Selena Li's suspected involvement in a pyramid scheme, damages reputation reserves right to take leg

Harrison · Nov 25, 2011

Selena Li has been said to be involved in a case of beauty cash-planting scheme (or a pyramid scheme). A 18 year old girl complained that a salesperson tried to sell her Body 9ine Culture product coupons, in which Selena is spokesperson for. The salesperson also tried to persuade her to borrow money using false information and join the marketing industry. All she has to do is buy a course of beauty treatment, take a course at Selena's Technique Beauty School (TBS) and sign a contract to become the company called, Enlighten, business development director. Soon after, the girl felt uneasy and disclosed the incident. Yesterday Selena appeared at TVB City to clarify the incident has nothing to do with her beauty school and she reserves the right to take legal action.

[Apple Daily 11/16/2011] It all started from a survey. A salesperson asked a young girl (let's call her Katie) if she's interested in participating in a survey and to buy a coupon for beauty products (Body 9ine Culture). After some time of chatting, Katie handed over HK$290 to buy a coupon and even left her phone number with the salesperson. A few days later, Kate was brought to Selena's beauty school, TBS, that she opened in Jordan. Katie was persuaded to become a salesperson with the company (Enlighten), all she had to do was pay a HK$600 registration fee and to get the marketing rights. The company gave her 520 coupons to sell. If Katie is able to sell 1 coupon, she would earn HK$250 cash and if the customers use the coupon, she would earn 12% commission. If she was able to get more people to join the pyramid, however much they sell, she would get 4% commission. It sounds great, but Katie first has to pay HK$28,800 for makeup courses and beauty products. Katie is only working part-time, but only earns little over HK$1,000, so of course she won't be able to pay it off. Katie was urged to use false information to borrow money from a financial company. With the false information, she was able to borrow HK$30,000. She would repay the amount over a 5 year period, each month she has to pay about HK$1,000. When added up all together, she will have to pay back over HK$70,000. Katie, successfully becomes the company's business development director, but the false information given is illegal.

Yesterday afternoon, Selena appeared at TVB City for an interview. She stressed the beauty school she opened earlier, TBS, is not involved in this case. Selena expressed "Enlighten" is one of TBS's business partners, responsible to market the school's products and courses. If there is success in recruiting new students, there will be commission earned. So, sometimes there would be new students that go up to TBS for a tour. Enlighten's offices are also neighboring TBS, but Selena does not know of Enlighten's internal operations. It was only yesterday when Selena saw the report that she realized how much confusion there is in Enlighten's business operations and that they didn't fulfill the requirements, so she immediately cut off the collaboration with them. Also, she stressed she is only Body 9ine Culture's spokesperson and is not involved in their business operations. Her beauty school (TBS) is completely independent of the company.

Selena reiterated that her beauty school has nothing to do with this incident. If she really was involved in the fraudulent case, she believes she would already be in the police station. Yesterday after Selena saw the report, she wanted to cry, but she knew she had to face matter with maturity and handle it. She also felt the case affected her reputation, so she is currently seeking legal advice and reserve the right to take legal action.

Selena made a final comment that anyone who paid for a course with TBS through Enlighten can contact her beauty school and request for a refund. When asked if Enlighten's marketing strategy brought her a lot more income? She said it's been ok, TBS can still live without them, so it's not that flourishing.
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Source: Mingpao, Apple Daily

Selena Li's suspected involvement in a pyramid scheme, damages reputation reserves right to take leg

Harrison Well-Known Member