Rob Mcatamney launched the 3 Phases Biz scheme in late 2016, promising participants a $3,250.50 return from an initial $8.50 investment. The "3phasesbiz.com" domain registered privately on October 28, 2016, offered no public details about its ownership or operators.
Mcatamney operates 3 Phases Biz through a system of matrix cyclers. His involvement became clear from an official Facebook group linked to the site, where he, alongside Jane Smith and Bernadette Hieke Culp, acted as an administrator. Mcatamney promoted the scheme using an "admin1" referral account on his personal Facebook page.
His history includes a series of similar online schemes. Mcatamney first appeared in 2015 with One Time Infinity, a known Ponzi operation. He then launched Cash Money Bucket, 3to600, VIP Promoters Club, and Simple Simon's System in 2016 alone. Simple Simon's System, which debuted in September 2016, had already ceased operation by the time 3 Phases Biz began.
The 3 Phases Biz platform offers no retail products or services. Affiliates can only market memberships within the scheme itself. Joining requires buying a position in the matrix cycler. These positions come with a nominal amount of advertising credits for display on the 3 Phases Biz website, a common tactic used to mask the lack of genuine value.
Participants buy into a seven-tier matrix cycler. The first matrix is a 3x1 structure, meaning a participant sits at the top with three spots below them. A 2x1 matrix places the participant at the top with two spots beneath. As these spots fill with new participants, the matrix "cycles" and pays out commissions, moving the participant into the next tier.
The cycler begins with Matrix 1, costing $8.50. This 3x1 matrix pays a 50-cent commission and then cycles the participant into Matrix 2. Matrix 2, also a 3x1 structure, yields no direct payout but cycles the participant into Matrix 3. Matrix 3, a 2x1 structure, pays a $30 commission before cycling into Matrix 4.
Matrix 4, another 3x1, provides no payout and cycles into Matrix 5. Matrix 5, a 2x1, pays $220 and cycles to Matrix 6. Matrix 6, a 3x1, again offers no payout and cycles to the final Matrix 7. The seventh matrix, a 2x1 structure, delivers the highest commission of $3,000. In total, a participant could theoretically earn $3,250.50 from their initial $8.50 payment. The initial $8.50 affiliate membership fee is directly tied to this first position purchase.
3 Phases Biz advertised "member to member" payments and "100% commissions." In most multi-level marketing contexts, these terms signify cash gifting schemes. However, this system functions as a Ponzi scheme. Affiliates invest their $8.50 with the expectation of a significant return. To generate a single full $3,250.50 payout, approximately 385 new $8.50 deposits must enter the system. The actual number of required deposits is often higher due to the non-linear filling of matrix positions.
The payouts to earlier investors depend entirely on money from later participants. Mcatamney, as the operator, holds an inherent advantage. He can pre-load positions at the top of the matrices, ensuring his positions cycle first and collect funds from the initial influx of money. This structure guarantees he profits at the expense of most other participants.
Like Mcatamney's previous venture, Simple Simon's System, which collapsed within weeks, 3 Phases Biz follows a similar unsustainable script. Schemes reliant on an ever-increasing stream of new money are mathematically destined to fail. When recruitment slows, the system stalls, and payouts cease. Most participants inevitably lose their invested capital. Individuals who believe they have been defrauded can report the scheme to the Federal Trade Commission.