Robert Oblon sold Amplifei to LaCore Enterprises last month, reportedly after the multi-level marketing company failed to generate any profit since its launch. Oblon started Amplifei in early 2021, following a contentious exit from his previous venture, Elepreneurs.
Oblon had been removed from the Board of Directors at Elepreneurs and stripped of his authority. This resulted from gross financial misconduct. He voluntarily resigned to avoid punitive legal actions related to his malfeasance.
Amplifei sought to attract new distributors with a "Founder's Pool" incentive. Prospective Happiest Pack affiliates were told they could participate. Signing up for a Happiest Pack cost $1000. This pack included various products and the promise of a share in the Founder's Pool.
The Founder's Pool comprised 5% of Amplifei's monthly company-wide sales revenue. Shares were limited to 1000, and qualification closed on February 28, 2021. An advertised "7-day Mexico resort vacation" also accompanied the offer. To qualify for the Founder's Pool, affiliates needed to maintain "Active" status with 50 PV (Personal Volume) each month.
Payouts from the Founder's Pool were slated for quarterly distribution to qualified Happiest Pack affiliates, beginning April 15, 2021. That initial payment date passed without any distribution. No payouts occurred for the remainder of 2021, nor for the first quarter of 2022. Amplifei distributors have yet to receive any share of the Founder's Pool or the promised Mexico vacation.
When questioned about the missing payouts, Robert Oblon stated the Founder's Pool would only be paid once the company became profitable. This condition was not part of the initial marketing or sale of Amplifei's Happiest Packs. Oblon later admitted the Happiest Packs were sold as an investment, a claim that typically triggers scrutiny from securities regulators.
The promise of an investment return, without corresponding regulatory disclosures, can raise legal concerns. Multi-level marketing companies making such claims often face questions from bodies like the Securities and Exchange Commission. While Amplifei collected $1000 for each Happiest Pack, it did not clarify the profitability clause until distributors inquired about the non-payment.
Following an internal "audit," Oblon adjusted the "profitability" clause to a 50% compensation threshold. Most direct sales companies cap commissions and bonuses as a percentage of company-wide revenue. But rather than withholding payments entirely, they usually scale down payouts until the stated threshold is met. Amplifei's approach of paying nothing departed from standard industry practices.
These changes to the Founder's Pool and the continued lack of payment led some Happiest Pack distributors to feel misled. They began requesting refunds from Amplifei, asserting they had been "bait and switched." Correspondence seen by ScamTelegraph shows one distributor was offered a refund, contingent on returning all products included in their Happiest Pack. This offer came roughly a year after the initial purchase.
Another distributor, part of a group whose accounts had been terminated for complaining, received a different response. The company stated it would not respond to any further communication on the subject. Amplifei's sudden policy shifts and its handling of refund requests suggest a possible attempt to manage potential regulatory exposure. Federal and state consumer protection agencies often investigate MLM operations that resemble unregistered securities offerings or endless chain schemes. The sale of Amplifei to LaCore Enterprises due to its non-profitable status leaves many distributors facing significant financial losses.