Genusity, an MLM company co-founded by Tim Sebert and Randy Thomas, now operates a five-tier Ponzi cycler called 'MyGenStart Cycler,' promising $10,330 returns on a $195 investment.

Founded by Tim Sebert and Randy Thomas, Genusity initially marketed Bluetooth spam devices through a multi-level marketing structure. A 2017 review noted this early business model. The company later shifted its focus to selling various white-label supplements. Now, Genusity also offers the 'MyGenStart Cycler,' accessible directly through Genusity's backoffice or the separate domain mygenstart.com.

The MyGenStart Cycler requires an initial investment of $195 for a position. This scheme uses a five-tier system based on 2x2 and 2x3 matrix structures. In a 2x2 matrix, an affiliate occupies the top spot, with two positions directly beneath them. These two positions form the first level. A second level is created by splitting each of those two positions into two more, totaling four positions. This matrix holds six positions in all. The 2x3 matrix expands on this, adding a third level with eight additional positions, bringing the total to fourteen positions.

New and existing Genusity affiliates purchase positions, filling these matrices. A 'cycle' triggers once all positions within a matrix are filled. This completion initiates payouts and new position generation within the system.

Compensation varies by tier and cycle. The first tier's initial 2x2 matrix cycle pays a $30 commission, awards a 'GenCation' product, and generates new positions for the first tier's second cycle and the second tier's first cycle. Subsequent first-tier cycles yield $90 and another first-tier position. The second tier, also a 2x2 matrix, gives no initial commission but awards a 'GenMink' product and new positions for the second tier's second cycle and the third tier's first cycle. Later second-tier cycles pay $150 and generate new second-tier positions.

The third tier's first 2x2 matrix cycle offers no commission. It provides a 'GenBurn' product, an IR rank qualification bonus, and new positions for the third tier's second cycle and the fourth tier's first cycle. Subsequent third-tier cycles pay $400 and generate new third-tier positions. The fourth tier, utilizing a 2x3 matrix, pays $300 on its first cycle and generates new positions for its second cycle and the fifth tier's first cycle. Later fourth-tier cycles pay $2000 and create a new fifth-tier first cycle position.

The fifth tier, another 2x3 matrix, pays a $10,000 commission on its first cycle and generates a new fifth-tier first cycle position. A $20 referral commission is paid when a directly recruited affiliate cycles out of a third-tier matrix. Matching bonuses are also available when personally recruited affiliates complete a fifth-tier matrix. IR-ranked affiliates earn $500, Gold-ranked affiliates receive $1000, and Platinum and Diamond-ranked affiliates secure $1500. But the 'GenCation' product, mentioned with the first tier's initial cycle, is not listed on Genusity's main website, leaving its nature unclear.

The MyGenStart Cycler functions as a Ponzi scheme. Cycle commissions are funded directly by subsequent investments from new participants, not from genuine product sales or external revenue. Genusity simply shuffles incoming funds to pay out existing investors. The advertised return on investment for the MyGenStart Cycler is $195 in, with a potential $10,330 out, though affiliates often simplify this to '$10,000 out.' Subsequent cycles across all tiers promise further payouts ranging from $90 to $10,000 per cycle.

This structure constitutes a passive investment opportunity, making it a securities offering under US law. Neither Genusity nor its founders, Tim Sebert and Randy Thomas, are registered with the Securities and Exchange Commission (SEC) to offer or sell securities. This lack of registration means Genusity, Sebert, and Thomas are committing securities fraud. Operating a Ponzi scheme in the United States can also lead to charges of wire fraud and money laundering.

Like all Ponzi schemes, the MyGenStart Cycler depends entirely on continuous recruitment of new investors. Once affiliate recruitment declines, the matrices will stall. This stall will prevent further cycle commissions from being paid. An irreversible collapse will then trigger as matrices stop filling. The mathematical model of such cyclers guarantees that the majority of participants will ultimately lose their money. Genusity, Tim Sebert, and Randy Thomas operate primarily out of North Carolina, with most affiliates believed to reside in the US.