Intelligence Prime Capital: A Stark Ponzi Scam Nearing Wreckage

Most times, masterminds of rip-off programs exploit the thin line between Multilevel Marketing (MLM) and Ponzi or Pyramid schemes. These con artists usually push phony products hinged on sketchy business models to gullible individuals. These programs might last for a while; some of them even stay years before the inescapable dawn of reality sets in.

Today, it could be safely said that only fewer people are truly gullible; most of us just choose to ignore the red flags that characterize these financial Eldorado-promising businesses.

Intelligence Prime Capital is one of those businesses. It is a swathe of red flags even the least financially literate individual should avoid.

For one, it is common sense that you should know the owner of a business you are pushing money into. Yet, Intelligence Prime Capital failed to be explicit about who owns or runs it. Intelligence Prime Capital provides no ownership information on its website. But what do you expect from a company that is not even clear about its identity, going with the names IPC Trade and capital?

Intelligence Prime Capital could be traced to Dr. Val Ng Sh who claims to be Intelligence Prime Capital’s Chief Marketing Officer in a YouTube video titled “meet the CMO of IPC.”

Val Ng is probably being played by an actor as LinkedIn had very little to say about him. His business credentials and experience cannot be ascertained either. What a red flag!

Funnily enough, Intelligence Prime Capital was registered on the 8th of June, 2021 but on its website, it claims to have been “leading the way in online trading for 15 years”.

While it has been established that most MLM businesses have a product or products they are marketing, Intelligence Prime Capital has no product of its own. It only markets its affiliate program. If for nothing else, this makes it a classic example of a pyramid scheme.

To be clear, a pyramid scheme is a sketchy and unsustainable business model, where a few top-level members recruit newer members. Those members pay upfront costs up the chain to those who enrolled them. As newer members in turn recruit underlings of their own, a portion of the subsequent fees they receive is also kicked up the chain. This encapsulates the whole of Intelligence Prime Capital.

The MLM side of Intelligence Prime Capital pays for the recruitment of affiliate investors. Multilevel Marketing (MLM) refers to a strategy used by some direct sales companies to sell products and services. MLM encourages existing members to promote and sell their offerings to other individuals and bring on recruits into the business.

The reliance of Intelligence Prime Capital on the recruitment of affiliate investors signals that a block to the inflow of these affiliates would crash the business – a classic pyramid scheme feature.

A look at Intelligence Prime Capital’s business reveals that there are seven affiliate ranks within Intelligence Prime Capital’s compensation plan. These ranks are leader, supervisor, department manager, regional manager, managing director, senior manager, and shareholder director, in no particular order.

These ranks enjoy swathes of bonuses, personally recruited investment volume which are funds invested by personally recruited affiliates, and total downline volume which are funds invested by your entire downline (directly and indirectly recruited affiliates). This is a clear pointer to the fact that Intelligence Prime Capital needs recruits and incentivises affiliate recruitment.

Essentially, Intelligence Prime Capital operates a unilevel compensation structure. A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1).

If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team. If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretically infinite number of levels.

With this structure, Intelligence Prime Capital shuffles newly gotten funds from new affiliates amongst existing affiliates to create an illusion of earnings amongst them. This structure also helps Intelligence Prime Capital spread its residual and recruitment commissions amongst the top guns of its business.

Shooting itself in the leg, Intelligence Prime Capital promises a whopping 45% return on investment (ROI). It should be noted that the static nature of Intelligence Prime Capital is another red flag as it is antithetical to the nature of true businesses with fluctuating ROIs given micro and macroeconomic unpredictable issues. Also, there is no verifiable evidence that Intelligence Prime Capital generates external revenue at all.

Affiliates are given the usual marketing “proof of trades” data in their back office. This is not a substitute for legally required audited financial reports. This leads to a conclusion that Intelligence Prime Capital is committing securities fraud. This also qualifies Intelligence Prime Capital as a Ponzi scheme too.

Once affiliate recruitment dries up at Intelligence Prime Capital, so too will new investment. This will starve Intelligence Prime Capital of ROI revenue, eventually prompting a collapse.