Laetitude, the latest scheme peddled by notorious scammers, has emerged as a stark reminder of the dangers lurking within the MLM and cryptocurrency space. With roots firmly planted in the fraudulent BitClub Network, Laetitude appears to be nothing more than a repackaged Ponzi scheme designed to dupe unsuspecting investors. Despite its promises of innovation and prosperity, Laetitude is riddled with red flags that expose its deceitful nature. This article delves into the company’s shady origins, dubious business practices, and the individuals behind this fraudulent operation.
Shadowy Beginnings and Questionable Leadership
Laetitude’s website provides no transparency regarding its ownership or leadership. The domain “laetitude.com” was privately registered on February 23, 2020, a clear attempt to obscure its origins. However, further investigation reveals David El Dib as the self-proclaimed founder of Laetitude on LinkedIn. El Dib’s track record is far from commendable—he is a former BitClub Network scammer who shared stages with convicted felon Russ Medlin, the mastermind behind the $722 million BitClub Network Ponzi scheme.
The BitClub Network’s collapse in 2019 saw several arrests, including Medlin’s in Indonesia on child sex charges. While the U.S. Department of Justice indicted five individuals connected to the scheme, El Dib’s status with authorities remains unclear. What is evident, however, is his involvement in another fraudulent venture under the guise of Laetitude.
Adding to the dubious mix is Stefan Stumpf, Laetitude’s “International Leader,” who also has ties to the BitClub Network. Together, El Dib and Stumpf have leveraged their notoriety to establish Laetitude, targeting a new wave of unsuspecting victims.
Dubai: A Haven for Scammers
El Dib, originally from Austria, fled to Dubai—a known safe haven for financial fraudsters. Dubai’s lack of regulatory oversight has earned it the title of “MLM scam capital of the world.” Operating through Spring7 FZ LLC, a shell company registered in the UAE, Laetitude exploits this environment to perpetuate its schemes. This geographic relocation underscores the lengths to which these scammers will go to avoid scrutiny and accountability.
Stumpf is also a former BitClub Network scammer:
A Productless Ponzi Scheme
Laetitude offers no tangible products or services. Affiliates can only promote the affiliate membership itself, a hallmark of pyramid schemes. The compensation plan revolves around investments in a so-called crypto trading bot, with tiers ranging from $500 to $50,000. Affiliates are lured with promises of passive returns, supposedly achieved through “novel algorithms” and “expert” development teams. However, no evidence supports these claims, making them as hollow as the promises of profit.
The scheme’s structure blatantly violates basic financial principles. Laetitude keeps 35% of returns generated, while the remaining funds are funneled back into the Ponzi system, enriching only the top players and administrators.
Exploitative Compensation Plan
Laetitude’s compensation plan is as exploitative as it is complex. It hinges on recruitment commissions and residual payouts through binary and unilevel structures. Here’s how the scheme functions:
- Recruitment Commissions: Affiliates earn 10% on fees paid by those they recruit directly. This creates a relentless focus on recruitment, a classic indicator of a pyramid scheme.
- Residual Commissions: Paid through a binary structure, affiliates earn 9-10% based on their membership tier. Weekly caps, ranging from $500 to $20,000, incentivize aggressive recruitment to climb the ranks.
- Matching Bonus: Using a unilevel structure, Laetitude promises a percentage of downline commissions, capped at eight levels. Higher ranks unlock more levels, pressuring participants to continually recruit and expand their networks.
Dubious Trading Bot Claims
Central to Laetitude’s pitch is its “state-of-the-art” crypto trading bots. These bots allegedly leverage dynamic algorithms to generate significant returns. The company touts results like a 149.32% ROI in 2020, yet provides no audited financial statements to substantiate these claims. Swapoo, the platform powering Laetitude’s bots, is registered in the British Virgin Islands—a jurisdiction notorious for housing shell companies.
CEO Dave Martin, based in the Philippines, leads Swapoo. Martin’s connections to Martin Backhausen, another BitClub Network associate, further entrench the scam’s roots. Backhausen’s presence in the Philippines and his role in Swapoo highlight the coordinated efforts of this network of fraudsters.
Laetitude’s trading model is a thinly veiled exit scam. Administrators can manipulate bot trades to siphon funds from affiliate accounts when the scheme inevitably collapses. Legitimate trading operations would prioritize transparency, including verified performance records and regulated operations—none of which Laetitude offers.
Securities Fraud and Regulatory Evasion
Neither Laetitude nor Swapoo is registered to offer securities in any jurisdiction. By soliciting investments without proper licensing, the company engages in securities fraud. This illegal activity underscores its intent to operate outside the bounds of law and ethical business practices.
The Human Cost of Laetitude’s Deceit
At its core, Laetitude preys on individuals seeking financial stability. Promises of passive income and financial independence are used to lure participants, only to leave them financially devastated. While the administrators profit lavishly, the majority of participants face inevitable losses when the scheme collapses.
Victims are not only burdened with financial losses but also risk reputational damage from their association with the scam. The deceptive allure of Laetitude highlights the need for heightened awareness and due diligence in the MLM and cryptocurrency space.
Conclusion: A Clear and Present Danger
Laetitude is a textbook example of a Ponzi scheme, masquerading as a legitimate investment opportunity. Its ties to BitClub Network, lack of transparency, and reliance on recruitment-driven commissions expose its fraudulent nature. By operating in regulatory gray areas and leveraging sophisticated marketing tactics, Laetitude perpetuates financial harm on a global scale.
Regulators must take swift action to dismantle this operation and hold its architects accountable. Meanwhile, potential investors must exercise extreme caution and avoid falling prey to such schemes. Laetitude’s promises of wealth are nothing more than a mirage, leaving a trail of financial ruin in its wake.