Five Lyoness investors have been charged with pyramid scheme fraud in Greece, mirroring similar allegations faced by the company in Australia. The charges were brought by Public Prosecutors who allege the defendants engaged in "fraud felony" violating consumer protection laws.
The investigation into Lyoness in Greece began in 2010. Prosecutors uncovered five companies, including a direct Lyoness branch, established to defraud the public. These entities allegedly lured potential victims into complex and opaque programs designed for easy manipulation.
Prosecutors stated the companies aimed to extract substantial funds from victims. This money was channeled into deliberately convoluted schemes open to interpretation and adaptable to the company's needs. This mirrors tactics seen in other Lyoness operations, where minimal shopping activity served to legitimize significant financial contributions.
The scheme relied on pyramidal growth. New partners, both customers and professionals, were recruited through seminars and elaborate meetings. They were promised affluent lifestyles and financial gains from a globally operating company. Affiliation with up to five entities within the Lyoness structure was presented as a means to expand customer bases and access discounted goods and services.
Investors were assured they could withdraw their initial investment at any time, a promise intended to eliminate victim apprehension and encourage immediate participation. This assurance, prosecutors claim, removed a key barrier for victims, facilitating their swift entry into the program.
The alleged fraud occurred between November 2010 and September 2013. During this period, the five charged Lyoness affiliates are accused of defrauding approximately twenty Greek investors of around 81,000 EUR. Authorities are continuing their investigation to identify any additional victims.
The case against the five Lyoness affiliates is scheduled to resume on August 17th. Prosecutors are actively seeking input and information from any Greek citizens who may have been victimized by Lyoness. A decision in the parallel Lyoness pyramid scheme case in Australia is also anticipated this month.