Richard Smith stepped down as CEO of TranzactCard this week—but you won't find an official company announcement about it.
Instead, the news broke on Facebook. Victoria Nichole Doula, a TranzactCard distributor, posted that Smith resigned from his board position during the company's launch event and is now joining the ranks as a regular distributor, or DBO, like everyone else.
According to Doula, Smith left because he was tired of TranzactCard getting dragged through the mud over his past failures. She suggested that investigative reporting by BehindMLM into the company and Smith's history had poisoned the well, and now that he's gone, critics have "no leg to stand on."
The problem: BehindMLM's reporting was factual.
Smith has a documented track record of failed ventures. Between 2016 and 2021, he was involved with Divvee, Nui, The Digital Vault, RevvCard, and R Network—all MLM schemes that crashed. TranzactCard launched as essentially another iteration of the same playbook.
In 2010, Smith was criminally charged with securities fraud in Utah for running two Ponzi schemes. He pleaded guilty in 2017 to Pattern of Unlawful Conduct, a second degree felony. He defrauded consumers out of approximately $10.9 million.
TranzactCard itself hasn't avoided scandal. In September 2023, the company lost its US banking services. Smith also personally spread false celebrity endorsements. The only real celebrity backer the company secured was Mike Lindell, the pillow salesman facing multiple billion-dollar defamation lawsuits over false voter fraud claims. As of October 2023, Lindell was reportedly in financial distress.
Smith's background should be essential information for anyone considering involvement with TranzactCard. His past is his responsibility alone—not the fault of journalists reporting the facts. Yet his resignation has angered TranzactCard distributors who blame the coverage for driving him out.
Notably, at least one TranzactCard promoter has her own credibility problem. Fe Marie Murphy, a Florida-based distributor, is simultaneously promoting BFF Crowdfunding, which BehindMLM reviewed last month as a 400% ROI MLM Ponzi scheme.
The real reason for Smith's departure likely has nothing to do with hurt feelings over negative press. With TranzactCard already unable to secure US banking services, having Smith's legal history on the books probably made things worse. Stepping down to DBO status may be a maneuver to distance his criminal record from the company's operations—at least on paper.
🤖 Quick Answer
Who is Richard Smith and why did he resign from TranzactCard?Richard Smith stepped down as CEO of TranzactCard during the company's launch event, transitioning to distributor status. According to reports, he resigned due to negative publicity surrounding his documented history of failed business ventures and investigative reporting about his past involvement in questionable enterprises.
What was the nature of the criticism against TranzactCard and Smith?
BehindMLM conducted investigative reporting into TranzactCard and Smith's business history, documenting his track record of failed ventures dating back to 2016. The reporting was factual and raised concerns about the company's legitimacy and leadership credibility within the business community.
How was Smith's resignation announced to the public?
Smith's resignation was not officially announced by TranzactCard. Instead, news broke through a Facebook post by Victoria Nichole Doula,
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