Judge Reynaldo Fonseca in Brazil partially lifted court-ordered suspensions against BBOM this week, unblocking specific commission structures for the company. This decision followed two appeals seeking to restore parts of BBOM's business practices, which had been frozen due to allegations of operating a financial pyramid.
BBOM's core business model promised affiliates $80 to $400 monthly payouts for initial deposits ranging from $300 to $1500. This required a continuous $40 monthly fee. The company claimed these funds were used to sell GPS trackers to customers. However, federal prosecutors in Goiás (GO-MPF) stated that BBOM simply took new affiliate money to pay existing investors, a classic Ponzi scheme.
Judge Fonseca unblocked "Direct Sales" and "Fast Start" bonuses. These commission types do not appear in BBOM's documented compensation plan. This suggests the unblocked commissions exist outside the main multi-level marketing opportunity.
Federal prosecutors in Goiás clarified that BBOM may now only make direct sales to consumers. It can pay bonuses to dealers based on indications of final consumers. Judge Fonseca argued that blocking all BBOM activities was improper because "some of the ways of marketing the product used by (BBOM) are not a part of the 'financial pyramid' scheme."
BBOM claimed in court filings that it had placed 250,000 trackers with consumers. This figure closely matches the number of affiliates the company had. BBOM had no customers beyond its affiliates, who were compelled to pay fees to receive their promised returns.
The prosecution likely knew unblocking retail sales commissions would be largely ineffective. Affiliates are unlikely to continue paying a $40 monthly fee without the attached investment return.
The Ponzi investment scheme, which formed the core of BBOM's MLM business, remains suspended. This provides a clear indication of how Judge Fonseca views the primary business model. A second appeal is currently moving through the system, seeking to restart the investment opportunity, but its success appears unlikely.
Judge Fonseca also released funds for BBOM to cover its operational debts. These include payments for suppliers, labor, tax debts, utilities, and materials "needed to run the company."
BBOM has announced plans to launch a new business under the name "EmbraSystem." This new opportunity, featuring a new compensation plan, will appear at "vamopracima.com.br".