Paraiba Review  –  Ponzi Scheme  –  MLM Scam

Website & Company Information

The web domain of the company was privately registered on the 16th of September 2019 and was later updated in 2020–08–22. The website provides no information on its website about who owns or runs the company.

Paraiba is being operated from the Comoro Islands. However, the site provides an incomplete corporate address. The Comoro Islands are a series of small islands off the south-east coast of Africa.

We also reviewed the marketing materials of the company and as per those documents, Erich Ely is the CEO of the company. Prior to founding Paraiba, Erich Ely was a German promoter of the OneCoin Ponzi scheme. Paraiba has also received a securities fraud notice from BaFin in June.

At the time of writing this article, Alexa cites Honduras as the top traffic source contributing to a whopping 43.9% traffic share. It is highly likely that the owner of the company is based out of Honduras.

As always, if the company is not being transparent about its corporate structure, then you must think twice before handing over your hard-earned money to anonymous people on the internet.

Paraiba’s Products

The company has no retailable products or services, with affiliates only able to market Paraiba affiliate membership itself.

Paraiba’s Compensation Plan

Affiliates are required to invest at least $25 or more on the promise of an advertised daily return.

  • invest up to $49,999 and get 0.3% a day
  • invest $50,000 or more and get 0.5% a day

ROIs are paid for 100 days, after which the initial investment is also returned (total ROI: 130%/150%).

Recruitment Commissions

Affiliates earn commissions on funds invested by personally recruited affiliates. These commission rates are calculated based on the number of personally recruited affiliates:

  • recruit 1 to 4 affiliates and get a 0.05% recruitment commission rate
  • recruit 5 to 9 affiliates and get a 0.1% recruitment commission rate
  • recruit 10 to 19 affiliates and get a 0.2% recruitment commission rate
  • recruit 20 or more affiliates and get a 0.3% recruitment commission rate

An affiliate must have a personal investment of at least $100 in order to qualify for receiving commissions.

Residual Commissions

Paraiba pays residual commissions via a unilevel compensation structure. Below is the criteria on which these commissions are calculated:

  • invest $1000 and recruit 1 to 4 affiliates who also invest $1000 or more each = 0.01% residual commission rate
  • maintain a $1000 investment and recruit 5 to 9 affiliates who’ve also invested $1000 or more each = 0.02% residual commission rate
  • maintain a $1000 investment and recruit 10 to 19 affiliates who’ve also invested $1000 or more each = 0.03% residual commission rate
  • maintain a $1000 investment and recruit 20 or more affiliates who’ve also invested $1000 or more each = 0.04% residual commission rate

Rank Achievement Bonus

There are six affiliate ranks within Paraiba’s compensation plan.

Along with their respective qualification criteria, they are as follows:

  • Yellow — personally invest at least $1000, recruit at least one affiliate and generate $1000 or more in personally recruited affiliate investment volume
  • Blue — personally invest at least $5000, recruit two to four affiliates (two must be Yellow) and generate $2000 or more in personally recruited affiliate investment volume
  • Green — personally invest at least $10,000, recruit five to nine affiliates (one must be Blue) and generate $5000 or more in personally recruited affiliate investment volume
  • Purple — personally invest at least $15,000, recruit ten to nineteen affiliates (two must be Green) and generate $10,000 or more in personally recruited affiliate investment volume
  • Red — personally invest at least $20,000, recruit 20 or more affiliates (three must be Purple) and generate $20,000 or more in personally recruited affiliate investment volume
  • Paraiba — personally invest at least $50,000, maintain 20 personally recruited affiliates (five must be Red) and maintain $20,000 or more in personally recruited affiliate investment volume

Rank Achievement Bonuses paid out upon qualifying for the above ranks are as follows:

  • qualify at Yellow and get $10
  • qualify at Blue and get $100
  • qualify at Green and get $1000
  • qualify at Purple and get $5000
  • qualify at Red and get $15,000
  • qualify at Paraiba and get $25,000

Note that these are one-time bonuses.

Pool Share

Paraiba takes 0.35% of company-wide invested funds and places them into seven bonus pools.

Joining Paraiba

Joining Paraiba affiliate membership is free. However, an affiliate must have a personal investment of at least $100 in order to qualify for receiving commissions.

All the investment terms expire in 100. Reinvestment is required.

Conclusion

Paraiba is a simple Ponzi scheme which is operating under the guise of “unique private bank”. It also has shell incorporation for “Unique Private Bank” in Moheli.

Paraiba claims that it generates revenue via cryptocurrency trading. No evidence of trading is provided. Nor is there any evidence that the company uses external revenue of any kind to pay advertised returns.

In addition to its Ponzi business model, Paraiba is offering a security and securities in Honduras are regulated by the Central Bank of Honduras. We couldn’t find any proof that will justify their registration with Central Bank of Honduras. This simply means that the company is illegally offering securities.

As we see, the only valid source of income entering into the company is the new investments and using these investments to honour existing withdrawals makes it a Ponzi Scheme.

Once recruitment slows down, so will the withdrawals — triggering a system collapse where the majority of the investors are destined to lose money.