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Replies to post #96768 on DD Support Board and Research Team
Conclusion
When USFIA launched in late 2013, the company originally had affiliates invest in “points”.
At some point Steve Chen and the rest of USFIA management probably realized this was a sure-fire way to attract the attention of the SEC, so “points” were renamed to “GemCoins” in September 2014.
GemCoins function the same as the previously issued “points”, making the transition merely cosmetic.
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Instead of a penny auction (like zeekRewards did), the ruse in USFIA is the sale of amber – which purportedly is what the value of GemCoins is pegged to.
In reality any sale of amber has nothing to do with USFIA as an MLM opportunity, with the only source of revenue being affiliate investment. Thus it follows that it is this same investment that is used to attach a perceived value to GemCoins.
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The rest of the USFIA compensation plan is recruitment-based, serving as an incentive to recruit new investors to keep USFIA from collapsing.
In terms of securities law within the US, quite obviously USFIA are making a securities offering by way of GemCoin point investment.
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Best case scenario? GemCoin pops up on the SEC’s radar by years end and USFIA is revealed to be a global multi-million dollar Ponzi scheme.
Worst case scenario? GemCoin and USFIA are already under SEC investigation, with imminent enforcement action pending.
