Recyclix seems to be at the end of the road for investors. Missing payouts, investigating authorities and confiscated shares suggest fraud and scam.
Recyclix News: Lawyers advise affected investors
Recyclix was founded towards the end of 2015 and since then had set itself the goal of turning waste into money. At first glance, this concept may seem appealing because it can be combined with a good cause and sustainable environmental protection.
Investors can invest in the company in the style of crowdfunding and subsequently receive a handsome return. The company is a so-called MLM company. MLM stands for multi-level marketing, which is not only about direct sales but also about recruiting new members and investors.
It is therefore not uncommon to associate the term MLM with snowball, ponzi and pyramid schemes.
Recyclix: fraud disguised with a good purpose?
Is it an exemplary project that relieves our environment or the typical rip-off where investors are lured with lucrative returns and end up empty-handed? Reports from recent months, testimonials from Recyclix users and assessments by lawyers in the field of capital market law clearly indicate that investors should steer clear of this provider.
Polish and Russian authorities are investigating Recyclix.
Experience with Recyclix: an overview of the business model
Recyclix describes itself as a pioneering company that, according to its own statements, focuses on recycling. It buys plastic waste at a low price, processes it and then sells it on profitably as recycled granulate. Recyclix is dependent on investors who are lured by lucrative returns.
Investors can sign up free of charge and even receive a 20-euro start-up bonus; the profit margin should be between 4 % and 16 %. From a certain investment sum, investors can also invest in “machine shares”.
The investment sums and thus also the investment opportunities in further recycling capacities increase depending on the type of equipment, starting with the “stacker” and ending with the “granulator”. An ROI of more than 100% would thus be possible per year, which seems completely excessive and should immediately make investors sceptical.
On top of that, Recyclix offered an affiliate programme that promised up to 12% commission for recruiting new investors. Such additional affiliate scheme is a particularly prominent feature of dishonest snowball schemes.
Fraud and Scam? Italian financial regulator takes action against Recyclix
Production facilities in Poland and Latvia, offshoots in Constance, Brazil, Morocco: What is advertised as a growing business network seems to turn out to be a rotten business model. The company’s visitors and investors are mainly from Russia and Ukraine.
An examination of the website traffic with the Internet service Alexa revealed that visitors from Italy and Germany also account for a high proportion of the traffic, 10% each. It is therefore not surprising that the Italian authorities in particular became aware of Recyclix in the last months of 2016. CONSOB, the Italian financial supervisory authority, first warned against the provider Recyclix on 14 September 2016.
On the one hand, they pointed out the dubious-looking promises of returns of up to 50%, and on the other hand, legal violations of Italian laws were alleged. Public investment offers are subject to registration in Italy – and it was precisely this requirement that Recyclix did not comply with.
The authority also requested information about Italian investors, to which Recyclix did not respond. CONSOB finally gave Recyclix 90 days to clarify these points in question. On 12 December, CONSOB finally intervened and prohibited the Italian subsidiary Recyclix SP. Z.O.O. from any business activity based on financial investments.
As a result, the website www.recyclix.com was taken offline in Italy.
Recyclix: Rip-off with customer accounts?
In February 2016, a major fire occurred at the Brozek landfill facility. According to the company, this destroyed a company-owned facility and stock. This “force majeure” would affect production capacity to such an extent that investors themselves would have to pay for the damages incurred, the company said in an announcement.
The shares held by investors would thus be reduced by a certain percentage – which means nothing other than a loss of invested money. Whether such a procedure is legal at all remains questionable. Claims involving retained funds or unpaid profits are best examined by a lawyer who is well versed in topics such as investment fraud or capital market law.
Despite the non-transparent corporate network and the company’s headquarters abroad, investment monies long thought lost can be recovered with expert advice from a lawyer.
Refused payouts?
When a snowball system is nearing its end and scepticism spreads among investors, payouts that were thought to be safe suddenly become a problem. Recyclix investors also report such experiences. For a payout, one has to verify one’s user account and upload a photo – a process that is accompanied by a disproportionate waiting time.
When asked, technical problems or high workloads due to many requests are often cited in such cases. In the event of a failure or refusal to pay out, it is advisable to seek the assistance of a law firm experienced in snowball schemes or investment fraud in general.
The legal basis for claims for payouts is clearly regulated in Germany, but requires a clear examination. Claims must also be asserted and enforced. With these complicated processes, the support of a law firm is all the more important.
Recyclix: do I need a lawyer?
Czech Republic, Lithuania, Poland, Great Britain or Russia: the company now has to deal with legal disputes or faces investigations by authorities in many countries. The former website rexyclix.com was hijacked and the company can now be found under ecorevolution.com.
In addition, one reads on the internet about suspicions that the BaFin is investigating Recyclix. Against this background, there is a risk of legal consequences, especially for affiliate partners – who should also contact a law firm or lawyer for legal protection.
In combination with the numerous negative experiences of investors, one can urgently advise against further investments in Recyclix as things stand.
Herfurtner Law Firm: Legal advice in the Recyclix case
Fraud, unfair terms and conditions, refused payouts or blocked accounts: in the case of alleged Ponzi schemes, financial losses can quickly reach five-figure amounts or more. The Herfurtner law firm already looks after clients whose business relationship with the provider ended unpleasantly.
With a team of lawyers in the fields of banking law, capital market law and commercial law, we provide individual support from the first consultation to the enforcement of legal claims. Our law firm serves clients in Germany, Switzerland, the Benelux countries and Austria.
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