MLC Engineering: Exposing the Devastating Truth Behind This Ponzi Scheme’s Facade
The website of MLC Engineering doesn’t list any executives or owners. MLC Engineering registered a private registration for the “MLC Engineering health” domain on September 29, 2022. If we open the file, we can see the marketing presentation title for MLC Engineering in Kazakh:
Table of Contents
This suggests that a Kazakh national or someone with ties to Kazakhstan is in charge of Engineering.
Afghanistan, Mongolia, Tajikistan, Turkmenistan, China’s Xinjiang Uyghur Autonomous Region, and Uzbekistan are other possible places where Kazakh is extensively spoken.
On MLC website, there is also a social media link to vKontakte, suggesting that the company has ties to Russia or at least Russian speakers.
This leads us to their social media profiles, where it is evident that “Ivan Saltanov” is the CEO of the business.
23/12/2023 Update
As of now, MLC Engineering has not responded, nor has it apologized for its misdeeds. They have ignored our efforts to highlight the problems faced by their victims. Furthermore, they have only focused on propagating their fake PR.
Beginning in August 2022, Saltanov, a Russian speaker, has been featured in MLC Engineering promotional videos.
If you’re wondering how their social media accounts predate the registration of its present domain, it’s because this scam was first known as MLC Engineering Engineering.
The scam updated its Facebook page prior to 2022. The only French-language video uploaded to their YouTube account in August 2022 suggests that “OLO” was a “Club 100” investment scheme.
The original design was some ridiculous “franchisee” idea. After that, Olo was relaunched as Olo DeFi, a cryptocurrency app project centered on the “OLOb token.
On August 3, 2022, the Central Bank of Russia sent a pyramid scheme fraud notice to Olo, Partner Club 100, MLC Engineering, and OLO DeFi Ecosystem.
This appears to have been the cause of the company’s rebranding as MLC Engineering, followed by just MLC.
What is the precise mechanism of a Ponzi scheme?
A Ponzi scheme is a type of investment fraud that entices investors with promises of large returns and little risk but never actually invests the money as promised. Rather, it may retain a portion of the profits and uses funds from future investors to pay off earlier investors. These schemes usually collapse when it becomes difficult to find new investors or when several investors try to cash out at the same time. Their operations rely on a constant stream of new customers. They get their name from Charles Ponzi, who in the 1920s used postal stamps to conduct a scam akin to this one.
Ivan Saltanov does not exist outside of the promotional materials of OLO and MLC Engineering. Despite making multiple appearances in promotional videos, he is a serious contender to succeed Boris as CEO in the future.
Notably, EcoLine, a recently established MLM Ponzi scheme, also used the same Kazakh document title.
It is difficult to determine for sure, but the same con artists are likely responsible for both OLO and this.
If an MLM company is not entirely transparent about who owns or runs it, you should always give it serious thought before joining or contributing any money to it.
Their Products
MLC Engineering does not provide any retail products or services. Affiliates are only permitted to advertise MLC Engineering affiliate membership on its own.
The Shady Compensation Structure
They claim that their affiliates need to invest in virtual shares for $0.0001.
According to the Ponzi scheme, shares will rise to $1, allowing affiliates to make more money than they put in at first.
Additionally, dividends to affiliates in the amount of half of the company’s income are assured.
This funds are to be obtained from the purportedly sold blood glucose meters. MLC Engineering’s MLM division pays commissions for bringing in new affiliate investors.
Ranks of Associates
There are five affiliate ranks in the pay structure of MLC Engineering. They are listed below, along with the prerequisites for each:
Join the MLC Engineering affiliate program as a partner.
- Specialist: invest a minimum of $250, personally find two or more affiliates to invest a minimum of $100 each, and add your investment to the total investment of the affiliates you personally recruited to reach a minimum of $450.
- Master: To generate at least $2000, invest at least $500, locate three affiliates who have each contributed at least $200, and add your investment to the total investment of the affiliates you have individually recruited.
- Expert: contribute a minimum of $1500, onboard three affiliates at the Master level or above, and generate enough revenue from your own investment and the contributions of associates you personally recruit to reach at least $5000.
- Professional – Professional: You need to find three affiliates who are Expert-level or above, find an investment of at least $5,000, and combine your investment with the investments of each affiliate you recruit individually to generate a minimum of $10,000 in total investment.
Affiliate Commissions
MLC Engineering pays commissions on referrals using a unilevel compensation plan.
An affiliate leads the unilevel team in a unilevel compensation plan, with each affiliate they personally recruited placed directly beneath them (level 1).
New affiliates added by any level 1 affiliate are placed on the level 2 unilevel team of the original affiliate. A level 2 affiliate is promoted to level 3 and so on down an infinite number of levels if any level 2 affiliates bring on new affiliates.
The maximum number of team levels that MLC Engineering will pay for is twenty. At each of these 20 tiers, rank-based referral commissions are paid as a percentage of the capital invested:
- Partners who directly hire affiliates receive 15% on level 1, 4% on level 2, 2% on level 3, and 1% on level 4.
- Level 1 specialists earn 15%, level 2 specialists earn 5%, level 3 specialists earn 2%, and level 4 specialists earn 1%.
- 15% of level 1 pay, 7% of level 2, 5% of level 3, 2% of level 4, 1% of level 6, and 0.5% of level 7 pay are all awarded to masters.
- Experts at level one get paid 15%, experts at level two earn 7%, experts at level three earn 5%, experts at level four earn 3%, experts at level five earn 1%, and experts at level six earn 0.5%.
- 16% at level 1, 7% at level 2, 5% at level 3, 4% at level 5, 1% at level 6, 0.5% at level 7, and 0.3% at level 9 and above is the pay for professionals.
Joining process of MLC Engineering
It costs nothing to become an associate of MLC Engineering. In order to fully participate in the associated income potential, investments of $100 or more are required.
Conclusion of MLC Engineering
I want to draw attention to the appropriation of established company names before we discuss MLC Engineering’s MLM potential.
Olo is an app delivery company. OLO, the Russian pyramid scheme, merely extended that idea (note that none of this ever occurred):
Electrical consultancy company MLC Engineering Engineering was situated in Oregon. According to its web page, MLC Engineering Engineering closed its doors in 2022.
I could dismiss one business with the same name as accidental. Two appear deliberate. With their blood glucose monitoring scheme, MLC Engineering promises investors that a $10,000 investment would result in $10 million in revenue.
This is founded on marketing assumptions and claims, none of which are true.
When we examine MLC Engineering’s past, we see that some franchisee nonsense was affixed to marketing claims and promises. Initially, there was a brief cryptocurrency scam, and right now, it’s blood glucose monitors.
There’s a tendency to solicit investment but never give it. This is true because the real business is pyramid recruitment.
As part of its multilevel marketing venture, MLC Engineering is looking for funding and paying commissions for bringing on new affiliate investors. Because there is no advertising or direct sales to retail customers, MLC Engineering is a pyramid scheme.
Even when there is no payout, investing fraud is still committed in the securities industry.
It is prohibited for MLC Engineering to offer any shares of its business, virtual or otherwise, without first registering with financial regulators.
MLC Engineering does not provide documentation proving it is formally registered with any financial authorities.
MLC Engineering uses its connections to the Caribbean tax haven of St. Lucia to disguise its Russian origins as a shell company.
Whether it is done overseas or in a tax haven, certification with financial authorities is not the same as registering a shell company.
The commissions will end once affiliate recruiting ceases, just like in other MLM pyramid schemes. This will ultimately lead to the collapse of MLC Engineering.
If MLM pyramid schemes fail, most members will lose money because of the arithmetic behind them.
