profit. 

METABANK is a collections agency, and we don’t view this characteristic in a positive way. METABANK lies to the customer base and keeps the partner company’s customers from being able to access their own cash money when they need it the most. All of that customer’s money is controlled by METABANK, and not by the customer. In this way, METABANK takes a serious and corrupt move away from any concept we have ever had of what a bank is and uses our preconception of what a bank should be to their advantage. METABANK, which is no more than a collections agency, operates really more like a LOAN SHARK.

The story of BOESEN highlights how METABANK operates like a loan shark. METABANK actually knows and has full access to their customer’s real credit score. Oh, right, METABANK says that customers don’t have to have a good credit history, but that is because they have rationalized that it is proper and right for them to charge higher interest rates and to take advantage of the most economically fragile people in society. Ironically, many of METABANK’s own entry level employees  earn wages that put them below the poverty level. They too live from pay check to pay check and struggle to stay out of poverty. When METABANK holds people’s money from them, that customer may be required to take out more loans. This isn’t because the customer is lazy or inattentive; this is because the internal practices of METABANK are designed to create failure for their customers so that METABANK can earn more interest.

Just by using a PREPAID CARD, customers are giving an interest free loan to METABANK. 

Trust us when we tell you that METABANK doesn’t ever plan to give anyone an interest free loan in return.

If given the choice and complete information, most people wouldn’t choose to deal with METABANK. It is through METABANK’s publicity that customers and partner companies are told that the prepaid cards are safer and more secure than using cash. This is NOT TRUE for the METABANK customer. It is true for METABANK and especially their own CEOs who will make a huge fortune off of the misery of many people who didn’t choose that misery but who were mislead into believing that by using the METABANK PREPAID CARD that they were protecting themselves. In this way, what METABANK does is predatory.

If we hadn’t been scammed ourselves by METABANK, we wouldn’t feel the need to warn others in an effort to protect them from having what happened to us happen to them.]

PYRAMID SCHEMES are illegal

pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public.[1][2]

Various forms of pyramid schemes are illegal in many countries including Albania,Australia,[3][4] Austria,[5] BrazilCanadaChina,[6] Colombia,[7] Denmark, theDominican Republic,[8] Estonia,[9] FranceGermanyHong Kong,[10] HungaryIceland,Iran,[11] Italy,[12] Japan,[13] MalaysiaMexicoNepal, the Netherlands,[14] New Zealand,[15] Norway,[16] the Philippines,[17] PolandPortugalRomania,[18] Russian FederationSouth Africa,[19] SpainSri Lanka,[20] Sweden,[21] SwitzerlandTaiwan,Thailand,[22] Turkey,[23] the United Kingdom, and the United States.[24]

These types of schemes have existed for at least a century, some with variations to hide their true nature, and because of this, many people believe that all multilevel marketingplans are also pyramid schemes.

References

1. ^ Common Fraud Schemes: Pyramid Scheme Federal Bureao of Investigation

2. ^ Debra A. Valentine (1998-05-13). “Pyramid Schemes”. United States Federal Trade Commission. Retrieved 2010-09-01.

3. ^ “Pyramid schemes”. Australian Competition and Consumer Commission. Retrieved 2012-04-08.

4. ^ Competition and Consumer Act 2010 – Schedule 2, Division 3 — Pyramid schemes

5. ^ Trade Practices Amendment Act (No. 1) 2002 Trade Practices Act 1974 (Cth) ss 65AAA – 65AAE, 75AZO

6. ^ Regulations for the Prohibition of Pyramid Sales

7. ^ “Colombia scam: ‘I lost my money’”BBC News. November 18, 2008. Retrieved April 12, 2010.

8. ^ “Proyecto De Ley Que Prohíbe La Venta Bajo El Esquema Piramidal” (in Spanish).

9. ^ “Tarbijakaitseseadus [The Consumer Protection Law of Estonia]“ (in Estonian). §12³(8) #14. Retrieved October 11, 2010.

10. ^http://legislation.gov.hk/blis_pdf.nsf/CurAllEngDoc/309067D5558F5D2E48257967005352A9/$FILE/CAP_617_e_b5.pdfPyramid Schemes Prohibition Ordinance

11. ^ Key GoldQuest members arrested in Iran Airport

12. ^ Legge 17 agosto 2005, n. 173 (Italian)

13. ^ 無限連鎖講の防止に関する法律 (in Japanese)

14. ^ Sentence by the High Council of the Netherlands regarding a pyramid scheme

15. ^ Laws and Regulations Covering Multi-Level Marketing Programs and Pyramid Schemes Consumer Fraud Reporting.com

16. ^ Lovdata.no

17. ^ NYtimes.com, “Investors in Philippine Pyramid Scheme Lose over $2 Billion”

18. ^ Explozia piramidelor Ziarul Ziua, 12.07.2006

19. ^ Whitecollarcrime.co.za, Pyramid Schemes

20. ^ Pyramid Schemes Illegal Under Section 83c of the Banking Act of Sri LankaDepartment of Government Printing, Sri Lanka

21. ^ lagen.nu – Tillkännagivande (2008:487) med anledning av marknadsföringslagen (2008:486)

22. ^ TDSA.gov, ข้อมูลเพิ่มเติมในระบบธุรกิจขายตรงและธุรกิจพีระมิด by Thai Direct Selling Association (in Thai)

23. ^ Saadet zinciri operasyonu: 60 gözaltı

24. ^ Pyramid Schemes Debra A. Valentine, General Counsel, Federal Trade Commission

25. ^ a b Carroll, Robert Todd (2003). The Skeptic’s Dictionary: A Collection of Strange Beliefs, Amusing Deceptions, and Dangerous Delusions. Wiley. pp. 235. ISBN 0-471-27242-6.

PYRAMID SCHEMES ARE BEHIND MANY VIOLENT OUTBREAKS WORLDWIDE AND FOR REVOLUTIONS

Other Pyramid Schemes with Awful Long Term Results:

The 1997 rebellion in Albania was partially motivated by the collapse of pyramid schemes.

In early 2006, Ireland was hit by a wave of schemes with major activity in Cork andGalway. Participants were asked to contribute €20,000 each to a “Liberty” scheme which followed the classic eight-ball model. Payments were made in MunichGermany to skirt Irish tax laws concerning gifts.

Spin-off schemes called “Speedball” and “People in Profit” prompted a number of violent incidents and calls were made by politicians to tighten existing legislation.[41] Ireland has launched a website to better educate consumers to pyramid schemes and other scams.[42]  [We would urge governments not to opt in to similar programs which we have observed already. Extreme caution is being requested.]

On 12 November 2008, riots broke out in the municipalities of PastoTumacoPopayanand Santander de QuilichaoColombia after the collapse of several pyramid schemes. Thousands of victims had invested their money in pyramids that promised them extraordinary interest rates. The lack of regulation laws allowed those pyramids to grow excessively during several years. Finally, after the riots, the Colombian government was forced to declare the country in a state of economic emergency to seize and stop those schemes. Several of the pyramid’s managers were arrested, and are being prosecuted for the crime of “illegal massive money reception.”[43]

The Kyiv Post reported on 26 November 2008 that American citizen Robert Fletcher (Robert T. Fletcher III; aka “Rob”) was arrested by the SBU (Ukraine State Police) after being accused by Ukrainian investors of running a Ponzi scheme and associated pyramid scam netting US$20 million. (The Kiev Post also reports that some estimates are as high as US$150M.)

Throughout 2010 and 2011 a number of authorities around the world including theAustralian Competition and Consumer Commission, the Bank of Namibia and the Central Bank of Lesotho have declared TVI Express to be a pyramid scheme. TVI Express, operated by Tarun Trikha from India has apparently recruited hundreds of thousands of “investors”, very few of whom, it is reported, have recouped any of their investment.[44][45][46][47][48]

41. ^ Gardaí hold firearm after pyramid scheme incident Irish Examiner

42. ^ National Consumer Agency Ireland

43. ^ Colombians riot over pyramid scam. Colombia: BBC news. Nov 13, 2008.

44. ^ ACCC obtains restraining orders against operators of alleged pyramid selling scheme TVI Express Australian Competition and Consumer Commission

45. ^ BoN warns public about TVI Express Bank of Namibia

46. ^ BoL warns public about TVI Express Bank of Lesotho

47. ^ South African Sunday Times on TVI Express South African Sunday Times

48. ^ Consumer Watchdog Botswana on TVI Express Consumer Watchdog Botswana

Because Pyramid Schemes and the way that METABANK gets partner companies to promote their PREPAID BANK CARDS for them, and because METABANK’s CEOs make such huge annual incomes are so similar and so detrimental to the general welfare of all of the countries listed above, we feel compelled to caution everyone about the dangers we see in the way that METABANK operates, operated and continues to operate.

The “Eight-Ball” model

Many pyramids are more sophisticated than the simple model. These recognize that recruiting a large number of others into a scheme can be difficult so a seemingly simpler model is used.

In this model each person must recruit two others, but the ease of achieving this is offset because the depth required to recoup any money also increases. [Basically METABANK offers gimmicky prizes to clerks who can sell the most of their cards for them. Partner banks allowed METABANK to instruct their tellers to sell the METABANK prepaid card for them in a competition for “their cause.” The winning clerk may have gotten $500 added onto their own prepaid card. The cause that won because that clerk teller sold the most prepaid cards to her family and friends also won $500 toward taking the High School Band to London. $500 wouldn’t even be enough money to pay for one person’s flight round trip to London from the upper midwest of the USA. This is a form of a pyramid scheme that makes METABANK’s CEOs rich and then richer yet. Those clerks and tellers are fed some pep talk to push the METABANK card on unsuspecting customers. The clerks have fallen for this gimmick so they can do this scam in all innocence; it is the innocent encouragement of these low paid clerks/tellers that makes the scam work.]

The scheme requires a person to recruit two others, who must each recruit two others, who must each recruit two others.

The “eight-ball” model contains a total of fifteen members. Note that unlike in the picture, the triangular setup in the cue game of eight-ball corresponds to an arithmetic progression 1 + 2 + 3 + 4 + 5 = 15. The pyramid scheme in the picture in contrast is a geometric progression 1 + 2 + 4 + 8 = 15.

[Also part of the scam technique used by METABANK involves a form of

A confidence trick

(also known as a scam) is an attempt to defraud a person or group after first gaining their confidence. 

 

A confidence artist is an individual operating alone or in concert with others who exploits characteristics of the human psyche such as dishonesty,honesty, vanity, compassion, credulity, irresponsibility, naïveté, or greed.

 

METABANK promises hope, but it is an illusion and a confidence trick just to get potential customers to opt into what METABANK does. Hope for improving their credit history, a hope that by using METABANK is only an exercise in futility that makes METABANK CEOs rich, lures customers in to using METABANK.

 

The lies that METABANK CEOs give to their customer representatives to read off when customers complain about the inadequacy of the METABANK PREPAID CARD, an inadequacy created by its design results in being treated abusively by METABANK employees.  METABANK CUSTOMER REPRESENTATIVES are told to push the blame for the problems off onto the customer. Normally when many customers complain about the same problem, a decent company will make every effort to correct the problem.

 

The complete opposite happens at METABANK. METABANK pushes the limits of their scam by lying to their customers and by pushing blame off onto their own customers that they got through their partner companies. The greed, the dishonesty, the irresponsibility, and the vanity exist within METABANK. Customers are just ordinary people like you and me. 

 

Our only mistake was to trust the clerk at the place where we have done business for years. After this happened to me, I can no longer continue to do business with that partner company because I no longer have faith in their ability to be able to screen out scam operations like METABANK. I may have been briefly naive, but that naïveté went away fast.]

METABANK is nothing but a scam of honest and hard working people. This kind of scam needs to be stopped, completely stopped.

Ponzi Scheme versus A Pyramid Scheme

The essential difference between a pyramid scheme and a Ponzi scheme is that a Ponzi schemer will only ask you to invest in something.

[ In this sense as far as the customer is concerned, what METABANK does is more of a PONZI SCHEME]

You won’t be asked to take any more action than handing over money. He or she will claim to take care of the rest and give you your returns later. The Ponzi schemer is the mastermind behind the whole system and is always shuffling money from one place to another. 

[METABANK was selling CDs to other banks. METABANK told Pickhinkle to shift money from one CD to another. The annual bank audit never picked up on there being any problems and Pickhinkle’s supervisor never picked up on any kind of problem.

We believe that Pickhinkle actually was told to shift money from one CD account into another, especially because it was the other banks, the ones who had been victimized by METABANK’s practices who discovered the “EMPTY”/Fraudulent METABANK CDs. METABANK, then and only then decided that Pickhinkle was embezzling. We find it most peculiar that METABANK hadn’t picked up on this problem previously. Other banks had to take METABANK to court to try to get their money out of METABANK.

We believe that J. Tyler Haahr is the one who is ultimately behind this scam. Pickhinkle may or may not have embezzled, but it is clear that she took all of the blame while the METABANK CEOs still are making outrageously huge annual incomes. The concept of needing to push blame around is unhealthy in general, but METABANK does this as a business practice routinely. This is a very sick business practice. In this way, METABANK acts like a PONZI SCHEME]

On the other hand, a pyramid schemer will offer you an opportunity to make the money yourself.

[ METABANK needs corporate partner companies from whom they can get more customers whom they plan to scam. In this way METABANK also operates as a PYRAMID SCHEME.] 

It requires more work, though: You have to buy the right to start a franchise and start recruiting more people like yourself. The recruits will often pay the recruiter a cut of their profits. You can read How Pyramid Schemes Work to understand more about that process.

The difference may seem slight, but one point to keep in mind is that unlike pyramid schemes, Ponzi schemes are always illegal

. Some legitimate businesses, such as Mary Kay and The Pampered Chef, have been built around the pyramid idea. But the nature of a Ponzi scheme necessarily relies on securities fraud. It involves deceit to convince someone to invest money that won’t actually be invested.

Nevertheless, some people continue to use the terms interchangeably, and many texts classify Ponzi schemes as a type of pyramid scheme. And, of course, when you’re the victim of one, the difference probably seems insignificant.

METABANK has practiced a securities fraud:

Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws.[1] 

[ This is what happens to many of METABANKs customers.

The CD fraud was an investment fraud… METABANK chose to push all the blame off onto one of their employees and she was accused and convicted of embezzlement. It took other banks complaints and a trial for this to happen.. METABANK wasn’t going to accept responsibility for this CD fraud.

Yet, we find it most unusual that METABANK hadn’t discovered any form of embezzlement in house through annual audits by an outside company or by that clerks supervisor.

We can only imagine how awful it must be to be an employee of METABANK, the place where blame must exist and be pushed around like a hot potato… These business practices are sick, very sick.]

Securities fraud can also include outright theft from investors (embezzlement by stockbrokers), stock manipulation, misstatements on a public company’s financial reports, and lying to corporate auditors.

[ Lying to corporate auditors???? Is this what happened so that they could do a CD fraud on other banks in the USA? Why wasn’t embezzlement found in house or through an annual audit by an outside auditing company???? Something is very wrong in the way that METABANK operates. This is very serious. Please take note.]

The term encompasses a wide range of other actions, includinginsider tradingfront running and other illegal acts on the trading floor of a stock or commodity exchange

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