Two corporate employees, Dave Adams and Amanda Cosgron, publicly accused social media startup Rippln of running a scam yesterday. Both individuals sent emails from their @rippln.com addresses detailing why they could no longer work for the company. Adams stated he could not in good faith respond to affiliates being defrauded.
Cosgron confirmed her departure. The whistleblowers described a system resembling a pyramid scheme, disguised with technology. Rippln allegedly established merchant accounts in South Africa. The company planned three tiered packages priced at $300, $500, and $1,200. A $19.99 affiliate option allowed participants to market the program for minimal ad earnings.
Adams claimed company leadership understood the fraudulent nature of the operation. He said executives laughed about making millions, boasting the venture would "be bigger than Zeek" before regulators could intervene. "They sat here and laughed today as they said it will be bigger than zeek but no sec or ftc. Because it will be long gone before it gets to that point," Adams wrote.
He had already contacted authorities. "I've called authorities but they say no crime has been committed," he noted, anticipating his termination for speaking out. Adams also cited Kevin Sipe and Chris Grecco as new recruits to Rippln. Both men carry histories in the multi-level marketing world that previously drew scrutiny.
Brian Underwood, a Rippln executive, fired Adams within an hour of the article's publication. Underwood's email was brief and contained threats. "This goes without saying you're fired. No one will believe what you're saying and we are already working on that," Underwood wrote. He added, "If you publish any recording or any of the like I will sue you till the cows come home. Our lawyer will be in touch. It's called an NDA for a reason."
The legal threat arrived quickly. Company efforts to control the damage were explicit. Hours after the story broke, new forum commenters, claiming to be from various US states, supported Adams and Cosgron's accounts. They reported having dealt with both employees in Rippln's support department.
Adams understood the risks involved. "I'll probably be fired its ok its the right thing to do. It's worth it these guys are horrible."