Saivian Review: Why US SEC filed Multiple Charges on this Cash Back MLM? Is it really a Ponzi Scheme?

Maybe you have seen multiple reviews claiming that Saivian is a scam. You might have come across a post calling Saivian a Ponzi scheme. Is it really one?

With all the negative write-ups against Saivian International, you might be intrigued about the truths behind all these articles. Are they mere accusations from bitter ex-members? Has Saivian International evaded all these unfavorable publicities?

Brace yourself as we dig deeper into the truths behind this labeled Ponzi scheme Saivian.

Table of Contents

Fast facts on Saivian:

The company name is Saivian International Ltd. Well, that was how it was first registered in October 30, 2015.

It claimed to be a network marketing company. In fact, the founding team boasts of 50 years of combined experience in the direct selling and MLM industry.

Saivian boasts of its core business to give its members a 20% repayment on their shopping purchases. Such a significant percentage for a cash back scheme, right? Who wouldn’t want such a big reward?

What are their products? Technically, there are none. Well, we mean there is no tangible product to acquire.

Yet, they still promise to give each member a cash back ranging from $5 to a whopping $3,000.

Its website is www.saivian.net

Who are the people behind this Cash Back Company?

John Sheehan led Saivan as the president, while Steve Gewecke posed as the Marketing Director. Aside from these two top executives, Kevin Marino has also listed as the prime Master Affiliate of the company.

Who is John Sheehan?

There is not much solid report on the specifics of John Sheehan’s corporate experience, except that reviews only mentioned he had been a successful networker for more than 20 years.

The Saivan Japan-Korea-China post on FB was all praises to John Sheehan in terms of his leadership, strong management skills, and commitment to empowering his employees. The Facebook post also mentioned that prior to Saivian, John was an owner of wireless stores. Also, that he excelled in terms of donations for non-profit organizations.

He is married to one wife and they have 2 children.

Who is Steve Gewecke?

Steve Gewecke had more than 23 years of involvement in MLM companies, prior to Saivian. He is known to have built a very successful network, or shall we say an empire, with over seventy thousand partners.

The report also mentioned that Steve is a famous consultant and a gifted facilitator and speaker in conferences.

He is married and has six children, namely Michael, John, Zach, Justin, Alex, and Josh.

Steve was a VIP Founder of US Utility Direct in 2012. Two years after, Steve became the President of MyNyloxin.

Who is Kevin Marino?

Kevin Marino is known for building an empire consisting of 146,000 marketing partners, hence he acquired the title “Master” plus a 7-figure income.

Aside from his remarkable MLM record, he also owned diverse traditional businesses. He is also a sought-after consultant of multiple companies.

He also served as a board member of The Association of Network Marketing Professionals for two consecutive years.

His impressive portfolio opened doors for him to be invited as a guest speaker at corporate events.

How much is the membership fee of Saivian?

Unlike the other MLM companies, you do not receive a tangible product when you start your business with Saivian. To join their network, you need to pay $125 to acquire a membership.

With a $125 membership fee, you will gain access to a long lineup of commerce, where you can enjoy a 20% cash back from your everyday purchases.

How does the Cash Back scheme work?

In this Saivian review, we will discuss how this MLM rewards its affiliates. Check for yourself if the cashback system will work out for you and if it will encourage you to increase your shopping purchases.

The cashback is computed based on your shopping purchases from your favorite top 10 retailers. The list of your top 10 shopping destinations can be updated every now and then, every 30 days to be specific.

As a member, you are given the option to select the form of payment you prefer, either your debit card or credit card.

To qualify for the 20% cashback, you need to present collective receipts amounting to as low as $5 to an average of $500 in a week.

Once every 30 days, members are allowed to redeem their cash backs in increments of $125.

Come to think of it, Saivian’s business format is similar to that of Gold’s Gym, Sam’s Club, Netflix or Facebook.

Is Saivian a Network Marketing Company?

So how does Saivian operate as a network marketing company when they are just offering memberships? Well, they reward each member who will refer Saivian to other customers. That’s where recruitment comes in, and they are encouraged to invite more people to enlist as affiliates. In this review, we confirm that the enterprise used the network marketing business model.

Review: Saivian Compensation Plan a Scam?

The compensation plan of Saivian requires its affiliates to regularly pay $125 to qualify for the commissions. The affiliate is expected to pay such an amount every 27 days.

The compensation model of Saivian is uni-level. In a uni-level structure, you as an affiliate are placed at the top of your team. The people you recruit will become your downlines, an unlimited level. Each level is also called a generation.

You have the option to place your recruit on your 1st generation, or on your second generation, or even down to your fiftieth generation, under your recruit’s recruit. Depending on your strategy, you can position your new recruits anywhere under your team. This is also one way to help your downlines.

Saivian compensation plan is not limited to just recruiting two downlines, like in the case of a binary MLM.

Daily Payout, why not?

Saivian is generous enough to release commissions on a daily basis. Yes, you heard it right, you can receive commissions every day, baby! Who would not want to recruit every day with this scam? I meant, compensation scheme?

Commissions range from a low $5 per day, to a monstrous $3,000 in just one day! Dependent on the aggressiveness of your team, the payout can really be huge.

Here’s a sample compensation plan showing the required number of recruits and the maximum potential income:

Is Saivian really a Ponzi Scheme?

To answer this question, this Saivian review will define what a Ponzi scheme is.

A Ponzi scheme is synonymous with an investing scam. A business entity can be tagged as a scam when it promises too-good-to-be-true perks or unlimited income to its partners.

When a company is tagged as a Ponzi scheme, that company is involved in a crafty scheme. In the case of Saivian, the company promises high rates of return, yet with little risk only.

Just like a pyramid scheme, the enterprise draws refunds for older investors thru recruiting new partners or investors.

You can spot a company that is a Ponzi scheme when it focuses more on luring new recruits to invest in that company.

Unfortunately, in 2017, at the height of all the negative publicities labeling Saivian as a Ponzi, the network marketing company decided to cease its operations across the globe.

On its website, the company posted in October 2017 its formal announcement that it will cease operation in light of rampant fraud perpetrated against Saivian International Ltd. and its affiliates in Asia.

Moreover, Saivian also announced that they are committed to refund affiliates. The company said they voluntarily decided to offer the refunds. They even hired a third-party processor who will take charge of handling all payments and arrange timely refunds to the qualified members.

However, the gesture to refund was limited to those people who have legitimate active membership as of July 31, 2017. Not just active members, but those people who spent more on the membership than enjoying the benefits, which include compensation and passes.

The question now is this, was Saivian able to fulfill its promise to refund its affiliates? This part still remains to be seen.

What is the new name of Saivian International?

Well, luckily for those affiliates with unused passes and e-wallet balances, Saivian has made a binding agreement with the Saivi World Pte Ltd to adopt the affiliates.

Saivian member is advised to check out the website of SaiviWorld.sg for this refund arrangement.

According to the formal announcement of Saivian, the entity is committed to acting in good faith for the best interests of its members, even at the time of final closeout.

Saivian Review: US SEC Charges

We included in this Saivian review the multiple charges issued by the US SEC to this entity so people will understand further what is going on.

Here are some significant points we have noted from Securities Act of 1933, Release No. 10742, on Jan. 10, 2020:

1.John Sheehan has no financial control

According to the Securities and Exchange Commission, John Sheehan, as the respondent, acted a role that offered and sold unregistered securities labeled as a pyramid scheme or Ponzi scheme.

The litigation further mentioned that Sheehan has no financial control, executive, or financial authority over the entity while acting as the president of Saivian.

2.The entity did not fund the cashback thru third-party partners.

The second point no one thought possible was the claim of the enterprise that the cashback came from third-party funding. Apparently, the management team of the now-tagged Ponzi enterprise said they are able to give 20% cashback to the affiliate who purchased either thru credit cards or cold cash because they sell the receipts to the third-party partners.

However, according to the Securities and Exchange Commission, Saivian’s claim is a fraud, because the enterprise solely made revenue from the $125 fees each affiliate pays on a regular basis.

3.Eric Dalius is the sole owner and Sheehan is just a dummy executive

The legal charges strongly defined that Eric Dalius is the sole owner and has the sole authority over the enterprise. Dalius only hired Sheehan to present himself in public as president.

Sheehan actually was not given the authority to administer, decide or control the business. It was only Dalius who has complete control over Saivian.

SEC revealed that Sheehan is just a dummy spokesperson. Dalius created all of the public remarks of Sheehan. The latter has no right to make public speeches without the approval first of Dalius.

In another litigation case of this scam enterprise, Litigation Release No. 24644 confirmed that Saivian is a scam that operated in a scheme called Ponzi.

The enterprise’s claim that they pay cashback to the affiliate thru the funds of their marketing partner is not true because the defendants actually get the cashback from the investment of their new affiliates, and not through legal business activities.

SEC further disclosed that Saivian took part in an illegal pyramid scheme through their promise to give out daily outs for each affiliate who will enlist new members.

Here’s hoping you were not one of those people who expressed a complaint and lost a lot of money in this fraud scheme. Life goes on. You just need to move forward and look for the next legit business to delve into.

Check out our other articles to see which business opportunity will suit you best!

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