MGM Capital, also known as MGM Capital Traders, has raised concerns about its website’s lack of openness regarding ownership and executive details. The domain “mgmcapital.co” was registered in November 2022 and is currently private, with the last update on October 30th, 2023. Despite its recent inception, MGM Capital incorrectly claims “an aggregate expertise surpassing a hundred years.” As of September 13th, the company’s Twitter profile, which was created in August 2023, is still listed as “coming soon”.
Notably, MGM Capital claims to be based in the UAE, notably Dubai, which is a well-known hotbed for MLM activity. YouTube videos produced by “HappyMan” and starring the claimed CEO “Sunshine Lee” call into question the validity of MGM Capital’s representation and operations.
The lack of regulation or the presence of poor regulation is a huge red flag. It means MGM Capital is a scam and most likely, an illegal operation.
Companies offering investment services or opportunities without having a license can vanish without leaving a trace. Furthermore, the lack of a regulatory license allows them to get away with it and face no legal consequences.
That’s why it’s vital for you to always check a company’s regulation status as well as its license information. The presence of a license allows consumers to reach out to an authority if something goes wrong.
In the case of MGM Capital, victims have nowhere to go due to the absence of a watchdog or license.
You should ask yourself the following questions when you come across a new investment firm or opportunity:
- Does the investment provider maintain transparency about its CEO?
- Do they have a license from a renowned regulatory authority?
- If the need arises, can I reach out to an authority to report this company as a scam?
MGM Capital, which lacks retailable products or services, concentrates entirely on promoting its affiliate membership. The absence of real offerings raises worries about the company’s validity and survival.
MGM Capital’s compensation scheme centers around affiliates investing in USD equivalents of cryptocurrencies, with the promise of passive returns based on various investment strategies. The plans and their respective returns are mentioned below:
|$25 – $999
|$1,000 – $9,999
|$10,000 – $100,000
|$101,000 – $1,000,000
|$100 – $1,000,000
Affiliates earn returns based on the set plan, however the source of revenue for these returns is unknown.
MGM Capital uses a twelve-tiered affiliate rank system, each with its own set of qualification standards. The ranks range from Starter to Global Ambassador, with various levels of personal involvement, affiliate recruiting, and downline investment volume.
MGM Capital pays referral commissions using a unilevel compensation structure with ten tiers. The percentage of commissions vary with the affiliate’s rank. Higher-ranking affiliates receive commissions at deeper levels within their unilevel team.
Affiliates receive a ROI match based on the daily returns of downline affiliates recruited into their unilevel team. This match is spread in five levels, with additional bonuses for affiliates that successfully recruit.
Ambassadors and higher-ranked affiliates have a 2% advantage across their whole company, particularly on new investments related to downline recruitment.
Affiliates that reach Bronze or higher ranks receive a Rank Achievement Bonus, which ranges from $50 to $500,000 depending on the rank.
MGM Capital offers free affiliate membership, but active involvement in the earning possibility demands a minimum commitment of $25. MGM Capital encourages investment in several cryptocurrencies.
However, it’s worth noting that many scammers disable their payment channels before shutting down their operations.
They might give you multiple reasons including:
- A technical error
- A glitch in their system
- Banking issues
- A “hacking attack”
And many others.
But in 9/10 cases, the scammers actually stop making payments and keep the money to themselves. Hence, the payment methods we discussed here might not work.
If you want to get your money back from a scammer, you’d need to file a chargeback.
When it comes to scammers, you should only measure the quality of their customer service if they respond to your complaint.
In the beginning, scammers tend to remain very accessible.
This means their representatives will keep calling you until you invest with them. Furthermore, they will act friendly and make it seem as if you’re one of their most valuable consumers.
However, they do all this just to win your trust.
Scammers understand that in order to convince someone to give them a large sum, they will need to seem like a friend.
Nevertheless, when you have invested a considerable amount of money and need to get it back, their customer support will become inaccessible.
All of a sudden, their numbers would either stop responding or become unavailable.
Still, they might remain accessible to convince you to invest further. Also, they might begin by making a few excuses regarding your payment.
However, in the end, the customer support won’t resolve your issues and become increasingly unavailable.
It’s worth noting that many scammers tend to purchase fake reviews. Buying fake reviews has become extremely easy and it’s a multi-million dollar industry.
Scammers like MGM Capital tend to purchase fake reviews for their online profiles to make themselves seem more credible.
TIME Magazine investigated the fake review industry and estimated it to be worth more than $150 million. Certainly, there are a ton of scammers who want to seem legitimate and a bunch of fake reviews is the most effective way to do so.
That’s why you shouldn’t trust MGM Capital reviews easily.
It’s easy to identify fake reviews as well. You should look out for 5-star reviews that are posted by temporary accounts (profiles which only posted 1 or 2 reviews on the platform). Also, you should see if the positive reviews share any detailed information about their experience with the firm or not.
In the case of MGM Capital, chances are, you wouldn’t find many legitimate reviews.
Another prominent way scammers like MGM Capital enhance their credibility is by burying negative reviews and complaints under a lot of fake reviews.
This way, when you’ll look up “MGM Capitalreviews”, you might not find many complaints. Or, you might find them buried within numerous reviews praising MGM Capital.
You should always look out for consumer complaints. In the case of MGM Capital, the most common complaints I found were about:
- Poor customer support
- Delays in payments
- High fees and charges
- Lack of transparency regarding their leadership team
- Aggressive sales staff
Do you have a similar complaint about MGM Capital? You can share your complaint in the comment section or submit an anonymous tip.
MGM Capital claims to produce revenue from a variety of sources, including renewable energy, FX, equities, commodities, cryptocurrencies, real estate, oil, and gold trading, as well as business acquisitions. However, the lack of data supporting these statements casts doubt on the integrity of their revenue sources. The business strategy, which promises constant daily profits of up to 2%, does not follow solid financial logic.
The lack of provable revenue streams, together with the securities offering without regulatory registration, points to potential securities fraud. MGM Capital’s reliance on new investments to generate returns resembles a Ponzi scheme, implying that the company may fail if recruiting slows, leaving the bulk of participants out of pocket.
MGM Capital is an unregulated entity. Although they might fall under the jurisdiction of a watchdog, they don’t have the license to offer financial services to consumers.
The lack of a license means they are not answerable to any regulatory authority. As a result, the people behind MGM Capital can run away with your money without any prior notice. You should be extremely cautious when dealing with an unregulated service provider.
The absence of a watchdog also means you cannot report to them to anyone.
Also, due to the absence of specific regulations, there is no provision protecting you from the insolvency of this entity. If they go bankrupt, you won’t be able to do anything about it.
Can You Trust MGM Capital?
All the evidence suggests that MGM Capital is a scam. If you have lost money to them, there is still a chance you can get it back.
To recover your funds, you’d need to file a chargeback.
Is MGM Capital a scam?
Can I withdraw money from MGM Capital?
Where is MGM Capital Located?
How do I get my money back from MGM Capital?
Launch a website/app with a generic name
A website or app with a generic name allows scammers to hide behind common Google search results. Marketing such names is easier as well.
Pay influencers & social media pages to promote the scheme
By getting influencers and social media pages to promote their brand, scammers make their shady company seem more legit than it actually is.
Send thousands of emails and make cold calls to potential victims
It’s common for scammers to buy the contact details of people and spam them through email, phone calls, social media messages and other means.
Make victims feel safe through “small wins”
Such small wins usually include a few payments transferred into the victim’s account. This makes them seem more legitimate.
Convince victims into investing large sums of money
Due to the small wins, the victim is now convinced that the company is legit. Now, the scammers try to manipulate the victim into giving them larger sums.
Disable withdrawals & take down the website/app
Once the scammers have recieved a signicant sum, they either stop responding or cite a technical error to freeze their victims’ funds.
Repeat the cycle
After making the money, the scam will shut down and the people running it will launch another and repeat the cycle.