CENTRAL STATE ATTORNEY FOR THE PROSECUTION OF ECONOMIC CRIMINAL CASES AND CORRUPTION [WKStA]
Michael SCHÖN, LLC, MBA, STATE PROSECUTOR
In line with the arguments of the Higher Regional Court of Vienna, the [WKStA] demands the expiration of the assets (following §20.3, Penal Code) of Hubert Freidl, who is a suspect charged with violations of §168a, Penal Code.
To avoid repetition, the content of the freezing order (ON 324) and the legal opinion of the [WKStA] are referred to.
Suspected is that Hubert Freidl began seeking investors for the establishment of LYONESS in the spring of 2003. The first LYONESS corporation (LYONESS Europe AG) was founded in Switzerland in July 2003.
From 2003-2010, Hubert Freidl owned 10%, in 2010 25%, and from 2011 on, 100% of the shares of LYONESS Europe AG.
95% of the Business Partners and Customers of GALVAGIN changed to LYONESS in 2003. Customers of HANSEATICA were also transferred to LYONESS. Between 2003 and 2007, more LYONESS corporations were found, and in 2008 the LYONESS concern experienced remarkable growth (including Austrian, Swiss, and Luxembourgian corporations).
The business idea of the LYONESS tribe – that is indeed under suspicion – stems from Hubert Freidl. He has implemented the business idea and has driven its development (increased the number of accounting categories from 3 to 5; increased the amount of products for daily use). He describes himself as a director, and since 2004 as the CEO of LYONESS. Hubert Freidl has had the following functions in the LYONESS Group:
LYONESS Holding Europe AG (LYONESS EUROPE AG since 12/10);
Switzerland (founding 07/03)
• Director with single signature (10/04 - 02/10)
• Chairman of the Board with single signature (02/10 -12/10)
• Director with single signature (since 01/12)
LYONESS DATA SERVICE GmbH; Austria (founding 04/08)
• Managing Director (08/04 to 08/10)
LYONESS Child and Famlly Foundation; Switzerland (founding 04/08)
• Member of the Board of Trustees (02 / 09-09 / 11)
• Vice-Chairman of the Board (since 09/11)
LYONESS MANAGEMENT GmbH; Austria (founding 04/08)
• Managing Director (08/04 to 09/05)
LYONESS HOLDING AMERICA AG (LYONESS INTERNATIONAL AG since 06/10); Switzerland (founding 06/09) 159
• Director (07 / 09-02 / 10)
• Chairman of the Board (02 / 10-12 / 11)
• Member of the Board of Directors (11 / 09-03 / 12)
• Chairman of the Board of Directors (since 03/12)
• Majority Owner (100%) since 2011
LYONESS Cashback S.A; Luxembourg (founding 09/10) 163
• Managing Director (Order 09/10 - until the AGM 2013)
• Director / CEO (order 11 / 10- until the AGM 2012)
LYONESS IMEA SA; Switzerland (founding 05/11) 164
• Director (since 05/11)
LYONESS Greenfinity Foundation; Switzerland (founding 10/11) 165
• Chairman of the Board (10 / 11-02 / 12)
• Vice-Chairman of the Board (since 02/12)
LYONESS Cashback AG (since April 2014 LYONESS Group AG); Austria (founding 11/12) 168
• Sole Shareholder since Incorporation
• Supervisory Board Member (12/2012 to 04/14)
• Board of Directors (since 04/14)
The suspect Hubert FREIDL can be considered the (Founding) Developer, Developer of the Binary Compensation Plan, and the founder and (beneficiary) owner of the LYONESS Group.
These results of the investigation correspond with the statements made by Hubert FREIDL, as well as those made by the questioned witnesses and other suspects.
A chain and pyramid scheme is put in motion by the one who allows the first participant to join. A chain and pyramid scheme is organised by the one who takes the measures to make sure that it can be put in motion. When the organisation of the scheme is completed, that is, when it is put in motion, the scheme is considered for trial. In accordance with was described above, the conditions for starting and organising a pyramid scheme as understood in §168a, article 1, paragraph 1 of the Penal Code, have been met by the suspect Hubert FREIDL.
A chain and pyramid scheme as meant in §168a, paragraph 1 and 2 of the Penal Code was established and expanded through meetings, brochures, and any other methods used to attract many participants. It is not about the power of persuasion, it is enough when the expansion behaviour directly or indirectly affects many people that are offered participation in the system. In accordance with was described above, the conditions for starting and organising a pyramid scheme as understood in §168a, article 1, paragraph 1 of the Penal Code, have been met by the suspect Hubert FREIDL.
In the fiscal years 2008-2011 LYONESS Europe AG obtained a revenue (“Revenue from Downpayments and Commissions from the Sale of Gift Cards”) of CHF 739,280,887.48 [725 million US dollars]. In 2012, this was CHF 320,596,796.55 [315 million US dollars].
Of UTM Holding Limited, it is known that on the basis of its use of the names and logos of LYONESS, as well as the LYONESS Internet Domain, it is in a consistent business relationship with Lyoness. Hubert FREIDL is 100% owner of UTM Holding Limited. In 2012, UTM Holding Limited transferred €250,000 [300,000 US dollars] to the personal bank account of FREIDL. In 2013, an additional €150,000 [175,000 US dollars] was transferred. No reason for the payments has been stated. The payments cannot be reconciled with the self-reported income data of the accused Hubert FREIDL.
According to the information available until now:
1. Hubert FREIDL did not receive any compensation (in the form of salary) for his work for LYONESS over the period 2007-2013.
2. Hubert FREIDL himself stated to have a monthly gross income of €20,000 [24,000 US dollars], plus bonuses and a total of €400,000 [480,000 US dollars] in liquid assets.
3. His own downline consists of 179 people. The size of the commissions received over these people is not known.
4. Revenues, dividends, and profit withdrawals can be reasonably suspected to be considerably higher than what was found in Austria, and what the suspect has admitted to.
Therefore, the suspicion is that assets have been hidden and are kept secret. This makes recovering the assets considerably more complicated. A further seizure of assets is thus unlikely at the moment.
A suspicion is more than a mere presumption. It is the knowledge of facts, from which, considering common sense, can be concluded that someone has committed an offense or crime (RISJustiz, RS0107304). Since the principle “in dubio pro reo” only applies at trial, it cannot be assumed that the suspicions for freezing or (long-term) seizing assets should be based on an imminent conviction of the accused.
The currently available suspicions justify in any case the freezing of assets by the State Prosecutor and makes pecuniary arrangements likely, so that also the for seizure necessary level of suspicion is sufficiently present at this time.
Since the legally required level of suspicion in this case, as well as the proportionality of the taken coercive measures, is given, and the level of risk seems evident, the [WKStA] upholds its request.
Extract from the decision of the National Criminal Court of Vienna, Department 31.
Judge Christian Waizi, LLC.
317 HR 124/14 h
REPUBLIC OF AUSTRIA
NATIONAL CRIMINAL COURT OF VIENNA
The National Criminal Court of Vienna summarised in the criminal case against Hubert FREIDL and others, on the ground of §146 of the Penal Code:
In the above mentioned criminal case, following §115 paragraph 1-3 of the Penal Code, the judicial seizure of the capital available at the bank account of Hubert FREIDL is arranged:
1. Hubert FREIDL and anyone else with access to that account are forbidden from using any of the funds currently available on the account. In particular, they are forbidden from cancelling any of the incoming capital to the account, from utilising any restitution claims, and from granting any remittance or payment orders.
20th September 2014
Norwegian regulators fail to identify the 'Lyoness' racket.
'Lyoness' is the name over the entrance to a classic blame-the-victim 'income opportunity' cultic racket, comprising a dissimulated closed-market swindle, or pyramid scheme, and related advance fee frauds. In the simplest terms, the overwhelming majority of all the money which has been flowing into the 'Lyoness' racket, has come from its deluded adherents based on their false expectation of future reward.
Over the past few months, Norwegian lottery regulators, led by Monica Alisøy Kjelsnes, have supposedly beeninvestigating the activities of the organization known as 'Lyoness.' The result of these supposed investigations can only be described as astonishing; particularly, when you consider that the corporate front for the 'Lyoness' racket has been set up in Norway in such a devious way that Norwegian regulators could not access any audited accounts. Instead, they relied on unverifiable figures supplied by the 'Lyoness' Ministry of Truth.
Thus, the Norwegian lottery regulators, led by Monica Alisøy Kjelsnes, have finally concluded that although'Lyoness' has been the front for an illegal pyramid scheme in Norway, based on the organization's own figures,'Lyoness' is no longer hiding such criminal activity and, consequently, will not be prosecuted.
Readers might be interested to learn that during the past months I have written to Monica Alisøy Kjelsnes on two occasions, and asked her what would be her own personal reaction if a member of her own family suddenly announced that he/she had signed up with 'Lyoness?'
Predictably, I have yet to receive a reply to my common-sense question.
David Brear (copyright 2014)
'Lyoness' lie finally under investigation in Australia.
Today's media release (posted below) from the 'Australian Competition Consumer Commission,' proudly declares that 'Lyoness' has been under investigation, and will be prosecuted, as a suspected pyramid scheme dissimulated behind a 'cash back'scheme.
Laughably, but tragically, the same document reveals that agents of the 'ACCC' have not yet looked beyond the ends of their noses. Consequently, they still fail to understand that the mystifying labyrinth of 'Lyoness' companies has merely been the corporate front for the latest version of an evolving, historically-significant, criminogenic phenomenon which can be accurately described as, blame-the-victim 'Multi-Level Marketing Income Opportunity' cultic racketeering.
In reality, what has become popularly known as 'Multi-Level Marketing' is nothing more than an absurd, cultic, economic pseudo-science. The impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers (including regulators), in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, leads,' etc.).
ACCC takes action against alleged
pyramid scheme operator
November 13th 2013
The 'Lyoness Ministry of Truth'
However, in respect of herr Freidl, and his unoriginal fairy story entitled 'Lyoness,' these words are an accurate use of the English language
Oct 29th 2013
August 7th 2013
August 1st 2013
July 6th 2013
Austrian Ministers block parliamentary questions about the 'Lyoness' racket
June 10th 2013
The big 'Lyoness' People's Business lie, turns out to be an adaptation of the big 'Nazi People's Car' lie.
|Would you have bought a 'car' from this kindly little Austrian man?|
|So why would anyone want buy a 'business' from this other kindly little Austrian man?|
June 9th 2013
JUNE 5th 2013
JUNE 4th 2013
|'Dr.' Julian Hosp|
May 28th 2013
|William S. Pinckney Anshu Budhraja Sanjay Malhotra|
May 26th 2013
(i.e. session of intensive brainwashing)
May 24th 2013
Meanwhile, the 'Lyoness' Ministry of Truth steadfastly pretends that 'Lyoness' is booming in Australia when, in reality the organization has effectively fallen to pieces.
Another insightful article is published by:
It is universally accepted that lying to, or withholding key-information from, people in order to take their money, is fraud which is a form of theft!
May 19th 2013
Deluded Giulia is certain that
Warren Buffet believes in 'Lyoness.'
|'Income Opportunity' racketeer, Hubert Freidl, posing as the great business führer.|
May 18th 2013
Panic Stations at 'Lyoness' in the UK
The führer and deputy führer of 'Lyoness,' peddling places in their (non-existent) future Utopia.
'Lyoness' deputy führer, Werner Kaiser
Another scoop from
The 'Lyoness Complaints Centre.'
The Austrian authorities knew all about the 'Lyoness' racket years ago, but did nothing to stop it.
An appeal is launched for all 'Lyoness' victims around the globe to contact 'Quality Austria!'
|'Income Opportunity' cultic racketeer, Hubert Freidl|
The Lyoness Complaints Centre!
(The 'Lyoness' segment appears after around 24 minutes)
Austrian television has broadcast a video of Hubert Freidl confessing that the 'Lyoness Cash Back Card' is a smokescreen
Faced with imminent indictment for fraud, Hubert Freidl has quit Austria.
Many more victims of the 'Lyoness' lie have begun to face reality and organize.
The former Managing Director of 'Lyoness Austria' has blown the whistle.
Readers please note that, as a result of well-informed complaints to Carrefour in France and Lego in Denmark, both these reputable European companies now no longer do business with the 'Lyoness' racketeers ( Jan 7th, 2013).
It has been reported to this Blog that 'Lyoness Australia' held an emergency meeting, Friday 12th April 2013 (in Sydney) to discuss how the company is going to tackle the deluge of demands for refunds. More than 300 adherents have already woken up to reality and obtained their money back following the departure of Woolworths Australia (a trusted-brand which has been slapped all over 'Lyoness' propaganda in Australia). Apparently, when contacted by phone, Woolworths in Australia now says quite openly that 'Lyoness' is a scam and that Woolworths is not connected to it in anyway.
It has also been reported to this Blog that the Australian Competition and Consumer Commission has received sufficient complaints to open an investigation of 'Lyoness.'
If you have begun to swallow the innocent-looking 'cash-back' bait, you have actually entered the first stage of the 'Lyoness Income Opportunity' racket. Unfortunately, this means that you have already given the beneficiaries of the racket free-access to a significant quantity of personal information about yourself. This personal information can be used to try to induce you to advance further into the self-perpetuating 'Lyoness' labyrinth of lies. This will involve you being given the illusion that you are making a free choice to hand over your cash, along with personal information about your own friends and relatives, so that they too can be scammed, and used to scam others, but without them realising.
The next stage of the 'Lyoness' racket, involves persuading you to make a 'once-only' payment of around $3000 on the pretext that this will produce a future reward of $25000. You will also be offered the ego-building title of 'Lyoness Premium Member' - provided you can recruit the required number of additional $3000 'Lyoness Premium Members' yourself.
In order to achieve this admired and respected rank of 'Lyoness Premium Member' you will be advised to draw up a list of everyone you know, and everyone you have ever met in the course of your life. You will be told to contact all of these people and offer them a chance to benefit from the 'Lyoness Income Opportunity.' This first involves persuading your friends and relatives to sign up for the 'cash back' scheme.
This is just the beginning of the scam, because there are many more tiers of the 'Lyoness' pyramid of lies, on offer. The ego-building titles attached to these tiers are all similarly dependent on recruiting more and more $3000 so-called 'Lyoness Premium Members.'
In order to make this fraud appear lawful, 'Lyoness' victims are given blocks of gift vouchers in exchange for what are, in fact, unlawful investment payments (made on the false-expectation of future reward). __________________________________________________
The lie which is fundamental to all 'closed-market swindles' is that people can earn income by contributing their own money to participate in any alleged 'profitable commercial opportunity' which is secretly an economically-unviable fake, due to the fact that the alleged 'profitable commercial opportunity' has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own participants. For more than 50 years, 'Multi-Level Marketing' racketeers have been allowed to dissimulate closed-market swindles by offering endless-chains of victims various banal, but grossly-over-priced, products, and/or services, in exchange for unlawful payments, on the pretext that 'MLM' products and/or services, can then be regularly re-sold for a profit in significant quantities. However, since no gang of 'MLM' racketeers has ever proved that 'MLM' wampum has actually been regularly re-sold to the general public for profit in significant quantities,'MLM' participants have, in fact, been peddled infinite shares of their own finite money.
|'Income Opportunity' cultic racketeer, Hubert Freidl|
Simply by instigating a front-group 'charity' with some of his stolen money, Hubert Freidl (pictured left) has recently been able to pretend direct association with 94 year old Nelson Mandela.
Narcissistic racketeer, Hubert Freidl, playing
the comic-book role of ordinary man turned superman.
It is no exaggeration to say that, due to the amount of money it has already unlawfully generated, the 'Lyoness' lie represents an ongoing threat to democracy and the rule of law. Hubert Freidl, an otherwise mediocre little parasite, should have long-since been recognised as yet another narcissistic racketeer peddling an illusion of Utopia (built from its victims' money), and all of his stolen wealth confiscated. History teaches us that the more capital deluded charlatans, like Hubert Freidl, unlawfully acquire: the more dissociated from external reality they (and their deluded core-adherents) can become, whilst the more difficult it becomes to hold them fully to account for their crimes.
David Brear (copyright 2012)