The Norwegian Gaming Board has formally declared Wealth Masters International an illegal pyramid scheme, according to an 18-page report. ScamTelegraph notes this detailed assessment, initially released in Norwegian, offers rare governmental scrutiny into multi-level marketing operations.
The Gaming Board publicly released its findings, initially available only as a PDF image file in Norwegian. Attempts to secure an official English translation directly from the board were unsuccessful. However, a reader of BehindMLM subsequently provided a full translation of the comprehensive report, revealing the depth of government analysis applied to Wealth Masters International.
The report methodically evaluates Wealth Masters International against four specific criteria to determine if it operates as an illegal pyramid scheme. The first criterion questions whether the company generates revenue primarily from recruiting members rather than selling actual products. The Gaming Board concluded that Wealth Masters International's revenues fundamentally derive from enrollment fees.
The second and third criteria assessed whether members were required to pay money to participate and to earn money, respectively. In both instances, the board found these conditions to be true for Wealth Masters International. The fourth criterion examined if the income structure depended on recruiting rather than retail sales, specifically if more than 50 percent of earnings came from enrolling new individuals. The Gaming Board determined this held true for both the company as a whole and for its individual members.
The board's analysis thoroughly dissects the mechanics of Wealth Masters International's operational model. The company organizes consultants in a multi-level structure, enabling participants to earn commissions up to five levels deep by enrolling new members or selling products. Despite the purported product sales, the structure inherently ensures that recruitment becomes the predominant driver of income, overshadowing genuine retail activity. The board concluded, "WMI has a multi-level structure where a participant can benefit by sale or enrolling on a lower level," directly addressing the company's pyramid-like trading system.
What distinguishes this report is not merely its conclusion but the rigorous methodology behind it. The Gaming Board did not rely on anecdotal evidence or consumer complaints. Instead, it meticulously examined Wealth Masters International's actual commission structure, product pricing, and compensation plan in detail. The analysis focused on the mathematical reality of how money circulates within the system and precisely where consultants generate their income.
The report begins by outlining the historical disputes between Wealth Masters International and Norwegian authorities. It then provides an overview of the company, its product line, and its commission payout structure. Following this foundational context, the board systematically addresses each of the four pyramid scheme criteria point by point, presenting its findings with clarity.
The conclusions drawn by the Norwegian Gaming Board are unambiguous. When a government body conducts such a thorough investigation and declares an operation a pyramid scheme, it signifies that the underlying structure itself – the actual flow of money, rather than just marketing claims or recruitment tactics – aligns with the legal definition of an illegal operation.
This was not a superficial assessment based on readily available information. The 18-page investigation left no room for alternative interpretations. The Norwegian Gaming Board meticulously scrutinized how consultants actually earned money and ultimately determined that the system cannot be sustained without a continuous influx of new members at its base. For those involved with Wealth Masters International, the report unequivocally states that the business model is unsustainable. It is structured so that the majority of participants will incur losses, while a small fraction at the top profits from the collective losses of others.
What did the Norwegian Gaming Board conclude about Wealth Masters International?
The Norwegian Gaming Board concluded that Wealth Masters International operates as an illegal pyramid scheme, based on an 18-page report detailing its financial and recruitment structure.
What criteria did the Gaming Board use in its assessment?
The board evaluated Wealth Masters International based on four criteria: whether income primarily came from recruiting, if payment was required to participate, if payment was required to earn money, and if over 50 percent of earnings stemmed from recruiting new members.
Why was the Gaming Board's report considered exceptionally rigorous?
The report was considered exceptionally rigorous because it analyzed Wealth Masters International's actual commission structure, product pricing, and compensation plan in detail, focusing on the mathematical reality of money flow rather than anecdotes.
What are the implications of the report for Wealth Masters International participants?
The report implies that Wealth Masters International's business model is unsustainable, designed for most participants to lose money while a small percentage at the top profit from the losses of others.