Full Report

Key Points

  • Subject: Darren Ewert, a Canadian-based entrepreneur, is implicated in a large-scale multi-level marketing (MLM) pyramid scheme targeting Bhutanese investors.

  • Scheme Details: Ewert, alongside Mike Dreher, operates the ‘Dream Team’ network, recruiting individuals in Bhutan and other countries to invest in Enagic water ionizers. Participants pay an initial fee of USD 149 and purchase the ionizers for approximately Nu 550,000. The duo reportedly earns substantial commissions from these transactions.

  • Financial Impact: With around 100,000 members globally, the scheme could generate significant revenue, with potential earnings ranging from USD 14.9 million to over USD 300 million, depending on member participation and purchases.

  • Regulatory Scrutiny: The Better Business Bureau (BBB) initiated an investigation into the ‘Better Life Buzz’ platform in 2019, associated with Ewert and Dreher, due to complaints about misleading marketing practices and lack of transparency.

Overview

Darren Ewert is a Canadian entrepreneur operating primarily in the MLM sector. He, along with Mike Dreher, runs the ‘Dream Team’ network, recruiting individuals to invest in Enagic water ionizers. The network’s operations are largely conducted online, targeting markets in Asia, including Bhutan.

Allegations and Concerns

  • Pyramid Scheme: The business model relies on recruiting new members who invest in products and pay fees, characteristic of a pyramid scheme structure.

  • Misleading Marketing: Promotional materials and webinars have been criticized for lacking transparency and providing insufficient information about the program’s operations and potential earnings.

  • Regulatory Issues: The BBB’s investigation highlighted concerns about the program’s legitimacy and the company’s failure to respond to inquiries.

Customer Feedback

  • Negative Reviews: Participants have reported feeling misled by the program’s promises of high earnings and have expressed dissatisfaction with the lack of support and transparency.

  • Lack of Positive Testimonials: There is a notable absence of verified positive feedback from participants, raising further concerns about the program’s credibility.

Risk Considerations

  • Financial Risks: Investors face the potential loss of significant amounts of money due to the scheme’s structure and the high costs associated with the products.

  • Reputational Risks: Association with a controversial and potentially illegal business model can damage personal and professional reputations.

  • Legal Risks: Involvement in pyramid schemes can lead to legal actions, including fines and sanctions from regulatory bodies.

Business Relations and Associations

  • Mike Dreher: Co-founder of the ‘Dream Team’ network and primary associate in the MLM operations.

  • Enagic: The company whose products are sold through the MLM scheme.

Legal and Financial Concerns

  • Regulatory Actions: The BBB’s downgrade of Enagic’s rating from A+ to C- reflects serious concerns about the company’s business practices.

  • Potential Legal Consequences: The operation of a pyramid scheme can attract legal scrutiny and potential penalties from authorities.

Risk Assessment Table

Risk Type Key Factors Severity
Financial High product costs, potential for significant losses High
Reputational Association with a controversial business model High
Legal Potential violations of MLM and pyramid scheme laws High
Operational Lack of transparency and support for participants Medium

Darren Ewert’s involvement in the ‘Dream Team’ network raises significant concerns due to the pyramid scheme structure and lack of transparency. While the business model may offer short-term gains for top-level recruiters, the long-term sustainability and ethical implications are questionable. Potential investors should exercise caution and consider the legal and financial risks associated with such schemes.