The Norway Gaming Board has definitively reaffirmed its December ruling, classifying Wealth Masters International as a pyramid scheme. Despite an appeal and multiple deadline extensions from the company's lawyers at Hellerøy, the board issued a 27-page document standing by its original assessment and ordering an immediate halt to all WMI product sales in Norway.
The initial verdict against Wealth Masters International was delivered on December 21st, labeling the company's operations as a pyramid-like sales system. Immediately following this decision, Wealth Masters representatives publicly contested the finding, claiming the Gaming Board had misinterpreted their business model. This prompted an appeal process from the company's legal team.
Wealth Masters International's lawyers sought multiple deadline extensions to file their objection, pushing the submission date from January 12th to January 25th, then to January 31st, before finally submitting their appeal on February 2nd. The company's primary argument centered on the assertion that the Gaming Board had misunderstood its internal structure and the composition of its products.
However, the Gaming Board's investigation leading to both its initial and reaffirmed decisions was thorough. Four representatives from the board had previously met directly with Wealth Masters International representatives, who explicitly confirmed the board's understanding of their presentations. The board also successfully obtained and analyzed WMI's actual products, which formed a critical basis for its assessments.
The Gaming Board's evaluation relied on four consistent criteria. First, whether WMI operated as a pyramid-like business model. Second, whether participation in the system required a payment. Third, whether earning money within the system also required a payment. Fourth, whether more than 50 percent of income, both for the company overall and for individual members, flowed primarily from recruiting new members rather than from actual retail sales of products.
Ultimately, the appeal did not result in a reversal or softening of the Gaming Board's stance. The new ruling reiterated its definitive conclusion: "The WMI is a pyramid-like sales system." The distinction between a pyramid scheme and a pyramid-like system, while subtle in terminology, carried the identical consequence of a complete cessation of Wealth Masters International's operations in Norway. For Wealth Masters, exhausting the appeal process only to have regulators confirm the original assessment represents a significant legal setback in the region.
What was the Norway Gaming Board's final decision regarding Wealth Masters International?
The Norway Gaming Board reaffirmed its December verdict, classifying Wealth Masters International as a pyramid-like sales system, and ordered an immediate halt to all product sales by the company in Norway.
What arguments did Wealth Masters International present in its appeal?
Wealth Masters International argued that the Gaming Board had misunderstood its internal structure and the composition of its products during the initial assessment.
What specific criteria did the Gaming Board use to assess Wealth Masters International's operations?
The Gaming Board evaluated whether WMI operated as a pyramid-like model, if participation and earning required payment, and if over 50 percent of income originated from recruitment rather than retail sales.
What is the immediate consequence for Wealth Masters International in Norway?
The immediate consequence is an order for Wealth Masters International to cease all product sales and operations in Norway, following the definitive ruling by the Gaming Board.