Mike Dreher and Darren Ewert: Fraudsters behind Enagic MLM Scheme

Mike Dreher and Darren Ewert, based in Vancouver, Canada, are the two masterminds behind one of Bhutan’s biggest Multi-Level Marketing fraud schemes.

Mike and Darren’s online business runs an extensive online network called the ‘Dream Team,’ which recruits many Bhutanese and Australians as ‘Digital Business Owners’ to sell expensive Enagic Water Ionizer Kangen Water Machine.

Enagic is a Japanese MLM company that heavily relies on people like Mike and Darren’s online business and their nexus of the dream team online business to get people to buy their machines.

The Dream Team’s Network and How It Works

The Dream Team is a network of around 100,000 members worldwide, mainly focused on Asian countries, with the majority coming from the Philippines.

To become a distributor, Bhutanese are made to pay USD 149 to join, with USD 20 to set up a website, and another Nu 550,000 or more in buying overpriced Enagic water ionizers.

Mike and Darren pocket the USD 149 business fee and also get significant commissions from the sales made by their Dream Team members in Bhutan.

The Expensive Enagic Water Ionizers

Enagic Water Ionizers are sold at a high ticket price, making them difficult to sell to potential buyers. Only the rich can afford this so-called Kangen Water Machine.

However, Mike and Darren have found a way to convince people to buy them by promoting their health benefits and using their network to market them aggressively.

The Dream Team’s Commission Structure

Mike and Darren make a large chunk of their money through commissions. They receive commissions from the sales made by their Dream Team members in Bhutan and a portion of the commission earned by members who recruit other members through sales.

Now let’s look at the Mike and Darren online business reviews and the dream team online business reviews online.

BBB’s Investigation and Findings

The Better Business Bureau, a non-profit and reputable business rating agency, opened an investigation into the ‘Better Life Buzz’ (BLB) online platform Mike and Darren (among other platforms) used to funnel people into the Dream Team after complaints were filed against the duo.

BBB found that the free webinar provided by the duo was aspirational and motivational rather than informative.

The webinar did not provide specific details about the affiliate marketing program, making it difficult for viewers to understand what their investment would be. BBB also found that the webinar did not mention why the program was offered to others.

BBB’s Questions and No Response from Mike and Darren

BBB asked BLB to provide information such as the average, median, and earnings range for people using the program and how the sales funnel was proven.

However, BBB did not receive any response from Mike and Darren. As a result, the BBB downgraded Enagic’s rating from A+ to C-.

Regulators’ Action in Bhutan

The regulators in Bhutan are taking action on the Enagic machine and Kangen water issue. The Office of Consumer Protection (OCP) has launched an investigation and will soon release a report.

The Royal Monetary Authority (RMA) is expected to take action financially, with the Financial Intelligence Department and Department of Foreign Exchange already looking into the issue. The Bhutan CIRT is also involved.

The Drug Regulatory Authority (DRA) President, Wangdi Gyeltshen, stated that Enagic Machines and Kangen Water are not registered with them, so the distributors should not make any claims of medical benefits.

He added that any drugs or medical equipment coming to Bhutan should register with DRA and provide medical studies to back their claims. The DRA takes action against those making false medical claims.

One issue coming up is the fact that those who create or spread pyramid schemes in Bhutan are not adequately prosecuted, which is why it does not serve as a deterrent.

The OCP officer said if provisions apply, they can apply fines and penalties under the OCP rules and the violation of trade rules, like carrying out business without a license.

The Dream Team members in Bhutan have written to the MoEA Minister, Lyonpo Loknath Sharma, requesting the ministry to allow them to do their business in Bhutan.

The Enagic machine and Kangen water business are not sanctioned by the government of Bhutan, despite the official launch by a former Labour Minister in September 2019. That might raise the eyebrow for the local government body as well.

Critical Facts about Kangen Water

• No proven health benefits: Despite being promoted as a health product, Kangen water has no scientific evidence to support its claimed health benefits. Because the water is sold through a network of distributors, the company can easily deny any wrongdoing when individual distributors make such claims.
• Expensive machines with inflated prices: Kangen water machines cost thousands of dollars, ranging between $2,980.00 and $5,980.00 for their most expensive model. The high price of the machines serves only one purpose – to provide large commissions to the few successful distributors.
• Sold through a multi-level marketing pyramid scheme: To become a Kangen distributor, you must purchase a machine from another distributor, which violates Section 55.1 of the Competition Act. This sales model is a multi-level marketing pyramid scheme, which can financially harm individuals who join.
• Sued for making spam calls: The company has faced legal action for making spam calls to more than a million people in the US. This violates the Telephone Consumer Protection Act, which protects consumers from unsolicited telemarketing calls.
• Restricted in some countries: The Health Ministry in Malaysia has taken steps against promoting Kangen water due to concerns about its potential health risks. This includes imposing strict regulations and penalties for selling the product.

Conclusion

Through their Dream Team network, Mike Dreher and Darren Ewert have been running a Multi-Level Marketing scheme in Bhutan, targeting Bhutanese people to sell overpriced Enagic Water Ionizers.

They have been using aggressive marketing techniques, promising health benefits, and making false medical claims, among other things.

The Better Business Bureau’s investigation found that the duo’s online platform was aspirational and motivational rather than informative, downgrading Enagic’s rating.

Regulators in Bhutan, including the Office of Consumer Protection, Royal Monetary Authority, and Drug Regulatory Authority, are taking action against the Enagic machine and Kangen water issue.

It remains to be seen how effective the regulators’ efforts will be in curbing this MLM fraud scheme and protecting consumers in Bhutan.

Sources:

1. https://www.enagic.com/
2. https://medium.com/@jamesw1956/the-scam-that-pays-93e6ae9a0a35
3. https://thebhutanese.bt/28609-2/
4. https://passivemove.com/2021/02/03/the-dream-team-or-the-nightmare-mike-and-darrens-business/
5. https://time.com/5864712/multilevel-marketing-schemes-coronavirus/
6. https://www.facebook.com/mikeanddarrensparadise/
7. https://99consumer.com/exposing-darren-ewert-and-mike-dreher-enagic-mlm-scam/