Infamous MLM trade determine David Wooden has emerged with a brand new MLM AI buying and selling grift.
Quantum Membership is at the moment in prelaunch. The newly introduced MLM firm seems to mix securities fraud, commodities fraud and pyramid recruitment.
Quantum Membership is working from the web site area “quantumclub.ai”, privately registered on December twelfth, 2023.
Presently Quantum Membership’s public-facing web site discloses nothing concerning the firm or its homeowners. Guests can solely enroll as an affiliate or log in.
Quantum Membership is supposedly headed up by three co-founders, certainly one of which is David Wooden.
Wooden is thought to BehindMLM because the co-founder of the Empower Community gifting scheme.
Empower Community started to break down in 2014 however it wasn’t till 2017 that the corporate absolutely imploded. Later in 2017 Wooden claimed the previous couple of years of Empower Community have been “faux and bullshit“.
One of many extra disturbing points of Empower Community’s collapse was Wooden’s substance abuse. This led to weird footage of Wooden claiming he might remedy illnesses and management vegetation.
Wooden would later introduce himself as god incarnate (“King David”), and even claimed he’d be the subsequent President of the US (circa 2018 IIRC).
Because the Empower Community cash dried up Wooden would return with varied cash making schemes. There was even discuss of rebooting Empower Community at one level.
Fortunately, at the very least on the floor, Wooden appears to have recovered. I didn’t see any of the post-Empower Community craziness in Quantum Membership’s advertising materials.
As to the opposite Quantum Membership co-founders, for unknown causes who they’re isn’t being disclosed.
One potential membership is in Quantum Membership’s web site Phrases of Use. Right here we discover a reference to Simple2Advertise LLC.
Simple2Advertise seems to be a New Jersey firm owned by Vincent Webb.
Webb makes use of Simple2Advertise to promote advertising funnels. On December twenty third, Webb boasted a “new system” had gone viral:
That’s a screenshot from the Quantum Membership backoffice.
Transferring on to Quantum Membership’s enterprise mannequin; Quantum Membership is at the moment in recruitment mode. There isn’t a retail, making it a pyramid scheme from the get go.
On social media Quantum Membership associates are claiming the corporate will market an “AI software program buying and selling instrument for traders”.
In a advertising video within the Quantum Membership backoffice, right here’s how Wooden pitched Quantum Membership’s product;
So we now have a product, Quantum Membership okay? … that with none affiliate alternative in any respect, this product already, that is promoting 5 million {dollars} a month of this product.
That’s with none affiliate alternative. We’ve already acquired gross sales. We’ve already acquired processes in place.
I’m gonna inform you what one of the best enterprise alternative on the earth is, and also you’re by no means gonna guess what I’m gonna say; and that’s simply “investing”.
Now I’m not gonna get into the precise particulars of what we’re doing on this (???).
The facility that investing has it that investing provide the potential to earn a living from any market. If the market’s going up you may make cash. If the market’s taking place you may make cash. If the market’s going sideways you may make cash.
And this yr particularly, there was some radical developments in expertise. Specifically synthetic intelligence expertise.
We’ve acquired our purchasers incomes returns which can be simply insane.
AI and guarantees of “insane returns”. Yeah, seems like one other AI buying and selling bot grift to me.
The elephant within the room is that if, as Wooden claims, this AI buying and selling bot is already producing $5 million in gross sales a month, why does Quantum Membership must exist.
Ditto the “insane returns”. Why aren’t Wooden and the cofounders simply pumping their very own cash into the bot and making “insane returns”?
On the regulatory entrance an MLM firm pitching “insane returns” by automated buying and selling constitutes a securities providing.
This requires Quantum Membership and its founders to be registered with the SEC. Relying on what’s being traded, registration with the CFTC may be required.
A search of the SEC’s Edgar database reveals neither Quantum Membership or David Wooden are registered with the SEC.
Wooden might argue that he’s residing in Costa Rica (which has their very own monetary regulator), however quite a lot of Quantum Membership’s present prime recruiters are US nationals and/or residents.
In any occasion any MLM firm pitching a passive returns funding scheme to US residents, no matter the place they’re working from, must be registered with the SEC.
That is fundamental MLM securities legislation 101.
In a nutshell, Quantum Membership is shaping as much as be a pyramid scheme. If recruitment doesn’t collapse earlier than it good points traction, Quantum Membership might nonetheless wind up within the crosshairs of monetary regulators within the US.
As I perceive it Quantum Membership is scheduled to launch in January 2024. Pending full compensation and buying and selling bot particulars being made public, a full Quantum Membership BehindMLM is pending.