Update: Lyoness is buying (but with your money)

Earlier, this blog reported about the extravagant lifestyle of the criminal minds behind Lyoness and the incredible expenses they make, either for their own pleasure, or to divert the public's attention (and that of regulators, prosecutors and prospects) from the illegality and perniciousness of their activities.

After telling about the Lyoness Open and the Lyoness Treasure Hunt, we would now also like to inform the readers of this blog that Lyoness has also spend a considerable amount of money on soccer sponsoring. During a match between the Austrian soccer teams SK Rapid Wien and Austria Wien in 2010, the billboards around the stadium showed the Lyoness logo and name.

This development was part of the overall marketing strategy that Lyoness launched in Austria, since they entered the illustrious 'phase 3'. Another part of this strategy was constituted by a series of television ads on the Austrian television.

Ironically, as if Lyoness had not gathered enough illegal money yet, Freidl went looking for external investors to finance the marketing campaigns. He did not have to look far. The people already under his influence (i.e. the Lyoness members) were most happy to finance the campaigns, especially after they had heard what the returns would be. Surprising though that such a successful businessman as Freidl, would pass up on such a great opportunity himself.

That is because Freidl decided the marketing campaigns would make a perfect disguise for an additional Ponzi scheme, next to the pyramid scheme he was already exploiting. Only about 25% of the invested money was used to pay for marketing activities, the rest disappeared into the pockets of the Lyoness instigators. The Viennese commercial court has ordered on several occassions that investors in this Ponzi scheme can demand their money back, as the 'investment' was subject to a prospectus duty - and no prospectus was issued.

And then there are the personal expenses of Hubert Freidl and his friends. Although Lyoness desperately tries to maintain its monopoly on information about Lyoness, more and more starts to slip through its fingers. Recently, Plattform Lyoness published documents about the extravagant assets of Hubert Freidl. These included his private plane stationed in Graz and his beautiful yacht that lays in a harbour in Croatia. With his scam crumbling, and his assets probably being moved out of Lyoness as we speak, these luxurious ways of transportation may actually come in handy while fleeing from the law and agitated investors.

Remember, you paid for all of this.

Let us know whether you got a thank-you card from the Maldives!

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