T5PC (or The 5 Percent Community) was a controversial Norwegian Multi-level marketing company that went bankrupt in November 2004.
As per November 2004, it had among 50,000 members (Although most papers write 70.000, this was the counting of the exact account, it is more likely that the number is 50.000), and it is claimed that its members lost as much as 1 billion NOK ($160 million), thus making it one of the biggest economic frauds in Norwegian history.
An investigation was undertaken by Økokrim. Bankers complained that they had alerted Økokrim about problems with T5PC as early as summer 2003. In 2006 Økokrim indicted 4 people involved with T5PC for breach of trust with fraudulent intent.
Henrik Andreas Leo Ellefsen (born 20 June 1971) is a Norwegian former businessman. In 2007, he was formally charged by Økokrim for his role as one of the people responsible for the T5PC fraud. On 21 December 2007, he was convicted on charges of fraud and sentenced to 3 years and 6 months in prison. He was also fined NOK 3,6 million (ca. € 500,000), and was barred from engaging in any form of trade for 5 years. The verdict was appealed on 22 January 2008. Borgarting Court of Appeal only accepted the appeal over the sentence, and in 2010 sentenced Ellefsen to 3 years and 6 months in prison, fined him 3,6 million NOK and sentenced him to loss of rights.
According to the verdict of Oslo District Court, Henrik Ellefsen played a central role in the T5PC system, as chairman of PWR Charge AS and CEO of Exente Securities ASA. The company PWR Charge AS was used to steal money from the T5PC members, according to the verdict.
His father, Harald Ellefsen, was acquitted in the same case. He was the owner of Exente Securities ASA, until he sold it to T5PC.
Henrik Ellefsen has written a book about the T5PC scandal, parts of which were presented in court as evidence, after the Økokrim found the manuscript during a raid. Ellefsen told the court that he wants to publish the book, to "explain to the members of T5PC what happened". The manuscript was entitled "T5PC til tross for bedre vitende - En sann historie om håp og grådighet" (T5PC in spite of better knowledge - A true story of hope and greed").
Jørn Ronnie Tagge
Jørn Ronnie Tagge (born 2 June 1969) is a Norwegian convicted fraudster, also convicted as part of the T5PC fraud. He served as chairman of the T5PC. Tagge has been criminally convicted three times:
- In February 2006 he was sentenced to five months in prison.
- In 2007, he was convicted on charges of fraud relating to his role in the T5PC system, and sentenced to 2 years in prison. He was also fined 770,000 NOK, and he also was barred from engaging in any form of trade for 5 years.
- In October 2008 he was additionally sentenced to one year in prison, for manipulating the value of stock. He was fined further 72 000 NOK.
- Pyramid schemes still abound Aftenposten, November 23, 2004 Archived April 26, 2006, at the Wayback Machine.
- Lawyer questions Økokrim role in pyramid scheme Aftenposten, December 17, 2004
- Økokrim 2006 Annual report
- T5PC-toppene dømt til fengsel ( , Lov og rett )
- T5PC-toppene dømt til fengsel - E24.no
- LB-2009-35179 (Verdict of Borgarting Court of Appeal)
- T5PC-bok: – En sann historie om håp og grådighet - Dagsavisen
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