Monday, November 11, 2013

BREAKING NEWS: Interush Hong Kong Closed by Police as Alleged Pyramid Scheme, 5 Arrested, thousands of possible victims

Hong Kong skyline from the Peak
Hong Kong skyline from the Peak (Photo credit: xopherlance)
Hong Kong police reported that they have arrested five people, including 1 American, of a company called "Interush" in Hong Kong. The company claims to be a tech company selling cloud-based technologies, but police have found evidence that they are using pyramid selling to recruit members. Reports surfaced that on November 1st, 2013, up to 400 mainland Chinese are lined out outside Interush's Hong Kong office hoping to sign up for the income opportunity. Police moved in on the 6th and shut the whole thing down.

Initial reports from, citing an article from South China Sea Post, did not list a company name. It took several minutes of searching Chinese news to locate the original Chinese article as reported by, but that did not list the company name either. It took several more searches across Chinese news websites to locate the company name, Interush. That news is translated line by line below:

数百内地人排队欲入会 港警方捣破层压式推销公司

Hundreds of Mainlanders in Queue to Join Up, 
Hong Kong Police Broke Open Pyramid Selling Company
2013年11月07日 12:59 07-NOV-2013  来源:中国新闻网 Source:  China NewsNet
    香港商业罪案调查科探员在红磡都会大厦一办公室内拘捕4男1女(左图), Hong Kong Commercial Crime Bureau Investigators arrested 4 male and 1 female in  in Hunghom Duhui office building (Left Photo)
全部涉嫌违反禁止层压式计划条例被扣查,探员并检走大量文件及计算机数据作证物(右图)。All are detained for investigation into alleged violations of "anti-pyramid selling ordinance". Investigators confiscated large amounts of documents, and several computers as evidence (right photo)
来源:香港《明报》 Source: Hong Kong "Mingbo" newspaper
  中新网11月7日电 据香港《明报》报道,
According to Mingbo News out of Hong Kong
Outside the HomHong HKRail station hundreds were lined up overnight on 1-NOV-2013
All to join a high tech company that claimed it will soon go under IPO
盼日后获过百万元(港币 下同)分红的机会。
Hoping for a chance to share in possibly 1 million HKD profit
HKPD Commercial Crime Bureau Investigation Unit conducted an investigation
and suspect this company is conducting pyramid selling. 
and thus conducted a raid in the evening 6-NOV-2013 on its office located in Homhong Duhui Building. 
5 were arrested, and taken into evidence 180000 HKD in cash, as well as large amounts of documents. 
  称上市后获百万分红  Claimed if IPO split 1 million bonus
Arrested were 4 male and 1 female between 27 to 53 of age, including one foreign national
All were detained for suspicion of violating "anti pyramid selling ordinance" and brought to the station. 
Interush, the alleged violation, claimed to be "cloud tech company"
Claimed online that company, if successful IPO, all members will share in a HUGE profit split
Using "friend introduce friend" method, continue to attract downlines to join
Last Friday (1-NOV-2013) there were up to 400 mainlanders lined up overnight waiting to join up. 
HKPD confirmed that Commercial Crime Bureau is investigating a pyramid-selling case
And conducted a raid on an office in Homhong Duhui building at about 9PM on 6-NOV-2013
Found 180000 HKD in cash at the premises, and took into custody large amounts of documents and computers as evidence for further investigation. 
According to anti-pyramid selling ordinance,
Any one recruiting or attempting to recruit people into pyramid selling schemes
Can be fined up to 1000000 HKD and 7 years of jail time
HKPD is asking all victims who suspect they had been defrauded, or have concrete numbers regarding this case, 
Please contact the Commercial Crime Bureau 
【编辑:丁文蕾】Edited by WenLai Ding

Other reports of the same event indicated that the foreign national is an American, with first name of "Edward". No last name was given. Yet some other report claimed that he's the person in charge, acting as some sort of legal advisor or lawyer / barrister, and the other 4 detained were only junior employees.

The shocker is Interush is based in Irvine, California, which is not far from Los Angeles!

Interush, at first glance of their official website, at, does NOT appear to be a MLM or pyramid selling website. Indeed, it does appear to be a high tech company, with offices in China, Irvine California USA, Taipei Taiwan, Singapore, and so on. However, its own org chart stated that the umbrella corporation that owns all the subsidiaries is Interush Holdings incorporated in Bermuda, a known tax haven.

Interush is also a big racing fan, with sponsorships spanning Indy Car, 24-hours Rolex, and even NASCAR. it even sponsored a driver out of Hong Kong to compete in 24 hours of Rolex.

Checking the ENTIRE corporate website showed NO signs of any multi-level organization. There are mentions of "affiliates", but nothing about compensation plan. One must turn to various Youtube videos where top affiliates (most of whom are NOT in high tech) claimed to be earning lots of money. Below are some vid caps, and translated explanations.

The slide on screen says:

What is a stock option
What is a virtual stock option
Benefits of a virtual stock option
Factors that affects an IPO
How to execute a virtual stock option
Virtual stock option and company growth

If you want to see this for yourself, the video is at

They got the former CFO of Foxconn making this presentation, sure looks legit, doesn't it?

Apparently they got people investing in this back in 2010... looking for "virtual stockholders" (WTF?!)

But that was back in 2010. This vidcap is from video allegedly from February 2013

From the top, just below "Interush"

Group Bonus
Assist in recruiting more affiliate members
*Affiliate members help promote Iris cloud suite
* Each suite costs $3600 (buy 1 or 3)
* If left and right legs each successuflly sold 7 sets, 1 "cycle" is achieved, bonus $2680

At the top of the pyramid is "self"

Now there's no doubt this thing IS multilevel, is there? But wait, there's more!

Global Share Bonus
Assist in recruiting more affiliate members
IRIS cloud service suite yearly profit
split to all qualified leaders
Bronze level members (regular bronze, triple bronze, quintuple bronze) split share 2%
Top level members (silver, gold, and platinum) split share 2%

But wait, there's more!

PSP Global Profit Share

Interush Portal ad revenue 50%     +     Interush Iris Retail 50% fund  = profit fund

Your points (PV)   * Profit Fund / Total Points of all active affiliates = possible profit share

We share our profit with our members including ad revenue, IRIS retail, and ARC e-commerce plan

Oh, and they also sell nutritional supplements under iHealthScience branch, part of ARC e-Commerce plan.

You're welcome to check the accuracy of my vidcaps:

By this time, it's pretty clear that this Interush is actually a MLM, who also happen to have cloud technology, but nothing unique about them. They'll also sell you "professional e-conference solution" (What's wrong with Skype or Google Hangouts?) among other things that seem to just cost too much given what's available for free.

The presenter used virtually every bad argument in the book. The comp plan was always about how much profit you *can* share, not how much was shared. Actual details are glossed over, while plenty of time was spent on how the company has linkup with Google, i-Racing, NASCAR, etc. etc. He kept emphasizing that in this business anybody can succeed, and the 4 "platinum" in Taiwan all look like middle-aged, workers, not geeks. You don't need to a degree!  This is NOT a JOB!  This is an OPPORTUNITY! etc. etc.

Frankly, the idea that a company has multiple layers is somewhat troubling. It is a lot like spy cells... Each group operate separately with no knowledge of the other... plausible deniability and all that. Right now, Interush US can disavow their HK operation and there's nothing the US regulators can do to them as the problem were all in HK and can be blamed on the HK subsidiary, even when it's clear the core's suspicious, and the home website has absolutely NO MENTION of the comp plan, much less affiliate agreement.

Stay tuned. This can get ugly.

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  1. Thanks very much for the effort you put in to your research and your willingness to help others by taking on such tasks as translating Chinese to English for other blogs.



  2. It is good the Hong Kong government has done its job. But I want to ask how this scamming company could have operated unperceived since 2010 which has made so many members lose money. This is how American companies come to Asia and dupe unsuspecting Asians who believe naively in things American. Marty Matthews is a highway robber who has ruined so many, forced people into a pyramid scheme with promises of shares when the company goes public. He and his collaborators should be made to refund the monies to members who just kept paying for services they were not using hoping that they will make money from the phantom shares promised each paying member. In addition the top affiliates who were making all the money should be arrested. They used members monies in the pyramid structure to make trips to Hawaii and other parts of the world on holidays paid by the company. Marty Matthews was rewarding them for being expert liars. If mainland China was duped it was thanks to these top affiliates who were making 60,000 to 100,000 yuan monthly. They should all be arrested by the Hong Kong government in collaboration with China mainland police. Zeekrewards did the same thing to the whole world, now another American company has selectively killed Asians. They should even be executed for this gross exploitation.

  3. The truth is that CEO Martin J. Matthews has made Asia the pivot of his activities, always here alongside his top lying affiliates who get all the money, to coach them on how to lie and bring in more members. This is happening a long distance from USA and this is carefully planned as the source of money, 'Asia the milking cow' for extra money for the company. There is no way Hong Kong, a land of laws, should lightly gloss over this. He should be pursued vigorously as the mastermind behind this scam. NO RELENTING. LET him pay his taxes on money earned in Asia to the IRS and then Hong Kong should bring charges against him, including reimbursement of people forced to buy cloud services they don't need with a promise to make big money when they IPO. This thing is a rotten scam.

  4. This comment has been removed by the author.

  5. I recently went for an interview at one of Interush's HQ...shouldn't say which country. But yes, the interviewer did prompt me many times that the company is indeed a MLM business. Would say that the job description was quite dodgy, seemed like she was keeping stuff from me. And funny thing was that i was shortlisted to be one of their managerial position, but when i was in the interview, she kept emphasising on the fact that i have little experience, and wanted to demote me to a lower position. I'd say, Interush seems like a bad company to work for.

  6. There are reports that Interush has reached Singapore and is busy recruiting people there.

  7. Does anyone know who that American person was that got arrested in Hong Kong?

    1. Never mentioned in the media. Apparently they posted bail next day and the guy flew to the US and wasn't ever mentioned again.

  8. Hi there, thanks for your post! Well, my family fri is into the "scheme" in mainland now. Out of curiosity I visited the HK office recently and found the office was still running as nothing happened!!!

    1. They were hot back in 2013. Are you sure it's the same scheme, not just a similar sounding scheme? These schemes are cloned all the time.

    2. I'm pretty sure it's the same scheme. I pretended to be an interested/ naive mainland university student and had a long conversation with the salesperson in their Hung Hom office. To my surprise, he was even open abt the 2013 bust. He believed the case would end well. He was clever, saying HK office had nothing to do with overpromising the mainlanders of high profit after IPO. It was unruly supervisor's overstatement.

    3. Ah, I see. The "minion blame gambit" (i.e. it's never corporate's fault, it's some rogue rep. Who hired the rogue reps, eh?)

  9. It is in singapore. I dk should i join anot

  10. There are in singapore. Should i join anot?

  11. Which part of ARRESTED FOR FRAUD do you not understand?

  12. The same company was fined in Taiwan for violating laws and declared illegal in China back in 2012.

  13. @Anonymous -- my contact method is under "about". I don't use other methods.

  14. @Ler JunJie in the end did you join interush at Singapore

  15. i was with them yesterday. they told me that this news is a hoax. i even got a chance to talked to one of the respresentative from hongkong. so which one is true? yes there are already here in singapore

    1. Look, they don't know anything about the history of this company they joined, but admitting that to you makes them look stupid, so of course they will deny it. They have everything to gain from lying to you and nothing to gain if they tell the truth.

      The original news is still there, in Chinese:

      If they insist that's fake, search all the HK papers for 層壓騙局 in November 2013 should tell you the arrests were very real.

      They will next insist that's not them (even though the first article mentions Interrush by name) or company was badly managed but they've since changed the leadership.

      If you persist you'll be escorted out for making a scene.

      As Morpheus in the Matrix said, "I can only show you the door."

  16. is very doubtful that they give a contract written in chinese mandarin and i dont understand that language. they just told me they forgot to translate it in English. also they asked for my visa card for verification, funny thing is they took the card for me and get the details. so tomorrow morning i went to my back and told them that my card has been compromised so they change everything. then one from Interush asked me my card just bounced if i change my card. then i dont reply to them

    1. If you still have the contract, feel free to scan it and post it (and redact any personal info)

  17. i didnt have the chance to take the picture of the contract. but i still them that i believe its a scam because i saw the new in Hongkong then one said, it happened it hongkong, this is singapore.

  18. None of your friends joined? Oh, yes, it's definitely a scam. A scam don't "go straight".

  19. How can it comes to Singapore?

    Singapore government first class shall kick them out

  20. i just join....
    how we can confirm that whether they are leagal in singapore or not?

  21. Ask for their local business registration would be a start (not that it really prove anything, of course, lots of scams register as businesses)

  22. You will be given 60 days to consider right? You will have the right to quit and get all your money back within 60 days if I am correct. I went to listen recently..

  23. Hi kasey Chang, I dont know why you are so bitter with Interush. There are so many members that are still members and continuing to be members with interush and most are enjoying their products and their commissions. why cant you just accept the fact that you are too lazy to recruit more? you didnt earn from interush because you are too lazy and because you didnt earn, you are making up stories like this? you are so pathetic!

    1. I translated a news article from 2013, and you decided I'm "bitter" 3 years later? You're the pathetic one, troll.

  24. I know a friend working in the California branch of this company. Should I alarm her about this? Or is it not that big of a deal now? Please reply as I am concerned.

    1. If she's working at corporate, i.e. secretarial staff and such, it's just a job, nothing to worry about. It's the people who "buy in" hoping to make money that way that should be alarmed.

  25. Unfortunately, Kasey is correct. The former CEO, Martin Matthews is currently under trial in Hong Kong for money laundering. Now that is the term they use, however, I am not sure what it totally means. According to my friend who works at Interush, the company gave notice to all their employees that they will be closing their US office. They are also changing the name to HEC, or something like that. In addition, they broke off their China business and that is under a new name: Shang Peng Ga Ke. As you know, MLM is illegal in China. So, they changed the comp plan. However, you still get paid on personal recruits and group volume. Confusing, as this sounds like MLM. Also, they still seem to promoting that the company will go IPO and Distributors will get rich. I think this what got them in trouble to begin with. Now, apparently, even though the company changed its name and comp plan, the same cast of characters are still running the company. One in particular, Yoshio Matsurra. He was featured in one of the BLOGS as the founder of SKYBIZ which got shut down for alleged illegal activity. Pyramid scheme, I think. Martin Matthews is also running the company from the sidelines. Well, you have to decide for yourself. But don't hate Kasey, he is telling the truth.

  26. Happen to chance upon this blog and went to read about Interush and realized they have change their name to HEC