Kannaway Crown Ambassador Randy Schroeder isn’t proud of BehindMLM reporting on TranzactCard.
In direction of the top of a September 4th YouTube video, masking the identical TranzactCard updates we’ve reported on, Schroeder had a little bit of a meltdown.
Schroeder’s meltdown was precipitated by TranzactCard shedding entry to its US banking companies final week.
This main improvement appears to have raised questions inside TranzactCard, which Schroder is evidently sick of answering.
I’ve had the dialog I’m about to have with you, I’ve had with a number of folks in the present day. And I assumed to myself you already know what, why not have it yet one more time, make a bit YouTube video and ship it out to you all.
Sarcastically, Schroeder spends a lot of the video addressing TranzactCard shedding its US banking companies.
We noticed references that Stable had severed its relationship with TranzactCard.
When the connection with Stable was severed that, by its definition, severed the connection with the companion financial institution.
This after all we already knew and reported on. One new bit of data I’ll add is that Stable gives a useful uptime graph on its web site:
Aside from some minor delays on September third, Stable doesn’t report any disruptions to its companies. That is in direct distinction to what TranzactCard has informed its associates, which Schroeder repeats;
We wound up not solely disrupting our enterprise … it wasn’t simply our enterprise was being disrupted by this huge variety of new accounts, it’s that different purchasers of Stable could be negatively impacted by the overwhelming of the system, brought on by the beautiful development of this firm.
Once more, Stable’s uptime graphs reveal 100% uptime and really slight delays on a number of days. There doesn’t appear to be any “disruptive” exercise. Definitely to not the extent Stable’s backend was having bother coping.
In line with Schroeder, TranzactCard has already discovered a alternative for Stable and “contracts have been signed or might be signed”.
That’s nice to listen to and had Schroeder of stopped there, having achieved his acknowledged objective of answering questions in relation to the banking “severing”, I wouldn’t be placing collectively this text.
Including an replace to our article to notice TranzactCard has discovered alternative US banking companies is trivial.
However as a substitute Schroeder transitions right into a full-blown meltdown about BehindMLM’s reporting, on the identical banking points he simply completed addressing.
Now, there’s one other matter that I wish to focus on this night and that’s this; there’s a web site on the market known as BehindMLM.
And BehindMLM has determined the factor they need to do is write all kinds of unfavorable issues about TranzactCard.
And um, the very first thing I’d such as you all to do is ponder and take into account the supply of the data.
For reference, out of the eight thousand 9 hundred and fourteen revealed articles on BehindMLM, six pertain to TranzactCard:
This text will make it seven.
As for our supply, for every little thing besides the Obama, Trump & Lebron James endorsement article, it was TranzactCard itself.
The Obama, Trump & Lebron James article was based mostly on TranzactCard advertising pushed by an affiliate, which I’d obtained a number of enquiries from readers to look into.
I wasn’t capable of set up whether or not TranzactCard itself was the supply of the nonsensical advertising claims, and so within the article I famous:
Whether or not TranzactCard endorses Mayes’ seemingly false advertising claims is unclear.
I’m positive Schroeder felt he had a degree taking a dig at BehindMLM’s supply materials for our TranzactCard articles. No matter it was although it’s misplaced on me.
Schroeder goes on diminish BehindMLM’s reporting, not due to its accuracy, however as a result of he feels it equates to “airing soiled laundry”.
Because the Editor and Chief right here at BehindMLM, I can verify whether or not one thing is “soiled laundry” or not isn’t an editorial concern. If it’s MLM associated, newsworthy and/or within the public curiosity, we’ll analysis and run the story.
What Schroeder’s actually upset about right here has in truth nothing to do with BehindMLM. He’s upset information about TranzactCard is being reported on in any respect, and this comes out in what he says subsequent;
And it’s about publishing whichever soiled laundry somebody can pay them probably the most to publish.
It’s not one thing I believe, it’s one thing I do know. I’ve lived within the trade for a lot of, a few years and that’s actually a trash rag.
Ouch.
It’s one factor to dislike precisely reported on information, however to aim to discredit a publication merely since you don’t like what they’re publishing… once more, that speaks extra to Schroeder than it does to BehindMLM.
Throughout the context of MLM information and reporting, taking pictures the messenger isn’t due-diligence. It’s a tactic utilized by scammers after they can’t deal with the message.
The plain? Since launching fourteen years in the past BehindMLM has by no means accepted fee or any type of compensation in change for content material. Interval.
BehindMLM is fiercely unbiased. And as an unbiased journalist, I can’t think about something extra soul-crushing then having to pump out content material curated for the very best bidder.
Merely put: Randy Schroeder is filled with shit. He’s publicly lied about BehindMLM to push TranzactCard and, such to the extent he had a reputable repute, has now destroyed it.
Schroder goes on to bemoan BehindMLM failing to “discover so many admirable issues to say about” TranzactCard. Not one of the examples offered by Schroder are precise information although, they’re simply advertising factors.
Oh and there was additionally this:
Are there some corporations who could not discover pleasure in our success? Are there leaders who’re becoming a member of us from different corporations?
May a few of these corporations who’re advertisers on BehindMLM have a bit bit to do with what’s occurring proper now and that individual publication’s selection of dialogue?
Is it doable, do you suppose, that rivals are a way liable for what’s occurring?
I’ll inform you it’s not solely doable, in my thoughts it’s altogether probably. It’s just about a certainty.
Placing apart the truth that BehindMLM has no direct advertisers, what precisely would these unnamed rivals be liable for?
The one events concerned in Stable closing down TranzactCard’s US financial institution accounts are Stable and TranzactCard. TranzactCard disclosed these occasions of their newsletters, which BehindMLM reported on.
What on Earth is Schroeder speaking about?
Consider me, had one other MLM firm pressured Stable into dumping TranzactCard – you may guess that’s a narrative we’d be working.
I believe a serious drawback right here is Schroeder complicated purchased and paid for advertising with unbiased journalism. Whether or not that’s intentional or not, who’s to say.
The very last thing I wish to deal with is why BehindMLM is holding a extra nearer eye on TranzactCard, than we’d sometimes do for an MLM firm in prelaunch.
To finest clarify, let me flip it over to… *checks notes* …Randy Schroeder.
The 12 months was 2012 and a large proportion of the US-based MLM trade had fallen for Paul Burks’ Ponzi scheme.
In what was a uncommon occasion of somebody in an govt place talking up, Randy Schroeder, then President of MonaVie, publicly known as out Zeek Rewards.
Zeek Rewards (is) an organization that “comes alongside and sweeps folks right into a path that turns right into a path of devastation”.
Zeek Rewards is “unlawful, a pyramid scheme (and) most likely a Ponzi scheme”.
If reminiscence serves, the rapid backlash Schroeder confronted was intense. Schroeder, if anybody, has first-hand expertise of what being on the frontlines of factual reporting can really feel like.
And that is one thing I identified in BehindMLM’s protection eleven years in the past;
Little question efforts might be made to easily brush off Schroeder’s feedback as “jealousy”, “negativity” or different dismissive labels, nonetheless little may be stated to refute his claims.
Given this, Schroeder’s baseless private assaults on BehindMLM over TranzactCard are all of the extra disappointing. However, I digress.
What I need you to remove from Schroeder’s remarks on Zeek Rewards being a Ponzi scheme is that this:
Among the finest methods to foretell the long run is to rigorously and critically research the previous.
Once more, these are Schroeder’s personal phrases. However they exactly tie into why BehindMLM is intently following TranzactCard within the lead as much as its November launch.
TranzactCard is run by Richard Smith. Right here’s his previous:
Between 2003 and 2007 Smith launched Ascendus and FFCF, two Ponzi schemes that defrauded customers out of round $10.9 million {dollars}.
In 2010 Smith was criminally charged with securities fraud. I attempted to analysis the result of this case however didn’t discover something definitive.
The perfect I’ve is the case might need been dismissed after the State of Utah did not make an look at a scheduling convention.
That is from a Supreme Court docket of Utah submitting with respect to Smith’s confederate, Roger Edward Taylor;
On August 13, 2010, the State filed an info charging Mr. Taylor with two counts of securities fraud and one depend of abuse, neglect, or exploitation of the aged.
One 12 months later, on August 30, 2011, the State amended the data.
Lower than one month later, when the State failed to seem at a scheduling convention, the district court docket dismissed the case with out prejudice.
In November 2012 a court-appointed FFCF Receiver secured a $3.2 million default judgment in opposition to Smith.
In late 2013 Smith resurfaced as co-founder of WakeUpNow.
WakeUpNow collapsed in 2015, producing tens of thousands and thousands in {dollars} in shopper losses.
In 2016 Smith resurfaced as co-founder of Divvee.
Divvee’s unique enterprise mannequin collapsed in 2017, prompting the MLM firm to delve into securities fraud.
That didn’t final. Divvee collapsed by the top of 2017, as soon as once more producing widespread shopper losses.
In late 2017 Divvee rebranded as Nui. Sooner or later Smith cashed out and quietly disappeared.
In 2019 Smith resurfaced because the founding father of R Community. R Community strung associates alongside on a unending prelaunch.
By early 2021 R Community had collapsed, as soon as once more producing widespread customers losses.
In March 2021, Smith cashed out and bought what was left of R Community to to iX International. Final month the SEC sued iX International for $49 million in securities fraud.
In 2023 Smith resurfaced as founding father of TranzactCard.
Is it any surprise BehindMLM is intently monitoring TranzactCard’s prelaunch? Something much less could be a disservice to our readers and shopper consciousness at giant.
To be clear, in BehindMLM’s revealed TranzactCard assessment we recognized a possible pyramid scheme. This got here down as to whether the vast majority of TranzactCard’s income was being generated from its associates over retail clients.
Fortunately we didn’t discover a Ponzi scheme or any definitive proof of securities fraud. Smith’s previous was famous however was not a significant factor within the conclusions drawn within the assessment.
Randy Schroeder may not like what BehindMLM experiences on, and he may even search to discredit us by deception…
…however there’s nothing on this article that isn’t factual or of public curiosity to anybody in and/or following the MLM trade.
BehindMLM has no vested curiosity in whether or not TranzactCard launches on November twelfth or not. Within the pursuits of public due-diligence and shopper consciousness, we’ll proceed to report on any important updates.