Questions loom regarding Lucrazon headed by Alex Pitt “aka” Alexy

Lucrazon which claims to be a merchant ecommerce solution provider is headed by Alex Pitt (aka “Alexy”). Mr. Pitt claims to have worked for a major solution provider of such services.

 

 According to Lucrazon’s own website, what you pay for is:

 

Lucrazon maintains a payment gateway that provides network connectivity, technology and security for a payment platform that allows its customers to access end-to-end electronic payment processing solutions. It provides a managed technology and security infrastructure, payment applications, web services, and connections to the TSYS payment network. The Lucrazon platform allows its customers to offer credit and debit card processing, ACH processing, gift card programs, electronic check processing services, secure hosted virtual terminal, hosted secure payment page, reporting, web services, and support for brand terminals and devices for payment processing.

 

Translation: replicated e-store website with shopping cart and payment processing. 

How much do you pay? $1795 (discounted to $1000 until end of year), and $99 a month.

There is a consensus that this is overpriced when compared to similar services such as Shopify.com which has plans starting as low as $14.95 a month and no fee upfront, but that is not the point we are getting to. It’s the FOLLOWING step that can potentially get Lucrazon into a lot of trouble.

Lucrazon allows what is called “stacking”. They allow you to buy up to 15 websites. Why are they stacking? Stacking is done so you can get paid by recruiting others.

Lucrazon pays members (who had already purchased the 15 websites / positions) through a variety of ways, all of them have to do with signing up even MORE affiliates, except “merchant commission” (i.e. you get 50% of what Lucrazon charges merchants per transaction).

There is also the “20% referral commission, plus 3% up to 6 levels down” on recruited affiliates, PLUS binary commission (another 6% if you get two recruits to “pair up”, this binary).

There is a review to read by oz over on the siteBehindMLM, and their “community relations manager’s” rebuttal.  


When this first came up it looked familiar, but couldn’t remember from where.  It wasn’t until Christmas Day, when I went over it again, that I recalled the case… Skybiz.

Skybiz started in 1998, when it promised riches to the masses to join the plethora of companies selling things online. If they buy one or more online storefronts, and also recruit MORE people who want to do the same thing. (you earn through recruiting people, not through selling stuff through your online stores). The company, based in Tulsa Oklahoma, spread and was outlawed in multiple continents (North America, Australia, Europe, Asia, and Africa). The  FTC finally slammed it shut in 2001, and appointed a receiver to sell off what it can after seizure of assets and repay those who lost money… with cooperation from police all over the world.

MLM Attorney Jeffrey Babener wrote about Skybiz:

 

In particular, it is the business model in which distributors are encouraged to purchase multiple replicating web sites, and then are encouraged to cause others to buy multiple replicating web sites, all of which are used primarily for recruiting rather than e-commerce, that is causing the greatest concern.

 

This describes Lucrazon PERFECTLY: multiple replicating websites (up to 15), encouraged to recruit others (all the payments except once are tied to recruitment) to also buy multiple replicating websites, all of which are used for recruiting rather than e-commerce.

I don’t know Alex Pitt, so I don’t know whether he sought to recreate Skybiz, or even if he had heard of Skybiz before starting Lucrazon, but he had effectively reinvented the Skybiz scam, 13 years after it was closed.

The biggest achievement Lucrazon has done so far is adding a former Small Business Administration head, Mr. Barreto, to their board of directors. That doesn’t really prove anything, except more ammo for people who insist on using “legitimacy through association” bad argument.

The fact that Lucrazon seemed to trigger 7 out of 8 warning signs on Mr. Babener’s “Dot Scam” article is a major problem.

Lucrazon may not be intended as a scam, but it is effectively a clone of a PROVEN scam. You should not even get CLOSE to it until proven otherwise.

And “Alex Pitt” needs to get some legal consulting.

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