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| Hong Kong skyline from the Peak (Photo credit: xopherlance) |
Initial reports from PatrickPretty.com, citing an article from South China Sea Post, did not list a company name. It took several minutes of searching Chinese news to locate the original Chinese article as reported by singpao.com, but that did not list the company name either. It took several more searches across Chinese news websites to locate the company name, Interush. That news is translated line by line below:
数百内地人排队欲入会 港警方捣破层压式推销公司
Hundreds of Mainlanders in Queue to Join Up,
Hong Kong Police Broke Open Pyramid Selling Company
香港商业罪案调查科探员在红磡都会大厦一办公室内拘捕4男1女（左图）， Hong Kong Commercial Crime Bureau Investigators arrested 4 male and 1 female in in Hunghom Duhui office building (Left Photo)
全部涉嫌违反禁止层压式计划条例被扣查，探员并检走大量文件及计算机数据作证物（右图）。All are detained for investigation into alleged violations of "anti-pyramid selling ordinance". Investigators confiscated large amounts of documents, and several computers as evidence (right photo)
来源：香港《明报》 Source: Hong Kong "Mingbo" newspaper
中新网11月7日电 据香港《明报》报道，
According to Mingbo News out of Hong Kong
11月1日在港铁红磡站外有数百名内地人通宵排队，
Outside the HomHong HKRail station hundreds were lined up overnight on 1-NOV-2013
为加入一间声称即将上市的科技公司，
All to join a high tech company that claimed it will soon go under IPO
盼日后获过百万元(港币 下同)分红的机会。
Hoping for a chance to share in possibly 1 million HKD profit
香港警方商业罪案调查科调查该公司后，
HKPD Commercial Crime Bureau Investigation Unit conducted an investigation
怀疑该公司涉及层压式推销，
and suspect this company is conducting pyramid selling.
6日晚突击搜查该公司位于红磡都会大厦的办公室，
and thus conducted a raid in the evening 6-NOV-2013 on its office located in Homhong Duhui Building.
拘捕5人，并检获约18万元现金及检走大批文件调查。
5 were arrested, and taken into evidence 180000 HKD in cash, as well as large amounts of documents.
称上市后获百万分红 Claimed if IPO split 1 million bonus
被捕4男1女年龄介乎27至53岁，当中包括一名外籍人士，
Arrested were 4 male and 1 female between 27 to 53 of age, including one foreign national
全部涉嫌违反《禁止层压式计划条例》被带署扣查。
All were detained for suspicion of violating "anti pyramid selling ordinance" and brought to the station.
据了解，涉案的Interush声称是“云端科技公司”，
Interush, the alleged violation, claimed to be "cloud tech company"
在网上声称公司日后一经上市，其会员可获巨额分红，
Claimed online that company, if successful IPO, all members will share in a HUGE profit split
并以朋友介绍朋友的方式，不断吸引下线会员入会，
Using "friend introduce friend" method, continue to attract downlines to join
上周五(11月1人)吸引近400名内地人通宵排队取筹入会。
Last Friday (1-NOV-2013) there were up to 400 mainlanders lined up overnight waiting to join up.
警方证实，商罪科正调查一宗层压式推销案件，
HKPD confirmed that Commercial Crime Bureau is investigating a pyramid-selling case
并于6日晚9时许突击搜查红磡都会大厦一间办公室，
And conducted a raid on an office in Homhong Duhui building at about 9PM on 6-NOV-2013
在现场起出约18万现金，并检走大量文件及计算机作进一步调查。
Found 180000 HKD in cash at the premises, and took into custody large amounts of documents and computers as evidence for further investigation.
据《禁止层压式计划条例》订明，
According to anti-pyramid selling ordinance,
任何诱使或企图诱使他人加入层压式计划，
Any one recruiting or attempting to recruit people into pyramid selling schemes
最高可罚款100万元及监禁7年。
Can be fined up to 1000000 HKD and 7 years of jail time
警方呼吁任何市民怀疑受骗或就案件有数据提供，
HKPD is asking all victims who suspect they had been defrauded, or have concrete numbers regarding this case,
可与商罪科联络。
Please contact the Commercial Crime Bureau
【编辑:丁文蕾】Edited by WenLai Ding
Other reports of the same event indicated that the foreign national is an American, with first name of "Edward". No last name was given. Yet some other report claimed that he's the person in charge, acting as some sort of legal advisor or lawyer / barrister, and the other 4 detained were only junior employees.
The shocker is Interush is based in Irvine, California, which is not far from Los Angeles!
Interush, at first glance of their official website, at interush.com, does NOT appear to be a MLM or pyramid selling website. Indeed, it does appear to be a high tech company, with offices in China, Irvine California USA, Taipei Taiwan, Singapore, and so on. However, its own org chart stated that the umbrella corporation that owns all the subsidiaries is Interush Holdings incorporated in Bermuda, a known tax haven.
Interush is also a big racing fan, with sponsorships spanning Indy Car, 24-hours Rolex, and even NASCAR. it even sponsored a driver out of Hong Kong to compete in 24 hours of Rolex.
Checking the ENTIRE corporate website showed NO signs of any multi-level organization. There are mentions of "affiliates", but nothing about compensation plan. One must turn to various Youtube videos where top affiliates (most of whom are NOT in high tech) claimed to be earning lots of money. Below are some vid caps, and translated explanations.
The slide on screen says:
Summary
What is a stock option
What is a virtual stock option
Benefits of a virtual stock option
Factors that affects an IPO
How to execute a virtual stock option
Virtual stock option and company growth
If you want to see this for yourself, the video is at
http://www.youtube.com/watch?feature=player_embedded&v=iOMC0J2hvbY
They got the former CFO of Foxconn making this presentation, sure looks legit, doesn't it?
Apparently they got people investing in this back in 2010... looking for "virtual stockholders" (WTF?!)
But that was back in 2010. This vidcap is from video allegedly from February 2013
From the top, just below "Interush"
Group Bonus
Assist in recruiting more affiliate members
*Affiliate members help promote Iris cloud suite
* Each suite costs $3600 (buy 1 or 3)
* If left and right legs each successuflly sold 7 sets, 1 "cycle" is achieved, bonus $2680
At the top of the pyramid is "self"
Now there's no doubt this thing IS multilevel, is there? But wait, there's more!
Global Share Bonus
Assist in recruiting more affiliate members
IRIS cloud service suite yearly profit
split to all qualified leaders
Bronze level members (regular bronze, triple bronze, quintuple bronze) split share 2%
Top level members (silver, gold, and platinum) split share 2%
But wait, there's more!
PSP Global Profit Share
Interush Portal ad revenue 50% + Interush Iris Retail 50% fund = profit fund
Your points (PV) * Profit Fund / Total Points of all active affiliates = possible profit share
We share our profit with our members including ad revenue, IRIS retail, and ARC e-commerce plan
Oh, and they also sell nutritional supplements under iHealthScience branch, part of ARC e-Commerce plan.
You're welcome to check the accuracy of my vidcaps: http://www.youtube.com/watch?v=lAqnaq8o62g
By this time, it's pretty clear that this Interush is actually a MLM, who also happen to have cloud technology, but nothing unique about them. They'll also sell you "professional e-conference solution" (What's wrong with Skype or Google Hangouts?) among other things that seem to just cost too much given what's available for free.
The presenter used virtually every bad argument in the book. The comp plan was always about how much profit you *can* share, not how much was shared. Actual details are glossed over, while plenty of time was spent on how the company has linkup with Google, i-Racing, NASCAR, etc. etc. He kept emphasizing that in this business anybody can succeed, and the 4 "platinum" in Taiwan all look like middle-aged, workers, not geeks. You don't need to a degree! This is NOT a JOB! This is an OPPORTUNITY! etc. etc.
Frankly, the idea that a company has multiple layers is somewhat troubling. It is a lot like spy cells... Each group operate separately with no knowledge of the other... plausible deniability and all that. Right now, Interush US can disavow their HK operation and there's nothing the US regulators can do to them as the problem were all in HK and can be blamed on the HK subsidiary, even when it's clear the core's suspicious, and the home website has absolutely NO MENTION of the comp plan, much less affiliate agreement.
Stay tuned. This can get ugly.
