Cili By Design, a multi-level marketing firm pushing CBD supplements, launched in 2019 with a Las Vegas, Nevada address. Brad and Marcia Hager co-founded the company. Brad Hager’s corporate biography states he has 28 years of experience in network marketing. Marcia Hager reportedly joined the industry in her early twenties and co-owned an MLM company by age 28. Their business activities have largely occurred under the Hager Marketing Group umbrella.
The Hagers’ involvement in the MLM sector can be traced back to at least 2009. That year, they departed Cyberwize to join Zrii. They were Zrii’s top distributors for several years. In 2013, the couple left Zrii for FGXpress, a company that emerged from ForeverGreen International, founded by Ron Williams. FGXpress ceased operations in 2016. Following FGXpress’s collapse, the Hagers became involved with Ormeus Global, a cryptocurrency Ponzi scheme.
Brad Hager appears to have removed evidence of his association with Ormeus Global from the internet. However, in March 2018, a report indicated he was scheduled to promote Ormeus Global in Thailand the following month. Ormeus Global founder John Barksdale was later indicted on criminal fraud charges and remains at large in Southeast Asia. The Securities and Exchange Commission (SEC) filed parallel civil fraud charges against Barksdale, alleging Ormeus Global was a $124 million Ponzi scheme. The exact amount Brad Hager personally defrauded investors of through Ormeus Global is not publicly known.
Ormeus Global may not have been Hager’s first MLM Ponzi scheme. In 2012, an individual named Brad Hager claimed to have a substantial downline in Zeek Rewards. While Hager now resides in Las Vegas, his Facebook profile lists North Carolina as his birthplace. Zeek Rewards was operated by Paul Burks from North Carolina. Although direct confirmation of Hager’s extensive involvement with Zeek Rewards is unavailable, the geographical connection and his confirmed participation in Ormeus Global suggest it is the same individual. By 2019, Ormeus Global had largely collapsed, with John Barksdale’s arrest by Thai authorities marking a significant point. Cili By Design was established in the same year.
Cili By Design offers a range of CBD supplements. One product, Cili Swish, is marketed as a fast-acting, bio-available hemp oil, retailing at $72.50 for a 36-serving bottle. Another offering, Cili Boost, is a mouth spray containing CBD-rich Aquaceutical concentrate oil, orange zest flavoring, and herbs intended to convert food energy into cellular energy. A bottle of Cili Boost costs $25 and contains nine servings. The company claims its products utilize "Aquaceutical Cellular Nutrition Tech."
The company’s compensation plan is typical of MLMs, rewarding distributors for recruiting new members and for the sales made by their downlines. Distributors earn commissions on product sales. To advance in rank and increase earning potential, distributors must meet specific recruitment and sales volume requirements. Higher ranks typically require a larger number of personally recruited distributors and a greater overall team sales volume. These structures often incentivize recruitment over direct product sales to end consumers.
A review of Cili By Design’s product claims raises questions. The company advertises its products as having "breakthrough technology" and being the "purest" and "most bio-available" on the market. Such claims for CBD products often lack rigorous scientific backing and may violate advertising regulations. Regulatory bodies like the U.S. Food and Drug Administration (FDA) have previously issued warning letters to CBD companies for making unsubstantiated health claims. Independent scientific validation for the specific benefits and purported cellular nutrition technology of Cili By Design’s products appears to be absent from public records.
The success of Cili By Design, like other MLMs, hinges on its ability to attract and retain distributors who can successfully recruit others and sell products. The MLM model inherently carries a high failure rate for participants, with the majority earning little to no profit and many losing money. The regulatory scrutiny surrounding CBD products and the historical involvement of the Hagers with companies accused of fraudulent activity warrant careful consideration for anyone contemplating joining Cili By Design. Distributors should be aware that the income potential presented by the company is not guaranteed, and significant effort, skill, and often luck are required to achieve substantial earnings.