Thomas Sullivan, a serial fraudster from Perth, Australia, launched ProfitAdz on May 31, 2012. The scheme appears to blend Ponzi mechanics with multi-level marketing, mirroring a previous failed venture. Sullivan registered the domain privately, concealing his identity.

Sullivan claimed to build the site with business partner Robert Scott under a company called Thomas Scott Enterprises. These names offer little verifiable information. A quick search reveals no public records for either man or their supposed enterprise.

A reader later identified Sullivan promoting ProfitAdz on YouTube. This video led to another Sullivan property, abetterrelationship.net. WHOIS records for that site placed Sullivan in Heathridge, Perth, revealing his prior history.

Sullivan has employed this exact strategy before. In 2011, he started Adzpays. That scheme asked members to invest $10 per position, promising a 200 percent return. The model collapsed after attracting thousands of participants. He also operated Power of 3, a pure recruitment pyramid disguised as a matrix scheme.

ProfitAdz functions almost identically to Adzpays. The scheme has no actual products. Members do not sell anything to external customers. Instead, they hand over $10 and receive advertising credits. These credits hold no value outside the internal ProfitAdz network, appearing only on the ProfitAdz website itself. It forms a closed loop.

The compensation plan initiates the Ponzi mechanics. Every $10 investment guarantees a 200 percent return. This model is mathematically impossible without a constant influx of new money from new recruits. Sullivan cannot generate such returns from legitimate business activity because none exists.

Each $10 investment also acts as a recruitment position within a 2x2 matrix. An investor buys in, and two people sit below them. These two then recruit two more each, filling six total positions. Once all six are full, the investor cycles out. They receive their original $10 back, another $10 buy-in, and entry into a larger 6x6 matrix.

This setup locks in the pyramid structure. Individuals at the top collect money from dozens of positions below them. The majority of members, those at the bottom, watch their $10 disappear when the inevitable collapse occurs and no new recruits materialize.

Sullivan understands this outcome. He used the same playbook with Adzpays, operating under the email admin@adzpays.com, before that scheme imploded. Now he has repackaged it with minimal structural changes under a new name.

The math simply does not work. Products are absent. Guaranteed returns remain a fantasy. The scheme extracts money from early recruits and pays them with capital from later ones. This fits the textbook definition of a Ponzi scheme, wrapped in matrix-speak.

Sullivan's history with Adzpays serves as a clear warning for anyone considering an investment in ProfitAdz.