Kevin Thompson, a legal professional, stated in a February 12, 2014 YouTube video that companies should not use his name or a lawyer's endorsement in promotional materials. He explained that such an approach looks unprofessional and implies a business has significant problems if it needs to lead with legal validation. Large corporations like Amway and Herbalife do not promote themselves by stating their lawyers confirm their cleanliness.
This advice came as payment processors faced increased scrutiny. Liberty Reserve was shut down for money laundering. Payza suddenly suspended its US business activities under unclear circumstances. Amid these events, i-Payout emerged with growing frequency in the multi-level marketing industry.
i-Payout's client list has included several schemes that raised concerns. Spinding operated as a six-tiered Ponzi scheme using a global cycler model. Wealth4AllTeam, a long-running 10-day ROI Ponzi, later collapsed. Primus Hub then attempted to reboot Wealth4AllTeam. Funky Shark, a planned Ponzi, shut down during prelaunch after legal advice and a $40,000 fine.
Other i-Payout clients included TeamVinh International, a feeder co-op for recruitment-driven MLM schemes. MyAdvertisingPays functioned as a 120% ROI advertising-based Ponzi. Diamond Banners and Diamond Cycler were both matrix-based recruitment schemes. Argent Network, advertised as a mix of Zeek Rewards and TelexFree, was a 52-week ROI Ponzi. 1BuckAdShare operated as a $1-per-position Ponzi scheme. These examples suggest i-Payout provided e-wallet and payment processing services to a wide range of business models, often accepting clients if they demonstrated funding.
i-Payout directly communicated with this publication when it objected to reports critical of its e-wallet services to TelexFree in the US. TelexFree was under investigation in multiple countries and faced legal action in Brazil. Public prosecutors in Brazil's Acre state announced pending charges against TelexFree for money laundering and embezzlement.
Despite the obvious Ponzi structure of TelexFree, i-Payout defended its client. In an email, i-Payout stated it was providing its product and services to TelexFree's US and global business outside of Brazil. The company claimed it had completed full due diligence on TelexFree, assessed its needs, and confirmed the product complied with all US laws, also verifying every single TelexFree member by a subm.