New Zealand's Commerce Commission is formally investigating Wealth Masters International for allegedly operating a pyramid scheme. A letter to a WMI member, dated October 20th, revealed the probe by the agency under the Fair Trading Act. This adds to existing scrutiny the company faces in other nations.

The New Zealand probe follows a period of significant internal disruption for Wealth Masters International. In July, Deanna Latson resigned as head of WMI Pure, the company's nutritional division. Internal communications between former COO Mary Dee and co-founder Karl Bessey revealed organizational challenges. Michael Hamburger, the longtime Vice President of Marketing, left to join Brent Payne's Avant last month. The US Securities and Exchange Commission (SEC) also announced its own investigation into WMI for possible securities violations.

The Commerce Commission's letter confirmed the agency is investigating whether WMI violated the Fair Trading Act by operating as a pyramid scheme. The Commission received a complaint about WMI's operations in New Zealand. The agency did not specify if the complaint came from the public, competitors, or its own market surveillance.

The timing of the New Zealand investigation is significant. Earlier this year, Norway's Gaming Board concluded that Wealth Masters International was a pyramid scheme and banned the company from operating in the country. The Commission's letter references Norway's finding. This outcome could influence the New Zealand investigation.

The Commission is demanding detailed answers from WMI members. They want to know about joining fees and what these fees cover. They are asking for specifics on products purchased, their costs, and what products members can sell. Investigators seek to understand how members earn income. They specifically ask about the proportion of earnings derived from product sales compared to recruiting new members.

The Commission also requests specific figures. It asks members how many products they have sold and how many new members they have recruited. And it asks about income promises made to individuals before they joined WMI.

The October 20th letter suggests an organization built on recruitment rather than legitimate retail sales. The questions indicate investigators suspect WMI's primary method for generating member income relies on bringing in new recruits, not on selling actual products to customers outside the company.

Wealth Masters International faces increasing regulatory pressure. US and New Zealand regulatory bodies are actively investigating. Norway has already banned the company. Key personnel have also departed. The company's scheduled Muai m2 conference in early December proceeds amid these investigations.