A3Union and Other Classic Digital Currency Ponzi Scams
A3Union
Section (3) A3Union has been collecting ‘investor’ funds using digital currency accounts since around mid 2006. There is no Wikipedia page listing A3Union yet…I suppose that listing will come after the operators close and run with the money!
The Sales “Pitch” - Quote, “I have never seen anything like A3Union, the first time I made an investment was awesome! Very fast payment to my e-gold account in a matter of seconds. wow, i think i’ll be staying here for as long as A3Union stays. it helped me improve my monthly income for almost 40% average. I hope this company will stay long and strong! Thanks and Mabuhay!” *a3union
“Hi im a newbie with a3union i’ve joint a3union it is because the genuine of the programme compared to other HYIP plan that i have invested in and i can say that a3union is the best among the best…the only truly HYIP plan in the earth.” *a3union
The “Dream” - A3Union is a leading global provider of high yield investment products and services….Take a try of this low risk opportunity, and your principal and profit will be secure and 100% guaranteed…Our existing fund portfolio provides access to some of the global leading buyout and venture capital partnerships.
The Company
LineLie - A3Union constantly manages investment relationships with over twenty high yield investment partnerships in six countries. With our investment teams strategically located in London, New York, Hamburg and Tokyo, we actively manage investment relationships with over twelve thousands personal and business customers in 30 countries…A3Union is a perfect solution for those who are not familiar with day trading and trading stocks, however want to invest in the stock market and make stable profit from their investment.
The “Reality” - A pure ponzi scheme. Reported now to be run by some Russians….see the numbers section (below) for the reported astronomical promised returns. There is absolutely no transparency in this ponzi and no audited numbers to even discuss…there is no proof that A3Union has even completed one profitable trade. Let’s press on and ask the same set of questions applied to the original 1920’s ponzi scam. You can tell me if those questions will apply to this situation.
How Does It Work And When Does It Collapse?
As his most famous 1920 operation became larger, Charles Ponzi, started to get questioned about his ‘investment’ scam. The most serious questions were centered on two topics. One set of questions looked at him personally and one line of questioning looked at his investment company.
The personal line of questions dug into Mr. Ponzi’s background. People asked reasonable questions such as, “…how Charles Ponzi could have gone from being broke to becoming a millionaire in so short a time.” The year was 1920 and a dramatic increase in wealth during such a short period of a few months was a real miracle.
Inquisitive people checked into to Mr. Ponzi’s background. They wanted to find what schools he attended or the financial firms he had previously worked for…..but they only found that he had been in prison. There was no legacy of higher learning or earlier years of experience working in finance. They began to ask, how he could be such a financial genius with no formal education, no financial investment training and only months earlier he was broke?
The question that echoed was, “…how did he become so good so quick?”
The next line of questions attacked his business. As it turned out, Mr. Ponzi’s largest scam was promising outrageously large returns and claiming logistically impossible numbers. People asking the questions then reverse calculated his ‘investment’ numbers based on the amount of money he was taking in….and alarm bells started to go off.
Ponzi’s largest scam, centered around ‘postal reply coupons’ and he claimed his company business earned returns in excess of 400%. He then offered the public a 50% return in 45 days, or a doubling of their money in 90 days. Sound familiar? After calculating the total investor funds and the amount of interest payable to his ‘investors’ the reverse engineered numbers quickly proved that his business was a total scam.
For his 1920’s operation to have been legitimate, there would need to be more then 160 million postal reply coupons in open circulation. But at the time of his operation there were just 27,000 actually circulating. When the public saw this problem, there was an ‘investor’ run on his bank. He no longer took in more than he paid out and the scam collapsed.
Let’s take a closer look at the A3Union Ponzi scam. They offer three basic investor options, three different lengths and returns: [7 days 12%], [14 days 28%] and [92 days 200%] I’ll examine two, the ‘Classic 12%’ and the ‘Low Risk Classic 200%’ options.
Classic Portfolio
This portfolio is an equal combination of day trading transactions along with low risk financial analysis. One of the most popular investment products A3Union offer. A daily fixed interest of 1.7% is credited to accounts cash balance upon the expiration of the term. Take a try of this low risk opportunity, and your principal and profit will be secure and 100% guaranteed.–Guaranteed profit in 7 days - 12%.
–Minimum investment - $250
–The principal is released in 7 days.
Break down these numbers. How many times could you theoretically roll over this 7 day investment in one year? I’ll subtract 15 days from a year for holidays and web outages: 365 -15 = 350 days / 7 = 50 times. 7 days 12% can be rolled over 50 times.
Without compounding or adding the interest each time the ‘investment’ is rolled over for re-investment, a half million dollar starting amount, would have to show 3 million in day trading profits which will then need to be paid out in interest. This only occurs if everyone withdraws their interest each 7 days and that 500k in principle was rolled over.
I can hear the true believers now, “…well that’s possible you haven’t proven anything!”
Now take a look again if you rolled over the total amount both principal and interest every 7 days, here is what those figures look like:
- 500,000 x 1.12 = 560,000 (7 days)
- 560,000 x 1.12 = 627,200 (14 days)
- 627,000 x 1.12 = 702,464 (21 days)
- 786K - 881K - 986K - 1,105,300 - 1,237,900 - 1,386,500 - 1,552,900 –
(10 times being rolled over including the interest) 500k turns into 1.55 million in 70 days (under 3 months).
- 1,739,200 - 1,947,900 - 2,181,700 - 2,443,500 - 2,736,700 - 3,065,100 - 3,433,000 - 3,844,900 - 4,306,300 - 4,823, 100 -
(20 times or 20 weeks = 140 days) 500k turns into 4.82 million
- 4,823,100 - 5,401,900 - 6,050,100 - 6,776,100 - 7,58,300 - 8,500,000 - 9,520,000 - 10,662, 400 - 11,941,900 - 13,374,900 -
(30 weeks = 210 days) 500k turns into 13.3 million
I think I’ve gone high enough so let’s stop the fantasy at just 30 weeks and not go out to 50 possible rollovers. Returns in 10 weeks are ridiculous enough….does anyone reading believe that a bunch of strangers behind internet proxies could achieve such fantastical returns?
- Do you think anyone with such extraordinary financial ability and knowledge would be illegally soliciting $20 anonymous investments using digital currency?
- How are these anonymous web site operators so skilled that in 7 months they could take $500,000 and turn it into over $13 million? (answer-they are NOT, its a total ponzi scam)
Let’s go back to the 1920’s Charles Ponzi investigation and ask those same questions.
- Where were the A3Union web site operators months ago before this ‘opportunity’?
- What financial training allows them to claim they can generate more money than any established Wall Street firm despite the fact they solicit $50 anonymous digital currency investments from kids behind an Internet proxy?
It is not possible - it is a ’scheme to defraud’ you.*usdoj.gov
You are dreaming if you think consistent huge returns as advertised in A3Union are possible in any financial market. This is a scam to steal your money. It will collapse when there are fewer dollars coming in than they want to pay out.
Just like 12DailyPro and OSGold, this is a ponzi scheme.
How is it possible they moved from total obscurity to millionaire status in just months? Its NOT possible.
Low Risk Classic Portfolio
-We invest your principal on daily basis into low risk transactions.
–This portfolio guarantees the profit of 2.17% daily.
–We manage to generate and guarantee 200% profit in 92 days.
–Minimum investment - $50
If, as the A3Union phony prospectus states, there was $500,000 in house last year and it paid out the 92 days sequence just once, the principal investment funds would need to create a profit of more than $1 million dollars in just under 90 days. (no trading loss, commissions, transaction fees, taxes, no 20% withholdings by the brokerage or large bank fees)
Moving on, if you rolled that $1.5 million dollars over and had to pay investor’s interest again, 92 days later, your profit on day trading would be in excess of $3 million dollars in order for A3Union to make the minimum ponzi interest payment just one more time.
The A3Union scammers are telling people they can make in excess of $4 million dollars on an original principal investment of $500,000 while day trading stocks through a Charles Schwab account in just over 180 days!
Their phony prospectus says it all, “…..A3Union is a perfect solution for those who are not familiar with day trading and trading stocks.”
Where were these guys last year? Apply the Ponzi question, how can these operators just ‘arrive’ on the scene making this kind of huge profits…but last year what investment firm did they work for…?
At least in 1920, some people asked these questions…”how could someone go from broke to millionaire so quick?”
Answer: Its magic just like OSGold and 12DailyPro!!
Hmmmm….and I’ll leave you with one last question, if any legitimate business person could actually make such high returns on their investments, if anyone actually had such amazing skill….would they really be online asking for $20’s in e-gold?
Please be aware of these scams on the Internet and do not send your money.
Whether its called OSGold, 12DailyPro or A3Union, consistent high returns such as advertised by these scams are NOT possible.
