David Brear is right. Amway is a cult

November 2, 2013, 2:18 am

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This is written by one of our readers of the BLOG. 

In September last year I was persuaded to join Amway as my close friend was very much interested in the business and asked me to join. As he was very close to me, I have also joined with him. Till then I knew that Amway is some chain business etc etc. But after joining Amway I came to know many other things about Amway.

We are all fighting against Amway saying that it is a chain business or MLM or overpricing etc etc. But the fact is they are just using mind programming techniques which is being used to train terrorist groups. Many people are getting caught in that programming called Britt World Wide.

From my personal experience, I was not totally involved in Amway but my friend was caught in that training. I stopped listening to music in his car and always used to listen to the audio CDs. He stopped watching TV, going to movies and started watching only Amway CDs or BWW CDs in his laptop and TV. He stopped even reading newspapers and magazines and started reading only the books provided by the Amway. I was really shocked and tried to explain that he is not going in a right way. But strangely he felt that I don’t know about Amway and that is why I am trying to pull him out of Amway.

Later he started forcing his wife to come along with him to do Amway business and attend meetings. They have a 2-year-old kid. She was not much interested in the business and going to meetings and strangers' houses. But he started harassing her forcing her to join him in his business and even appointed a maid only to look after the kid so that he can take his wife with him. He started beating her and made her not to talk to any of her friends who have not joined Amway or who talked negative about Amway. he started talking to people who joined Amway and neglected the remaining ones.

I was also the one who got neglected because after seeing all these things I strongly opposed his decision and actions. So, he stopped talking to me. We are family friends for more than 10 years and I am shocked how a 4 month Amway trained changed the people so much.

Still I thought that he is interested in earning money from direct selling. So, I have started knowing about other companies which are better than Amway without having this terrorist training and showed all other options to him but he has reached a point where he is saying that he will do only Amway even if he don’t earn a single rupee. So, the person who joined Amway to earn extra income has become an addict and fall prey to the mind controlling techniques of Amway and now saying that he does not need money and will work for Amway.

So, after one year our families are not even talking to each other and shockingly he is not at all feeling anything for losing a 10-year friendship and business with his new Amway friends. His wife started going to Amway with him because he threatened that he will give divorce if she does not come with him.

One more guy here has got a different story. In his case his wife got trapped in Amway training and that lead to their divorce because husband was not willing to cooperate with his wife in her Amway business and she just ignored him and continued her business. Their relation just went bad as wife was always talking on phones about Amway and going out for Amway. Now they got divorced and living separately.

I am not the only one like this. Amway has destroyed hundreds of families and thousands of relationships. But what I am going to tell you and suggest you that we are all focusing only on the MLM aspect or something else and ignoring totally about BWW which is the main thing behind all this. I would like to know your legal opinion about BWW because that will be violating the consumer rights by giving exaggerated impression about the products and making people buy the products only to earn income. 

One more thing is Amway people do not tell the complete income plan for the people who join Amway. Because there are many things in Amway plan if disclosed before itself, most of the people won't join Amway. For example, we need to buy for Rs 4000 every month if we want to receive the commission. This simple fact is not told to anyone till they join by paying Rs 4000.

There are many other things like this in Amway.

In my personal investigation about all the direct selling, I would like to bring some points to your notice.

1.     The Government is taking steps to regulate the direct selling. If they proceed with that, we cannot act against Amway just saying that it is MLM or a pyramid. But we can fight against Amway through BWW as they are using mind-controlling and deceptive methods.

2.     Other direct selling companies give product training and income plan training but this type of mind-controlling techniques are being used only by Amway.

3.     Many common people are making  a living through direct selling business. So, our fight only against direct selling may not be much useful for us.

4.     Money circulation schemes should be banned and we can fight against them but we cannot call these product-based direct selling business as a money circulation scheme in the name of product selling. Because money is being circulated in every business. if Tata Gold tea packet is sold to a customer at Rs 90, Rs 10 goes to the retailer, Rs 10 rupees goes to the wholesaler, Rs 10 goes to the distributor etc and the final money goes to TATA but we cannot say that TATA is doing money circulation scheme in the name of TATA Gold tea. Why I am saying this is we have to fight against Amway and other such giants now. But when the Government is proceeding with the regulation, we cannot just fight against it with the name of money circulation.

Let's stop fighting against product-based direct selling and let's fight against many other things associated with them. Because if at all Government enacts the regulation, we can take the matter to them and insist them to make a rule in that where disclosing the complete income plan should be mandatory and there should not be any motivational or other CDs and meetings other than product training.

Dear Friend,

You rather wrongly believe that people are making money through direct-selling, network marketing, referral marketing, multilevel marketing. It is not true. People who lose money in these schemes never tell truth like Amway adherents.

Ultimately several millions would be losing their hard-earned money.

---

Direct sellers move out of Kerala in state of fear as cops not allowing agents to operate

November 2, 2013, 2:43 am

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Ratna Bhushan, Economic Times Bureau Oct 16, 2013

NEW DELHI: Direct selling firms such as Amway, Modicare, K-Link and DXN are cutting down their operations in Kerala significantly due to police harassment since the arrest of Amway India CEO in May, two executives of the Indian Direct Selling Association (IDSA) said.

Officials of the IDSA, which represents all the top direct sellers in the country, said distributors of most these companies are being questioned by the state police at regular intervals.

"In case the situation does not improve for the operational feasibility aspects, few of them might consider to move out of the state of Kerala," Chavi Hemanth, secretary general at the IDSA, told ET. "We hope we are able to convince the government to provide a safe environment where people can carry out their business 
without the fear of police," she said.

According to the association, the four southern states contributed 39 per cent to the Rs 6,385-crore direct selling industry in 2011-12, and some companies get up to 40 per cent of their revenues from Kerala.

There is no specific legislation in India to regulate the directselling industry and that is the biggest worry for operators. The Kerala police sent shockwaves across the industry this summer when it booked Amway India Chairman and CEO William S Pinckney and two company directors under the Prize Chits and Money 
Circulation Schemes (Banning) Act over some distributors' complaints.

Direct sellers have been demanding a separate legislation and exclusion from laws regulating chits. A clear policy framework will help differentiate authentic players from those that disappear after taking money from agents, they have said. Earlier this year, American direct selling cosmetics firm Mary Kay withdrew from 
India citing lack of regulation.

A Modicare spokesperson said the home-grown direct seller is facing business challenges in Kerala due to ambiguous steps taken by various authorities. "A clear direction from the central Government on this front is much needed for the growth of direct selling industry," the person said.

Amarnath Sen Gupta, IDSA chairman and India country head of Malaysian direct seller DXN, said the association is continuously negotiating with the Kerala government, adding that the decision to continue operations in the state will depend on what legislation the government introduces. Companies that had active business in Kerala include Amway, Modicare, Tupperware, K-Link and DXN. Hindustan Unilever's direct selling arm Hindustan Unilever Network too has a presence in Kerala.

How multi-level marketing cheats at all level

November 10, 2013, 10:32 am

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Is it possible that network marketing firms are flocking to India because they are just not wanted elsewhere? CNN-IBN found that the British Government has sued Amway for unethical practices. China banned all forms network marketing in 1998, Sri Lanka, Nepal, and Australia have also tightened the noose. But in India, MLMs have managed to skirt between the legal loopholes. While ads promise exaggerated incomes make claims in magazines and newspapers, not everybody’s dreams come true.
Case Study 1: Santoshamma 
Santoshamma is one of them. She ploughed her dead husband's monthly pension of Rs 2,000 into an MLM dream floated by Quantum International Pvt Ltd, even paying the enrollment fees for those she recruited. “I lined up 15 members, I persuaded them. I even paid on their behalf. But nothing came of it. I lost Rs 40,000 rupees, I got nothing. I am a Christian. I have these Sri Yantras. I bought four Sri Yantras. They cost Rs 8,000,” she says. She bought a 'Sphatika Mala' instead of soap as Quantum assigns these beads greater Commission Value (CV). Says Santoshamma, “They told me, I was one point short of travel to Malaysia. That’s why I should enroll two or three more persons, so I made another two persons join.” 
Editor, Pelli Patrika, Krishna Mohan says it’s looting the poor. “A lot of indigenous Amway likes are emerging on a day-to-day basis and are looting the poor, gullible, innocent people,” he says. 
CNN-IBN Investigation approached a police officer who bust an MLM outfit-the mattress selling Japan Life India. The officer explained how MLM operations in India are in fact, illegal. 
Says IPS, Vishwanath Sajjanar, “Way back in 1978, the Central Government has banned all money circulation schemes by whatever names they may be called, whether you call network marketing or multi-level marketing or direct marketing. The very running of money circulation scheme is illegal in India.” Multi-Level Marketing was banned in 1978. The Prize Chits and Money Circulation Schemes (Banning) Act bans “money circulation schemes” in all forms - Multi Level Marketing, Network Marketing and Direct Marketing A recent Andhra Pradesh High Court judgment in a case involving Amway has held that its business is illegal, calling it a Money Circulation Scheme that have been banned since 1978. In response, Amway continues to maintain that. "It is a legal and ethical company doing business in public interest,” says in a statement. (Source: andhranews.net July 2007) Says Sajjanar, “Even in the Supreme Court, an SLP has been dismissed of Amway company where it was clearly held that Amyway's business model is nothing but money circulation scheme, falling into the mischief of this act.” In 2003 and 2004, the Madras High Court also declared such networking schemes illegal. Says Sajjanar, “Copying them many Indian companies have started, saying this model is accepted. When there is no action against them they can also do.” 
On ground, consumer activists are trying to do their bit Says Secretary, Public Alert Sewa Society, Manda Bhiksham Raju, “High authorities from firms involved in this business are forcing me (my society) to withdraw complaints.” Raju's job is tough. MLM firms know the allure of quick money is hard to resist. 
Case Study 2: Yesamma 
Yesamma was told network marketing is as simple as making and selling idlis. An idli-dosa vendor making Rs 1500 a month, Yesamma spent Rs 15,000 buying up Quantum products. She believed a Certificate of Incorporation was a personal insurance cover the company gifted her. “My children warned me, but the insurance attracted me,” she says, adding, “They told me this is an insurance document.” Her commission statements of Rs 2 tell the story of the high failure rate in such enterprises. 
When CNN-IBN approached Quantum, the Company refused to comment. 
Most “victims” of network marketing we met in rural Andhra Pradesh were not even aware of their legal rights as consumers. We also found that the law too is reluctant to act. There is also ample confusion within the Government on the legal status of multi level marketing firms. In December 2002, the then Minister of Consumer Affairs, Srinivasa Prasad, told the Lok Sabha that multi-level marketing schemes are legal. But on the same day, the then Minister of State for Finance, Anandrao Adsul, told the Lok Sabha that such schemes were in fact illegal and should be investigated. The Reserve Bank of India too has done a flip-flop on this. In 2001, it declared the MLM schemes of Japan Life illegal. But in February 2003 it changed its mind. Like millions across the world, they too fell for the sales pitch, lost time money and effort chasing an illusion. 
Says software professional, AVS Satyanarayana, “Finally we know this is not worth the time and money we spend but because to support our people who are really mad for it.” 
Agrees another member, Dr Umamasheswara Rao, “It is not a gambling because gamble is designated as gambling, prostitution is designated as prostitution, this is shown as a business it is not a business.” Mathematics and common sense will tell you that losing money in network marketing is not because you failed. Chain recruitment tends to favor those at the top of the heap. But most - and that could include you - do end up at the bottom.

Read more at: http://ibnlive.in.com/news/how-multilevel-marketing-cheats-at-all-
level/59842-7.html?utm_source=ref_article

No time for Amway chief to attend criminal court

November 15, 2013, 9:44 am

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They are all alike. The politicians, bureaucrats and even heads of multinational companies and those who believe that they are too big to follow the trivial issues like attending the judicial court.
The case in point is the head of Amway India Enterprises, Mr William Pinckney. He has once again failed to present before the Chief Metropolitan Magistrate Court, Nampally in Hyderabad recently. The presiding judicial officer cannot do anything but to post the case to the next date on December 12 because either the public prosecutor or the attending police officer did not raise any objections to the absence of the accused No 2 in the criminal case against Amway India Enterprises. 
The counsel for the CEO promptly submitted papers to the judicial court stating the reasons for his client's absence. These high profile men feel it that it is below their dignity to attend the court. They move around freely organising press conferences, travelling throughout the country appealing to the gullible to join their illegal money circulation scheme, take with them the least questioning scribes on paid tours. However, they could not find time to attend the judicial court. 
Suddenly, half page advertisements appeared in almost all newspapers in the State of Andhra Pradesh on November 13 much to the surprise of everyone. Nobody could understand what was the provocation. The next day, the Additional Director General of Police (CID), T Krishna Prasad, released a press statement on Thursday to all print media appealing people not to fall prey to the schemes of Amway India Enterprises since the company's business model was illegal. The CID stated in the statement that they had arrested Amway CEO William S. Pinckney on Thursday in connection with a fraud case of 2010.
The Addl DGP cautioned public against Amway products. "They (Amway) are promoting their products through money circulation by conducting membership drive. The firm cheated public by enticing them with incentives. Their activities are covered under money circulation and violate Prize Chits and Money Circulation Schemes (Banning) Act, 1978."
In essence, Amway tried to buy the print media by giving them half page advertisements and it has succeeded to some extent. It had lobbied through the intermediaries bringing pressure on the media not to publish the police statement. But almost all the newspapers published the police statement though not in full. 
The notable point is that the CEO has already obtained anticipatory bails in the criminal cases pending in various police stations in the State of Andhra Pradesh. 
The Corporate Frauds Watch Society on Friday sent the following press note for favour of publication to various newspapers.

                     PRESS NOTE FOR PUBLICATION

To

The Editor,

__________________________

Sub: Public alert against Multi-Level Marketing Frauds – Reg.

Respected Sir,

            I, Shyam Sundar, Secretary, Corporate Frauds Watch Society, in the interest of general public wanted to request and alert the public not to fall prey to the companies indulging in the Multi-Level Marketing Schemes. These schemes are nothing but product camouflaged illegal Money Circulation Schemes. In the front end, these companies showcase sale of products and in the backend they promote recruitment of chain of members with the false promise to get quick rich.

            Corporate Frauds Watch society has also filed criminal case in Ramachandra Puram P.S. against Amway India Enterprises for promoting illegal Money Circulation Scheme in 2010. The CID has taken up investigation in this case and arrested the CMD of Amway. 

In 2006 when the CID seized and sent the 33 of products of Amway to analysis, the State Food Laboratory, Nacharam opined that 18 of the products of Amway are not food, adulterated and misbranded. On that, the State Food department has filed criminal cases against Amway and Amway has been facing criminal trial in Nampally Criminal Courts in this regard. Apart from this, with regard to some of the products, Vijayawada consumer forum has also ordered to withdraw the products from market and also fined Rs.1 lakh. When Amway appealed against the order of district forum, State Consumer Forum also upheld the order of Vijayawada consumer forum. Later the Amway approached the National forum.

Moreover, the sale transaction of these companies are not legal in terms of Sec.3 of Sale of Goods Act, 1930 r/w Sec.2(c) and 3 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and Contract Act, 1872. Apart from this, the so-called members are not end-consumers to get protection under Consumer Protection Act, 1986 since these MLM companies refer their members as distributors not consumers.

Hence, we request the public not to fall prey to the schemes of such MLM companies and their products which may not only harm the health but also make people offenders in terms of Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Kindly publish it in the interest of general public.

(SECRETARY)

Amway chief on obtaining-spree of anticipatory bails

November 20, 2013, 9:18 pm

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It appears Amway chief Mr William Scott Pinckney is on a spree of obtaining anticipatory bails throughout the country. In Andhra Pradesh alone he had obtained anticipatory bails in about four criminal cases. When a local court refused to grant, the Amway approached the Punjab-Haryana High Court and secured permission to move abroad. YES! He has time to travel abroad and attend meetings all over the country inducing the gullible to join his 6-4-3 scheme and lose money. But no time to attend the criminal court. He fears that once the court delivers the judgement, his game will be over.

Punjab-Haryana High Court

William Scott Pinckney vs Ut Chandigarh on 17 June, 2013

CRM-M No.19553 of 2013 -1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CRM-M No.19553 of 2013 (O&M)

Date of decision : 17.6.2013

William Scott Pinckney

...... Petitioner

v.

UT Chandigarh

...... Respondent

CORAM : HON'BLE MR.JUSTICE NARESH KUMAR SANGHI Present : Mr. R.S.Cheema, Sr. Advocate with Mr. Rohit Chandel, Advocate for the petitioner. Mr. Hemant Bassi, Advocate for the respondent. ***

NARESH KUMAR SANGHI, J.

In view of the short notice, the reply filed by the respondent is taken on record. Copy thereof has been supplied to the learned counsel opposite.

Heard.

Learned counsel for the petitioner submits that the petitioner is an American national. He is Chief Executive Officer and Managing Director of M/s Amway India Enterprises Pvt. Ltd. incorporated under the Companies Act. The said Company has a turnover of Rs.2000 Crore per annum in India. The FIR was registered in the year 2002 and thereafter, the untraced report was prepared but due to variety of reasons all of a sudden, the Investigating agency presented the charge sheet in the year 2012. Thereafter, the petitioner sought the anticipatory bail from the Court of competent jurisdiction. He further submits that due to business compulsions, the petitioner has to attend the meetings in America and other countries about six times in a year. Therefore, the petitioner has to visit America from 22nd to 29th June, 2013, for attending the meetings. He also contends that the petitioner moved two applications dated 6.5.2013 and 5.6.2013 before the learned trial Court and those were declined without assigning good reasons. He further submits that the date before the learned trial Court for summoning of the co-accused of the petitioner is fixed for 4.7.2013 and thereafter, only the arguments will be heard with regard to framing of the charges and as such the presence of the petitioner is not required before 4.7.2013. He also contends that the petitioner is ready to furnish the security to the satisfaction of the Court so that he may not misuse the concession to be granted to him for going abroad.

Learned counsel for the respondent-State vehemently opposed the prayer of the petitioner to allow him to go abroad on the following grounds :

(i) That if the petitioner is permitted to go abroad, he is unlikely to come back to India.

(ii) The criminal revision petition against the rejection of his prayer passed by the learned trial Court was maintainable, therefore, the present petition is not entertainable by this 

Court.

(iii) The order dated 6.5.2013 whereby the application for grant of permission to go abroad was declined by the learned trial Court has not been challenged before any court of competent jurisdiction and as such the said order has become final. He further submits that second application which was decided on 5.6.2013, was not maintainable.

(iv)That the petitioner has no serious concern to visit America as proposed by him.

I have heard learned counsel for the parties and have also gone through the material available on record. In the cases of Srichand P.Hinduja Vs. CBI New Delhi SC 401; Jagtar Singh Vs. State of Punjab and another 2004(4) RCR (Criminal) 521 (P&H); Arun Kapoor Vs. State of Haryana 2004(4) RCR(Criminal) 594 (P&H), the Hon'ble Courts even allowed the foreign nationals to go abroad during the pendency of the trial. The petitioner though the foreign national, is Chief Executive Officer and Managing Director of M/s Amway India Enterprises Pvt. Ltd. for the last several years and is operating his company. He has to visit foreign countries for smooth running of the business of the Company and declining of his request to go abroad would certainly prejudice the business of the Company being headed by him in India. The petitioner has been booked in three separate cases for the offences punishable under Section 420, IPC and Sections 3 & 4 of the Prize Chits and Money Circulation Schemes Banning Act, 1978. All the charge sheets are arising out of the same FIR which were registered in the year 2002. The petitioner has already been granted the benefit of anticipatory bail and the same has not been misused by him. The dispute in the criminal case is with regard to Rs 35,000/- only as stated by the learned counsel for the petitioner.

Keeping in view the totality of the facts and circumstances of the case, the present petition is allowed. Petitioner William Scott Pinckney son of Bernard Ross Pinckney is permitted to leave India in accordance with the norms from 22.6.2013 to 29.6.2013 subject to his furnishing security by two Indian Directors of M/s Amway India Enterprises Pvt. Ltd. in the sum of Rs 5 lacs each by way of bank guarantee/fixed deposit receipts to the satisfaction of the learned trial Court/Duty Magistrate, Chandigarh. After return of the petitioner from the foreign visit, the bank guarantee/fixed deposit receipt shall be released by learned trial Court.

( Naresh Kumar Sanghi )

17.6.2013 Judge Meenu

'Multi-Level Marketing' and the Gettysburg Address?

November 25, 2013, 10:38 pm

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Several years ago, I spoke with a former 'Amway' adherent from the USA who, back in the 1990s, had once gone on a pay-through-the-nose pilgrimage to 'Amway' HQ in Ada, Michigan. He described an exhibition he'd been taken to by his fanatical 'Amway' handlers. This contained facsimiles of historic American documents including: 'The Declaration of Independence', 'The Bill of Rights' and 'The Gettysburg Address.'  Almost as a perfect reflection of 'Amway' (corruption of 'The American Way'), the words which these documents contained were authentic, but the documents themselves were thought-stopping, and essentially-worthless, fakes, presented as valuable artifacts locked in specially-lit, glass security-cabinets draped with thought-stopping flags, and images, and with patriotic music, and speeches, playing in the background.  I asked the former 'Amway' adherent the following question: At the time you visited this 'Amway' exhibition, what connection did you imagine Lincoln's Gettysburg Address could possibly have had with so-called 'Multi-Level Marketing?' To which he replied: 'I really have no idea!' With an irony that is close to exquisite, one of the original authors of the pernicious 'Amway' fairy story, Richard DeVos, once gave (along with his dutiful wife, Helen) $10 millions of his ill-gotten gains to 'The National Constitution Center in Philadelphia.'  http://www.philanthropynewsdigest.org/news/amway-corp.-founder-gives-10-million-for-national-constitution-center Whilst second generation 'MLM Income Opportunity' racketeer, Doug DeVos, has recently been elected as executive board chairman of 'The National Constitution Center. ' http://articles.philly.com/2012-01-29/business/30676086_1_amway-devoses-founding-document The founding fathers of the American Republic, and Abraham Lincoln, must be spinning in their graves. For the copy-cat nightmares which reality-inverting cultic organizations like 'Amway', 'Herbalife' , 'Forever Living Products', Nu Skin', 'Xango', etc., have all been peddling as a proven means of achieving 'The American Dream,' are about as far from the original high ideals upon which the American Republic was founded, as it is possible to get.

In this historic photograph (taken at the Gettysburg national cemetery dedication of 1863), Abraham Lincoln is seen upper left centre. It is interesting to note at least one African-American member of the audience with his back to camera, right front centre.

One hundred and fifty years ago this week, on the gloomy afternoon of November 19th, 1863, US President Abraham Lincoln gave a two and a half minute address at the dedication ceremony of a national cemetery on the Gettysburg battlefield in Pennsylvania.  An estimated 15 000 people, were in attendance.

Lincoln's landmark speech (now said 'to have set the tone for the following century'), was written and delivered by the President less than five months after the bloodiest battle of the Civil War had produced (during just three days) over fifty-one thousands casualties (of which approximately seventeen thousands were dead or missing).

This week marks not only the one hundred and fiftieth anniversary of the Gettysburg Address, but also the 50th anniversary of the murder of President John Kennedy in Dallas Texas (November 22nd, 1963), followed (two days later) by the murder of the Kennedy's apparently-motiveless, only suspected-assassin, Lee Harvey Oswald, on live television by a known-mafiosi (and Dallas strip-club owner), Jacob Leon Rubenstein (a.k.a. Jack Ruby), whose bosses had plenty of motives for wanting Kennedy dead and any rigorous, independent investigation of Oswald, halted.

Lincoln's Gettysburg Address is generally considered to be the most poignant, and eloquent, speech in all American history.

'Four score and seven years ago our fathers brought forth on this continent a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal.

Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived and so dedicated, can long endure. We are met on a great battle-field of that war. We have come to dedicate a portion of that field, as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.

 

But, in a larger sense, we can not dedicate — we can not consecrate — we can not hallow — this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us — that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion — that we here highly resolve that these dead shall not have died in vain — that this nation, under God, shall have a new birth of freedom — and that government of the people, by the people, for the people, shall not perish from the earth.'

When translated into plain language (out of Lincoln's Biblical-sounding 19th century, political rhetoric): He portrayed the civil war as a test of whether his country's great republican experiment could continue and succeed; for the revolutionary idea that the people could govern themselves, was still in its infancy and unproven. Thus, in the Gettysburg Address, Lincoln claimed to be re-dedicating the American Republic to the high-ideals upon which it had originally been founded.

The reality behind Lincoln's pretty words turned out to be somewhat ugly; for tragically, 100 years after the last shot of the civil war had been fired and Lincoln himself had been assassinated, the Southern States were still brutally enforcing strict 'racial' segregation.

African Americans were first exploited as sub-humans, before being effectively-excluded from their country's much-vaunted, great republican experiment. However,1863-1963, was the century of American Apartheid lying between Abe Lincoln and Jack Kennedy.

The Civil War was not originally fought over slavery. It was fought over the Southern States' rights to pursue their own way of life, free from interference by a remote federal government in Washington DC. However, the perennial American argument about the appropriate form, and size, of federal government, coupled with the politics of Americans' ethnic origins (often inaccurately described as,'race'), are, in fact, the factors which directly connect Lincoln to Kennedy.

By the 1960s, American liberals had identified southern 'racial' segregation as the remnants of slavery clinging on in the land of the free. John Kennedy was one of those pressing for change, but the white South was not ready to change voluntarily.

For historical reasons, the South had always massively voted Democratic. In 1963, it threatened to swing to the Republicans. Jack Kennedy was facing re-election and he went to Dallas only because he had to win the State of Texas.

According to legend, as Kennedy's motorcade drove from Dallas airport into town, the President turned to the First Lady and announced that they were now 'entering nut country'.

 

It was Kennedy's Texan successor, President Lyndon Johnson, who was able to use the wave of sympathy, and outrage, that was created by the Dallas assassination, to force through Congress a series of Acts which ended legal segregation and gave voting rights to millions of African Americans. To many naive observers, these events have been seen as finally fulfilling Lincoln's Gettysburg promise. However, in reality, 'MLM income opportunity' racketeering, has made a mockery of Abe Lincoln's fine words, for US-based cultic organizations like: Amway', 'Herbalife' , 'Forever Living Products', Nu Skin', 'Xango', etc.,' have all been allowed (by successive federal governments) to infiltrate traditional culture and be run as parallel totalitarian states in microcosm: where government of the people, by the people and for the people, has quite literally perished from the Earth.

Again with an irony that is close to exquisite, the so-called 'land of the free' has actually exported it's own home-grown variety of totalitarianism dressed up as 'American-style capitalism,' to the rest of the world.

David Brear (copyright 2013)

Speak Asia fraudster of over Rs 2,200 crore fraud held

November 26, 2013, 9:03 am

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Corporate Frauds Watch filed the first criminal complaint against Speak Asia way back in 2011.The fraudulent company filed a writ petition in Andhra Pradesh High Court appealing to the higher judicature to announce that its scheme is legal. After the High Court dismissed its petition vindicating the stand of Corporate Frauds Watch it closed its operations and disappeared with ill-gotten money.

Corporate Frauds Watch demands the confiscation of the people’s money and criminal cases should be filed against the agents who had amassed enormous commissions cheating the gullible.

According to the information from Delhi Police, Ram Sumiran Pal, an alleged mastermind of the over Rs 2,200-crore 'Speak Asia' online marketing firm scam in which around 24 lakh gullible Indians were duped has been arrested by Delhi police.

He was wanted in at least eight cases of Andhra Pradesh Mumbai, Haryana, Madhya Pradesh.

The 37-year-old racketeer, Pal, a resident of Shahajanpur in Uttar Pradesh who was on the run for the last 28 months, was arrested on Monday from Connaught Place after months of sustained investigation by a Crime Branch team led by DCP Kumar Gyanesh, police said.

Pal and his brother Ram Niwas Pal, who duped people through a online marketing firm, also had Bollywood links as leading stars would perform at lavish functions held by them for investors and agents to lure more people and the siphoned off money was then also invested in many films, police said.

"He (Pal) was involved in a number of white collar crimes. He was in hiding in Dehradun and is wanted in at least eight cases of Mumbai, Andhra Pradesh, Haryana, Madhya Pradesh. He is one of the masterminds of the 'Speak Asia' scam and has also created a number of companies with his brother in order to cheat lakhs of innocent people," said Additional Commissioner of Police (Crime) Ravindra Yadav.

Both the brothers Ram Sumiran Pal and Ram Niwas Pal became part of the top management of multi-level marketing companies registered in foreign countries like Singapore, Italy and Brazil, which by their international profile, attracted more investors and also helped them in money laundering at a later stage, police said.

A company namely Speak Asia, registered in Singapore, was introduced in India in early 2010 by these two brothers with the help of one Manoj Sharma.

Speak Asia was an online survey marketing company which sold web subscription for Rs 11000 each and in return the investor had to fill survey forms, which were later found to be fake, for certain MNCs for promised annual payment of Rs 52000.

It may be recalled Vijayawada-based Corporate Frauds Watch has filed a criminal complaint against the fraudulent company in 2011. After the Andhra Pradesh launched criminal proceedings against the fraudsters Speak Asia wrapped up its operation in India.

According to police, 'Speak Asia' had remitted over Rs 900 crore to Singapore. The money was sent from India to the banks in Singapore and from there to Dubai, Italy and UK. However, the money came back from UK again to UAE (Dubai) and to India.

Ram Sumiran Pal is the first senior office bearer of 'Speak Asia' to be arrested in the matter, said Yadav

They used to have seminars and functions at different places. The promoters of the company, including Ram Simran Pal, used to travel all over the country and address meetings and seminars of their agents and investors in luxury hotels all over India. They acted like big tycoons having a lavish lifestyle to encourage the agents to bring more and more innocent people in the net.

"On one such occasion, the promoters held a meeting of the investors in Goa. They hired a special train to Goa for the investors and an exclusive portion of beach of a resort was booked.

"The open invitation to attend this meeting was given on the portal of the company and this was attended by thousands of people and their expenses were borne by the company," said Yadav.

In order to entertain the investors, leading stars of Bollywood performed in this programme. "There is no doubt that booking a special train and performances by film stars for a big bash at a beach resort in Goa was done to attract more eyeballs and therefore, hook more gullible people, who might choose to join the MLM scheme," he said.

The company had duped over 24 lakh investors. The amount of scam has gone up to Rs 2,276 crore. A number of cases were registered in different States. Thereafter, all the senior office-bearers of the companies went into hiding.

As per DCP Kumar Gyanesh, after the registration of criminal cases against the company in June 2011, 'Speak Asia' shut down its business, but its Directors and office- bearers handled the internet portal and told investors that no case has been made out against the firm and the firm will be restarted soon.

Despite vehemently denying the fact that Speak Asia was not just making up its surveys and relying on new membership fees to generate profit, it has come to light that Speak Asia's surveys were indeed fake and were just an eye wash, he said.

The Economic Offences Wing (EOW) Mumbai is investigating maximum number of cases of 'Speak Asia' fraud case since the last 28 months.

It is reported that more than 210 bank accounts containing over Rs 142 crore have been frozen. Besides this, another 150 bank accounts are reportedly under investigation over suspicion of funds being transferred in the scam, said Gyanesh.

After escape from Mumbai, Ram Sumiran Pal settled in Dehradun with his in-laws. He invested the ill gotten money in real estate and started construction projects in Dehradun.  He also purchased office and residential spaces in Mumbai, besides agriculture and commercial land in Shajahanpur, UP where he wanted to construct a luxury hotel, police said.

Playing with people’s greed

November 28, 2013, 3:49 am

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 Speak Asia ­racket

How easy it is to play with the greed of people and make money! It has been proved once again with the arrest of the kingpins behind the massive racket of Speak Asia.

Earlier, many companies like GoldQuest, V-Can, Apple FMCG, Quantum and a score of others amassed huge money in the name of selling goods.

Though, the modus operandi of Speak Asia is slightly different, yet the common crime in all the operations of these companies is that their schemes attract the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

Can anyone move against MLM schemes? Yes, says SC

In the case of A R Antulay vs R S Nayak (AIR 1984 SC 718), the apex court stated thus: “Crime is a wrong against the society at large and therefore, as a general rule, any person having knowledge of the commission of an offense may set the law in motion by a complaint.”

Speak Asia, which is registered in Singapore, first came out with a service called online survey. The company claimed that several national and multinational companies asked it to conduct surveys of their products and the members would be paid regularly if they completed the survey forms online.

It said the members had to pay Rs 11,000 as admission fee, and they would be paid Rs 1,000 every week.

In effect, the members would get Rs 52,000 per annum, so it claimed.  Moreover, if they introduce members, they would also be paid Rs 1,000 for every introduction. This was enough to lure people who joined it in droves and went on a spree of introducing as many members as possible. Greed would not make them realize that money wouldn’t grow on trees.

Way back in 2010, a Vijayawada-based civil society organisation, Corporate Frauds Watch Society, was the first to notice the fraud of Speak Asia after its secretary attended its meeting at a hotel in the city. The issue was immediately taken to the notice of the police. However, as is their wont, the police dilly-dallied over the issue on the pretext that they could not understand this white collar crime.

Then the voluntary body’s secretary approached Inspector General of Police of Crime Investigation Department (CID) of Andhra Pradesh in 2011, and appealed to him to file a criminal case against the fraudulent scheme of Speak Asia.

In a three-page complaint to the AP CID, the secretary elaborated the modus operandi of the online survey company. Acting on it, the CID arrested some of the accused in Mumbai, and froze their accounts to the tune of Rs 142 crore.

However, the investigation ground to a halt, as the Speak Asia filed a writ petition in the High Court on the plea that the police were harassing them while their business was legal. The company made the Corporate Frauds Watch also one of the respondents on the plea that it had no locus standi to lodge the criminal complaint.

The counsel for the Society filed an affidavit, citing the Supreme Court judgment in A R Antulay vs R S Nayak (AIR 1984 SC 718) which states thus: “Crime is a wrong against the society at large and therefore, as a general rule, any person having knowledge of the commission of an offense may set the law in motion by a complaint.”

After going through the argument of the learned counsel of Speak Asia, the High Court found its business model attracted the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and dismissed the writ petition.

Later, Speak Asia approached the Supreme Court and that was the last heard of it. However, after several criminal cases were filed in many States throughout the country, the police of several States including the Delhi Police continued the investigation.

Due to the relentless investigation of Delhi Police, the fraudsters – Ram Sumiran Pal and Ram Niwas Pal, both brothers - were finally brought to book.

The kingpins siphoned away the funds to Singapore and from there to Netherlands, Italy, Brazil, Dubai and finally brought back to India. This is nothing but money-laundering. Now, they started legal businesses using the laundered money.

The ill-gotten wealth should be seized and confiscated by the government. Moreover, the agents employed by Speak Asia should also be arrested and prosecuted, since they are also the perpetrators of the crime. These agents must have earned sizable commission by roping in whoever they came across. And they do not mind joining another company to cheat more people.

Dr Ch Divakar Babu, the president of Corporate Frauds Watch, says that the racketeers call this type of money circulation schemes with different names – direct selling, network marketing, multilevel marketing, referral marketing. Ultimately, all these schemes are intended to cheat the gullible by camouflaging their schemes with products.

All these companies encourage their members to rope in their friends and relatives by offering attractive commissions for enrollment, he adds.

The strange phenomenon is the members who lost their hard-earned money in such schemes never report to the police. The reasons are obvious. They are introduced into such schemes by their friends and relatives. How could they file a complaint against them? But they never trust them again in their life. In effect, their relation is strained forever. This is how the fragile social fabric of our society is getting damaged. Secondly, they feel humiliated to tell anyone that they foolishly lost their money in some scheme. Thirdly, generally they do not know whom to complain and how. That is how these crooks have been surviving through one scam after another.

After GoldQuest racket was unearthed by Corporate Frauds Watch in 2008, several companies like SpeakAsia Online, NMart and others sprouted outright looting people. Each of these companies has managed to garner at least Rs. 1,000 crore.

The Andhra Pradesh High Court in Amway India vs. Union of India case in 2007 rightly pointed out that, “It is, thus, evident that the whole scheme is so ingeniously conceived that the inducement for aggressive enrollment of new members to earn more and more commission is inherent in the scheme.  By holding out attractive commission on the business turned out by the downline members, the scheme provides for sufficient inducements for its members to chase for the new members in their hot pursuit to make quick/easy money.”

The Supreme Court in Kuriachan Chacko case in 2008 justified the inclusion of Section 420 in the case against such money circulation scheme, stating that knowing fully well the scheme would not work forever these people are inducing and cheating the public.

It is high time the police plunged into action by strengthening the Economic Offences Wing and take the issue seriously in the larger interest of the economy and the society. 

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Amway Finds It's Washed Over In a South Korean Soap Drama

December 2, 2013, 7:11 am

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A fierce attack by local consumer groups, environmental activists and competitors on Amway Corp.'s leading detergent have led to a 64% plunge in the U.S. company's business this year in South Korea, its third-largest market.
Amway's monthly sales here have fallen to 13 billion won ($14.1 million) in August from 36 billion won in January, and about 70,000 of its 140,000 distributors have stopped peddling Amway's detergents and cosmetics, says Brian Chalmers, the 55-year-old president of Amway's Korean operation.
Amway's continuing woes in Korea -- including the brief imprisonment in 1993 of an executive -- underscore how cultural land mines and informal trade barriers still make it tough for many foreign companies to make it in this market. "All of the elements are there to be successful in Korea, but it just doesn't seem to come together," Mr. Chalmers says.
Allegations About Dish Drops
At the center of the war on Amway, based in Ada, Mich., is the multilevel-marketing company's Dish Drops detergent.
The trouble began in March, when 82 consumer and environmental groups formed an Anti-Amway Committee and publicised a list of charges. The advocacy groups say that Amway is misleading Korean consumers by advertising its products as environmentally friendly. They produced test results claiming that the biodegradability of Dish Drops lags behind that of Korean products.
The consumer groups also assert that Amway is overcharging Korean customers for Dish Drops, which, they claim, is two to three times more expensive than local products. Amway's distributors, the consumer groups further claim, are conducting illegal comparative testing with Korean-made products to sell their wares.
"Amway is not a moral company," says You Jin Hee, former general secretary of the National Council of Consumer Protection Organizations, a key group behind the campaign. "They have the wrong attitude in marketing their products."
The consumer groups also accuse Amway distributors of improperly using the close ties between friends and neighbors in South Korean society to sell their goods. "Amway is disrupting communities and church congregations, and it is a problem to society as a whole," says Choi Yul, general secretary of the Korean Federation for Environmental Movement.
The groups are mainly privately funded, but the National Council of Consumer Protection Organizations does receive some money from South Korea's Ministry of Finance and Economy. Despite this government support, the National Council says that no government funds have been used in the anti-Amway campaign. A ministry spokesman says the government doesn't influence the consumer group's activities.
Soon after the consumer groups launched their campaign, the Korea Soap and Detergent Association, a trade group for local manufacturers, sponsored advertisements publicising the consumer groups' claims. The ads also added new allegations -- including the claim that Amway is a main contributor to South Korea's trade deficit. (Amway imported an estimated $125 million of goods into South Korea in 1996, less than one-tenth of 1% of the country's total imports of $150 billion.) The association declined to comment on its actions.
Mr. Chalmers of Amway says the charges are false. The test used to question Dish Drops' biodegradability is flawed, Mr. Chalmers says, since the soap was deemed nonbiodegradable after only one and two days of testing, instead of the international standard of eight days or more. (The consumer groups counter that a one-day test is necessary because, as one advocate says, "streams in Korea are shorter," so detergents need to be biodegraded more quickly.) Another consumer-advocacy group issued a study earlier this year that says Dish Drops meets Korean environmental standards.
Mr. Chalmers also denies that he's overcharging, explaining that Dish Drops detergent is economical if the customer dilutes the concentrated soap as directed on the package. The consumer groups refuse to accept Amway's guidelines for using the concentrate, and so they mistakenly believe the product is too expensive, he says.
Demand for Apology Rejected
Mr. Chalmers has conceded to the consumer groups that his distributors have in a few cases conducted comparative tests, which are illegal in South Korea, but he says distributors are actively discouraged by Amway from conducting them, and those who are caught are dismissed.
The Anti-Amway Committee nonetheless demanded a public apology from Mr. Chalmers, but he refused the demand. "It's just not built into me," he says. In June, with no apology coming, the consumer groups launched a boycott against Dish Drops. They hung banners outside bus terminals and subway stations that read, "It was all a lie. Amway detergent is not superior," and passed out pamphlets to commuters titled "Amway! Wrong Way! Go Away!"
The campaign had a profound effect on Amway's customers. Suh Myung Ja, a 42-year-old housewife, had bought Dish Drops for several years. But earlier this year, she stopped buying the product after reading newspaper articles about the consumer groups' complaints. "I was afraid of what other people might think if I bought from Amway," she says.
'Hard Place to Do Business'
Amway has had difficulties in South Korea since entering the market in 1991. In 1993, David Ussery, then Amway's manager in Korea, spent nine days in jail after being charged with violating a law by not properly training distributors. When not in his cell, Mr. Ussery's hands were often tied with rope. He was found guilty, and Amway was fined $100,000. "I'm not angry at anyone," says Mr. Ussery, now Amway's president in the Philippines. "Korea's just a very hard place to do business."
In this latest battle, Mr. Chalmers, unlike most foreign businessmen confronted with problems in Korea, has put on his boxing gloves. As he sees it, the consumer groups' attacks are motivated by Amway's success. Dish Drops late last year had claimed between 10% and 15% of the local market for dish detergent, extremely high for a product from a multilevel marketing company. "I think it is a market-share issue," says Mr. Chalmers.
He launched an advertising campaign to refute the charges of the Korea Soap and Detergent Association, and filed a complaint in April against the association concerning its anti-Amway advertisements with the Fair Trade Commission, a government body that regulates market practices. The association and consumer groups later filed a countercomplaint against Amway. No ruling has come from the government.
Unauthorized Testing Stopped
Amway also took legal action against 18 retailers that were selling comparative-testing-equipment kits to Amway salespeople. This equipment, Mr. Chalmers says, is provided by Amway to distributors outside of Korea, but the company doesn't use it in Korea because such tests are prohibited. The retailers, however, were importing the kits on their own and selling them under the Amway name, and distributors used the kits against Amway's wishes to conduct the banned tests. Amway sued the retailers for trademark infringement, and all have been closed down.
Now Mr. Chalmers is looking to improve the training of salespeople to avoid scuffles with consumer groups in the future. One idea is to provide free training videotapes and workbooks. He is also considering taking on a representative from the consumer groups as a consultant to improve relations. For all his headaches, Mr. Chalmers professes to be upbeat on Amway's prospects in Korea. He plans to add to the 100 products Amway sells in Korea, and moved up a launch of a new vitamin by about two months to December. "The opportunity this market provides is still absolutely unbounded," he says.
(Couertesy THE WALL STREET JOURNAL)

QNET garnered Rs. 435 crore in MLM scam, Rs. 110 cr in bank accounts frozen:EOW

December 4, 2013, 12:03 am

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MUMBAI: The city economic offences wing (EOW) said multi-level marketing firm QNet had collected over Rs 425 crore from its investors. QNet is accused of using the banned binary-pyramid business model for their multi-level marketing scheme to entice investors. The bank accounts of the firm, its independent representatives 
and associates have been frozen. There is reportedly a total of Rs 110 crore in these accounts.
An EOW source said the company continued its schemes in the name of Quest Net by floating a firm, Vanmala Hotel Travel and Tourism Services Pvt Ltd, even after cases were registered against it in Chennai, Andhra Pradesh, Maharashtra and Karnataka.
"In April 2012, QNet Ltd formed Trans View Enterprises and Vihaan Direct Selling Pvt Ltd and continued their schemes. Through its website, qnetindia.in, the firm gathered its employees who had worked for it a decade ago. From April last year to August this year, the firm collected over Rs 425 crore from 90,000 people," said an officer. "We are speeding up the investigation and more arrests are likely soon," said Rajvardhan Sinha, additional commissioner, EOW.
The company lured investors with various schemes with an investment between Rs 30,000 and Rs seven lakh. "The firm posed as a marketing firm which would sell bio-disc, watches, chiPendants, gold coins, herbal products, E-education packages, holiday packages etc. They even claimed that by using the bio-disc one can cure cancer and brain related diseases," said an officer.
"Some money has been transferred to Malayasia, Singapore and Hong Kong too. The exact figure is not known. We are probing the money trail." So far nine persons, including two women, have been held for cheating, forgery and under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The accused received 
commission ranging from Rs 40 lakh to Rs 2.5 crore in the binary pyramid scheme, which is banned in India, said the police. "There are more than two dozen cheating FIRs filed against the company. In Mumbai, an Andheri resident Gurpreet Anand lodged an FIR and named Vijay Eswaran, director of Vihaan Direct Selling (India) 
Private Limited, as the main accused," said an officer.

Rs 2,276-cr scam kingpin reneged on Rs 22,000 rent per month

December 4, 2013, 7:05 am

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Ram Niwas Pal of SpeakAsia had hoped that Bangalore’s IT neighbourhood of 

Whitefield would provide a safe cover and anonymity for his dubious activities

The mastermind of the Rs 2,200-crore Speak Asia scam was defaulting on a monthly rent of Rs 22,000. This startling fact comes in the backdrop of the arrest of Ram Niwas Pal by the Delhi police from Bangalore three days ago. Niwas, who had taken a bungalow at Enchanted Woods in Channasandra near Whitefield six months ago, turned out to be such a dodgy tenant that the owner ordered him out, though not successfully.

Even before Niwas left the place, police swooped down on him and his game was over. Niwas’s arrest came as a big jolt to the house owner, who had no clue about the scamster’s real identity, and sent shockwaves through the gated community. “I was shocked to know that my tenant was one of the masterminds of a multi-crore scam,” the house owner, who did not want to be identified because of professional constraints.

Even other residents found it difficult to believe that a man living in their midst for the past six months had cheated over 24 lakh people, who obviously wanted to make a quick buck, across the country through fraudulent multi-level marketing (MLM) schemes.

The Delhi crime branch sleuths had been on the trail of Niwas and his brother, Ram Sumiran Pal, for the past two years after the Rs 2,200-crore scam came to light. While Sumiran was arrested recently, Niwas had started leading a new life in Bangalore after changing his name to Abhay Singh Chandel and even taking on a new appearance. 

The house owner’s advocate, Vishwanath Shendge, said, “Niwas introduced himself as a businessman with an office in Whitefield and approached my client through a real-estate broker. During the first visit itself, Niwas had come along with his wife and eight-month-old son.” Shendge said he showed unusual haste, asking to shift the same day.

Though the owner told him to pay the rent through cheques, Niwas paid Rs 55,000 cash and then started avoiding him. “Neither did he pay the rent through cheques nor did he agree to execute a formal rental bond. Every time the owner sought his personal details, he would skirt the issue. Not wanting to take chances, the owner told him to vacate the bungalow,” Shendge said. But, before that could happen, he was arrested.

Apart from being the prime architect of the SpeakAsia scam (where each of the 24 lakh victims had invested Rs 11,000 with the lure of return on investment of Rs 55,000 in a year), Niwas had started several dubious MLM companies. While most victims were from Maharashtra, Andhra Pradesh, Haryana and Madhya Pradesh, Niwas 

and his associates had companies registered in Singapore, Holland, Dubai, Italy and Brazil.

Additional commissioner of Delhi Police (Crime) Ravindra Yadav said, “About Rs 900 crores of the scam money has been routed to various countries through more than 200 bank accounts. The Mumbai Police (economic offences wing) and the Enforcement Directorate were also on his trail.”

When the Delhi Police started tracking him, Niwas had moved from Mumbai to Bangalore. He thought Whitefield would be a good hideout as it was full of IT professionals, and he would not arouse any suspicion. He didn’t use any mobile SIM card belonging to Karnataka circle, choosing instead to use two SIMs from Uttar Pradesh. 

Delhi crime branch inspector Ashok Kumar said, “We had arrested his brother Ram Sumiran and the mobile phones of his family members were kept on surveillance. We noticed regular communication from a particular roaming number.” Cops also noticed that the phone would be switched off as soon as the talk ended.

Pal brothers and their money trail 

Both accused brothers Ram Niwas Pal (in pic) and Ram Sumiran Pal, used to be part of the top management of Multi- Level Marketing companies abroad. SpeakAsia, registered in Singapore, was introduced in India in 2010 by the duo with the help of one Manoj Sharma. 

SpeakAsia was an online marketing survey company, which sold web subscriptions for Rs 11,000 each. In return, the investor filled survey forms for multinational firms for an annual payment of Rs 52,000. After some initial investors, it wrapped up its India operations mid- 2011. During this time, it duped over 24 lakh investors of Rs 2,276 crore. A dozen FIRs have been registered at Thane and across the country, including Vijaywada, Hyderabad, Jabalpur and Lucknow.

The business shut after registration of criminal cases in June 2011. For the past 28 months, the Economic Offences Wing, Mumbai, has been probing fraud cases against the company. Reportedly, over 210 bank accounts with over Rs 142 cr have been frozen, besides another 150 bank accounts under the scanner suspicious funds transfers. 

DISMISSED FROM ARMED FORCES 

Ram Niwas Pal, a resident of Badshah Nagar in Shahjahanpur district of UP, was born on December 31, 1971 in a farming family. He left his BSc course in 1991 and joined the IAF as airman (technical). He was posted to the Helicopter Unit in Jodhpur and later to Hyderabad. He left IAF in 2001 without intimation, was declared a ‘Deserter’ and faced a court martial. He was dismissed in 2004 and then started providing consultancy services to multinational banks through Smart Connect Company. In 2003, he started Mihir Virani Multi Trade Pvt. Ltd, which he later left, with a TV star of a then popular serial as managing director.

http://www.punemirror.in/index.aspx?

At least one saved: Do not know how many like him

December 5, 2013, 10:13 pm

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Sachin Phartiyal	5:47 PM (17 hours ago)
to me

Dear Mr Shyam,

I am writing this mail  to thank  you/your blog which I checked  to understand the MLM fraud done by QNET.

I saved myself recently of getting into this rut ...........same CCD story of IRs and only why of business and not how. 

They called me for a second meeting which I refused and asked that acquaintance(IR) not to call me ever again.

Thanks to you and Google search.  

Amway CMD does it again

December 12, 2013, 8:30 am

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Amway India Enterprises' CMD Mr William Pinckney has done it once again. He failed to attend the Chief Metropolitan Magistrate court on Thursday and a few of his acquaintances attended. Yet the neither CID nor the Public Prosecutor pointed out in the court.
The case has been adjourned to February 10.
It is common practice, if any accused does not appear in the court continuously the magistrate shall issue the arrest warrant. But not in this case for reasons better known to the accused himself.

Michael Ferreira gets EOW notice in Rs 425cr QNet case

December 13, 2013, 10:16 pm

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MUMBAI: The city economic offences wing (EOW), probing the multi-level marketing firm QNet case issued notice to Michael Ferreira, winner of the World Amateur Billiards Championship and a Padma Bhushan recipient, in connection with the Rs 425 crore multi-level marketing case. The police asked him to appear before the investigating officer. 
The police suspect Ferreira to be a stakeholder in QNet, which has allegedly duped over 90,000 people in India. 
The EOW has registered a case against the directors and officials of M/s Vihaan Direct Selling (India) Pvt Ltd, QNet, Transview Enterprises and Vanmala Hotels and Tourism Services. "It appears that you (Ferreira) are acquainted with facts and circumstances of the case," says the police notice. 
The police said the probe has revealed that Ferreira was a stakeholder of M/s Vihaan. The EOW has so far arrested nine people, including two women, in the case. 
The bank accounts of QNet, its independent representatives and associates have been frozen with Rs 110 crore inside. QNet allegedly lured investors with schemes involving investment between Rs 30,000 and Rs 7 lakh. "They posed as a marketing firm which would sell bio-discs, watches, herbal products, holiday packages, etc. 
They even claimed that by using the bio-disc, one can cure cancer and brain diseases," a policeman said. Some money has been transferred to Malayasia, Singapore and Hong Kong, too, he said.

http://timesofindia.indiatimes.com/india/Michael-Ferreira-gets-EOW-notice-in-Rs-
425cr-QNet-case/articleshow/27254278.cms

AMWAY, MERCHANTS OF PIPE DREAMS

December 14, 2013, 11:13 pm

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GREED THE DRIVING SPIRIT OF AMWAY SLAVES,  FINESSING THE ART OF PIMPING FANTASIES ,  PYRAMID BASE FINANCIAL HOLOCAUST ,  QUIXTAR  THE SULTANS OF GREED-  CAPT AJIT VADAKAYIL

Couple of years ago, my Chief Engineer was in my cabin having a drink. 

I felt that he was in a happy mood. I asked him the reason ,and he said that his only daughter would be getting married soon. 

Since he was my close buddy ,I asked him what the would be groom does for a living. He very proudly states that he is self employed and he has left his job to be in the Amway business. 

Knee jerk, I advised him. After you finish the drink ring up your wife immediately and call this alliance off, if you daughter is NOT in love with him.  It is NOT worth it.

My Chief Engineer left his drink and made a satellite call from my cabin itself.  I could overhear him convincing his wife that the Captain hardly makes wrong decisions .

Then he came back and wanted to know if I had any personal experience with Amway.  I told him an incident that happened on my previous ship.

I was asleep in port with cargo discharge in progress in a US port. I got a call from my Chief Officer from the CCR, and he said that a woman at the gangway wants to meet me—and he stressed that I would surely like to meet her.

So I peeped out of my porthole and saw a woman standing on the quay. She was allowed up and pretty soon she was in my cabin. 

To be frank, she looked absolutely drop dead gorgeous, young, in perfect shape , blue eyes, blonde, in skin tight blue leotards ( with her camel toe , the cynosure of every male eye ).  Look into Wikipedia if you want to see what a camel toe is. 

She turned out to be an AVON sales woman. Though I offered her a seat, she wanted to kneel by my side and display the goodies in her bag.  Pretty soon I caught on , she was giving me a free show . Her pink nipples were standing out like bullets . So I rang up my Chief Engineer and told him to come to my cabin el pronto. 

My Chief Engineer came , had a look at her and sort of melted away. Then he called me up, on the telephone and said “ Captain saab come to my cabin “ I could feel the excitement in his voice. So I gave a Coke to the Avon lady and went to the Chief Engineer’s cabin. 

He was rewinding a video cassette. Pretty soon he started the movie and I saw the same Avon woman .  As per the title of the video she was “the queen of anal porn” – and there she was getting serviced by 3 men.

So I came back to my cabin and told her, that she has permission to go to the crew’s lounge. She sold her entire bag of goodies full of perfumes and cosmetics within half an hour,  and she left.  Get an idea of salesmanship nay sales-womanship?

At least this woman was doing something to earn a living. For she could have milked100 times more money in the porn business.

On the way out of this river port, I narrated this incident to the pilot. He asked me is she was Avon or Amway, and cried “Stay away from Amway!”.

Then he burst into tears and said that he lost his only daughter to Amway.  She was a very obedient and loving daughter till she fell in love with an aggressive boy in the Amway business.  Pretty soon she too became a distributor.  

After that she became thick skinned could NOT see life except through the Amway prism.  She tried to head hunt and prospect her own parents,  as if she was in a cult, without a mind of her own.   She shifted out of the home and lived with her boyfriend in a huff . 

When she got married there was NO invite.  

Such was the bitterness sowed, just because she could NOT recruit her own parents or make them buy ridiculously expensive Amway products like vitamin pills, "save the planet" eco-friendly cleaners . She was in a fantasy world of quick riches , buying a huge house , sports cars, etc.  

This young girl became mean and aggressive in trying to push her business into her parents  circle of friends , due to which they became socially pariah.  They tried their best to win their only daughter back,  by acquiescing to her demands, but she was beyond redemption.

Amway rewards greed in a manner which corrodes the human soul.  Rather greed is the driving spirit of Amway. 

He who is greedy is always in want—and so in their first motivational meeting , Amway wants to know your goals in life.  They want you to write it down , even before you write down the names of your friends and relatives. Nowadays your facebook status reveals more to them.

They become very happy when you say that you want your own island, yatch and private jet plane, with the Kohinoor diamond thrown in for good measure .  For this makes you a valuable recruit into their cult of greed, and the AMWAY VIRUS can occupy you faster.  

They are NOT happy with you if you just want a small maruti car and a small home for a happy family —for that makes you a loser..

What is greed?

Greed can make honest men murderers. 

Apathy and loss of human values is inherent in greed.   Greed is the inordinate desire and the relentless pursuit to possess wealth,   beyond the dictates of basic survival and comfort. 

Greedy people manipulate and deceive in a mean manner intent only on satisfying their own selfish needs.  Greed is a dark bottomless pit .  Once you spiral into this pit, you get centrifuged and exhausted  in an endless self destructing effort to satisfy the delusional need without ever reaching satisfaction.

There is a sufficiency in the world for man's need but not for man's  greed.  When morality comes up against profit, it is seldom that profit loses. Greed is the inventor of injustice as well as the current enforcer. Like the love of comfort, is a kind of fear, if you look at it through a psychological prism.

Growth for the sake of greed is the ideology of the cancer cell.  

Life is a success only if you are happy. You have succeeded in life when all you really want  is only what you really NEED. 

When morality comes up against profit, it is seldom that profit loses— yes this is the petty minded , selfish and stark American way ( Amway ) .  

Ever heard the US president on TV wanting to protect “our way of life”?  Yes, this a way, where only the top of the pyramid scheme enjoys life, the bottom slave drones just keep slogging, hoping to get the golden pot at the end of the rainbow one day. 

They try to run up a down escalator. For an intelligent man will tell you that the Amway method does NOT work, unless you have sponsors.

Intensely selfish people are always very decided as to what they wish. These ugly people do not waste their energies in considering the good of others.

Be aware that Amway employs a legal army will descend upon any blogger or website which is a threat their business.  If they are above board what is the need to do this?. They will leave the shitty posts intact, and will try and get intelligent posts off.  

So read this up, folks—and spread the word around.  You will NOT get a more INCISIVE review anywhere on this planet.  No, Capt Vadakayil does NOT boast- TEE HEEEE !

Our PM Manmoham Singh was a Rothschild employee, befoe he was catapulted to the chair of the Indian Finance minister . Manmohan Singh took personal initiative to get this pyramid business model to India in 1995 when he was a finance minister.

The founder of Amway Richard De Vos was a Free mason. He had the support of the banking cartel.

The pyramid organization of Amway has been deemed to be legal, though it makes no sense. They say it is legal  because they sell merchandise out of catalogs.  

Why should something be legal when people are sold pipe dreams , which make them lose money? Only the privileged few who have their own secrets ( like our Marlboro man ) at the top of the pyramid  makes money.

Let me tell you a secret.

A Marlboro salesman came on my ship. He knew what he was upto. He has it all planned out. He knew that I had bought 200 cartons for my ship.  He got this inside information from the US Customs ( maybe a relative ) and there he was in my cabin,  giving me a fancy red Marlboro cap,  dozens of souvenir pens and lighters , to soften me up.  

All he wants is my signature and stamp on a booklet which will show to the company that he sold the cigarettes to Capt Vadakayil.  He will give me bull that now I have secured BLAH BLAH points and next time BLAH BLAH BLAH. 

Do I look stupid?

Let me digress: -

Since I am in a frisky mood, let me tell a non-veg joke.  I hope my wife does NOT read this for she will kick mE ass. Ladies and children less than 18 nay 16 ( we have lowered the age in India ) keep away from the italics .

A couple went for a movie and were petting in the dark. 

Ultimately, the girl got some warm liquid in her hand, and since she did NOT have a hand kerchief, she threw it backwards.  The content landed 4 rows back on the face of a drunk, who was rudely woken up.  

He felt the texture , smelt it and cried out to his drunk friend snoring away on the seat next to him . 

"Paddy, do I look like a c#nt? " .  

His friend looked at him in the dark and said " Nope!-- why do you ask, maan ?" .

He cried out in dismay " Someone just threw a f#ck on mE face --BOO HOOOO !!" 

In the 1979 ruling the US Federal Trade Commission determined that Amway was not an illegal pyramid scheme because no payments were made for recruitment. Hey, the loophole out here is that friends are family are recruited with NIL money.  And they cannot sue each other right?

People are forced to join because they do NOT want to hurt the feelings of their friends and family. Before they know how deep this dark hole is , it is too late. They are brainwashed that only losers escape from the web -- nay brotherhood of Amway.

The bottom line distributors are "strongly encouraged" to listen to at least one motivational tape a day, tapes that are sold, of course, by their uplines ( persons above them on the pyramid ).  Amway sends two expensive tapes to each distributor weekly and the distributors are billed for the tapes.  

At the Amway meetings, the distributors are often pressured to buy more tapes, books and videos from the diamond and emerald speakers.  Most of the profit from these sales goes directly to the diamond and emerald distributors.

If the product is good and reasonably priced, what is the need to sell HOPE by means of motivational nonsense in CDs’ to gullible people ?   

In any case why do you charge money for these motivational books and tapes?  

There is big money to be milked just by selling these compulsory tapes right? 

Why don’t you put all your motivational bullshit on the net and given your dear worker drones a free password, for different levels? 

What is the need to defraud the gullible into thinking that with a little hard work and soap in their holes --- OOPS--- hope in their souls, they can become rich beyond their wildest dreams.

There is absolutely no reason to believe that Amway products are better than the ones who get for half the price elsewhere. A man is trying to make both ends meet, put his daughter into college and you want him to contribute though his nostrils to save the planet? Why don’t you do that.  Since you have so much money?  

And how did Amway Corp get rich so fast?  By being compassionate to your own dear people ? Why did you need to change your brand name from Amway to Quixtar?  Hey, why do you have a connection with mercenary org Blackwater?

Why do you need to build up a cult whose main product is Amway itself.  What is the need to sell --nay brainwash your people with false hopes of early retirement.  Who else does all this? Is this the American way whose short form you have lifted and converted to Amway?  

Why are your  seminars and meetings  reminiscent of revivalist meetings, where the power of positive thinking is deleted and replaced by blind faith in the Amway “get rich quick” system.

Now, let us look at your “legal” pyramid scheme.  Are you not aware that a pyramid scheme even if legal has aSATURATION POINT?

What will an intelligent man call a pyramid scheme where the bottom strata are doomed to lose money and the top strata makes moolah out of this displaced money.  The word is SCAM, right?. Here the upper layers support this fraud,  as they want more eager beaver recruits to shore themselves up, in a selfish manner . Salvation lies in rising up the pyramid strata, right?.

How can such a Amway cycle sustain itself, without approx. 90% people will losing their money somewhere down the line?  Once saturated  how is it possible to recruit the number of people required to pay off the previous layer of recruiters? 

Never mind the illusion of legality as presented by  revamped schemes supported by “lobbied up” celebrities like ex-US Republican presidents , they are still a fraud to an intelligent man, who knows for sure that the "emperor is NOT wearing clothes" .  

Legal multi-level marketing (MLM) involves being recruited in order to sell a product that actually has some inherent value, and ONLY if it is not OVER PRICED compared to the same products available with countless other major popular brands.. 

This is because once you have run out of friends and family to recruit, and your reputation as a “ slimy Amyway head hunter" or “ugly Amway prospector”  is laid threadbare, and people treat you like the plague even in malls and pizza joints , you are forced to selling this awfully overpriced consumer item to survive .  Making a profit this way is just a pipe fu#kin' dream.

Brainwashed Amway worker drones to the Amway success theory of “fake it till you make it” just burn up from inside. Their ego forces them to lie to their own wives and children, and take out their frustrations on them. This is how the Amway virus destroys close knit "once upon a time very loving" families.

First of all any pyramid scheme which does NOT deliver the return promised in writing involves deception and fraud . But hey, Amway has a loop hole to wriggle out of this. They will say that this moaning mangy loser man did NOT read our motivational books and listen to our tapes and did NOT attend our last seminar ( where he has to foot all expenses ). The entire blame comes like a ton of shit on your own head .

Amway forces you to buy the products ONLY from the direct layer on top of you , on this pyramid . In this kind of pyramid scheme, you would be required to lie to and recruit new members into the MLM ( multilevel marketing (sic) ) in order to make a profit and keep the MLM alive.  

The Jewish conman Bernard Madoff stole almost $65 billion by means of a Ponzi pyramid scheme . On June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed. . 

In a Ponzi scheme, there is one person who takes people's money as an "investment" and does not necessarily tell them how their returns will be generated.  As such, the people's return on investment could be generated by anything; it could come from money taken from new investors - which means new investors essentially pay off the old investors - or even from money made by drugs, gambling or prostitution (or Bollywood or IPL ).

The founder of Amway Freemason Richard De Vos has a Jewish bloodline.  The first Amway building had a Masonic square and compass symbol on the front facade. The luxurious Amway Grand Plaza Hotel in Grand Rapids, Michigan where Amway has its international conventions for its distributors was built right onto a huge Masonic temple.

When a so called legal pyramid scheme has more than 98% failure rate of the bottom layer,  it becomes a scam. .  The US Federal Trade Commission has permitted the fleecing of Amway dupes because the money taken from the pockets of these poor victims has funded the lobbying kitty of the Amway empire to protect their fleecing of the flock business .

Punch into google search EXPLORING THE MIND OF A CON MAN VADAKAYIL

I have seen such a fraud in a casino in England.  My wife saw a machine where lot of whole pile of ONE pound coins were precariously perched on a ledge. You put one more coin and a big chunk of the pile would obviously come falling down, as there was no more place to accommodate a new coin entry..  My wife put a coin and a whole lot of coins fell down, and she made a neat profit of 6 pounds. So she put another coin. This time nothing happened. So I suggested that she give back the machine the remaining 5 coins.  Every time she put a coin she was hoping for the pile of coins to fall again.  But I noticed , now a small secret window had opened up at the sides.  No pressure would be put on the about to fall pile anymore. The new coin would push another coin into the sides – into the secret  kitty of the machine owner.  Now we waited till another person came. She also got lot of coins with his first try.  And you should have seen the way she ran to the counter to exchange a currency note for coins—so that nobody else can come to the machine in her absence and take away the coins will “will” fall for her soon.  So I showed her the secret slots which had opened up on the side. They machine recognizes a new fool , probably by a sensor taking in the color of the dress.   

So the people in Amway who make money are the ones who change the color of the dress-  

TEE HEEEE!

The people who gave this venomous money sucking squid Amway a legal business certificate should be investigated and jailed.

An Amway man is now recognized as the man who screwed his friends and family. There are reports than in India promotions and junior job selections are based on getting recruited into the Amway brotherhood.  Pretty much the same way Catholic convents convert poor Indian Hindu families by offering admission to their young children to English medium LG and UKG sections.

Does this Amway company who has become super rich, do any benefit to the national economy? Then how have they got in even into India ?  By ministers getting lobbied up, right?

Amway makes a profit on every sale of every product it offers for sale. The sales people are considered independent business owners (IBOs) and they make money on every sale they make and by recruiting others to makes sales of the same products.  They spend money buying Amway products. Strangely they also spend a lot of money buying compulsory CDs , books and attending seminars aimed at making them believe that having a positive attitude and working hard are the keys to success.  

In Amway, one is recruited as an "independent" distributor of Amway products by buying a couple of hundred dollars' worth of the products from the one who recruits you, known as your "upline." Every distributor in turn tries to recruit more distributors.  Income is generated by sales of products by the distributor plus "bonuses" from sales of his or her recruits and their recruit-descendents. The distributors  income depends primarily not on their own sales of Amway products but on sales made by others whom they've recruited.

In the seminars they use Amway specific slang and abbreviations to give them the sense of bonding , like how small convent girls talk in P language and feel important as a girly giggling gang.  WAPPAT IPPIS YOPPOUR NAPPAME.( what is your name ).

So when my wife’s Auxilium convent gang came to visit my ship 30 years ago, they thought they can hold secret conversations till I gave it to them in P and T language combined, twice as fast.

What is unique is the faith, devotion and hope that the Amway foot soldiers have—almost like the Mormons.  The way they work themselves into a passionate frenzy while prospecting new recruits in a shameless thickskinned manner has to be seen to be believed.  

Quitting  would mean giving up hope of a happy future, sipping margaritas on a yacht in a Caribbean bay,  right?.

The Amway “hook” is simple enough. You become a “distributor” for a low, low entry fee. This makes you a retail franchise, a businessman . You sell Amway products and make your profits..  But if you want to make real money, you sign up other “distributors”. They’ll be your “downline”, and when they sell anything, you get paid a commission (they call it a “bonus”).

You buy $200 a month of Amway products for yourself, upon which you get a few dollars back. But if you can sign up 10 people, and they sign up 10 people apiece (and so on, and so on), eventually you’ll have 7,000 people, which will qualify you for the “diamond” distributor category. And if each of those people buys $200 a month of Amway products, you will generate nearly $17 million in yearly sales! 

Now you can sit back, relax, and just rake in the moolah, right?

Wrong!

The model usually collapses long before that, because quite frankly, most people aren’t gullible enough to go for it.  

This is why 80% of Amway distributors drop out.  Amway business model is the enormous sales volume required in order to make any money.

There’s only two winners in the system: the people who run the parent corporation, and the people who sit at the top of the pyramid (even though the whole pyramid is losing money overall, they are taking such a large share of the commissions that they make money at the expense of the rest at the bottom ). 

In effect, 90% of the people in the pyramid must lose money so that the remaining 10% can divide the profits amongst themselves , with the lion’s share going to the people at the very top. 

These people then turn around and use this money to “lobby” ( bribe ) the powers in the government to keep their scheme operating. Now you know how the top of the pyramid gets rich, and how this system continues to be “legal”.

Other hidden expenses for distributors include mailing, handling, doing forms, advertising, cell phone roaming bills, and driving personal vehicles to deliver or pick up products.  Unless you hire a servant type who will foot slog with a bag of goodies , you spend a lot on petrol.

Amway's attitude toward any insider critical of the organization has bordered on paranoia. In any seminar of meeting dissidents are not allowed to give their testimony .  They are told off and an elaborate guilt trap will be laid on you, something you never ever faced in your life 

“ You are just dumb —you are a failure—you did NOT work hard enough—you did NOT devote enough time and energy—you did NOT listen to the latest CD, here buy one— you have not yet developed the Amway prospector’s eye—  you loser, were you serious about your dreams of giving your children a good education --  you are low on loyalty and courage of your  convictions,  no wonder it didn't work for you--- you didn't do exactly as you were taught—you need to retune your prospecting radar— stop worrying , it will all fall in place soon—how can you say this,I thought your are a bright guy-- is this the level of your commitment to your family?--if you have not yet seen the light , whose fault is it ?”

Sometimes you will be told “ Have faith and just keep doing what you're doing, Amway’s way is a tried and tested model" 

Something like what Winston Churchill tells through drunken lips, with a heroin suppository up his a$$hole for good measure  “ If you are going through hell, keep going !!”.

Some will even put a carrot on stick.  “When we find you are ready  ( meaning properly brainwashed to be non-skeptic ) we will show you ways how you can make extra money from the sales of tools to your own downline . You may not understand it now, but it will become clear when you're successful. You work more on the front end, but get lots of money at the back end." You are too dumbstruck to ask what this back end is.

Because the group is offering their own form of salvation, the deception is rationalized because the end goal justifies whatever means are necessary to achieve that goal.

They will never admit that you have been deliberately lied to and dumped on an down going escalator and told to run up and take all the money lying for you on top. The inherent flaws in the system does NOT allow you to make money unless you sell your soul and cheat people.

Deception lies at every step from the first day to the last stage . When the new distributor starts to build the business, he is taught to contact people about "building a business," not about "building an Amway business." 

I dare anybody to say , that in a mall he pounced on a prospect and said “ Hi wanna join Amway?”  When a gullible new person is sponsored, he is told to make a PIMPING list (using carbon paper in this age ) of all the friends and family he knows.  A copy of the list is given to his sponsor who can then contact those people for him. 

They will even invade your face book account.

In India where people scam goes further that the West, the Amway people start the GENI tree and they take a lot of pains, trying to be very pally pally with the “see we are all of same blood tree”. 

These Amway people have NIL character, they will lie through their teeth , and they will sacrifice you on the altar of greed. 

The worst is people using nuisance potential, to wrangle a recruit. If you want water connection, well can you be an Amway recruit?  Or you wait, till the cows come home.  

You wife is invited to a “kitty party” to join the sorority , and the moment she reaches there everybody looks at her with Amway eyes. 

Amway has injected poison into relationships, which we Indian value, unlike the West.  This is the fountain head of our happiness , friends and family. The Indian Government must have fast track justice system (  like rape ) for people who arm twist innocent and vulnerable people into joining Amway, to realize an IMPOSSIBLE pipe dream.

The distributor cannot return unsold over priced products. This forces him to use it himself and he just cannot afford this . So he runs from pillar to post to sell it , putting his honour in pickle , to recruit more new people .

Amway makes money on their initial sign up fees and the motivational CDs and books which are expensive.  Amway gives a damn if the distributor cannot sell the products which he bought.  For if products are not sold, since the pressure to move products rests with the 'distributors'.   In India, distributors will have to "renew their contract" by paying a fee—more riches for Amway.

In motivational seminars all the jokers stand in a circle bend down with arms over each other in a huddle and cry “ GO FOR DIAMOND “ like what to see in American football matches, in a ridiculous manner..  

I am sure a lot of them will be muttering under their breath “ FU#K YOU AMWAY”. Some of them have been reduced to using office telephones during coffee breaks , to save of cellular roaming charges.

Next time you see an Amway man in a mall trying to brown nose his way ask him “ So, selling soap and detergents will make me a millionaire, what else is new ?” and then watch his face.

In Amway the only people , the distributors care for is themselves. Pyramid schemes are generally abusive business practices where thick skinned and hard work is forced upon lower-level employees so that more senior workers can relax and profit,  with little independent effort. 

Lower-level workers always find it hard to make much money under these adversely tilted conditions.  In Indiaseveral doctors  prescribe AMWAY herbal products/vitamins to their patients, against medical ethics.

Rothschild is involved in Amway. In China Merrill Lynch International, Jardine Fleming International and N.M. Rothschild & Sons was co-managing.

At every function, Diamond distributors who make grand entries in B&W sedans , tell stories about their hardships when they were building the business. When the Diamonds say "we drove for miles and miles for that meeting," the distributors in attendance believe that if they "drive the miles and miles," they too will become Diamonds.  

The Diamonds also repeat over and over that, by using the tools, they became successful. Therefore, the same tools will work for you as well, never mind that every person is different and cultures clash.

For a new recruit to beat the odds, he must develop the “conman gene”. As Amway science is NOT suited for the noble honorable man. So you can very well gauge the character of the distributors who have risen up the pyramids, after beating the odds. They have cheated several gullible new recruits with financial salvation. 

Like missionaries, these  Amway distributors have gone out into the world preaching that Amway is the only way  to "save yourself" from the lurking  "financial disaster" as well as the only way to achieve your lifelong dreams. As long as the new distributors feel they are following the tried and tested Amway way, they believe like a misled cult  what they are doing is right and fair and many of them think nothing of lying and conning.. 

Some of these brainwashed people when asked about their relentless foot slogging and rebuffs on the face with  low pay and long hours, actually claim that they are rewarded by their own "personal growth." They refuse to accept that they are in a catch 22 situation. Amway diamonds and platinums tell on face book about their holidays to Aruba and Hawaii, while actually people would have spotted them at home in pyjamas over the fence.

These  Diamonds don't have public stockholders to answer to, and since their seminar audience is looking to emulate them, they have no one in the audience to critique their speeches — only gaping in awe party. Such is the effect of this cult, that its leadership's charisma and integrity is not to be questioned.  In the Amway business, distributors are taught that there is virtually no other lifestyle worthwhile outside of the Amway business. 

The speeches pound into the heads that a distributor will only be happy when he reaches the Diamond level- but he will never tell them it is beyond reach. He will never tell you how much time you need to spend to break even, leave alone make a tidy profit. .  They are told again and again that this is a "proven system", and if they just follow it like a recipe they will retire in about 4 years.

The Amway dream began in 1959 in an old garage , where Jay Van Andel and his friend Richard DeVos created a multi-level marketing plan. They offered laundry and cleaning supplies to start-up entrepreneurs.  For Jay and Rich, this was THE American way, thus the name, Amway.  

Van Andel was born in Grand Rapids, Michigan, in 1924. He met Richard DeVos in high school when Van Andel charged DeVos 25 cents for rides to school in his 1929 Model A Ford, so much for being close buddies.  

Their first product was called Frisk, a concentrated organic cleaner developed by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner)

They went around telling that Multilevel marketing is just a way to remove the average person in the buying and selling process of a service or product and give the cost of marketing back to the customer. Oh yeah? The more you buy, the poorer you get but the "richer" your "upline" gets. Their refrain  was the usual bull "you have to spend it to earn it", "work now, play later”. 

You were also highly encouraged to disassociate yourself from quitters because they will "try and steal your dream”. So then Amway becomes No.25 among the largest private companies in the U.S. by Forbes in 2012. How sweet.

Multi level marketing business that relies on selling to people you know, then they sell to people they know and on and on. You are given "gem" names to represent where you are in the business regarding your sales to further inflate your ego and create more false security. Ruby & Sapphire's are mid range but the big goal is to make "Diamond" and then there is also "Double fu#ckin’ Diamond".

Upline is the name given to everyone a head of you and "downline" is for those beneath you. All you need is to get fired up to spread the great news to all of your family and friends, so you can all retire with lot of moolah.

The 1990s rang in a new generation of leaders. Steve Van Andel and Dick DeVos succeeded their fathers as chairman and president, respectively. Doug Van Andel, another son of Jay's, is now president. Van Andel and his wife Betty both died in 2004; Betty had Alzheimer's disease, and Jay had Parkinson's.

Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia in 1974, to Japan in 1979, to Latin America in 1985, to China in 1995, to Africa in 1997, to India and Scandinavia in 1998, to Russia in 2005, and to Vietnam in 2008.

On August 6, 2011 Kerala Police sealed the offices of Amway at Kozhikode, Kannur, Kochi, Kottayam, Thrissur, Kollam and Thiruvananthapuram following complaints of being sold fake dreams.

The dream sold by the website of Amway India offers its members a monthly of Rs. 62,500 if they succeed in enrolling 102 members downline of each member with the business model of 6-4-3. 

That means every member has to enroll six members and in turn these six members has to enroll four members each and these four members has to enroll three members each to complete one cycle. If the cycle is completed the first member would earn every month Rs. 62,500 without any personal effort, like magic.

Greed is quite common weakness in humans and MLM companies very effectively target that and most people don’t find any fault as such in the system and easily fall pray.  

QNet ltd, formerly known as QuestNet, GoldQuest, and QI Limited, is a Hong Kong based MLM company selling  energy, weight management, nutrition, personal care, home care, luxury goods, and fashion accessories.   

QNet was founded in Hong Kong by  a Malaysian businessman  Vijay Eswaran in 1998.  In July 2011 issue of Rothschild’s Forbes Asia, he was named as one of 48 'Heroes of Philanthropy' in the region. 

QNet operates in India through its franchisee Vihaan Direct Selling Pvt Ltd, which carries the company's brand name in the country, whose major shareholder is billiards player Micheal Ferreira and the minor shareholder another Christian..  

The gullible opportunistic  Egyptians are getting duped whole sale.

QuestNet and GoldQuest, duped people with  limited edition gold coins “whose value would increase over time” ( sic ) and we charged and forced to shut dowin in India.  However like the quintessential phoneix their new avatar QNet came back with more of such products like  bio-discs, Chi-Pendants and herbal products for anything between Rs30,000 to Rs7 lakh. 

QNet promises fabulously high returns” so long as new distributors are enrolled rapidly” TEE HEEEE !

 Its product brochure says, “With 8 ways to earn and up to 50% of the sales paid out in commissions, QNET offers the most dynamic and innovative compensation plan in the direct selling profession.” OH Boy !!

Bottom line: We all can be richer than Amway owners if we are con men.  Punch into google search EXPLORING THE MIND OF A CON MAN  VADAKAYIL

So next time some fat lady smiles at you in a mall, look at you with beady eyes and lisps  "Oh, have we met before?",  remember, she could be prospecting for a gullible Amway recruit.

Time to lift your lungi and run!  

BHAAGOOOO  SALA !

Grace and peace!

CAPT AJIT VADAKAYIL

http://ajitvadakayil.blogspot.in/2013/03/amway-merchants-of-pipe-dreams-capt.html

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Govt Launches Drive to Identify and Weed Out Companies Resorting to MLM Schemes: But Sachin Pilot prefers to ignore the real frauds

December 22, 2013, 7:38 am

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According to the information available with the Ministry of Corporate Affairs, companies resorting to Multi-Level Marketing Schemes are doing so in contravention of either the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 or by floating unauthorized ‘Collective Investment Schemes’ in contravention of Section 11AA of the Security and Exchange Board of India (SEBI) Act, 1992. Giving this information in written reply to a question in the Rajya Sabha, Minister for Corporate Affairs Sachin Pilot said that none of these companies also appear to be registered as Non-Banking Finance Companies (NBFC). As part of its drive to identify and weed out such companies, Ministry of Corporate Affairs has shared the particulars of around 34,000 companies with objectives of carrying on financial business with the Reserve Bank of India (RBI). RBI has taken up verification of such companies. 

This is the press release issued by the Press Information Bureau, the official organ of the Government of India which sends press releases to the print and electronic media periodically.
Mr Sachin Pilot conveniently forgets that Amway India is the prime accused in implementing MLM schemes in the country and the courts have already drawn conclusion in this respect. Not only Amway but also Herbalife, Tupperware, Forever Living Products and others are also into this fraudulent schemes.
In addition, big corporate giants like Tanishq, Kalyan Jewellers, and others also have launched collective investments schemes attracting the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 and Section 11AA of SEBI Act, 1992. 
The 'Honourable' Minister Sachin Pilot conveniently turns Nelson's eye to these fraudulent' schemes. 

Enforcement action accelerates against Ponzi and MLM schemes

December 24, 2013, 3:10 am

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SUCHETA DALAL | 10/12/2013 06:37 PM |

A burst of enforcement action in the past fortnight raised hopes of crackdown against notorious Ponzi and MLM schemes
A huge burst of long overdue enforcement activity in the past fortnight raises hopes, for the first time, of some check on the mushrooming of dubious ponzi schemes, direct selling companies, collective investment schemes (CIS) and pseudo-chit funds. Consider this.
• On November 22, the Supreme Court, finally, clamped down on the personal freedom of Subrata Roy, founder of the strange Sahara group and barred him from travelling abroad or alienating assets.
• On the very same day, Mumbai’s Economic Offences Wing (EOW) arrested eight agents of QNet, a controversial, Hong Kong-based multi-level marketing (MLM) company promoted by a Malaysian. The police have already frozen the bank accounts of these ‘team leaders’.
• On November 23, Kunal Ghosh, a suspended member of parliament (MP) of the Trinamool Congress, was arrested for colluding and conspiring with Sudipta Sen, founder of the Saradha group which went bust and took down a few thousand crores of savings of poor and low-income people.
• On 28th November, Malabar Gold and Diamonds, the rapidly expanding jewellery chain from Kerala, was raided by officials of the Directorate of Revenue Intelligence (DRI) at Kozhikode. According to a report in The Hindu, the raid followed a statement from one of the accused involved in smuggling gold from the Gulf and selling it to the jewellery group. The group’s turnover has reportedly grown from Rs50 lakh to Rs22,000 crore in just 20 years!
• On 2nd December, the EOW, Mumbai, nabbed the alleged mastermind of SpeakAsia, Ram Niwas Pal, who has fraudulent cornered over Rs300 crore, according to the police. Moneylife was the first to report about this brazen and high-profile ponzi which went bust in October 2010 taking down over Rs2,000 crore belonging to 230,000 people. The key promoters of this Singapore-registered company are still absconding; nor have they been made to return the Rs900+ crore transferred to Singapore alone.
Some of the credit for this flurry of activity by other enforcement agencies probably goes to the Securities and Exchange Board of India (SEBI) which has used its recently acquired powers to crack down on a series of CIS including teak tree investment schemes and a time-share called Orient Resorts. It has also ordered the freezing of assets worth over Rs500 crore of companies involved in various irregularities. Clearly, regulatory overlap leads to better enforcement and  action, if one of the regulators/agencies is willing to act decisively. A similar 
rush of activity is evident on the National Spot Exchange Limited (NSEL) scam where, again, Mumbai’s EOW is leading the crackdown and attachment of properties, rather than any independent regulator. 
But we have a long way to go before we even make a dent in the explosion of Internet-based scams and tricks (work-at-home scams, insurance scams, job scams, lost wallet scams, Nigerian scams) that are sucking up the savings of gullible people everyday. Topping the list are get-rich schemes targeting housewives and people laid-off from work which lure their victims promising high earnings from home-based work. Often, these are variations of the SpeakAsia survey fraud and would correctly be the domain of the Serious Fraud Investigation Office (SFIO). 
But SFIO is one agency that remains somnolent even after the new Companies Act 
2013 has hugely enhanced its powers; it lists SpeakAsia and QNet as ongoing investigations with very little action.
http://www.moneylife.in/article/mlm-schemes-under-scanner/35553.html

Digital currency for New Age?

December 25, 2013, 4:09 am

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At a time when the dividing line between virtual and real is vanishing faster than what it takes us to realise, the Reserve Bank of India’s guarded warning on dealing with virtual currencies is hardly surprising. In fact, the caution issued on Tuesday was the second of its nature after it reacted to the global phenomenon for the first time in August when the apex bank was reported to be “watching and learning” about bitcoins. Though the craze had started in 2009 and spread slowly to various financial transactions, nobody is quite sure how the virtual currency is traded and exchanged and a value is fixed. Until recently, bitcoin had been considered as a fancy idea put forth by young techies to popularise invisible money in cyberspace. But, as it started firing the popular imagination and illegal financial transactions involving drug dealers and arms merchants came to light, the virtual currency has begun hogging the limelight. The concept, first emerged in a 2008 technical paper published under a Japanese pseudonym Satoshi Nakamoto, and bitcoin’s success in terms of its popularity and value appreciation are unprecedented. The surge in the use of bitcoins as a financial instrument in lieu of real currency is both unnerving and exciting despite the risks involved in dealing with digital money.

For the uninitiated, bitcoin is an electronic currency, minted in the virtual world and stored in, well, in digital wallets (that store the passwords to transact business of any nature on the Net). Bitcoin, as of now, doesn’t have any regulatory mechanism, or authorised by any government or its central bank which means that any operation of such nature does not come under the purview of laws governing national and international banking and finance. Since the operations, run on open software and mutual trust of stakeholders, are conducted in secrecy, they defy written and unwritten laws. It is estimated that India has 50,000-strong bitcoin community of which 30,000 are said to own the digital currency. And, like elsewhere in the world, the bitcoin is gaining currency among the young entrepreneurs and digital technology buffs. That is not surprising, considering the fact that India’s new generation has already been wedded to digital lives and they will jump on to any new innovation. But what concerns the establishment and bankers – as well as security agencies – is the number of frauds that could be easily perpetuated by cyber thieves. In a matter of seconds, millions could be siphoned off from virtual deposits leaving no trace.

In fact, there are many grey areas and loopholes which will be exposed only when frauds are detected like in the case of Silk Road when the American FBI arrested an entrepreneur Ross Ulbricht, the alleged mastermind behind an online marketplace for illegal drugs and arms which accepted only bitcoin payments. Similar cases have also surfaced in China, which is said to be embracing the virtual money enthusiastically, Germany and France. The reason for Chinese interest is it hopes one day the world will replace dollar with digital money, thus ending the domination of greenback. Though it is a wishful thinking at the moment, the possibility of virtual money taking over the major currencies can’t be ruled out. Before that happens, it is necessary to guard ourselves against virtual money deceptions, swindlers and crooks. In the absence of physical evidence, it will be a tough task to lay hands on cyber criminals. Needless to say, we need e-age laws!

QNet scam: Cops freeze Danesh Irani's bank account

January 16, 2014, 5:50 am

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In spite of these arrests and freezing of bank accounts with illegally made huge funds, QNet with a straight face demands that there should be rules governing direct selling. What a deceitful people are these? What direct selling these fraudulent company is making? It is just like Amway. It is high time, the activities of such crooks should be nipped in the bud when public-spirited organisations like Corporate Frauds Watch file complaints.

Mumbai Police, probing the alleged role of Danesh Irani, son of actor Boman Irani, in the Rs 425-crore scam allegedly spearheaded by a multilevel marketing firm QNet, has frozen his bank account, blocking his Rs 25 lakh, a senior police officer said. 

The bank account of Danesh has been frozen, the officer said adding that, "Two fixed deposits were linked to his bank account. Cash and FDs collectively valued at Rs 25 lakh were found in the account." 

The scrutiny of Danesh's bank account revealed that about Rs 40 lakh had been received from QNet (over a period of time) in 2013, the officer added. "We are verifying to ascertain as to what sort of job he had performed, for which the QNet paid him about Rs 40 lakh," the officer said adding that Danesh would be summoned soon. 

Complainant Gurupreet Singh Anand, who had filed an FIR against the QNet in August last year, has recently approached the probing agency, Mumbai Police's economic offences wing (EOW), with a two-page complaint giving the details of alleged links of Danesh. 

Gurupreet has also alleged that Boman Irani and former world billiards champion Michael Ferreira had participated in the promotional events. Gurupteet had claimed that he shared Danesh Irani's QNet membership details with the investigators and his account had shown that he carried out Rs 18 crore worth transactions and because of which he received substantial amount of commission. The EOW has already issued a look out notice against Ferreira (75), QNET founder Vijay Eswaran and his three business associates after they did not turn up for questioning despite the summons served to them. 

The EOW has arrested nine team leaders of QNet so far for allegedly duping investors by selling products like magnetic disks, herbal products and holiday schemes through fraudulent practices. 

QNet has also been accused of using the banned binary pyramid business model for their multi-level marketing (MLM) schemes to entice investors. The accused were charged with cheating and forgery under relevant sections of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. 

The Malaysia-based MLM firm has denied any wrongdoing. The lookout notice is a circular issued against a person when he/she is wanted by police either for questioning or for the purpose of arrest in any case. 

It is circulated at all immigration checks at international borders (like airports/sea ports) and as soon as the person is spotted, the authorities concerned are notified.

http://timesofindia.indiatimes.com/india/QNet-scam-Cops-freeze-Danesh-Iranis-bank-

account/articleshow/28746833.cms

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PYRAMID SCHEME ALERT dissects MLM scam

January 24, 2014, 4:02 am

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PYRAMID SCHEME ALERT has received reports of people joining and then quitting as many as 60 MLMs over a 2-decade period. Some start joining in high school and continue off and on though adulthood. Some had parents that dedicated time and money (unprofitably) to MLM and they followed the parental example. Belief in MLM defies actual experience. One reason is simply the related belief that if many or most MLMs were pyramid recruitment schemes, the government would close them down.Unfortunately, this is not true.
Looking for the "good" MLM has become the modern day search for the Holy Grail in America. Millions do it every year and lose billions in their quest. Our government regulators look the other way as pyramid schemes hijack the American Dream.
So this edition tries to summarise and address the basic points about what is "wrong" with multi-level marketing. We have not examined every single MLM but, among the hundreds we have examined, we have not found one yet that met the simple test of legitimacy. The test does not require years of analysis or evaluating the MLM product or pricing. It does not require a legal opinion. Legal or not, the test determines whether the MLM is a valid direct selling income opportunity. (this does not include "party plan" companies, which require some different tests, though some of the following analysis will apply.)

1. Not Direct Selling
We have not found a single MLM in which the majority of distributors (sometimes called IBOs, coaches, associates, etc.) makes a sustainable profit just from retailing the MLM's product to the general public. We haven't found one that can therefore be considered "direct selling." We ask every inquiring consumer to find out if the current distributors are making a profit from selling the goods to people,without also having to sign up new salespeople (to make money off their purchases and sales)? If not, then what is the real business, selling or recruiting? Recruiting salespeople who cannot make a profit from "selling" but must also recruit is not a business. It is a pyramid scheme.
If few or none of the salespeople earn sustainable profits from retailing alone, what is the actual value of the "distributorship"? Why are the salespeople recruiting more salespeople who presumably become their competitors? If you must recruit more "distributors" to make your distributorship have value, and all others must do the same, you are in a Ponzi scheme.
We have not found one MLM in which retail sales levels, average retail sales income, average retail profit margins, or the average tenure (turnover) of salespeople - the normal factors for evaluation - are disclosed during solicitation. This  makes due diligence impossible. There is a reason for this.  The only people in the MLMs that we have looked at that make any profit - usually 1-4% or less of the total distributors per year - are those at the top of the recruiting chain.
2. Paid to Recruit
All the MLMs we have examined pay a "commission" or "points" leading to a commission on the salesperson's own purchases or on the purchases of the salespeople they recruit, or both, whether the products are ever resold to the public or not.
When the MLM company pays commissions or awards "points" that lead to commissions based on what the salesperson or his/her recruits buy - the pay plan directly rewards endless recruiting. The MLM's revenue base depends on getting the salespeople themselves to buy as part  of the "income proposition." Since 99% normally lose, these purchases add to the recruits' losses. 
Additionally, it is obviously unethical and a conflict of interest to "manage" or "coach" a recruit whose personal purchases translate into commissions for the "coach" and other upline managers. The upline "coaches" make money, whether or not the persons being managed do, and they make it directly out of the pocket of the persons supposedly being "trained and supported"!! Even if some retailing occurs, if it is not sustainably profitable, then it is unfair to profit from those "failed" salespeople.
If commissions were only paid on retail sales, at least no one would make money upline until a downline person made some money in the legitimate open market. The focus would be on sales, not extending the sales chain.  We have not seen one case of a true retail-based MLM pay plan. As a result, we see only a few recruiters at the top making money, and all else losing.

3. Recruiting as the Only Viable Path to Profit
The sustainable profits in the MLMs we examined, even if some amount of retailing is occurring, comes only when a person reaches the higher levels - executive, gold, president, or some other high position on the chain. To get to that profitable position, all the MLMs that we examined required volume purchase quotas that could only be reached if one had a large "downline." Why is the MLM person required to maintain a high quota or a specified level of recruits in order to benefit from past recruiting? Two reasons: (1)to keep everyone buying and recruiting and (2)because when they don't meet their quotas (and nearly all will not), all their accrued payments go to those above them - to the top. The quota and "structure" rules induce buying and recruiting among the salespeople, and when that ends, the requirements serve to transfer accrued rewards lost by the "quitters and losers" upwards to the top.
Where MLMs have specified recruiting requirements the MLM participant must have specified numbers of recruits in specific configurations, e.g., to be "gold" one must have five "silvers"  and those five "silvers" must each have 3 qualified "aluminum foils" in the level below them, etc., the so-called "building structure" method of moving up.  The higher one goes up the ladder - by recruiting, not personally selling - the higher the commission rate on all the purchases he/she makes plus all those made by the entire downline. So the incentive to recruit is compounding!
When the volume quota is not met or the "structure" breaks due a lower level person not meeting his/her own quota, then the commission amount is drastically slashed, even to the point of losing everything that has been built up.
Because the volume quota and structure requirements can only be maintained by those at the very top, the bottom and middle levels "fail" and quit at rates as high as 80% or more per year.
The quota, the recruiting requirements and the constant turnover of recruits put the MLM participant on a relentless, desperate recruiting treadmill to shore up his "downline." Some spend all their waking hours and weekends recruiting and hyping.
None of this has anything at all to do with "part time" or "home-based""direct selling." It is all about building a recruitment pyramid and maintaining recruit purchasing. This is the system in every MLM we looked at.

4. Profit Reserved only for those at the Top
This is hard to explain to people who are blinded by dreams of wealth and happiness that the MLM scheme has promoted. But it is otherwise obvious to see. If profit comes from building a "downline", then only those at the top of the downline can ever be profitable. For there to be a "winner" at the top, there must be "losers" below. The ratio of losers to winners is pre-determined, usually 100 to 1. It takes a hundred recruits who are losing for one to win anything. This ratio is built into the pyramid "business model." No matter how large the MLM gets, the percentage of losers and winners remains constant.
Since there is no sustainable profit from just retailing (costs and time outweigh income), but only from recruiting, and the recruiter must have a "structure" with a large "group volume," there will always be just a tiny few winners. The MLM is not an opportunity "for everyone", as the MLMs always claim, but only for a very few. We have not found a single MLM in which more than 1 in 100 made any profit at all in a year, and a much smaller percentage made sustainable incomes when all recruits are included over a longer time. This success rate does not qualify as an "opportunity." Gambling at a casino offers better chances.

5. The trick, the delusion and the fraud of the "endless chain"
Those blinded by "unlimited income" promises made by the MLM and the testimonials of "$10,000 per month" have a hard time seeing the "endless chain" trick. That's why it works!
All the MLMs we have examined play this trick on the recruits. They offer "unlimited" income based on a chain of recruits that never ends. The last person to join is offered exactly the same incentives to recruit as the first people were when the company was started, as if the market size never reduces. It is always "unlimited." This promise is inherently deceptive and is at the root of why MLMs cause huge failure rates.
The endless chain trick claims everyone can make "unlimited" money even though the money on which the income would be based is the participants' own money! An obviously limited amount of money is said to have the potential to generate "unlimited" rewards. This truly is the miracle of the loaves and fishes performed by MLM magicians. If 1,000 people all buy  $1,000 of products on average, there is $1 million in revenue. That's all there is to pay rewards from. So how could everyone make more than they paid in? Obviously, some of the money from many of the 1,000 will be transferred to a few in that group. Why would some get more? Because they are at the top of the chain or joined earlier than others, that's all. Reward depends on "position" and timing.  Most must therefore lose (receive less than they paid in). If some are making large incomes, then nearly all the others have to lose.
Hold on, what if some put in more or did some retailing? It doesn't matter. The total is still a fixed amount. For anyone to get out of the MLM more than they put in (including their retail profits gained from personal selling) requires taking money from some of the others. It is a money transfer scheme.
But, wait, even if it is a transfer, can't the losers at the end of the chain make money by increasing the size of the chain beyond 1,000, that is by becoming the "upline" to new recruits who would become their "downline"?
Yes, that is, in fact, the only actual way they can make money. The problem is that  expansion cannot go on forever. Markets are limited. And for whatever time it continues, the money for rewards will still always be the money that everyone inside the chain paid in. The ratio of the winners to losers will be the same and the only way for anyone to make money will be by transferring "losses" from most to the few winners.
So the promise of money for all or even the chance for money for all could only be true if the MLM scheme could expand into eternity. If a person falls for this trick, they have joined the MLM cult in which the leaders are seen as super-humans and the followers are told they are  special people who will go to financial heaven (wealth beyond your wildest dreams), but only as long as they follow all the rules exactly as prescribed by the leaders. And indeed, it is impossible not see that some MLMs are cults, with members who worship the leaders, stop thinking for themselves and sacrifice their whole lives for the scheme.
The MLM cult rules always require continued paying of money to the MLM's and free marketing work for the MLM. Doubting the rules or the promise is an MLM sin. Questions are MLM heresy. Criticism of MLM is treated as evil. Even associating with non-believers in MLM is discouraged. This is not business.
Since every MLM we have examined is designed exactly on this same impossible model of "endless expansion", we must conclude they have based their promise on a lie.
So, for these reasons - lack of retail profit opportunity, commission paid on recruits' purchases, recruiting/volume quotas, profits based on pyramid recruiting and the "endless chain" lie - we inform consumers to avoid  schemes that have these characteristics. And all the MLMs we have looked at have them! 

Sincerely,

Robert L. FitzPatrick, Pres.

PYRAMID SCHEME ALERT