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Delhi resident lodges police complaint against Amway India
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Cops tracking ‘Diamonds’ of Amway
Hyderabad: The top police officials of the two States of Andhra Pradesh and Telangana have launched a massive hunt to track down the ‘Diamonds’ and other members of Amway India Enterprises to make sure their role in the multilevel marketing scam of the US-based company.
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According to informed sources, the police of both the states are even sharing information regarding the list of upline members in the hierarchy of Amway India Enterprises, who share commissions on purchase of products by the downline members. The sources said that in the business model of Amway, the upline members who enroll new members into the scheme of purchasing products received sizable income which was nothing but easy and quick money. “Once the list of the ‘Diamonds’ is prepared and their income on commissions is confirmed, we go ahead with arresting them also,” the source said.
Meanwhile, the police on Monday arrested the MD and CEO of Amway, William S Pinckney, who is presently in Charlapalli Jail and presented him in the judicial court which sent him to remand for 14 days. The MD was sent back to Charlapalli Jail. It is learnt that the police would file a petition in the court seeking custody of Pinckney for interrogation to take the criminal case against him to a logical conclusion.
A police official said that the law would take its own course and charge sheets would be filed soon in the criminal cases against Amway India. In another twist to the criminal case against the MD of Amway, the High Court did not issue any orders on the petition filed by Amway India to exempt its managing director Pinckney from surrendering the passport to the police department. However, the passport surrender order issue has become an impediment for the release of Pinckney on bail.
http://www.thehansindia.com/posts/index/2014-07-02/Cops-tracking-%C3%A2%C2%80%C2%98Diamonds%C3%A2%C2%80%C2%99-of-Amway-100323
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Court rejects bail plea of Amway chief
Our Bureau
Warangal: A court here on Thursday rejected the bail petition submitted on behalf of the managing director and chief executive officer of Amway India Enterprises William S Pinckney who was arrested in a criminal case recently.
An engineering graduate, Anurag, lodged a complaint against the multilevel marketing company on the charges of cheating people with illegal money circulation scheme in the name of selling products. He said in his complaint, the company in the name of selling products was actually into illegal money circulation scheme. The Subedari Police Station after receiving the complaint filed the criminal case against the US-based company and arrested the MD and CEO of Amway India William Pinckney..
The counsels of Amway India filed the bail petition in the court for the release of William Pinckney who has been in jail for the last six weeks. However, the court rejected the petition.
http://epaper.thehansindia.com/PUBLICATIONS/THEHANSINDIA/THI/2014/07/05/ArticleHtmls/05072014002001.shtml?Mode=1
http://epaper.thehansindia.com/PUBLICATIONS/THEHANSINDIA/THI/2014/07/05/ArticleHtmls/05072014002001.shtml?Mode=1
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Why these two gentlemen remain behind bars?
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CID arrests two directors of RMP on money circulation charge
Hyderabad: Crime Investigation Department (CID) officials arrested two directors
of RMP Infotec Private Limited on charge of organising money circulation scheme in
the guise of multi-level marketing of some products.
A laptop, hard disks and documents were seized from the company’s head office in
Chennai and customer care centre in Hyderabad, the CID Additional DGP, T Krishna
Prasad, said. While Rajesh J. Chandhan and Dileep J. Chandhan were arrested, two
other directors -Praveen J. Chandhan and Dhawal J. Chandhan- were absconding.
The quartet started the company headquartered at Chennai claiming that they were
distributors for some products. They enrolled persons purchasing products from
them as distributors and offered money as incentive.
They claimed that RMP meant “Resource Money Power” and lured people to enrol with
the company offering weekly payments ranging from Rs. 1,000 to Rs. 1.3 lakh based
on the number of members the buyers manage to get inducted in the company.
The company was indulging in money circulation scheme by luring the public, Mr.
Prasad said. Eight cases were registered against the company following complaints
from Guntur and Prakasam districts. The CID Additional DGP cautioned the public
against trusting such companies.
of RMP Infotec Private Limited on charge of organising money circulation scheme in
the guise of multi-level marketing of some products.
A laptop, hard disks and documents were seized from the company’s head office in
Chennai and customer care centre in Hyderabad, the CID Additional DGP, T Krishna
Prasad, said. While Rajesh J. Chandhan and Dileep J. Chandhan were arrested, two
other directors -Praveen J. Chandhan and Dhawal J. Chandhan- were absconding.
The quartet started the company headquartered at Chennai claiming that they were
distributors for some products. They enrolled persons purchasing products from
them as distributors and offered money as incentive.
They claimed that RMP meant “Resource Money Power” and lured people to enrol with
the company offering weekly payments ranging from Rs. 1,000 to Rs. 1.3 lakh based
on the number of members the buyers manage to get inducted in the company.
The company was indulging in money circulation scheme by luring the public, Mr.
Prasad said. Eight cases were registered against the company following complaints
from Guntur and Prakasam districts. The CID Additional DGP cautioned the public
against trusting such companies.
http://www.thehindu.com/news/ company-on-money-circulation- |
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Glaze Trading India aka GALWAY takes unemployed youth for a ride
Glaze Trading India aka GALWAY takes unemployed youth for a rideIn what could be described as the copycat of Amway, Glaze Trading India aka GALWAY, started its cheating operations throughout the country. At least 10,000 youths from all over the two States of Telangana and Andhra Pradesh have already been cheated by this fraudulent company according to series of visuals telecast by TV6 Telugu news channel. https://www.youtube.com/watch?v=fSh5dv3tbZI The news channel exposed the dubious ways of this company which has been inducing youths with job opportunity with a monthly salary of Rs. 50,000. However, they were asked to pay Rs. 8,000 for securing the job. After reaching their office in the state of Jharkhand, they were asked to enroll at least four members each to earn unlimited income. Then they realised that they were deceived. The youths were asked to stay in a dungeon and they were hardly given any work though they were promised to undertake bar-coding, creating e-mail IDs and other works. Dejected, these youths returned to their places. Aglance at its website, http://www.globalglaze.in/company/our-management/shows that it also sells products for homecare, personal care, biofertiliser among others. The products include G-PSEUDO+, G-DERMA+ both controls root diseases of plants , G-SEAPOWER, which contains seaweed to act as growth promoter. They also sell air-fresheners, toilet cleaner, floor cleaner among others. Anyway the sense of humour of these fellows should be appreciated. They are openly claiming that it is ‘pseudo’ and selling it. Don’t ask what ‘derma’ has got to do with bio-fertilizer. Behind all the product sales under direct selling mode, the real cheating is illegal money circulation scheme. This is how Amway has been inspiring many a crook to indulge in illegal money circulation schemes in the name of direct selling.
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Ponzi scheme nips career of soldier
Greed to make fast buck through money circulation scheme led to his fall
· Poddar enrolls members in Amway and securedlives.com
· Starts online campaign to rope in members
· Pakistan spy induces him with naked photos
The menace of money circulation scheme has taken its toll on the career of a soldier, Patan Kumar Poddar, who was arrested on Wednesday on charges of enticing people to join a ponzi scheme and in the transaction was honey-trapped by a foreign spy.
Poddar joined a dubious company which has been running a ponzi scheme for the last few years and started enticing his colleagues to join the scheme to make a fast buck. He started posting the business proposals on his Facebook profile. Interestingly, Poddar is also a member of Amway India Enterprises.
His position in the Army attracted the foreign spy who introduced herself as Anushka Agarwal and started flirting with him online. She claimed that she was studying M Sc in Jhansi in Uttar Pradesh. She offered to utilise his services for an online survey offering a remuneration of Rs 10,000 to Rs 15,000 per month. She started paying amounts regularly in various accounts of Poddar.
The spy had gone ahead to entertain him and posted her naked pictures and he started giving her a lot of information regarding the movement of field and medium regiments on the Western border and photographs of missile units. She had even sent a link to be installed in his office computer with which she could access any classified information without his knowledge.
The AP High Court had rightly said on the writ petition filed by Amway India way back in 2007 that inducement for aggressive enrollment of new members to earn more and more commission was inherent in the scheme of Amway India.
Subedar confesses to passing on defence secrets
* Info on top 40 Army officers and their movements in Rajastan shared with the Pakistani Facebook friend
* Army denies he was in EME
* Tight security in Army units in TS, Chennai
* Pakistani mole reported to have transferred Rs 70,000-80,000 to his bank account
Naik Subedar Patan Kumar Poddar of Army’s EME unit in Secunderabad who was arrested by Central Crime Station on Wednesday reportedly told the police that he had passed on the information of about 40 top army officials and their movements in Rajasthan to his facebook friend Anushka Aggarwal.
In a quick move, the EME on Thursday in a statement said that they had nothing to do with Patan and that he was not in EME.
A top police officer who was investigating the case said that Anushka had introduced herself as a scholar for getting insights into the country’s security details. She sought details of missile storage and other army positions in the country. Patan had revealed details of regiments and artillery centres in Secunderabad.
The police are also investigating the espionage issue and verifying the email and Facebook accounts. Sources said that they had already decoded some of the information on which they could lay their hands on.
Speculations were rife during day that National Intelligence and Army Intelligence agencies had sought the custody of Patan but police said that they had not received any such requests. If they wish to get his custody they have to approach the Court. “It is our case and we shall handle this,” said an Assistant Commissioner of police.
Police denied that Rs 10 lakh was transferred by Anushka to the account of Patan. They claim that about Rs 70,000-80,000 was transferred to his SBI account in Kolkata.
It is said that following Patan’s revelation of sensitive information to Anushka the security at the Army units of Telangana and Chennai had been beefed up. All the important units were shuffling their personnel in the region, sources added.
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Magnetic pillows to a Rs 50,000 cr empire: How PACL, Nirmal Singh Bhangoo made it big
There have been many Ponzi schemes in India's history and then there's Pearls Agrotech Corporation Ltd ( PACL), a conglomerate that has investments ranging from a hotel in Australia to educational institutes. The company has now been instructed by market regulator Sebi to return Rs 50,000 crore to investors within three months.
On its website, the group says it began with a clear road map in 1996: to develop real estate properties; and led by one-time dairy owner Nirmal Singh Bhangoo the company claims it was traditionally involved in the sale and purchase of agricultural land. Some reports claim that the group initially started out as Gurwant Agrotech, a company selling magnetic pillows and similar products after which it adopted the name of PACL India in 1998.
Since then it has expanded its interests to start a tourism website, educational institutes, a news channel called P7, hotels in Goa and north India, and commercial and residential complexes in and around Delhi. It also owns the 296-room Sheraton Mirage Resort and Spa in Gold Coast, Australia which it bought for a whopping $62 million and reportedly spent $30 million to renovate. Its real estate arm in Australia is reportedly constructing 1,000 apartments in Brisbane and land lots in Melbourne.
But behind the expanse of a business conglomerate, the group faces accusations of being little more than a Ponzi scheme with Bhangoo accused of running a pyramid investment scheme that has allegedly duped around 5 crore investors of around Rs 50,000 crore.
Sebi had initiated action against PACL as far back as February 1998 when it told the group that it couldn't launch any new schemes or continue raising funds under existing ones. The regulator even issued a notice to it in November 1999 alleging that it was operating a pyramid investment scheme.
However, the company went to the Rajasthan and Punjab high courts claiming that it was involved in the business of sale and purchase of land and the matter finally landed up before the Supreme Court. The apex court passed an order on the matter in February 2013 asking Sebi to determine whether the group was running a ponzi scheme. However, the entire time the group continued to float new schemes and collect funds through existing schemes.
Defending the company against allegations, PACL CEO Jyoti Narayan had said that the company was a real estate company as it was the most profitable business.
"Therefore, this company does not come under the Sebi's, Irda's and RBI's terms and conditions. PACL is working under directorate of consumer affairs and PACL has also the membership of ficci. So, my friends don't worry about the your money....it is totally safe," he had reportedly said, according to the PACL website.
The group has over 280 branches and had over 8 lakh commission agents who helped it raise money through instalment and cash down payment schemes under which investors were lured with the promise of an interest rate of 12.5 per cent on deposits, in addition to insurance and tax free returns, a Daily Mailreport said.
The investors were promised that since the group invested in land their investments would multiply faster than other investments. The company even claimed that property consultants had valued their land at Rs 70,000 crore, despite the fact that some of it was desert land purchased along the India-Pakistan border in Rajasthan.
In February this year, the CBI filed an FIR against Bhangoo and seven others for allegedly raising money through a collective investment scheme with the promise of selling and developing agricultural land.
During searches carried out by the investigating agencies, CBI officials had claimed that they had recovered documents that showed benami properties worth crores in India and abroad. The CBI said that it had also found prima-facie evidence that one of the group's companies had raised money by issuing bogus land allotment letters.
In a detailed analysis of the group in India Today, Asit Jolly also points out that the group took a particularly keen interest in sporting events. The group sponsored the Kings XI Punjab squad in the fourth edition of the IPL and the India-West Indies series in the Caribbean in 2011, two years later it sponsored the Super Fight League fronted by Bollywood's Sanjay Dutt and Raj Kundra, and spent Rs 35 crore over four years on Punjab Deputy Chief Minister Sukhbir Badal's Kabaddi World Cup.
While PACL's former CEO, CEO Maj-Gen K.K. Bakshi (retd), reportedly quit just 10 days before the CBI raids began, little is known about Bhangoo's whereabouts and future plans remain as murky as his operations so far.
While reports claim the group may be putting its hotel in Australia on the block for $170 million, PACL has already said that it will be appealing against Sebi's decision demanding that they return all the funds collected so far. And given how delayed litigation has served them so far, PACL may just have some more time left before it reaches the end of its line.
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Govt turns down Amway's plea to amend PCMC Act
Plans to catch chit funds under Rs 100 cr that escape SEBI net
Aiming to tighten the noose on chit funds that have duped millions, the Centre proposes
to crack down on all money collection schemes that would otherwise escape the market
watchdog SEBI.
The Cabinet proposal plans to expand the definition of “money circulation scheme” in
Prize Chits & Money Circulation Schemes (Banning) Act to include “unauthorised and
unregulated collection schemes of corpus less than Rs 100 crore, which are excluded from
the definition of ‘deemed collective investment scheme under SEBI Act.
A recent amendment in SEBI Act gives the market regulator powers to monitor all money-
pooling schemes involving Rs 100 crore or more and act against illegal ones through
search and seizure, attachment orders and recovery proceedings. However, the high
threshold would have meant that several small schemes slipped through the net.
Saradha-hit Government plans ordinance teeth for SEBI
Ponzi scheme—a fraudulent investment operation where an individual or organisation pays
returns to its investors from capital from new investors, rather than from profit earned
on existing investments — have been bursting on the national scene with great regularity.
Rough estimates reveal that consumers have lost a staggering Rs 3 lakh crore by
“investing” in or “buying products” from schemes floated by firms such as Saradha, Pearls
Agrotech and Speak Asia.
Experts say over 30,000 registered chit funds in the country are regulated by state
registrars under the 1982 Chit Funds Act. But the Intelligence Bureau reported in 2012
that “fresh” illegal financial activities of chit fund companies were cheating lower
middle class and poor people, especially in rural and semi urban areas.
The proposed changes, prepared by Department of Financial Services (DFS), also drags in
“pyramid marketing schemes” within the act with some safeguards to exclude selling of
goods and services, but not those sales where there is no economic activity or addition
of economic value save for creating a chain of new participants and distribution of
economic benefits to the existing ones. The department has also turned down request of
Indian Direct Selling Association (IDSA) – comprising biggies like Amway, Tupperware and
Hindustan Unilever Network – to include direct selling schemes as an exempted category
under Section 11 of the Act.
“Even when an exception clause is to be added to the Act to exclude the activities of
certain direct selling companies, such provision is not desirable or acceptable, unless a
very strong legal framework or registration, regulation and scheme of penalties for
violation of the law on direct selling, is put in place,” says the Cabinet proposal.
“Therefore, till the time a law on direct selling is enacted and unless there is specific
reference in that law on prohibition of money circulation and pyramid marketing, no
exception may be created in the PCMCSB Act to exclude the direct selling activities,”
says the DFS proposal.
However, it passes the onus of framing that law to the Ministry of Consumer Affairs. It
suggests that the ministry examine the case for creating a new law on direct selling in
consultation with other relevant ministries. Consumer Affairs, earlier this year, had
asked DFS to “provide clarity
Written by Amitav Ranjan | New Delhi | Posted: October 15, 2014 3:56 am
http://indianexpress.com/ article/india/india-others/ govt-plans-to-catch-chit- funds-under-
rs-100-cr-that-escape-sebi- net/
Aiming to tighten the noose on chit funds that have duped millions, the Centre proposes
to crack down on all money collection schemes that would otherwise escape the market
watchdog SEBI.
The Cabinet proposal plans to expand the definition of “money circulation scheme” in
Prize Chits & Money Circulation Schemes (Banning) Act to include “unauthorised and
unregulated collection schemes of corpus less than Rs 100 crore, which are excluded from
the definition of ‘deemed collective investment scheme under SEBI Act.
A recent amendment in SEBI Act gives the market regulator powers to monitor all money-
pooling schemes involving Rs 100 crore or more and act against illegal ones through
search and seizure, attachment orders and recovery proceedings. However, the high
threshold would have meant that several small schemes slipped through the net.
Saradha-hit Government plans ordinance teeth for SEBI
Ponzi scheme—a fraudulent investment operation where an individual or organisation pays
returns to its investors from capital from new investors, rather than from profit earned
on existing investments — have been bursting on the national scene with great regularity.
Rough estimates reveal that consumers have lost a staggering Rs 3 lakh crore by
“investing” in or “buying products” from schemes floated by firms such as Saradha, Pearls
Agrotech and Speak Asia.
Experts say over 30,000 registered chit funds in the country are regulated by state
registrars under the 1982 Chit Funds Act. But the Intelligence Bureau reported in 2012
that “fresh” illegal financial activities of chit fund companies were cheating lower
middle class and poor people, especially in rural and semi urban areas.
The proposed changes, prepared by Department of Financial Services (DFS), also drags in
“pyramid marketing schemes” within the act with some safeguards to exclude selling of
goods and services, but not those sales where there is no economic activity or addition
of economic value save for creating a chain of new participants and distribution of
economic benefits to the existing ones. The department has also turned down request of
Indian Direct Selling Association (IDSA) – comprising biggies like Amway, Tupperware and
Hindustan Unilever Network – to include direct selling schemes as an exempted category
under Section 11 of the Act.
“Even when an exception clause is to be added to the Act to exclude the activities of
certain direct selling companies, such provision is not desirable or acceptable, unless a
very strong legal framework or registration, regulation and scheme of penalties for
violation of the law on direct selling, is put in place,” says the Cabinet proposal.
“Therefore, till the time a law on direct selling is enacted and unless there is specific
reference in that law on prohibition of money circulation and pyramid marketing, no
exception may be created in the PCMCSB Act to exclude the direct selling activities,”
says the DFS proposal.
However, it passes the onus of framing that law to the Ministry of Consumer Affairs. It
suggests that the ministry examine the case for creating a new law on direct selling in
consultation with other relevant ministries. Consumer Affairs, earlier this year, had
asked DFS to “provide clarity
Written by Amitav Ranjan | New Delhi | Posted: October 15, 2014 3:56 am
http://indianexpress.com/
rs-100-cr-that-escape-sebi-
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Need to rein in Ponzi schemes
In what could be described as a welcome move, the Department of Financial Services of the Union Ministry of Finance has decided to clamp down on Ponzi schemes which are thriving throughout the country in the name of selling products and services. With several people fleeced by them filing criminal cases against these companies, the Union Ministry of Finance has woken up and taken stock of the situation. It augurs well for the Modi administration to get tough with the illegal money circulation schemes or Ponzi schemes by bringing in the toughest of norms to rein in the money circulation schemes and pyramid marketing businesses. The new norms, it appears, would include a detailed definition of ‘money circulation schemes’ to cover all money-pooling activities with a corpus of less than Rs 100 crore as well as those not covered under the collective investment schemes regulated by the SEBI. As the SEBI can only deal with illicit money-pooling activities with a turnover of Rs 100 crore or more, the ponzi operators are running at times multiple small schemes rather than a single big one. This has to be taken under consideration before framing of new rules to rein in all the ponzi schemes.
However, one has to wait and see the outcome of these proposals. In relation to the amendments to the PCMCSB Act, the draft proposals would be first discussed by various ministries concerned before they are placed before the Union Cabinet for approval. It would be better if the draft legislation is forwarded to the consumer organisations for their views as larger issues are involved. Since the Consumer Affairs Ministry has to decide whether to seek a separate legislation to cover the direct selling companies, these companies may lobby hard for legislation in their favour. The Enforcement Directorate decided recently that Amway alone has siphoned out Rs 8,000 crore illegally out of India. Against this backdrop, the Consumer Affairs Ministry should thoroughly look into all angles of the issue before preparing guidelines for direct selling. The Kerala State government has already prepared some guidelines in this respect, and the Consumer Affairs Ministry could well study them. As SEBI chief U K Sinha rightly pointed out, some action is required in the area of multilevel marketing (MLM) and PCMCSB Act. It is high time all the loopholes are plugged. In a welcome move, the Central government is said to be contemplating heavy penalties and even imprisonment for the managements of companies or individuals running such type of illicit schemes. It has been estimated that people all over India have lost about Rs 3 lakh crore in the schemes illegally run by these fraudulent companies. It is desired that the Union Ministry Finance should take a right decision to completely banish such schemes in the larger interests of people.
The Editorial published in The Hans India newspaper on 18-10-2014
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Ponzi schemer jailed for cheating US residents of $22 mn
Washington (IANS): If you have been one of those approached by some 'known' person for investing in something with an assurance of 'easy money', you may benefit reading about this Ponzi schemer, jailed in the US for robbing his own people.
Vincent Singh, a Ponzi schemer, has been sentenced to 15 years and eight months in federal jail for preying on the members of his own ethnic Indian Fijian community in the Sacramento region.
In sentencing Singh, US District Judge Morrison C. England Jr. said his crimes were "the worst of their kind that I've seen in 12 years as a federal judge", sacbee.com reported Friday.
According to court papers, over a period of three years, Singh cheated 190 people of Indian Fijian descent who are members of a small, tight-knit community in and around Sacramento, out of $22 million. Then he filed for bankruptcy protection.
Singh, the 46-year-old native of Fiji and former Elk Grove city resident, pleaded guilty in March to wire and bankruptcy fraud.
Assistant US Attorney Matthew Segal, a top white-collar prosecutor in the US Attorney's office, found it hard to describe to Judge England the devastation left in the wake of Singh's merciless quest to get every dime his victims possessed.
"He knew the situation of his victims," Segal said. "He had been in their homes. They served him meals. He knew what the effect was going to be. He didn't just take their money, he took their lives."
The crimes were considered affinity fraud, which refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly or professional groups.
In sentencing Singh, US District Judge Morrison C. England Jr. said his crimes were "the worst of their kind that I've seen in 12 years as a federal judge", sacbee.com reported Friday.
According to court papers, over a period of three years, Singh cheated 190 people of Indian Fijian descent who are members of a small, tight-knit community in and around Sacramento, out of $22 million. Then he filed for bankruptcy protection.
Singh, the 46-year-old native of Fiji and former Elk Grove city resident, pleaded guilty in March to wire and bankruptcy fraud.
Assistant US Attorney Matthew Segal, a top white-collar prosecutor in the US Attorney's office, found it hard to describe to Judge England the devastation left in the wake of Singh's merciless quest to get every dime his victims possessed.
"He knew the situation of his victims," Segal said. "He had been in their homes. They served him meals. He knew what the effect was going to be. He didn't just take their money, he took their lives."
The crimes were considered affinity fraud, which refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly or professional groups.
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AP CID attaches properties of NMart
Andhra Pradesh Crime Investigation Department has attached the movable and immovable properties of Surat-based New Look Traders also known as NMart. The fixed deposits Rs. 2.61 crore parked in various banks throughout the country and immovable properties situated in Surat, Gujarat worth about Rs. 9.27 crore have been attached by the CID.
It may be recalled that following a complaint lodged by Vijayawada-based Corporate Frauds Watch, the then superintendent of police of Prakasam District Dr Kolli Raghuram Reddy registered a criminal case against the NMart for indulging in illegal money circulation scheme offering huge returns in a short span of time.
The police have also frozen the accounts of NMart at that time. The chairman of NMart, Gopal Singh Shekhawat, was arrested and thrown behind bars. The Prakasam police have also identified the immovable properties belonging to Gopal Shekhawat in Surat and other places after freezing the bank accounts in various banks throughout the country.
The NMart has mobilised deposits from people of various districts in the then undivided State of Andhra Pradesh and all over the country too. After enrolling members into the scheme by collecting Rs. 5,500 per member, the NMart also induced them to enrol more members into the scheme with an incentive of Rs. 200 per member.
Subsequently, the case was transferred to the CID for further investigation.
The CID officials attached the properties which would be subsequently auctioned and deposited with the government.
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Biz Bazaar launches illegal scheme a la NMart
GREED always overwhelms people. There is no other explanation for the Future Retail Ltd, the largest conglomerate which runs chain of Big Bazaar supermarkets and other businesses, launching an illegal business proposal to make easy and quick money.
The Big Bazaar group has launched Profit Club card to enroll members into its illegal money circulation scheme with the promise of huge returns of about 22 per cent interest in the coming 12 months.
The Big Bazaar launched the scheme recently. It is offering Profit Club membership card by collecting Rs. 10,000 from the prospective members. After payment, the members are given a card in which Rs. 12,000 is loaded. The members can purchase 'certain' goods specified by the Future Retail Ltd management in the next 12 months at the rate of Rs. 1000 every month.
Sounds familiar. YES! This is the modus operandi of NMart which launched its membership drive and ended up facing criminal cases throughout the country.
It may be recalled that another group New Look Retail Ltd indulged in similar racket and finally its chief Gopal Singh Shekhawat ended behind bars for considerable time. The AP CID recently attached its properties and bank deposits situated at various places and banks. Its modus operandi is simple. Pay Rs. 5,500 and become a member to avail of 48 coupons each worth Rs. 200 to be exchanged with the goods in the NMart retail stores in the next 48 months. If the members enrolled more members into the scheme, they are paid Rs. 200 per membership. The NMart was not given any relief by any high court in the country and it was finally closed shop.
Exactly, it is going to happen to Big Bazaar too.
It is high time, authorities concerned take note of the illegal activities of the one of the biggest conglomerates in the country and nip it in the bud.
The Big Bazaar group has launched Profit Club card to enroll members into its illegal money circulation scheme with the promise of huge returns of about 22 per cent interest in the coming 12 months.
The Big Bazaar launched the scheme recently. It is offering Profit Club membership card by collecting Rs. 10,000 from the prospective members. After payment, the members are given a card in which Rs. 12,000 is loaded. The members can purchase 'certain' goods specified by the Future Retail Ltd management in the next 12 months at the rate of Rs. 1000 every month.
Sounds familiar. YES! This is the modus operandi of NMart which launched its membership drive and ended up facing criminal cases throughout the country.
It may be recalled that another group New Look Retail Ltd indulged in similar racket and finally its chief Gopal Singh Shekhawat ended behind bars for considerable time. The AP CID recently attached its properties and bank deposits situated at various places and banks. Its modus operandi is simple. Pay Rs. 5,500 and become a member to avail of 48 coupons each worth Rs. 200 to be exchanged with the goods in the NMart retail stores in the next 48 months. If the members enrolled more members into the scheme, they are paid Rs. 200 per membership. The NMart was not given any relief by any high court in the country and it was finally closed shop.
Exactly, it is going to happen to Big Bazaar too.
It is high time, authorities concerned take note of the illegal activities of the one of the biggest conglomerates in the country and nip it in the bud.
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Don't fall prey to promises of multi-level marketing firms:RBI
Cautioning investors against multi-level marketing firms promising easy and quick money,
RBI today asked public not to be tempted by such offers.
"MLM/Chain Marketing/Pyramid Structure schemes promise easy or quick money upon enrolment of members.
"The Reserve Bank has advised that members of public should not to be tempted by promises
of high returns offered by entities running Multi-level Marketing/Chain Marketing/Pyramid
Structure Schemes," it said in a statement.
There have been a spurt of such schemes in the recent past while various regulators are
taking actions such entities.
Advising caution, RBI said investors should not fall prey to these kind of unscrupulous
entities as the pyramid structure mandates all members to enroll more members.
"Any break in the chain leads to the collapse of the pyramid, and the members lower down
in the pyramid are the ones that are affected the most," it added.
It said falling prey to such offers can result in direct financial losses and they, in
their own interest, should refrain from responding to such offers in any manner.
Further, RBI said that acceptance of money under Money Circulation/Multi-level
Marketing/Pyramid structures is a cognizable offence under the Prize Chit and Money
Circulation (Banning) Act 1978.
"Members of public coming across such offers should immediately lodge a complaint with
the state police," it added.
This statement by the RBI could be understood as warning against joining the schemes of Amway India and other IDSA members as the Hyderabad High Court conclusively stated that the business model of Amway is illegal.
RBI today asked public not to be tempted by such offers.
"MLM/Chain Marketing/Pyramid Structure schemes promise easy or quick money upon enrolment of members.
"The Reserve Bank has advised that members of public should not to be tempted by promises
of high returns offered by entities running Multi-level Marketing/Chain Marketing/Pyramid
Structure Schemes," it said in a statement.
There have been a spurt of such schemes in the recent past while various regulators are
taking actions such entities.
Advising caution, RBI said investors should not fall prey to these kind of unscrupulous
entities as the pyramid structure mandates all members to enroll more members.
"Any break in the chain leads to the collapse of the pyramid, and the members lower down
in the pyramid are the ones that are affected the most," it added.
It said falling prey to such offers can result in direct financial losses and they, in
their own interest, should refrain from responding to such offers in any manner.
Further, RBI said that acceptance of money under Money Circulation/Multi-level
Marketing/Pyramid structures is a cognizable offence under the Prize Chit and Money
Circulation (Banning) Act 1978.
"Members of public coming across such offers should immediately lodge a complaint with
the state police," it added.
This statement by the RBI could be understood as warning against joining the schemes of Amway India and other IDSA members as the Hyderabad High Court conclusively stated that the business model of Amway is illegal.
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The Full text of the RBI warning alerting people against joining MLM schemes
ूेस ूकाशनी PRESS RELEASE
संचार वभाग, किय कायालय, एस.बी.एस.माग, मुंबई‐400001
______________________________ ______________________________ _____________________________
____________________________
DEPARTMENT OF COMMUNICATION, Central Office, S.B.S.Marg, Mumbai‐400001
फोन/Phone: 91 22 2266 0502 फैस/Fax: 91 22 22660358
भारतीय रज़व बक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi
Website : www.rbi.org.in
इ‐मेल email: helpdoc@rbi.org.in
January 1, 2015
RBI cautions Public against Multi Level Marketing Activities
The Reserve Bank of India has cautioned the public against Multi-level Marketing (MLM) activities so that investors do not fall prey to unscrupulous entities.
Explaining the functioning of these entities, the Reserve Bank stated that MLM/Chain Marketing/Pyramid Structure schemes promise easy or quick money upon enrolment of members. Income under such schemes majorly comes from enrolling more and more members from whom hefty subscription fees are taken rather than from the sale of products they offer. It is incumbent upon all members to enroll more members, as a portion of the subscription amounts so collected is distributed among the members at the top of the pyramid. Any break in the chain leads to the collapse of the pyramid, and the members lower down in the pyramid are the ones that are affected the most.
The Reserve Bank has advised that members of public should not to be tempted by promises of high returns offered by entities running Multi-level Marketing/Chain Marketing/Pyramid Structure Schemes. The Reserve Bank has reiterated that falling prey to such offers can result in direct financial losses and they, in their own interest, should refrain from responding to such offers in any manner.
The Reserve Bank has also said that acceptance of money under Money Circulation/Multi-level Marketing/Pyramid structures is a cognizable offence under the Prize Chit and Money Circulation (Banning) Act 1978. Members of public coming across such offers should immediately lodge a complaint with the State Police.
Alpana Killawala
Press Release : 2014-2015/1383 Principal Chief General Manager
संचार वभाग, किय कायालय, एस.बी.एस.माग, मुंबई‐400001
______________________________
____________________________
DEPARTMENT OF COMMUNICATION, Central Office, S.B.S.Marg, Mumbai‐400001
फोन/Phone: 91 22 2266 0502 फैस/Fax: 91 22 22660358
भारतीय रज़व बक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi
Website : www.rbi.org.in
इ‐मेल email: helpdoc@rbi.org.in
January 1, 2015
RBI cautions Public against Multi Level Marketing Activities
The Reserve Bank of India has cautioned the public against Multi-level Marketing (MLM) activities so that investors do not fall prey to unscrupulous entities.
Explaining the functioning of these entities, the Reserve Bank stated that MLM/Chain Marketing/Pyramid Structure schemes promise easy or quick money upon enrolment of members. Income under such schemes majorly comes from enrolling more and more members from whom hefty subscription fees are taken rather than from the sale of products they offer. It is incumbent upon all members to enroll more members, as a portion of the subscription amounts so collected is distributed among the members at the top of the pyramid. Any break in the chain leads to the collapse of the pyramid, and the members lower down in the pyramid are the ones that are affected the most.
The Reserve Bank has advised that members of public should not to be tempted by promises of high returns offered by entities running Multi-level Marketing/Chain Marketing/Pyramid Structure Schemes. The Reserve Bank has reiterated that falling prey to such offers can result in direct financial losses and they, in their own interest, should refrain from responding to such offers in any manner.
The Reserve Bank has also said that acceptance of money under Money Circulation/Multi-level Marketing/Pyramid structures is a cognizable offence under the Prize Chit and Money Circulation (Banning) Act 1978. Members of public coming across such offers should immediately lodge a complaint with the State Police.
Alpana Killawala
Press Release : 2014-2015/1383 Principal Chief General Manager
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Big Bazaar into big racket
The Future Group, which owns Big Bazaar, the biggest retail market chain in the country, has launched ‘Profit Club Card’ with an eye on making easy and quick money throwing the legalities to the wind. The new scheme intends to mobilise deposits from the customers for the goods to be supplied in future, which is nothing but violation of various laws.
It may be recalled that the Newlook Retails Private Ltd also known as NMart launched similar scheme in the past and collected nearly Rs 1,500 crore from public. However, it ran into rough weather after the police filed criminal cases against the company. Its chief Gopal Singh Shekhawat was put behind bars and the company was closed.
A glance at the Profit Club Card brochure reveals its true nature of violating the law of the land. An adult could become a member of the Profit Club to acquire its card by paying Rs 10,000 plus Rs 100 as admission fee. In the second type of Card, a member needs to deposit Rs 5,000 plus Rs 100 as admission fee.
The Cards could be used to purchase every month ‘selected’ products worth Rs 1,000 on Rs 10,000 Card for 12 months and Rs 400 on Rs 5000 Card for 15 months. The Card is valid only to purchase products in Big Bazaar, fbb and Food Bazaar of the Group and not other sister-concerns.
Mastan Vali, an advocate of the Hyderabad High Court, opined that deposit was defined in Sec 2 (b) of Andhra Pradesh Protection of Depositors Act, 1999. As per the Act 'deposit' means the deposit of a sum of money either in lump sum or instalments made with a financial establishment for a fixed period, for interest or return in any kind. The definition for deposit under the RBI Act and SEBI Act are different to definition of deposit under the AP protection of Depositors Act. As per the RBI Act and the SEBI Act, advance for sale is not deposit whereas in Depositors Act, there is not such exemption in the definition. As such, any person collects deposits with a promise to return in any kind falls within the definition of the Depositors Act. Hence, he opined that the government should suo motu enquire into this matter under the provisions of the AP Protection of Depositors Act, 1999 before any cause of action or grievances at large has taken place, he added.
The Profit Club Card also attracts the provisions of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 as it intends to mobilise deposits through its direct selling agents. A senior police officer also opined that it was an outright violation of the law of the land.
As per the General Terms and Conditions of the Profit Club brochure, one could be enrolled as member through direct sales agents/agencies duly appointed by Future Group. It also absolves its own liability to fulfil its obligations if there is change in law. More, The Future Group sets a condition that in case of disputes, the Mumbai Courts have exclusive jurisdiction. In essence, if anybody wants to file a suit against the Future Group if it fails to fulfil its obligations, one has to go to Mumbai to file the suit.Practically, it is not economically feasible to an ordinary customer.
It is high time that the law enforcing agencies took initiative to curb such illegal activities.
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Food Safety and Standards of India directs Amway to withdraw six products from market
* Nutrilite cal-mag-D, Nutrilite natural B tablets, Nutrilite Iron Folic tablets, Nutrilite Bio C, Positrim Vanilla and Nutrilite Kids Drink Mixed Fruit flavour are the products directed to withdraw from the market.
* These products contain more than permission quantities of minerals and vitamins which are not safe as per the ICMR and NIN.
* Mohammad Shahid Sharif, president of Anti-Adulteration Consumer Society lodged the complaint.
NAGPUR: Following directives from the Food Safety and Standards of India (FSSAI) the state Food and Drug Administration (FDA) has warned the M/s Amway Enterprises Pvt Ltd to withdraw six of its products from the market in the state. These products were found to contain more than the permissible quantities of minerals and vitamins as per the Indian Council of Medical Research (ICMR) and National Institute for Nutrition (NIN).
In Nagpur, Amway has a warehouse in Wadi and a showroom in Eternity mall. "After we received a directive from Uday Wanjari from our headquarters FDA (Food) we issued a letter to the company here on January 30 to withdraw the six products within seven days, by February 6," said joint commissioner FDA (Food) in city S Desai speaking to TOI.
The FSSAI's 'product approval' committee had rejected these six products which include Nutrilite cal-mag-D, Nutrilite natural B tablets, Nutrilite Iron Folic tablets, Nutrilite Bio C, Positrim Vanilla and Nutrilite Kids Drink Mixed Fruit flavour as per a letter written by Sandhya Kabra, dated December 31, 2014 who is director of the approval committee. Amway had asked for approval from FSSAI as per a letter dated June 21, 2012. In reply to this letter Kabra's predecessor Pradip Chakraborty had written to Vinay Kumar of Amway at Delhi on May 23, 2013.
But apparently, despite many reminders, the company did not withdraw the products and therefore FSSAI has now asked for action against the company across the country. On Monday Mohd Shahid Sharif, president of Anti-Adulteration Consumer Society in the city raised the issue with the collector office on 'lokshai din' when common people's complaint are heard. "I produced a bill of some of these products from the Eternity mall outlet named M/s Micropark Infortrade of Rs1,164.00 dated November 6, 2014. I have raised the query how it was being sold in city under eyes of local FDA," he said.
Assistant commissioner of FDA (Food) NR Wakode, who too was present when Sharif said no one would be spared. But the administration will take action only after the warning period till February 6 is over. In Mumbai, however, the order for withdrawal was issued on January 28 while it reached Nagpur FDA on January 30. "We inspected both the Wadi and Eternity mall outlets and issued warnings in writing," said Wakode.
In Nagpur, Amway has a warehouse in Wadi and a showroom in Eternity mall. "After we received a directive from Uday Wanjari from our headquarters FDA (Food) we issued a letter to the company here on January 30 to withdraw the six products within seven days, by February 6," said joint commissioner FDA (Food) in city S Desai speaking to TOI.
The FSSAI's 'product approval' committee had rejected these six products which include Nutrilite cal-mag-D, Nutrilite natural B tablets, Nutrilite Iron Folic tablets, Nutrilite Bio C, Positrim Vanilla and Nutrilite Kids Drink Mixed Fruit flavour as per a letter written by Sandhya Kabra, dated December 31, 2014 who is director of the approval committee. Amway had asked for approval from FSSAI as per a letter dated June 21, 2012. In reply to this letter Kabra's predecessor Pradip Chakraborty had written to Vinay Kumar of Amway at Delhi on May 23, 2013.
But apparently, despite many reminders, the company did not withdraw the products and therefore FSSAI has now asked for action against the company across the country. On Monday Mohd Shahid Sharif, president of Anti-Adulteration Consumer Society in the city raised the issue with the collector office on 'lokshai din' when common people's complaint are heard. "I produced a bill of some of these products from the Eternity mall outlet named M/s Micropark Infortrade of Rs1,164.00 dated November 6, 2014. I have raised the query how it was being sold in city under eyes of local FDA," he said.
Assistant commissioner of FDA (Food) NR Wakode, who too was present when Sharif said no one would be spared. But the administration will take action only after the warning period till February 6 is over. In Mumbai, however, the order for withdrawal was issued on January 28 while it reached Nagpur FDA on January 30. "We inspected both the Wadi and Eternity mall outlets and issued warnings in writing," said Wakode.
http://timesofindia.
market/articleshow/46100811.
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Sebi bars Agri Gold Farm from raising funds from public
Continuing its crackdown on illicit realty investment activities, Sebi on Thursday barred Andhra Pradesh-based Agri Gold Farm Estates India from raising fresh capital from the public with immediate effect.
Besides, it directed the company not to launch any new scheme.
The Securities and Exchange Board of India (Sebi) found that Agri Gold Farm Estates India Pvt Ltd (AGFEIPL) was running 'collective investment schemes (CIS)' without obtaining registration from the regulator.
The company was inviting investments from the general public through its various schemes for the purchase and development of land.
"I find that the schemes operated by AGFEIPL...Are in the nature of a CIS," Sebi Whole Time Member S Raman said in an interim order.
Accordingly, Sebi directed AGFEIPL and its directors --Venkata Rama Rao Avva, Avva Venkata Seshu Narayana Rao, Avva Hema Sundara Vara Prasad, Savadam Srinivas, Moganti Bhanuji Rao and Emmadi Sada Siva Vara Prasad Rao--"not to collect any fresh money from investors under its existing schemes".
It has also asked them "not to launch any new schemes or plans or float any new companies to raise fresh money."
Additionally, the company and its directors have been directed not to dispose any assets obtained from funds collected, while the entities also cannot divert money raised from the public.
Further, the entities have been asked to "immediately submit the full inventory of the assets including land obtained through money raised by " as well as furnish withing 15 days details related to the scheme.
These directions shall take effect "immediately and shall be in force until further orders in this regard."
SEBI would have banned Agrigold when Corporate Frauds Watch sent letters to SEBI more than half a decade back against the illegal schemes of Agrigold to avoid the accumulation of over Rs. 6,000 crore (Sixty billion) in its coffers. Now the company enjoys the money without repaying its depositors on the pretext that SEBI banned the liquidation of its assets.
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'Herbalife (HLF)' 10K - Once Upon Time
Once upon a time, a handsome, but poor, young Prince called Mark Hughes dreamt of building an Empire called 'Herbalife' where he would be Emperor and where, under his benign rule, there would be endless health, wealth and freedom for all folks - so long as they just kept buying, and swallowing, his exclusive, magic economic, and medical, potions and recruiting others to do the same. Mark's potions could not only make fat folks thinner, and thin folks fatter, but they could also cure sick folks and protect them from all illness whilst transforming the deepest believers into millionaires.
Some very wicked and jealous people (called regulators and journalists), began to suspect that what Mark Hughes offered was far too good to be true, but Mark replied that he'd not been lying at all, it was only some of his naughty followers. From that day forward, Mark promised that he would make sure that everyone in the magic Empire called 'Herbalife, would only tell the truth.
Many years later (after Mark Hughes had died), lots more wicked and jealous people (this time, called critics and short sellers) again began to say that 'Herbalife' was far too good to be true; for another well-rehearsed ruler, called Michael Johnson, had come along and had again insisted that there would still be endless health, wealth and freedom for all folks - if they ignored all voices of doubt and just kept buying, and swallowing, 'Herbalife's' magic potions and recruiting eveyone they knew to do the same.
Meanwhile back in the adult world of quantifiable reality, the 'Herbalife' racketeers have just been forced to admit to the US Securities and Exchange Commission that belief in their once profitable, self-perpetuating fairy story is rapidly diminishing all over the globe, and that almost everyone who has ever signed up for 'Herbalife' has left the organization.
'Our results in 2014 reflect our ongoing transition to a more consumer-focused organization.
Our transformation, which first began in 2008 and will continue through 2015, is creating a stronger, more consumer friendly Herbalife and one that is evolving and getting better every single day.
Critical to our transformation has been the focus of Herbalife and our members on daily consumption as well as our emphasis on bringing new sales leaders into a company in a more sustainable way than in the past. This more gradual path to becoming a sales leader is working. As all of the data show that these leaders are more productive and stay with Herbalife longer. 2014 saw record-breaking retention rates for our sales leaders. We achieved what we believe is an industry leading and impressive retention rate of 54.2%, that's up from 51.8% in 2013.
We are continuing to grow our customer base and have more customers in 2014 than any time in our 35-year history, and we reported record net sales for the year of $5 billion.'
When translated into plain English, in Michael Johnson's most-recent thought-stopping propaganda broadcast, he now pretends that most of 'Herbalife's' adherents (who were once all labelled 'Distributors' in the fairy story, but who are now all re-labelled 'Members'), were really only temporary 'customers' travelling through the magic Empire, and who never expected to make any money. Therefore, according to Michael Johnson: even though Mark Hughes' magic potions have never cured anyone of poverty or illness, no one was ever tricked in to buying them and, consequently, 'Herbalife' is not a lie.
Yet if you apply common sense and remove all the arbitrary thought-stopping definitions and confront the simple fact that virtually no one who has not been under contract to 'Herbalife' has been buying anything from this organization (based on value and demand), then you immediately realize what has really been occurring.
In this unoriginal cultic racket, a closed-market swindle has been dissimulated behind effectively-usaleable products, and the reality-inverting term 'customer' has lately been hung round the necks of victims in order to obstruct investigation and continue to commit the same fraud.
This, in a nutshell, is the sustainable racket that US law enforcement agents and prosecutors ought to have been addressing right from the outset of the 'Herbalife' fairy story.
David Brear (copyright 2015)
Once upon a time, a handsome, but poor, young Prince called Mark Hughes dreamt of building an Empire called 'Herbalife' where he would be Emperor and where, under his benign rule, there would be endless health, wealth and freedom for all folks - so long as they just kept buying, and swallowing, his exclusive, magic economic, and medical, potions and recruiting others to do the same. Mark's potions could not only make fat folks thinner, and thin folks fatter, but they could also cure sick folks and protect them from all illness whilst transforming the deepest believers into millionaires.
Some very wicked and jealous people (called regulators and journalists), began to suspect that what Mark Hughes offered was far too good to be true, but Mark replied that he'd not been lying at all, it was only some of his naughty followers. From that day forward, Mark promised that he would make sure that everyone in the magic Empire called 'Herbalife, would only tell the truth.
Many years later (after Mark Hughes had died), lots more wicked and jealous people (this time, called critics and short sellers) again began to say that 'Herbalife' was far too good to be true; for another well-rehearsed ruler, called Michael Johnson, had come along and had again insisted that there would still be endless health, wealth and freedom for all folks - if they ignored all voices of doubt and just kept buying, and swallowing, 'Herbalife's' magic potions and recruiting eveyone they knew to do the same.
Meanwhile back in the adult world of quantifiable reality, the 'Herbalife' racketeers have just been forced to admit to the US Securities and Exchange Commission that belief in their once profitable, self-perpetuating fairy story is rapidly diminishing all over the globe, and that almost everyone who has ever signed up for 'Herbalife' has left the organization.
'Our results in 2014 reflect our ongoing transition to a more consumer-focused organization.
Our transformation, which first began in 2008 and will continue through 2015, is creating a stronger, more consumer friendly Herbalife and one that is evolving and getting better every single day.
Our transformation, which first began in 2008 and will continue through 2015, is creating a stronger, more consumer friendly Herbalife and one that is evolving and getting better every single day.
Critical to our transformation has been the focus of Herbalife and our members on daily consumption as well as our emphasis on bringing new sales leaders into a company in a more sustainable way than in the past. This more gradual path to becoming a sales leader is working. As all of the data show that these leaders are more productive and stay with Herbalife longer. 2014 saw record-breaking retention rates for our sales leaders. We achieved what we believe is an industry leading and impressive retention rate of 54.2%, that's up from 51.8% in 2013.
We are continuing to grow our customer base and have more customers in 2014 than any time in our 35-year history, and we reported record net sales for the year of $5 billion.'
When translated into plain English, in Michael Johnson's most-recent thought-stopping propaganda broadcast, he now pretends that most of 'Herbalife's' adherents (who were once all labelled 'Distributors' in the fairy story, but who are now all re-labelled 'Members'), were really only temporary 'customers' travelling through the magic Empire, and who never expected to make any money. Therefore, according to Michael Johnson: even though Mark Hughes' magic potions have never cured anyone of poverty or illness, no one was ever tricked in to buying them and, consequently, 'Herbalife' is not a lie.
Yet if you apply common sense and remove all the arbitrary thought-stopping definitions and confront the simple fact that virtually no one who has not been under contract to 'Herbalife' has been buying anything from this organization (based on value and demand), then you immediately realize what has really been occurring.
In this unoriginal cultic racket, a closed-market swindle has been dissimulated behind effectively-usaleable products, and the reality-inverting term 'customer' has lately been hung round the necks of victims in order to obstruct investigation and continue to commit the same fraud.
This, in a nutshell, is the sustainable racket that US law enforcement agents and prosecutors ought to have been addressing right from the outset of the 'Herbalife' fairy story.
David Brear (copyright 2015)
David Brear (copyright 2015)
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Harmless placebos are lawful, but 'Homeopathy' remains a deception
Like 'Santa Claus', 'homeopathy' can be either a benign or (if it is in the hands of persons with hidden criminal objectives) an exploitative deception, but it remains a deception. Once this is understood, a purely-objective study of 'homeopthy', takes our free-thinking readers into a particularly difficult area, for, self-evidently, not all deceptions are unlawful.
Today, conventional medicine accepts that many illnesses are psychosomatic (i.e. they are caused, or aggravated, by mental conflict, stress, etc.). Qualified, conventional, medical practitioners, themselves, are, therefore, permitted to give harmless placebos (including 'homeopathic remedies') to their patients, due to the genuinely beneficial psychological, and resulting physical, effects that this 'white lie' can bring to certain people. The regulation and prevalence of 'homeopathy' varies-reatly from country to country. As far as I am aware, there are no specific laws anywhere in the world, either prohibiting 'homeopathy' as a fraud or identifying its legitimate use as a harmless placebo. In some countries, licenses or degrees in conventional medicine from accredited universities are required. In various countries,'homeopathic treatment' is wholly or partly refunded by national insurance schemes. In other countries, it is fully integrated into national health-care programs. However, since legislators have invariably ignored ' homeopathy', strict laws which govern the regulation, development and testing of conventional drugs often do not apply to 'homeopathic remedies.' That said, if there is no independent regulation of 'homeopathy,' nor any effective means of enforcing existing regulation, then the deception can easily be perverted and used by charlatans to exploit vulnerable people. Indeed, there are many parallels between the always-unlawful 'MLM income opportunity' deception and the often-unlawful 'homeopathy' deception. In the past, I have described criminogenic organizations like 'Amway' as 'peddling a economic placebo' dissimulated as a harmless scientifically-proven cure for poverty. All active 'MLM' participants have lost their time and money, but they have mostly survived their brief encounter with the'MLM' deception. However, just as with the exploitative version of the 'homeopathy' deception, if vulnerable people start to accept the'MLM' lie as total reality (and persist to a level of delusion), eventually, they risk destitution and destruction.
To its many satisfied adherents, 'Homeopathy' (also spelled 'homoeopathy' or 'homœ opathy'), is a proven, alternative medical science. To free-thinking observers, it is an absurd, latter-day revival of an absurd, 19th century pseudo-science based on an assemblage of absurd, ancient, non-rational or superstitious beliefs.
Like their 19th century counterparts, today's 'homeopathy' practitioners point to their many satisfied customers and confidently claim to be able to treat patients using massively-diluted preparations. These preparations are supposed to cause healthy people to exhibit symptoms similar to those exhibited by the unhealthy people they are supposed to treat. However, the overwhelming bulk of quantifiable evidence proves 'homeopathy' to be no more and no less effective than any other harmless placebo.
'Homeopathy' is supposedly based on what is known as the'law of similars' - a term coined by a German doctor, Samuel Hahnemann, in 1796. However for many centuries, prior to this, it had been a widely-held superstition that anything resembling a particular part of the human body could be used to treat illnesses, or failings, of the same body part. (e.g. walnuts look like the human brain, so it was once thought that walnuts and walnut oil are good for ailments of the brain - confusion, memory loss, headaches, etc.).
In reality, so-called 'homeopathic remedies' are prepared by progressive dilution in water (involving shaking and striking), of animal, vegetable or mineral substances. These substances are arbitrarily chosen according to the so-called 'law of similars.' Practitioners describe the dilution process as 'succussion and potentization.' This typically complex, ritual, hocus-pocus (involving thought-stopping jargon and the contemplation of infinity) is claimed 'to increase effectiveness.' However, dilution can continue until no trace of the original substance remains. Apart from the symptoms, so-called 'homeopaths' examine their 'patients''physical and psychological state, then 'homeopathic'publications known as 'repertories' are consulted, and a'remedy' is chosen. Common-sense reveals that, at very high-rates of dilution, so-called 'homeopathic remedies' contain few, or no, pharmacologically active molecules. Thus,'homeopaths' are, in fact, peddling water which, for it to have any pharmacological effect, would violate the fundamental laws of science. Consequently, certain so-called'homeopaths' have lately-pretended that 'water has a memory' allowing homeopathic preparations to work without any of the original pharmacological substance remaining. Unfortunately, there is neither quantifiable evidence nor any plausible physical mechanisms by which such a convenient phenomenon can be proved.
The total absence of quantifiable evidence to support what 'homeopaths'steadfastly pretend to be reality, and particularly their peddling of water as a remedy, is what has led qualified observers to describe certain 'homeopaths' as charlatans and quacks, exploiting vulnerable persons with an cruel deception. Oral 'homeopathic remedies' are safe at the high dilutions (for the simple reason they are likely not to contain any active substance), but they may be unsafe at lower dilutions. Whilst a delusional, unquestioning faith in the power of 'homeopathy' can expose vulnerable persons to significant risks; particularly, if they are advised against vaccinations, anti-malarial drugs and antibiotics.
Belief in 'homeopathy' became widespread in the 19th century, particularly in the USA. Dr. John Franklin Gray (1804–1882) was the first American 'homeopathic'practioner, in New York City. The first 'homeopathic school'opened in 1830. During the 19th century, many 'homeopathic'institutions were begun in Europe and America. By 1900, there were 22 'homeopathic colleges' and 15,000 practitioners in the USA. In the past, many conventional medical treatments were useless and dangerous quackery, whereas harmless 'homeopathic' placebos often had better results. It has been suggested that the relative success of'homeopathy' as a placebo in the 19th century was one of the factors that led to the disappearance of the useless and harmful quackery of 'bleeding and purging. '
As conventional medical science advanced, in leaps and bounds 'homeopathy' was generally derided by mainstream scientists and rejected by the public. Like all fashions, its popularity soon waned. By 1920, the few remaining schools in the USA exclusively teaching 'homeopathy' had closed. Sadly, the US federal Food, Drug, and Cosmetic Act of 1938 was sponsored by a New York Senator and 'homeopathic'doctor, Royal Copeland. This legislation, foolishly recognized'homeopathic remedies' as drugs. Even then, by the 1950s, there were only 75 homeopaths practising in the USA. By late 1970s alternative medicine had become fashionable again, and 'homeopathy' reappeared in America and Europe, where sales of some 'homeopathic' companies multiplied. The medical profession then started to adopt 'homeopathic remedies' in the 1990s.
Today, all over the world, the owners, and/or corporate officers of pharmacy chains have recognized the massive potential for profit, and they have begun selling vast quantities of harmless placebos branded as 'homeopathic remedies.'
David Brear
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