A reader alerted ScamTelegraph to a business opportunity run by Bob Schafer, a venture operating under numerous aliases to avoid regulatory scrutiny. Marketing materials for Schafer’s scheme date back to 2018, with a YouTube pitch appearing in March 2019. Schafer and his wife, Jan, reportedly operate this operation from their home in upstate New York.

The scheme lacks a formal name, a tactic Schafer employs to evade detection. Over the years, participants have marketed it under at least nine documented names: Leveraged Breakthrough System, 15K Money, 10K Wealth Code, 7K Money, Prosper With Bob, 3D Wealth Machine, High-Profit Cashflow, Warrior to Wealth, and The Big Income System. Schafer himself rotates these names periodically, and recruits also create their own marketing monikers.

Key individuals associated with Schafer's operation include Oscar Christian Kinney, known as Coach Christian, and Marc Wilson, referred to as "The Army Dude." Participants are required to purchase access at one of four tiers: Gold ($3000 plus a $247 admin fee), Platinum ($7000 plus a $447 admin fee), Diamond ($14,000 plus a $647 admin fee), and Ultra Royal ($21,000 plus an $847 admin fee). Each buy-in includes access to a digital product library.

Commissions are paid based on recruitment at specific tiers. Recruiting a Gold affiliate yields $1500, Platinum nets $3500, Diamond pays $7000, and Ultra Royal recruits earn $10,500. However, participants can only earn commissions up to the tier they have personally purchased. If a higher-tier affiliate is recruited by someone at a lower tier, the commission difference is passed up the chain to upline members who are at or above the recruited affiliate's tier. For instance, a Platinum member recruiting an Ultra Royal affiliate receives the $3500 Platinum commission, with the remaining $7000 passed upline. The system seeks either a Diamond or Ultra Royal affiliate to receive the remaining funds. If a Diamond affiliate is found first, they receive $3500, with the remaining $3500 going to the first upline Ultra Royal member. If an Ultra Royal affiliate is found first, they receive the full outstanding $7000.

This commission pass-up structure is what defines the operation as a multi-level marketing scheme. Promotions have also been observed where new recruits are "upgraded" one tier above their purchase level. Additionally, Ultra Royal tier new recruits have been offered a 25% commission bonus, increasing their payout on a Platinum tier recruit from $3500 to $5250. Marketing videos indicate that participants mail buy-in funds directly to each other. The core of Schafer's business opportunity involves no sales or marketing to retail customers; participants primarily pay each other.

The scheme has been promoted under the name "Prosper With Bob." One promotional video shows Bob Schafer claiming he makes $100,000 a month through his system. He also claims that his wife, Jan Schafer, makes $50,000 a month. A transcript from a May 2019 video features Schafer saying, "I’m going to tell you how to make $100,000 a month." He further explains that participants mail him $3000 for his "Gold Package," and he mails them $1500 of it back. The remaining $1500 is kept by Schafer as his profit. This direct mail payment method, combined with recruitment-based commissions and the lack of retail sales, strongly suggests a pyramid structure.

One participant, who joined the scheme in July 2019 at the Diamond level, paid $14,000 plus a $647 administration fee. They reported receiving only $7000 in commissions over several months before the scheme began to collapse. This individual stated that they were unable to recruit enough new members to recoup their initial investment. They also noted that the digital product library, promised as part of the package, contained outdated and low-quality content.