Canadian Financial Authorities (MSC and Winkler Police) have issued warnings for PayDiamond.com as an operation based in Hong Kong and running an online ponzi scheme. Investors are continually recruited in order to keep funding the scam activities.
PayDiamond is a Diamonds investment / Network marketing operation. True ownership is hidden from view but apparently the offices are located at: SUITE 3601, Two Exchange Square 8 Connaught Place, Central – Hong Kong. Further research indicates tha Carlos Luiz serves as Administrative Director, Economist and System Engineer of PayDiamond. Touting an experience of MLM / distribution networks for 5 years, he is cited to having been a commercial Director at a Japanese multinational company.
The website is available in multiple languages but seems to have an emphasis on French and Portuguese speakers. It looks to be heavily marketed in Africa by partner websites.
There seems to be no trading platform in PayDiamond – but most MLM systems have a database to see show their “impressive” pyramid scheme structure.
Our Research – Warning Signs
According to our online investigation, the investors are called PayDiamond “affiliates” and initially invest between $200 and $36,000 during a period up to a year. Investors are to receive weekly payments as the diamonds are sold off to the newly recruited investors, where the profits are split by the recruiters. Listed on the site are the “hall of fame” individuals – seemingly recruiters in the pyramid scheme. Real or fake – very hard to say. It seems very enticing as a “get rich” scheme for people looking to make money online.
A Candadian, Len Terlinski, investigator is quoted as saying, “There is a heavy emphasis on recruiting new investors. Additionally, Mr. Terlinksi cites that ‘affiliate memberships’ maybe be by law considered an actual trade in a security. As PayDiamond is not registered to sell securities in Manitoba, Canada, they may be in violation of more than just a ponzi scheme. He is quoted as saying, ”each client’s funds are held in a segregated account. Funds are used only for trading options over the website upon a client’s instructions and are never used for any other purpose.”
Supporting websites appear as methods to recruit more people.
Further information states that PayDiamond was listed in 2017 with the CVM – Brazilian Securities and Exchange Commission.
However – there is no results when searching for PayDiamond on their website https://www.cvm.gov.br
People can contact PayDiamond by email or phone or leave a message on its website. There is no live chat or Skype connectivity.
PayDiamond is not a licensed broker in Hong Kong.