GoldQuest Selling of Vouchers a "Security" not a Pure Pyramid Activity - It's Worse!
Gold and Precious Metals Automatically
Attract the Attention of the Law! Bad Attention!
----- Reply Message -----
From: Rod Cook
To: Dave Nickels
Sent: Thursday, March 28, 2002 1:06 PM
Subject: Re: GoldQuest International
Dave
I appreciate your position, years ago I have "been there" as part of my learning process. I just try to pass some of that grief along to new generation of good folks who are "dancing with fire."
I always have a shortage of room when doing a blurb about a company.... MLM Vouchers are a target....They are not a product a piece of paper is being sold.... Gold hits the HOT button of about any regulator around the world. I looked at the voucher redeem list and it certainly did not contain any of the collectibles from the Olympics. The primary reason that the SEC shut down IHI (International Heritage) was they issued vouchers. Gold Unlimited was hit by the FTC and if you look at the WatchDog archives you will see after David and Martha Crowe fled the Federal Court sentencing that they have been tracked down and jailed after 3 years. Taiwan really got rough and has almost outlawed the Binary even without vouchers. There was a big "Voucher" boom on the Island in 1997-98 before the Taiwan FTC (yes, they named their FTC after ours) started arresting people. It is my belief - not proven that the Taiwan operations are what spawned GoldQuest. States within the US have also shut down voucher programs and arrested distributors (Aquest, Gold Unlimited and International Metals and Trade). Not a good scenario! I would almost prefer another shaky MLM to anything with Gold in it. Gold is a HOT button to regulators! If you are the most noticeable distributor in the US... Ouch the regulators may hang you out to dry as an example! The FTC did that in several recent cases. Double ouch!
I am not a moralist about this stuff. I kind of like some of these collectables... HOWEVER My object is to get people to join stable MLM's so that they live a long MLM life and prosper. I think that GoldQuest will not be long lived in the U.S. once it starts to grow big enough to be noticed. You need to be particularly concerned that If I were one of the top distributors in the USA I would be targeted by US Authorities, because the company is an offshore company.
MAIN POINTS
Vouchers issued paper no value = automatic scam determination by SEC and Some AG's
Product value Collectors items no market price = Questionable? Cause for attack by regulators
Gold based product = 0 out of 70- 80 gold MLMs survived in U.S. since 1990
Summary survival rate if U.S. Company = 0% over 3 years!
Rod Cook, Bsc.,MA, MBA.
----- Original Message -----
From: Dave Nichols
To: Rod@mlmwatchdog.com
Sent: Thursday, March 28, 2002 8:59 AM
Subject: GoldQuest International
Rod, I am an associate of June who e-mailed you about the GoldQuest organization. We are looking into the opportunity but are trying to find out more about the company and the legal implications of such an organization here in North America. We appreciate your looking into it for us and we are trying to convince GoldQuest to use your services for a thorough look before we become deeply involved with this company.
I did read your summary and there are a few points that I think need clarifying based on our review of their literature, website and discussions with existing members.
Gold Quest uses a 6 cycle system where they issue a voucher for gold product (normally a 1/2 ounce gold coin with the company logo on it - not a collectable in my opinion) for the first 5/5 pair of customers. For each of the next 5 sets of 5/5 customers they issue a $400US check as commission issued on Chase Mahattan Bank in New York. After the 6 cycles the process starts all over again, with the voucher and the 5 checks of $400. Should this all happen within 24 hours a tracking center owner could receive a $400 voucher for gold coin and a check for $2,000 for that day, which is the maximum the company will allow a customer/associate to earn per Tracking Center.
As for products, I am certainly no expert in numismatics and would agree that many 'collectable" products do not appreciate in value or are indeed really collectable. Within the GoldQuest product line I believe that the Olympic coin sets from the Sydney Olympics have value and we have been told that the sets, which comprise of one coin of 1/2 gold and 2 coins of 1 ounce silver, originally sold for $800 and are currently selling in the after market fot $2,400. Have been unable to verify. GoldQuest also is bidding on the coins for the Athens Olympics. I have no knowledge whether the other coins such as John Kennedy, Pope John Paul III, Mother Theresa, Mahatma Gandi, World Cup Soccer, as well as the gold jewelery etc. will appreciate in value or not. Like you said, the Franklin Mint is issuing products all the time which make nice collectables but are not "sound investments" per se.
We will watch your web site closely for your additional comments and will continue to promote the use of your services for a full review to GoldQuest International in the North American market.
Thank you for your consideration of this matter.
Regards
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