Albert Liske, former CEO of Bidsson, has launched a website alleging Bidify and Bidsson operate as a Ponzi scheme. His accusations follow his abrupt resignation from Bidsson in late 2011, a role he held for barely two months. Christopher Robinson, Bidsson's Vice President, also resigned at the same time.
Bidify, the MLM company partnered with the Bidsson penny auctions, initially promised an explanation for the sudden departures. No official statement ever came. Instead, Bidify removed all references to Liske and Robinson from the Bidsson website.
Liske's new website, "The Bidify Fraud" (bidifyfraud.com), registered anonymously on January 27, 2012, now details his reasons. In an entry titled "Why The CEO & VP Of Biddson Quit After Working There For Only A Month," Liske states that he and Robinson quickly suspected Bidify.com and Bidsson.com were Ponzi schemes.
Their positions allowed them to review both auction data and financial records. These records showed that if both sites closed, they could not repay money investors had put in. The Bidsson.com auction site reported daily revenue much higher than its actual financial records indicated.
On its busiest day, the website never transacted more than $10,000 in purchased bids. Bidify's owners were paying out more money than they received from new investments. Liske claims Frode showed him the Bidify Towah main account in Jamaica, before a company cruise. It held only $100,000 in available funds, an amount Liske deemed insufficient to cover pending member withdrawals.
Liske decided to quit immediately and did not board the cruise. Christopher Robinson stayed behind to try and convince the owners to change the business model. He hoped to make it legal and salvage the websites. The owners did not follow his advice. Robinson quit days after returning from the cruise. The cruise was an event Bidify held for its top affiliates.
Concerns about Bidify's business model, particularly its Ponzi scheme characteristics, had been raised since its February 2011 prelaunch. Following the collapse of Zeek Rewards, a $600 million MLM penny auction Ponzi scheme, Bidify did briefly attempt a genuine business model based on retail bid sales. That effort quickly failed.