Writ against Amway posted for Aug 18

Andhra Pradesh High Court on 23.07.2009 posted further hearing on the Writ petition against Amway India filed by Corporate Frauds Watch following the plea by the Government Pleader for more time to file answer.

Earlier, surprisingly, the writ petition which is at No.105 at the day's Cause list, came up for hearing very soon. However, the Hon'ble Division Bench posted it giving time to the State Government for filing its answer.

However, it is apt to note here that Amway India did not file answer so far and probably it is tongue-tied to even talk about it. It is like it is caught with the hand in the cookie jar.

Meanwhile, Mr William Pinckney, the managing director of Amway India who failed to turn up for the trial in Nampally Court, Hyderabad, addressed the Indian media persons at Michigan and told them about a draft legislation the Amway India presented to the Indian Government to legalise its direct selling business in India. Though a lot of time elapsed, it seems, no politician in India is inclined to even look at it let alone to enact it.

We need to have a look at what excuses Mr William Pinckney made not to appear in the criminal court.

Wait for more soon.

This global criminogenic phenomenon is Financial Holocaust

Shyam
History proves that there are always some people who need to believe in the self-gratifying myth that 'a miraculous method for mutiplying money exists.' Sadly, this impossibility is to economics what perpetual motion is to physics.
The 'Multilevel Marketing Business Opportunity' lie ('Total Financial Freedom in 2-5 years by Exactly Duplicating a Proven Plan of consumption and recruitment') was originally tailored to fit the spirit of 1950s America. However, since the early 1970s, it has gradually spread all over the globe like a cancer. The majority of 'MLM' participants give up almost immediately without complaint after wasting a small amount of time and money to be replaced by a further intake of temporary hopefuls. However, a significant minority (usually with access to independent funds) will persist (sometimes for many years) in recklessly dissipating all their mental, physical and financial resources to the benefit hitherto unknown individuals whom they continue to trust and follow no matter what suffering this entails. It is now very difficult to evaluate the number of individuals who have fallen deeply for the 'MLM Business Opportunity' lie, or the total amount of money that has been illegally taken.

In the past, I have been chided for describing this largely-unchallenged, global criminogenic phenomenon as a financial holocaust. Unfortunately, this is a fair and accurate use of the English language. Therefore, I make no apologies.
David Brear

Hyd cops bust another MLM racket, seize Rs. 40 million

The Hyderabad police busted another multilevel marketing racket after arresting three persons and seizing 1.4 kg gold worth about Rs. 25 million and cash of Rs. 4.7 million from them. The interesting point is that these three persons are not highly literate or highly qualified. One is a washer man while the other two are auto rickshaw drivers.

They started a web site with the help of a web designer and started their racket. They induced people to watch advertisements on their website for which they would pay Rs. 10 per advertisement and the customers have to see only 7 ads per day. So the customers would get Rs. 70 per day and per month they would get Rs. 2,100. Well, so far it is okay. The catch point is, they have to become members paying Rs. 2,500 per membership. Then if they enroll more members they would get handsome commission. The racket satisfied all the ingredients of a crime under Prize Chits & Money Circulation Schemes (Banning) Act, 1978. Still, nobody notices and complains till it is too late.

By the time, police opened their eyes and arrested the culprits, the crooks have already made nearly Rs. 40 million.

This blog has been trying to bring awareness among people not to fall prey to such crooks. Still, new crooks are coming out and new victims are falling for their machinations. But greed is one thing that is hard to resist.

If anybody tells you that there is easy and quick money. If anybody asks you to become a member paying a substantial amount and to bring in more members that is a crime and punishable with three years imprisonment and fine.

Please do not fall prey. Immediately contact police and lodge a complaint.

All the police stations in the state of Andhra Pradesh received a Memorandum from the Director General of Police to register cases whenever they received complaints of money circulation schemes. It was issued on the representation submitted by Corporate Frauds Watch. You can remind the police about it and demand them to register criminal cases.

Herbalife, one of the greediest children of Amway

Shyam

'Amway' is the mother of all 'Multilevel Marketing' scams, and 'Herbalife' is one of her greediest older children.
When 'Herbalife' again began to be widely-exposed in the USA as a camouflaged pyramid fraud, hiding an effectively 100% rolling failure-rate, the classic reaction of its criminal instigators was to attempt to divert public attention . This was achieved by striking a sponsorship deal with Los Angeles Galaxy - the US professional soccer club that now employs the pretty-boy, fading England footballer and media star, David Beckham.
Since 2007, the counterfeit 'Business Opportunity' brand, 'Herbalife,' has featured on countless press photographs of David Beckham slapped over the front of his football shirt. Interestingly, when David Beckham and his equally famous wife, Victoria, moved to LA, they were also courted by 'Scientology's' own pretty-boy Hollywood celebrities, including Tom Cruise.
Predictably, 'Amway' adopted the same devious tactics in India, employing the fabulously beautiful Bollywood actress, Diya Mirza, to divert the Indian public's attention away from the ugly reality lurking behind 'Amway'.
Sadly, neither David Beckham nor Diya Mirza have reputations as deep thinkers. In their dealings with 'Herbalife' and 'Amway', they cannot have had the slightest idea where the cash would come from to pay for their services. That said, what on earth were David Beckham and Diya Mirza's lawyers and agents thinking about when they sold their client's images to these 'MLM' thieves?
David Brear

Warning signs of financial harm and deception about at Herbalife

Herbalife, one of the oldest and largest America-based multi-level marketing schemes exemplifies most of the classic warnings signs of a financial trap, a pyramid scheme and marketing program that is steeped in deception.
Consider recent news and developments:
After an extensive investigation by Fraud Discovery Institute (FDI), one of the best known fraud investigation companies in the US, headed by famed researcher and watchdog, Barry Minkow, the president of Herbalife resigned. He had published false academic credentials.
European Health Officials Investigate Herbalife's Product Safety Spanish Authorities along with other European regulators are investigating potentially dangerous lead levels in Herbalife products.
Charges of fraud and health risks against Herbalife go back to the 1980's. An ABC Evening News report, April 22, 1985 hosted by Peter Jennings detailed controversy over Herbalife diet products and pyramiding sales structure. The health risk issues centered around Dr. Richard Marconi who promoted Herbalife products. It was revealed that Marconi received his Ph.D. through a mail order course from an unaccredited school. In that report other nutritionists described Herbalife products as primarily laxatives and diuretics with potential of potassium deprivation.
Herbalife operating as a Ponzi Scheme. Herbalife lures consumers to invest in its "business opportunity" as "Supervisors" - and requires them to buy $3,000 of products. An independent analysis of Herbalife's actual commission payments revealed a top-loaded pay plan in which 85% of all commissions are transferred to less than 1% of distributors at the top, and financial losses suffered by 99% of the rest of the distributors. 60% of the "Supervisors" quit within a year. The average Herbalife payment to the Supervisors is just $10.55 a week. Herbalife must replace all the dropouts each year.
The analysis also revealed that Herbalife has no sustainable customer base. 80% of all its distributors quit the scheme within one year and there is no evidence that the distributors engage in profitable retail selling. The schemes gains its revenue by recruiting unwitting consumers into a bogus "direct selling" business and inducing them to buy "inventory."
The charges of business fraud against Herbalife are not new. A recently certified class action lawsuit against Herbalife and several of its marketing groups makes many of the same charges now leveled against Herbalife – operating an "endless chain" in violation of California law, and causing widespread losses to consumers who are lured by the unproven health claims and false income promises.
The class action case against Herbalife addresses one other area of fraud accusations – the collaboration of Herbalife with infamous "lead generation" schemes. The lawsuit charges that Herbalife distributors not only are lured into a pyramid recruitment scheme but are also induced to purchase thousands of dollars in basically worthless sales "leads" which they are told they will need to "succeed." (99% of all Herbalife distributors never earn a profit.)
A similar 2004 case against Herbalife was settled several years ago with millions paid back to consumers in restitution. The case documented the lead scheme – mostly unknown to distributors and shareholders – that enriches some Herbalife's upliners and further impoverishes the recruits.
Canadian authorities have fined Herbalife in the past for making false income claims.

I appeal to people all over world please do not fall prey to the dubious propaganda by this fraudulent company and lose your hard-earned money and your health too.

Many Amway accused failed to turn up for trial

Date: 23-07-2009
Stage: Chief Metropolitan Magistrate Court, Nampally, Hyderabad

The Bench Clerk pronounced the names of the accused persons which was repeated by the Court Attender with a loud noise. William, Ramu, Padma, Manipal Redy, Ashok Reddy, Raja Naren, Anjali Naren, Sreeti Reddy, Radhika Ramani.

Not a single one turned up in the first call. However, a posse of lawyers descended on the Bench Clerk submitting a batch of petitions stating why their clients could not make it to the court. The Magistrate asked the Bench Clerk once again to call out names. The attender repeated the names of the accused and only Ramu, Padma, Ashok Reddy presented themselves. When Raja Naren's name was called a small-built man tried to enter the court. But after the Magistrate asked every one of them to identify themselves by calling out the names, he calmly receded.

The Magistrate queried why everyone was not present. The posse of lawyers offered some lame excuses.

The Magistrate got angry and said why everyone was not present. He posted the next hearing to November 12, 2009 and ordered that everybody should present in the court otherwise he would take it seriously.

Except Padma everyone stood coolly in the court and she was found to be sulking.

Next time, everyone accused in the Amway cheating case should present in the court otherwise, the magistrate may be compelled to issue non-bailable warrants for their arrest.

Incidentally, another petition filed by a de facto complainant in the case has come up for hearing and also posted for the same date. However, the counsels for the petition, Mastan Vali and Shyam Sundar were informed to issue notices to the CID, AP Police, on the issue.

The petition was filed seeking reinvestigation into the whole criminal case because that it was done perfunctorily deleting the names of main culprits. The names of the persons, who filed writ petitions in the AP High Court stating that they were members of Amway, were not included in the chargesheet though they claimed that they hold titles like Diamond, Platinum. Now the CID has to answer why those names were not included in the chargesheet.

The notice to the CID, AP Police, would be served soon, said Mr Mastan Vali counsel for the petitioner.

Amway India cannot use the Government approval as shield

Many a time we come across an argument by Amway apologists that it was the Indian Union Government only which had given permission to Amway to run the business in the country. They also point out that it was a committee headed by the then Finance Minister and now Prime Minister Mr Manmohan Singh which had given the permission to the Amway India.

Assistant Solicitor General, Mr A Rajasekhar Reddy, appearing for the Union of India submitted to the Andhra Pradesh High Court which was hearing the batch of writ petitions filed by Amway India in 2006 that the scheme approved by the Government of India is different from the scheme which the Amway India is executing and, therefore, the approval given by the Government of India cannot be used as a shield by the Amway India for carrying unlawful business.

Mr Rajasekhar Reddy also submitted that the pyramid structured marketing schemes fall within the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 and the people who are running those schemes cannot claim the benefit of the approvals granted by the Government of India.

Even the other companies which are in the multilevel marketing racket claim the same. But the Government did not give permission to any of these companies to run illegal schemes.

It is high time people realised the real issues behind such statements and do not fall prey to such fraudulent schemes.

PACL racketeer cheating people in the guise of realtor

It seems our IBOFB got mouthful. That is why he is not responding to the comments. Let us move on to some other racketeers who have been cheating people all over India. PACL is just another racketeer who has high connections so that no one can touch him. Earlier, Sahara India cheated people to the tune of several billions of rupees and is now facing criminal cases.

PACL, earlier known as Pearls Agro Corporation Limited, has been cheating lakhs of people offering them land for their deposits.

Let us first examine how it cheats people. It invites people to purchase its land posing as real estate business venture. People are told to pay the amount either instalments ranging from six to ten years or in single downpayment basis. They will be given a certificate to that effect. On that certificate it is clearly written the date of realisation of the amount. For instance, if somebody pays Rs. 10,000 and the period is ten years, on the realisation date he would be paid Rs. 37, 067.

It looks good for any person who wants to save his money for ten years. But the catch point is the PACL has no permission from Reserve Bank of India to mobilise deposits from public. To circumvent the problem, the PACL claims that the money is for purchasing real estate. The PACL promises to allot 300 square yards of land anywhere in India 'subject to availability'. Any real estate firm acquires land first, divides into small units, obtains necessary permission from the local authorities, provides necessary infrastructure and then offers to sell land to public. But here, the PACL first collects money and later promises to allot land in future.

In its agreement form, the PACL states that the members would be allotted land 270 days after full payment or 90 days after completion of the last instalment. However, it adds that the money would be refunded after the set period. If land is allotted after 270 days, why would the PACL keep money for ten years.

The real idea is to mobilise deposits to line its pockets and it is evident that it has no sufficient land on its hand to allot to all the depositors. It is only hoodwinking the authorities.

Then comes the money circulation angle to the whole issue. It lures its member-depositors to bring in more members so that they can claim commission. The commission is very attractive and they are promised promotion as field officers, supervisors, inspectors, senior inspectors so on and so forth. With the lure of commissions, the members try to bring in as many people as possible from their circle of friends and relatives.

They do not realise that there is no security to their deposits and they would never be allotted land. In fact, even if the PACL wants to allot land to all its member-depositors, there is not sufficient land in the country. That is the number of member-depositors who run into several hundred thousand.

The PACL has very big clout in the political circles and a number of people's representatives are on it pay role. Naturally, they would jump to defend it at any cost. That is why whenever a criminal case is registered against the PACL, it would be hushed up immediately. The PACL takes necessary precautions not to annoy its member-depositors.

The fact is the PACL is flouting all the laws of the land and there is no check to its activities.

Amway, mother of all MLM rackets

Shyam
Your correspondent, Dahya Patel from Chicago, is perfectly correct the 'Amway' mob have bought political protection in the USA. However, the 'Amway' mob are quite happy to let the blame be heaped on the so-called 'Amway Motivational Organizations,' which they steadfastly pretend to be independent of 'Amway' .
In reality, the 'Amway' mob has always peddled a counterfeit 'Business Opportunity' which (as in the case of the UK) sometimes can actually lose money, but which lures countless victims into a much larger (and far more profitable) advanced fee fraud. The mystifying labyrinth of corporate structures operating this multi-level fraud has been set up in order to prevent and divert investigation, and isolate the 'Amway' mob from liability.
This is the key to understanding how the whole criminogenic 'Amway' organization functions. It's just like the American Mafia.
In the UK, when 'Amway UK Ltd.' (a perpetually insolvent corporate structure) faced a possible criminal investigation, the main individuals who had run the advanced fee fraud in the UK, Jerry Scriven and Pat Gregory (on behalf of Dexter Yager in the USA), were immediately booted out of 'Amway' , and thus, a criminal investigation into 'Amway' itself was forestalled in the UK.
The secondary fraud (i.e. the sale of recordings, publications, tickets to meetings, etc. on the pretext that these materials contain a secret knowledge vital to achieve success) only works, because the so-called 'Amway Business Opportunity' has been designed to produce financial failure for the overwhelming majority of its participants. One would have to be pretty dim and/or naive to believe that the instigators of the 'Amway' myth and the individuals who run the advanced fee fraud are not acting in collusion.
It is helpful to think of 'Amway' itself as a false beacon luring sailors onto the rocks. When their ships sink, there are gangs waiting to steal the cargo. Obviously, the charlatans who have lit the false 'Amway' beacon are as guilty as the leaders of the gangs of thieves.
Sadly, 'Amway' is not unique, but it is the mother of all 'Multilevel Marketing' rackets
David Brear

In Amway only the top makes money, victim from USA says

Hi Shyam,
I came across your blog while I was reading MLM blog about Amway scam. I really appreciate your efforts and stand for the victims of this not only in India but a world wide scam. I had been a former Quixtar/Amway distributor for 6-7 years and finally quit. The main culprits are the so called systems and training programs they sell to the Distributors in the form of cds, tapes, meeting and all different kind of motivational materials.
I can tell you frankly that it is very easy for any smart or any one looking for opportunity to fall for this crap. They present it in a way that people for it. once you are in you are constantly brainwashed against outside world through meeting, training, cds and all kind of associations.
Majority of people here in the USA are sick and tired of this but again as usual they roll money for political parties and charities to show thier better side. As I mentioned the main culprits are the motivational organizations who profit from selling the motivational material at high cost to their teams, and only a few at the top keeps all the money from poor distributors who in the hope of getting rich ends up in rags. If you can reveal these supporting systems like BWW India, ILTS, Winners Internationals and so on…
Again, I thank and always be praying that your efforts will help others open their eyes and join you to root out this scam from our beloved country.
Dahya Patel
Chicago,usa

Herbalife, Amway are like twins out to cheat people

For a change, let us look at the way how Herbalife is cheating people. First you come across advertisements offering to reduce your weight or help you put on weight. Generally people are attracted to these advertisements for the reason obesity is a big problem all over the world and few people are interested to sweat it out to shed the flab. They want to lose weight without raising a hand like many want to earn money without working hard and saving.

First you would be invited to their office and they take your measurements and weight. They later pronounce that you are overweight and there is an immediate urgency to bring down body weight. They introduce you Herbalife products and tell you how to use them. If you do not complain about the products well and good. They sell the exorbitantly priced soy powder and tell you how to use it.

If you complain that it is expensive, they tell you to become a member-distributor by paying Rs. 2800 and earn a handsome commission by selling these products. The racket widens if you fall for it. They elaborate on the scheme to 'enlighten' you that if you purchase in bulk at a time you are entitled even a bigger commission. They say it is easy to sell these products because they are world class quality and sold in 80 countries.

If you are lured by the commission, then the trap is ready. You will realise only later after purchasing products worth Rs. one hundred thousand or more that it is virtually impossible to sell these products. By that time it would be too late. Now you start advertising in the same way to attract people's attention.

My dear fellow countrymen! There is nothing like short cut to shed extra kilos and no short cut to become rich. Do not fall prey for these machinations of these fraudsters. Save your money and work hard to achieve good health.

Amway and its apologists are nothing more than a sick joke

Shyam
The recent comment by 'Rocket' is a perfect, common-sense analysis of how 'Amway' functions.
'Amway' is exactly like 'Scientology' - an absurd, but nonetheless abusive, criminogenic organization with severely narcissistic leaders who (for 50 years) have steadfastly pretended moral and intellectual authority whilst systematically thieving from millions of ordinary people around the world whom they have sought to blame.
Given the wider evidence, our smug Mr. 'IBOFB' Steadson's most recent, scripted defence of 'Amway' in which he points to the organization's own blameless book of rules, makes as much sense as defending 'Nazism' by quoting from the irreproachable code of conduct of the 'Hitler Youth.'
If it wasn't for the serious consequences of this grotesque global racket, then 'Amway' and its apologists would be nothing more than a sick joke.
David Brear

Amway distributors give no receipt to retail customers

Amway India sells its products to its distributors and they in turn have to find retail customers. That is the original idea. But these retail customers receive no receipt for their products purchased from the distributors. The distrubutors who claim discount from the purchase from Amway India try to sell these products to the retail customers without any receipt. That is how the consumer has no right to complain or no way to approach the consumer court in case he faces problem with the products.

Every sale must be recorded and must be supported by a receipt. But the Amway distributors do not issue any receipt thus evading paying sales tax to the government. If the Amway India's claim of achieving sales turnover of Rs. 900 crore is to be believed, the Government of India is not getting any revenue from its retail sales. This is one area, the Government of India should concentrate.

So is the case with the numerous fraud companies like Herbalife, Forever Living Products, Hindustan Unilever Network and other members of Indian Direct Selling Association.

For instance, GoldQuest International's Independent Representatives claimed to have paid Income Tax on their income. But they did not pay sales tax on the sales of gold and silver coins and other articles. That it is one of the problems they are facing now. On the other hand, nobody should sell gold coins except the Government of India. Now, the ICICI Bank which imported gold coins is now facing tax problems with the authorities.

It is high time, the tax authorities of the respective State Governments all over India concentrated on the retail sales of Amway India also to penalise it on that front.

Amway's closed market generated fortunes for accountants

Shyam
What continues to fool government regulators about how 'Amway' operates is the fact that the individual 'Amway Corporations' pay taxes on internal transactions between them and their agents.
In the UK, 'Amway' sells products and services to its agents at what 'Amway's' instigators arbitrarily define as a 'wholsale price,' but inclusive of standard rate UK Value Added Tax (15%).
In the UK investigation, more than 90% of 'Amway' agencies were revealed to be their own final customers, but, even if they had been selling to the public, the 15% VAT which they had already paid to 'Amway UK' is passed on by 'Amway UK' to the UK government. Unlike traditional retailers, the UK 'Amway' agents have no obligation to the UK VAT system themselves.
In the open market, traditional UK retail businesses which are registered with the UK VAT system, buy from other businesses who charge VAT on behalf of the UK government, but all businesses which are part of the UK VAT system are allowed to claim the VAT (which they have paid) back from the UK government.
For years, this fiercely complex VAT system has operated in the same way in European countries (although the rates have varied). The idea being that businesses act as unpaid tax gatherers, whilst it is only the final retail customers who pay VAT. Certain products and services have been exempt . There are many people who have observed that VAT has generated almost as much cash for accountants in fees as it has for governments.
Tellingly, even though there have been virtually no genuine external retail customers, the 'Amway' closed-market has still generated fortunes for accountants and governments around the world.
People who live in glass houses never want to throw stones.
David Brear

Amway de facto agents fabricate mystifying fiction

Shyam
Our smug Mr. 'IBOFB' Steadson has played what he would have your readers believe is a genuine ace, but it actually turns out to be just another mystifying fiction fabricated by the de facto agents of the 'Amway' Ministry of Truth.
When you actually examine the detail of the UK judgement, you find that Judge Norris of the UK High Court accepted some pretty suspicious figures, and not from the actual victims of the 'Amway' swindle or from BERR accountants (who seized 'Amway UK's' accounts for 2006-2007), but from unnamed individuals working for the private accounting firm of KPMG.
The figures accepted by Norris record what KPMG employees defined as 'averaging material provided in reports compiled 2001-2004' .
However, in his judgement, Judge Norris first accepts that, according to all the quantifiable evidence recovered by BERR, 'Amway' products were so grossly over-priced and difficult to retail that 'Amway UK' was obliged to slash them by enormous margins in order to forestall immediate closure. He then goes on to state that KPMG reports revealed that, in fact, a whopping 91% of all persons involved in 'Amway UK' were found to be not even attempting to sell anything to anyone. The overwhelming majority (91% of agencies) were actually being obliged to self-consume on average around £1000 of products each per year.
So how come a learned High Court Judge then meekly accepted that a mere 9% of 'Amway' agents were miraculously managing to 'retail 40% of all purchases,' when even a ten year old child can tell that the products were of such deliberately banal quality, but exorbitantly priced, as to render them (effectively) unsaleable on the open market?
Not only that, but BERR lawyers even described certain 'Amway' agents as deluded. For if this miraculous minority core-group of unquestioning players of the 'Amway' game of make-believe are set aside as an unreliable source of information, we find that the instigators of the 'Amway' myth were, indeed, running (and occulting) a 100% closed-market in the UK for 35 years.
Judge Norris offers absolutely no explantion of how KPMG verified the information they were given by the miraculous 9% core-group in order to compile their reports, or exactly what was meant by 'all purchases.' Similarly, Judge Norris offers no explanation of exactly who contracted KPMG to compile their reports or who the individual authors were.
The lack of intellectual rigour applied by UK government lawyers in the presentation of what should have been an open and shut criminal case, beggars belief.
David Brear

Amway business is fundamentally fraudulent

Shyam
For our smug Mr. IBOFB Steadson to state that I have accused UK judges of 'incompetence' is a typically gross-over-simplification of my analysis of the recent, failed UK petition to wind up 'Amway'. But then, what do you expect from a simpleton.
My lengthy deconstruction of the of the High Court and Appeal Court Decisions was posted on the Net. At the heart of this criticism was the irrefutable fact that UK government commercial regulators knew full-well that 'Amway' was a closed-market swindle shielding a much larger advanced fee fraud, but foolishly they decided first to pursue only a civil investigation of, and civil lawsuit, against 'Amway UK Ltd.' , in order to shut the front company before a full-scale criminal investigation could go ahead. The rules of the Business Enterprise and Regulatory Reform Ministry, obliged its officials not to collect any evidence of criminal activity or introduce such evidence into a civil lawsuit. The appropriate agency in the UK to gather such evidence and prosecute, is the Serious Fraud Office. Officials of the SFO are also fully aware of what 'Amway' is, but they are now reluctant to pursue a criminal enquiry, because the civil lawsuit did not succeed and because 'Amway' has been (effectively) stopped in its tracks in Britain.
That said, the evidence recovered in the UK clearly demonstrated that 'Amway UK Ltd.' had virtually no external retail customers and was, therefore, guilty of operating a premeditated closed-market which could never produce a profit for the overwhelming majority of its contributing participants. However, the BERR lawyers failed to present this clear deconstructed analysis to either the High Court or to the Appeal Court. Absolutely, no evidence was presented relating to the much larger advanced fee fraud that lies behind the 'Amway' front. 'Amway UKs' corporate officers pretended that they were not responsible for this activity, but, tellingly, its lawyers promised the court that this activity would, henceforth, stop
In other words, a mountain of evidence was there that the so-called 'Amway Business Opportunity' is fundamentally fraudulent, but the prosecutors and Judges were unable to interpret it correctly. On this basis, I stated that the refusal of the UK High Court and Appeal court to wind up 'Amway' after its lawyers promised to reform its counterfeit 'commercial' activities, was based on an error of logic worthy of a lazy schoolboy.
The 'Amway' fraud has been designed to be beyond ordinary human understanding, and the recent UK Court case proves this..
David Brear

Don't abuse the word "rational dialogue" IBOFB

Rationality is one word most abused. Even IBOFB is using the word 'rational dialogue'. He is the most irrational person in the world supporting a fraudulent company which has been duping millions all over world. He doesn't see the reason and even if it is proved beyond doubt that it is a fraudulent company and it is affirmed by the learned justices. IBOFB says that that was bizarre thinking. And to cap it all, he used the word 'rational dialogue'.

When I said Amway distributors are lying to people to make members, IBOFB asks a funny question whether I have interviewed every Amway member all over world. Some instances are not enough for him. And again he asks for a rational dialogue.

This reminds me of a religious friend of mine who said that he is also a rationalist. When asked he said, "There is a big shop full of commodities. Would you believe that there is no owner for the shop? This world is a big shop and God is the owner of the shop." That is his rationalism. He never clarified who exactly is the purchaser in this big shop.

That exactly is the rationalism of this IBOFB. He glorifies himself as Illuminati. That is all the more fun.

Get out of my country crooks

Amway India employs various crooked ways to promote its illegal business activities. In 1990s, it organised charity meetings inviting celebrities and donating liberally to various organisations. That way it attracted the attention of many people and media. Later, it introduced its scheme of duping people.

After a hit in the gut in the shape of Andhra Pradesh High Court judgement, Amway India is now trying to recoup its lost business by hook or crook.

It tried its hand by joining hands with a popular media group in Andhra Pradesh to organise painting competitions for children. The Corporate Frauds Watch took exception to the promos and lodged its protest with the management of the media group. Somehow sanity prevailed over the group and they discarded the competitions in the midway.

In its latest overtures, the Amway India tried its hand with the top police officials in Andhra Pradesh to organise anti-terrorism campaign in the State. The police officers shooed away the Amway India. A friend of mine who observed the Amway India offices at various places in the State told me that there used to be a long line of cars and others vehicles near the Amway distribution points. But, of late, there is hardly any activity seen. In essence, the Amway India business suffered a set back in Andhra Pradesh. Now nobody believes either the get quick rich scheme of Amway or the 'world quality products' it sells.

Probably, soon it is going to close shop in Andhra Pradesh unable to pay rent to the godowns.

Get out of my country you crooks.

Several Amway adherents are also scientologists and vice versa

Shyam
I have recently received a call from a former core-'Scientologist' with whom I have previously coresponded. This person has a particular interest in 'Amway,' because a while back he lost money in a vast Ponzi scheme run by a 'Scientology Minister' in the USA. He also knew of several 'Scientologists' who got involved with 'Amway', and several 'Amway' adherents who became 'Scientologists'. The comments of my caller regarding the 'Baiting' tactics of David Steadson and his robotic lack of human feeling and respect for traditional morality, are most-revealing. Indeed, my caller finds it very difficult to believe that Steadson has not been involved with 'Scientology' himself.
The so-called 'Technology' taught to 'Scientologists' to be used on 'Supressive persons' (i.e.critics) is part of what the author of the 'Scientology' myth, L. Ron Hubbard, called 'Fair Game'. In essence, anyone challenging the authenticity of 'Scientology' can be lied to, cheated or destroyed by any 'Scientologist' , on the specious grounds that, in the end, it is 'Scientology' that represents a higher moral purpose. Even when core-'Scientologists' are committing fraud, a comic-book scenario (written by Hubbard) is used as the false justification for their crime. They really believe that only they are trying to save planet Earth from destruction, and that the 'Scientology' organization needs all the money it can gather to pursue this righteous cause.
However, 'Scientologists' are also programmed to deny that they hold any such beliefs.
Interestingly, despite the fact that it is a matter of public record that 'Amway' has always been secretly controlled by a perversion of the Judaeo-Christian/Freemasonic myths (known as the 'Prosperity Gospel'), apologists of the organization deny absolutely that this is so. However, former American core-'Amway' adherents whom I have interviewed, have testified that they once actually believed that the founders of 'Amway' became billionaires because God instructed them how to do this. They also believed that lying to people to get them to join 'Amway' was not a wrong, because, in the end, it was for their benefit.
Interestingly, the Steadson robot is constantly trying to convince the world that 'Amway has no connection with cultism' and that he is a 'secular humanist.'
David Brear

IBOFB, it seems, actually a robot programmed to argue

Shyam
Conducting any form of debate with our smug Mr. 'IBOFB' Steadson is like trying to deal with a robot that has been programmed to argue. There is a very good reason for this: Steadson (if he really exists as one individual, and I'm not entirely sure that he does) is a robot that has been programmed to argue.
Despite what the Steadson robot now steadfastly pretends to be reality, prior to the recent UK court case, 'Amway UK' never disclosed what percentage of its claimed agencies were active, because it's corporate officers were not obliged to. I was, therefore, merely reporting the 'Amway' Ministry of Truth's own distortion of facts and comparing their grossly-inflated figures to what we now know to be the miserable reality. Sadly, we are not talking about apples (a comparison which reveals plenty about the Steadson robot's lack of human feeling), we are talking about people's lives being ruined. It, therefore, beggars belief that the Steadson robot should accuse me of being deceitful, when I am merely reporting the lies of his criminal programmers.
Steadson's 'baiting' tactics are painfully transparent and comparable to those used by 'Scientology's' apologists. The poor lad is still trying (but failing) to provoke me in order to divert the attention of your readers away from a major crime. Tellingly, the Steadson robot cannot refute the simple fact that (during 35 years) the so-called 'Amway Businesss Opportunity' has had a rolling 100% failure-rate in the UK. Neither can Steadson refute the fact that this key information was maliciously occulted by the corporate officers of 'Amway UK' and those of the 'UK DSA,' nor the fact that the so-called 'Amway Business Opportunity' has been the bait in a global advanced fee fraud run by a gang of sanctimonious American-based racketeers whom he continues to defend no matter what evidence is produced.
David Brear

Three CBCID police officers suspended in Chennai on graft charges in GoldQuest case

Three police personnel attached to the Crime Branch CID, including an Inspector of Police, have been suspended on charges of misconduct and corruption.
Based on the recommendations of a top officer in the CBCID, Director General of Police K.P. Jain ordered the suspension of Inspector Sundareswara Pandian, Sub-Inspector Siva Subramanian, and Head Constable Ramanujam, who were part of a team that investigated the ‘Gold Quest’ case, police sources said.
On receiving information that a huge sum was paid to the police personnel by an accused in the case, who had tried to evade arrest, the CBCID made discreet enquiries.
“We have established prima facie evidence that money was paid by one of the accused to avoid arrest. It has also been recommended that the charges may be referred to the Directorate of Vigilance and Anti-Corruption for further investigation,” a top officer in the CBCID said.

It is an eye-opener for police officers who take bribes from swindlers. Soon Amway India is going to face the same fate of GoldQuest International since there is hardly any difference between the schemes of the two fraudsters.

IBOFB's mystifying lies are funnier

Shyam
Our smug Mr. IBOFB Steadson's latest mystifying lies are based on statistical information which he claims to have come from 'Amway UK'. He now says that at the end of September 2008 there were around 8000 'Amway Business Owners' in the UK and that more than 3000 have joined earlier this year.
(Remember, in order to forestall closure and a criminal investigation, 'Amway UK's' lawyers promised the UK High Court not to refer to their non-salaried agents as 'Independent Business Owners' or 'IBOs' in future, because this is a misleading term).
However, according to 'Amway UK's' own Website (which I'm looking at right now), on the 30th of September 2008, the claimed number of active non-salaried commission agents (which 'Amway UK' also arbitrarily defines as 'Retail Consultants') who had received at least one monthly payment from 'Amway UK' during the period May 2007 to july 2008, was only 2612 (two thousand six hundred and twelve). Their average monthly payment was between £46 and £69 (but this doesn't take into account operating expenses).
Steadson's 'around 8000 ABOs' figure appears to come from 'Amway UK' claims of an overall total of 5991 (five thousand nine hundred and ninety one) 'Retail Consultants'
in September 2008, but, according to 'Amway's' own figures, 3379 (three thousand three hundred and seventy nine) of these agencies were completely inactive (i.e. they received no payments, because they didn't buy or sell anything).
It is unclear whether 2302 (two thousand three hundred and two) active 'Amway' agencies now arbitrarily defined as 'Certified Retail Consultants' and 'Business Consultants' who received at least one payment during the same period (May 2007 July 2008), were included in the overall total figures.
Like everything to do with the external presentation of the 'Amway' fraud, this statistical information is designed to be as incomprehensible as possible, in order to shut down the critical faculties of all casual observers. Obviously, 'Amway' apologists steadfastly pretend that it is perfectly clear and that anyone who can't understand it must be financially illiterate.
However, by extrapolation, if Steadson's further proud boast of '3000 new recruits in the UK' is correct (but there is no way of verifying it), then the average recruitment score this year has been less than two 'Amway' converts per active agency, but, typically, these mystifying figures don't make it clear if the new converts are active or inactive.
Steadson's hero, Trevor Lowe, is currently the only 'Amway Diamond' in the UK. Apparently, it took him more than 20 years to achieve this lofty level of initiation and we have no idea how much it cost him to get there.
Since more than one million annual contracts have been signed with 'Amway UK' during the past 35 years, this makes Mr. Lowe a very rare creature indeed.
Other 'Admired and Respected Diamond' initiates in the UK used to include Jerry Scriven and Patrick Gregory. However, they were thrown out of the 'Amway' gang (so much for being 'Independent Business Owners'), again to forestall closure and a criminal enquiry. The corporate officers of 'Amway UK' and the 'UK Direct Selling Association' committed perjury when they claimed in written depositions to the UK High Court to have been completely unaware of the advanced fee fraud that Scriven and Gregory had been running in the UK on behalf of Dexter Yager in the USA.
It is a matter of public record that Scriven and Gregory illegally removed several hundreds millions of dollars from several hundreds thousands UK and irish citizens over a 33 year period. To date, no criminal enquiry has been launched in the UK and not one of the 'Amway' thieves has been held to account. That said, not one of them has come forward to challenge the authenticity of my detailed accusations.

And this is what Steadson finds funny?

David Brear

Same blame game by Amway apologists

Amway India indulges in the same blame game whenever a distributor fails to do business. He did not work hard that it is why he had failed in his mission. The truth is the scheme itself inherently deceitful. Amway India distributors all the time tell their new members about motivation and soon they are going to become rich soon.
Nirmala, the school teacher, stated in her letter that though both are working they hardly had five thousand rupees in their bank account and her husband was still in the illusion that they are going to become millionaires soon. And he keeps on bringing pressure on her to sell products to their kith and kin.
The housewife who tried to join the auto rickshaw driver told him that she has been earning thousands of rupees every month. She was killed in her own flat by the same man for money. But he did not find any money in her home not even jewellery and that was what he told the police during interrogation. Another housewife told me that she was earning Rs. 68,000 every month. But she rides a battered scooter and lives in a tin-roofed rented house. People who earn Rs. 20,000 a month lead a decent life in India.
Lambada ladies were lured to become members with the promise of becoming rich by some Amway distributors. It is not their poor choice. But the distributor has wrongly chosen them to become distributors. His aim is to enroll more members and earn commission.
These are all facts which could not be skipped or taken lightly. People who lost money in such transactions would never trust the persons who introduced them to such schemes. That is why such schemes are damaging the social fabric of our society. Is there any need to interview each and every distributor in the country to come to such conclusion. Not at all.
Anyway, IBOFB agreed that all is not well with Amway UK and it is better they close shop before cheating many more people. So is the case with Amway India.
Throw these crooks out of the country. I hope more and more people visit this blog and learn about the crooked arguments of IBOFBs and their ilk. Indians are very clever people and they can judge who has mal-intentions and who is trying to defend their hard-earned money.

Imaginary earnings and Imaginary tax payments of Amway distributors

Shyam
Our Mr. Steadson's cannot deny that 'Amway's" so-called 'Business Opportunity' is the bait for an advanced fee fraud, whilst his latest 'baiting' tactic (feigning laughter) is as transparent as his previous efforts.
It is a matter of public record that (over the past 35 years) a total of around 1 million annual contracts have been signed with 'Amway UK', but the rolling drop-out-rate has been 100%. In the recent BERR investigation in the UK, it was discovered that, out of approximately 33 000 transient 'Amway' non-salaried commission agencies that existed during 2006-2007, less than one hundred were making sufficient income from 'Amway' to cover their operating expenses. Of these tiny few solvent agencies, virtually none were making enough profit to warrant the payment of any income tax. Indeed, UK tax officials whom I have encountered, have a tendency (genuinely) to laugh out loud when the made-up term, 'Multi Level Marketing,' is mentioned. Yet, in order to recruit ( for the past 50 years) 100% 'Amway' adherents have had to hide the truth about their own loss-making 'Amway' participation, and/or tell lies.
Since the investigation and public interest petition to have 'Amway UK' closed down became public knowledge, the number of transient, insolvent UK 'Amway' commission agencies has fallen to an insignificant number. This was less than 5000 last October, but 'Amway UK' doesn't have to reveal the latest embarrassing figures until October 2009.
Now do we really believe that our smug Mr. Steadson is one of the near-to-non-existent 'Amway' adherents who has managed to generate an overall net-profit from 'Amway,' or is he one of the countless millions who have been obliged to tell lies?

David Brear

Liar calling every one dishonest that is IBOFB style

Amway India trains its distributors to lie without blinking to join new members. All the Amway distributros in India claim that they have been making several thousands of rupees every month though they make only less than four thousand rupees. That was exactly the reason, when an Auto rickshaw driver killed an Amway distributor in Vijayawada after she claimed she was earning sixty thousand of rupees every month as commission. He thought she must be having lot of money at her home. But he could not find any money in the house.

It seems AmwayUK also tries the same thing with its distributors there. Otherwise, there is no explanation to the IBOFB's outbursts that every one is dishonest at the same time dishonestly half quoting the High Court judgement. The IBOFB conveniently skips the first part of the sentence. The Justice clearly stated that "Once a person becomes a distributor in a scheme of this nature where the sops in the shape of commission are so luring, it would be impossile for a member to withdraw from the membership to avoid annual subscription fee." This is the exact sentence. The IBOFB rather cunningly skips the first part. He tries to hide behind renewal statistics. Of course, people withdrew from the membership after losing substantial amount in the racket. Let us see how.

The glaring example for this is the story of Lambada tribes women of Ibrahimpatnam near Vijayawada who were lured into the scheme of getting rich quick. They continuously purchased products for several months spending several thousands of rupees. After realising that they were duped by some Amway distributors, they wept in vain. Their laments were telecast by CNN IBN channel all over India. Being very poor, they could not approach rich people to get them enrolled or they could not sell these costly products to others. Who would purchase a Glister toothpaste from these labourers for Rs. 120. That is how they lost their hard-earned money.

Now regarding the Consumer Forum case in Vijayawada, this IBOFB came out with another lie. Actually he responded to the Consumer case against Amway only on July 07, 2009 and claimed that he had already responded. Now who is dishonest?

Let us move on to the next point later.

Amway products have little or no value and impossible to sell in an open market

Shyam

It was actually the UK government's lawyers who, last year, described unquestioning 'Amway' recruits (like our Mr. Steadson) as being 'vulnerable and deluded.'
Despite Steadson's latest demonstration of reality-inverting, totalitarian sophistry (in which irrefutable, calm, logical thinking is systematically condemned and excluded as 'delusional ranting' ), the quantifiable evidence proves beyond all reasonable doubt that, if anyone is really interested in acquiring some of 'Amway' s' banal products, then they should simply look on e-bay. Here, you can always find heaps of unwanted 'Amway' junk at a fraction of the grossly-inflated, controlled prices which the organization originally charged to its pyramid of ever-changing contributors. Even when the prices are slashed, still no one seems to want to buy. Yet, according to Steadson's puerile yarn (which he didn't write himself) 'Amway Products are World Beating.' In the adult world of quantifiable reality, 'Amway' products have little or no value and, consequently, they are (effectively) impossible to sell on the open-market. Indeed, According to evidence recovered by accountants working for the Company Investigation Branch of BERR, virtually no authentic retail sales were being made by 'Amway' in the UK. This has been the situation for the past 35 years. Steadson's claims regarding this aspect of the 'Amway' fraud are lies which can be easily proved by the fact that, in order to forestall the company's closure, 'Amway UK's' lawyers were obliged to promise the UK High court that, in future, all 'Amway UK' s active agents would have to show that they were making a significant number of authentic retail sales.
However, 'Amway' s' (essentially) unsaleable products are, in many respects, a red herring. It is sufficient only to know that it is (effectively) impossible to make a profit from the operation of what 'Amway's' instigators arbitrarily and falsely define as an 'Independent Business.' For decades, the secret, overwhelming majority of financial activity in 'Amway' has been the sale of books, recordings, tickets to meetings, etc., to the insolvent participants in a premeditated closed-market swindle on the pretext that 'these materials contain exclusive secrets vital to achieving Total Financial Freedom.' In order to forestall closure, and a full-scale international criminal investigation, the Corporate officers of 'Amway UK' and the 'UK Direct Selling Assocation' submitted written depositions to the UK High Court in which they pretended that they couldn't be held responsibe for the activities of the individuals and corporate structures producing and selling these allied materials and exaggerating the rewards available in 'Amway', but anyway they had been unaware that such a problem existed, and that now that they were aware, every effort would be made to prevent these abuses. 'Amway UK's' lawyers were obliged to promise the UK High Court that the sale of these so-called 'Business Support Materials' would be, henceforth, prohibited.
Unfortunately, the Individual who received the lion's share of the secondary advanced fee fraud in the UK, Dexter Yager, was recently filmed embracing the surviving author of the 'Amway' myth, Richard DeVos, on the occasion of the myth's 50th birthday. Given the wider evidence, one would have to be pretty dim, and/or deluded, to believe that these two sanctimonious old charlatans have not been acting in collusion.
Once the full-picture is examined, the scripted claims of innocence and ignorance made by the coporate officers of 'Amway UK' and the 'UK DSA' were perjury, written by their pay-masters and committed in order to obstruct the course of justice.

David Brear

Let us examine AP High Court judgement against Amway in detail

IBOFB thinks whatever is said against Amway is bizarre. He does not think it bizarre if a company asks the customer to become a member by paying hefty fee which helps the company to line its pocket which is in turn unjust enrichment. The judgement clearly stated in the Para 33, "As pleaded by the petitioners themselves, out of Rs. 4,400 a substantial part namely Rs. 1,800 is collected as subscription fee, license fee, business kit etc. To qualify for earning commission a member has to earn the minimum monthly PV of 50 which he will get by selling products worth Rs. 2,000 Respondent No 6 in para-11(c) of his counter affidavit specifically pleaded that Amway (first petitioner) would automatically get a business of the quantum of Rs. 1,080 crore (4,50,000x2000x12(months) per annum which would yield an astronomical profit and it cannot but be stated as easy/quick money without any service to the distributors/members irrespective of whether they sell the products or not, though the company may conveniently refer it as 'turnover by sale of products'. Significantly, this assertion made in the counter affidavit is not denied in the rejoinder of the petitioners (i.e. Amway India). They have merely tried to explain the said allegation y offering certain justifications. The petitioners have not specifically denied that the the first petitioner would get a sum of Rs. 1,080 crore by ensuring that each distributor maintains the minimum sales level. Even though the scheme per se does not stipulate that each distributor has to maintain the minimum required business level, prescription of minimum level of 50 PV to qualify for getting commission is sufficient inducement for the members to relentlessly strive for maintaining the PV level at or above the said minimum levels."

When it is crystal clear for any sane person, for IBOFB it is bizarre thinking.

In para 34, the judgement said, "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. On the part of the promoter ;by pushing each member to achieve the minimum sales worth Rs. 2,000 per month, (this sales includes enrollment of new members) he is assured of about Rs. 1000 crore per annum. All this squarely satisfy the description of quick/easy money. In addition to this, it is an admitted fact that each person in order to continue to be the distributor, shall pay renewal subscription fee of Rs. 995 per annum. In para-11 (b) of the counter affidavit on the admitted number of distributors of 4,50,000 this amount is calculated at about Rs. 45 crore per annum. These figures are not denied by the first petitioner (Amway India) in its rejoinder. The plea of the first petitioner that there is no compulsion that a member shall renew his distributorship looks to us to be specious. Once a person becomes a distributor in a scheme of this nature where the sops in the shape of commission are so luring, it would be very difficult for a member to withdraw from their membership to avoid payment of the annual renewal subscription fee."

It is amply clear that the Andhra Pradesh High Court had rightly dissected the scheme of Amway India and came to the above conclusion. For IBOFBs and their ilk, it is bizarre thinking.

Instead he tries time and gain to divert the attention by asking irrelevant questions. He conveniently skips the issue of fine imposed on Amway India by the Consumer Forum at Vijayawada for selling adulterated products.

My point is to take the issue to the notice of people of India and the rest of the world and caution them about the traps laid by fraudsters like Amway, Herbalife, Forever Living Products, Hindustan Unilevel Network and others.

Annex India Securities Ltd racket busted

The Central Crime Station police, Hyderabad busted the racket being run by Annex India Securities Ltd and arrested the managing director and others. But by the time police swung into action, the organisers of the money circulation scheme has already made Rs. 100 million. It has been warned several times in this blog not to fall prey to the easy and quick money and it is sad to note that several thousands of people again lost their precious earnings to a swindler.

The modus operandi is simple. One has to become a member paying Rs. 20,000 and they have to enroll more members to earn commission. But here the organisers of the scheme are offering an interest of 18 per cent per annum on the fictitious deposit and that made it all the more attractive. Nobody ever thought from where do the organisers pay such fancy rate of interest.

The other day, an advertisement was published in an English newspaper inviting people to invest Rs. one hundred thousand and they would be paid Rs. 1250 every day for one hundred days. That is, in three months the investors would get back Rs. one hundred and twenty five thousand. I immediately called the organisers to know what do they do with the money. I was told that they would invest in forex market and make a lot of money which would be shared with the investors.

I asked them whether they had Reserve Bank of India permission to mobilise deposits from public. They immediately cut the telephone and never responded again. That is how these swindlers make money.

My fellow countrymen, never fall prey for easy and quick money. There is nothing like it. Save your money. There are many such firms which are raising public deposits without the authorisation of Reserve Bank of India. Sahara India, PACL, Agrigold are some of these swindlers. There is no safety for your money and they may vanish any time.

Beware of these swindlers!

Shameless Amway apologists make tall claims

It is really funny to read that Amway distributors make money if they do not buy any product or enroll new members. IBOFB is trying to tell that money is actually raining for Amway distributors. But the simple question, why people are losing their money after becoming members of Amway, remains unanswered. Don't say that they are not working hard to earn money. Working hard here means to hunt for more people to become Amway distributors. That is what Raja Naren did for five years. That is why his name was mentioned in the Andhra Pradesh High Court judgment. What hard work one has to do to earn money if they do not need to enroll members and need not purchase products. This is height of stupidity.

I asked many times a simple question. What is the ex-factory price of these products and how much tax is being paid by the Amway India. For instance, the ex-factory price of Glister toothpaste is Rs. 16 but the selling price of it is Rs. 120. The Amway India pays tax to the government on the ex-factory price only. Nobody else pays any tax to the government. They just share the booty.

And the IBOFB says that "paying a few bucks a year you get a 30% discount". Amway is not paying 30% per cent discount on the ex-factory price of the product. Now IBOFB should answer what is cheaper price.

Funnily, he compares buying Volvo to purchasing Amway products. LOL.

Generally, people won't make any money for doing nothing. But in the case of Amway, the downline members do the work and the Amway and its emerald, diamond and other members line their pockets. That is what is called easy and quick money.

Again, the Amway was penalised for the "award winning world leading products" in India because they are adulterated. LOL.

In spite of all this, IBOFB wants us to believe that Amway is a 'legitimate business'. It is not business at all. It is only swindling.

Focus on real issues Amway apologists

Shyam,

Arch-'Amway' sophist, David Steadson, is still trying to divert the attention of your readers from the real issue.
In reality, there are only three essential questions which the Indian: public, journalists, law enforcement agents and Judges should be asking:
1. What proportion of the transactions that 'Amway's' instigators arbitrarily define as 'sales' have been made to individuals who are not agents of 'Amway?'
2. How can an (effectively) closed-market without authentic retail customers and , therefore, no real external revenue, produce a profit for the majority of its contributing participants?
3. Other than the external presentation, what exactly is the difference between what 'Amway's' instigators peddle to their victims and what Bernie Madoff peddled to his; namely an infinite share of their own finite money?
David Brear

IBOFB seeks High Court judgement copy But he has already conclusions

IBOF sought the copy of the High Court Judgement which I immediately sent him. But he has already had conclusions about the judgement. He states that the judgement has some bizarre thinking in it.

The jdugement in the second itself clearly stated that "As pleaded by the petitioners thselves...". Still, the IBOFB says that nowhere did the judges stated that their opinions were based on the Amway affidavit.

Now he has the full text in his hand, what would IBOFB comment. I hope he would not comment on the 'bizarre thinking' again.

And the IBOFB tried to plant suspicion in the minds of readers by stating that one of the judges said "if the allegations of the police are true". It is a blatant lie. Nowhere either chief justice Singhvi or justice Nagarjuna Reddy said those words.

As per the letter published about the comments against products, it is the opinion of a reader and he has every reason to say what he believed. And the apologists have every right to defend it. It is like letters to editor in a newspaper.

But what they conveniently forget was the judgement of Consumer Forum at Vijayawada which levied a penalty of Rs. one hundred thousand on Amway for selling adulterated products And I have already posted that judgement. Nobody talks about it. I have illustrated what products are adulterated and what products are misbranded. Of course, it is now pending in the State Consumer Forum and Amway's lawyers did not turn up for the last hearing recently.

A consumer decries products of Amway

Amway , What is it? A company producing cosmetics, or medicines or toiletries, or consumer durables? The company is doing all these and who gave license to Amway for these ? The energy drink which is not actually a product of Amway, but which is marketed by Amway, is highly dangerous drink, since it contains caffeine in a large quantity and Amway is not open about the exaxct quantity of Caffeine in it. However the lable on the bottle warns "not suited for children" but again the age limit of the children is not mentioned.Amway is playing with the life of Indian children. The NUTRILITE 9 protein powder is another product which has high concentration of protein in it. Even a single spoon a day for a year is enough for the formation of kidney stones. All the Amway products must be banned forthwith.

Dhandapani

Go through Andhra Pradesh High Court Judgement IBOFB to learn facts

It is good that the swindler has finally asked what is wrong with his swindling. It is very easy to answer his question. But let him do some homework. If anybody wants to know why the Andhra Pradesh High Court held the Amway scheme illegal, I am ready to send the full text of the judgment. It will be lot easier for anyone who is really interested to learn facts. And I have been writing in this blog against Amway India basing on that judgement only.

The judgement is based on the writ petition filed by the Amway India itself which appealed to the High Court to declare its scheme legal. In other words, Amway India has dug its own grave.

The judgment is very, very balanced and delivered without prejudice. It thouroughly studied the writ petition filed by Amway India and came to conclusion that its scheme is illegal basing on the affidavit filed by Amway India itself.

The Division Bench of the AP High Court did not rely on the public interest litigation by one of the victims of the Amway scheme or criminal case filed by the Andhra Pradesh CID but solely relied on the affidavit filed by Amway India itself.

My sincere advise to IBOFB is just go through the judgement to learn the facts. I think that he is under illusion that I have been maliciously writing against Amway India. That is not true. There are hundreds and thousands of business houses which have been into legitimate business. I have no problem with them. Instead of doing legitimate business the Amway India indulged in illegal money circulation scheme and I have pointed that out several times.

Still, IBOFB with feigned innocence asks what is wrong with Amway India scheme. I don't think IBOFB is really interested in learning truth. He beats around the bush and time and again asks irrelevant questions like ' who is paying to write the blog'. Anway, IBOFB knows the truth. We can wake up a sleeping person but not a pretending one.

'Either at your throat or at your feet'

Shyam

It can seem impossible (to persons who do not understand the cult mentality) that once his obvious 'baiting' technique has been explained to your readers, Steadson would have the gumption to stop using it, but no, the provocative lad cannot refrain from conclusively proving to the world that he really is exactly as I describe him: the human version of tape recorder with whom it is a pointless excercise to attempt a debate. Furthermore, exactly like the apologists of 'Scientology,' part of Steadson's totalitarian technique is to invert reality by ignoring all qantifiable evidence whilst accusing his challengers of ignoring all quantifiable evidence and inverting reality themselves.
I believe it was Winston Churchill who described totalitarian dictators (and their apologists) as being 'either at your throat or at your feet.'

How right he was.

David

Why trying to convince me instead of the High Court of Andhra Pradesh

IBOFB and their ilk should strive hard to convince the justices of Andhra Pradesh High Court by appointing 'competent' counsels or appearing party-in-person. Instead of that these people unnecessarily work overtime to convince 'ignorant' people like me. LOL.

Had they convinced the learned justices of the High Court, the things could have been different for Amway in India. By calling a whistle blower ignorant, IBOFB is not going anywhere. It seems he is caught on wrong foot while blindly supporting Amway India's website. He conveniently avoids things I have mentioned but talks of something else reminding me of my 'ignorance' time and again.

All these swindlers are alike. The other day I met an insurance sales agent who is trying to sell insurance policies under the multilevel marketing system. When I tried to explain that it is illegal, he started shouting. I told him one's voice raises when one's point is weak. He is also a swindler who is trying to rope in as many as possible.

So is the case with IBOFB. I still call him IBOFB because he did not tell me what his real name is though David told me that he is Steadson. He has never revealed how much he has earned as Amway distributor or what is his position in the Amway hierarchy. He has simply been defending the illegal activities of Amway India though he has little understanding of what he is doing. I pity him.

Manipulative techniques of Amway apologists

Shyam

As I am sure you are aware, David Steadson (a.k.a. 'IBOFB'), is just trying to provoke you.
Steadson's tedious denial of external reality and his scripted insults are part of a manipulative technique (employed by 'Amway' apologists) designed to shut down your critical faculties and drag you down to his puerile level. Core-'Scientologists' are schooled in exactly the same 'Baiting' techniques.
It is helpful to see fanatical cult adherents are being merely actors in a play which systematically casts them as 'the enlightened heroes'. Steadson's IBOFB alter ego is trying to lure you into his dualistic 'Amway' game of make-believe, where all critics are systematically cast as 'the ignorant villains.'
Once you understand Steadson's controlled model of reality, it becomes obvious that arguing with him is as pointless as arguing with a tape recorder.
However, all free-thinking observers know that there is an immense difference between what the 'Amway' Ministry of Truth steadfastly pretends to be reality and what is actually occurring in India.

David Brear

Make money without purchasing products or enrolling members, claims IBOFB

IBOFB thinks that everyone has a price and it is easy to buy people. It has been made several times clear that my fight is against all these types of fraudsters -- be it Indian or multi-national. Anyway, IBOFB did not clarify who are their competitors. I still believe that they are all direct selling association members. I am not aware of any competition among swindlers.

Well, finally, IBOFB agrees that there are flaws in the Amway India brochure. LOL. The fact is, the flaw is in the scheme of Amway itself. The scheming swindlers are out to prove that they are right. The funniest argument is that people could make money even if they do not purchase any products or they do not enroll new members. The IBOFB did not clarify from where does the money rain. You purchase zero products for personal use and need not enroll new members but still you make money. Wonderful!

IBOFB still adheres to the norm that anyone who questions Amway is either ignorant or liar or a hired one.

Examples are not for the sake of examples. They are to be followed to make money. That is what examples are for. If you imagine any other use just enlighten our readers.

One thing is clear. IBOFB is defending Amway India without even knowing what exactly it is doing in India. First learn how the scheme is robbing the Indians and defend it IBOFB. Whatever Amway India doing is against the law of the land. It has been made it clear in the AP High Court Division Bench judgement and the Supreme Court of India dismissed the plea of Amway stating it has no merits. Still, sitting in a far off land, IBOFB and their ilk jump forward to defend Amway India and its illegal money circulation scheme. Take away the swindler out of our country where you cannot be questioned for your misdeeds.

Conveniently lying is IBOFB style

The amwayindia.com website clearly gives examples as Eg. 1, Eg.2, Eg 3 to highlight its scheme of sponsoring, finding customers who could afford to purchase the products. In the Eg. 1 the website illustrates how much a family should purchase to get a total PV of 102.26 and total BV 4,601.70. Then it says if you have two or three friends who are interested in buying Amway products your earnings would be Rs. 3, 510. To get that income, you have to purchase ten items spending at least Rs. 10,000 for your family of four. Out of these ten items, Indians hardly purchase only three or four items generally. You have to have 'friends' to buy these expensive products. And if they buy you have to invest Rs. 30,000 more for purchasing products for them. If you succeed you may earn Rs. 3,510. Otherwise you would never get amount. So it is clear here that you must have two or three friends who are interested to purchase Amway products. Otherwise, you have to search for them. That is how the housewife, Nirmala from Hyderabad got frustrated. Go to older posts to learn her story. So is the case of so many.

In the Eg2, the website suggests to sponsor four persons to earn total earning of Rs. 5, 535 per month. That is you have to find four persons to sponsor.

In the Eg.3, it suggests that the sponsored persons should sponsor other persons as their downline members where your earnings would be Rs. 50, 850 per month. It is not mere four members but is more than that.

Here one has to notice, this sponsoring and further sponsoring is nothing but money circulation scheme as described in the Prize Chits & Money circulation schemes (Banning) Act, 1978. One can go to older posts to find the Bare Act of that enactment.

IBOFB conveniently ignores that the police have already completed the investigation and filed the charge sheet in the judicial court. The next hearing of that case is posted for July 23, 2009. Instead of realising this truth, the IBOFB lives in another part of the world and thinks what happened in the UK, is also happening in India.

Come out of the fantasy of make-believe business world IBOFB. Reality really hurts. Do you still insist that Amway never works that way. Go to the AmwayIndia.com website once again and see for your self.

Amway scheme is a scam nevertheless

First it is a lie. Then it is ignorance. What Next? The Swindlers always come out with new epithets.

The writ petition against Amway pointed out that the Amway India is still advertising in the media though the Andhra Pradesh State Government issued an order GOMS No 178 of September 15, 2008, restraining it to do so.

The writ petition also pointed out when a corporate entity is charged with a crime, can it continue the same crime time and again. It also appealed to the Hon'ble AP High Court to direct the government to discharge its duty. Section 7 of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 empowers the police to enter, search and seize on mere suspicion of any money circulation scheme.

Here in this case, the Andhra Pradesh CID has filed a criminal case against Amway India and also filed the charge sheet against it in the Chief Metropolitan Magistrate Court, Nampally, Hyderabad. So, it is clear that the Amway India indeed indulged in the illegal money circulation scheme. Still, if the company continued its activities under the pretext of New Plan, the police should stop the company from indulging in such act. That is exactly what writ petition asked the court.

Delivering the judgment in WP No. 20470 and 20471 of 2006 decided 19-07-2007 {2007 (4) ALT 808 (D.B.)}, the Division Bench of AP High Court in the para No. 49 stated "It is a well settled principle of criminal jurisprudence that no person shall be presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the learned counsel for the petitioners that till the conclusion of the criminal case the police have no power to interfere with the business activities of the petitioners."

This is exactly what the writ petition stated and appealed to the court to interfere in the illegal money circulation scheme of Amway.

Each Amway member has to find at least four members each to support its business. Isn't this a pyramid scheme? Where do they find so many people. The Supreme Court of India in a recent case {Kuriachan Chacko and others (2008) 8 SCC} said that it is mathematically impossible and the scheme organisers have been knowingly inducing people to become members and that attracts the provisions of Section 420 of Indian Penal Code, i.e. cheating.

Let us calculate later the expenditure of purchasing Amway products and how much the members actually earn.

Truth won't change by calling someone names, IBOFB

IBOFB once again appears after a long lull calling names everyone whoever disagrees with him. He challenges to prove what I told the court was a lie. What he forgets was, the learned judges after carefully considering all points only admitted the writ petition. They were shown how Amway is inducing people to become members with false promises of huge money.

The Rs. 50, 850 profit was shown in the website of amwayindia.com which was actually monthly total earnings. These hooded faces should come out from their country of origin and look for facts. If he thinks he is more intelligent than the learned justices of Andhra Pradesh High Court what that could be described - arrogance, headstrong or stupidity.

These swindlers have been robbing my country, my countrymen and I am all the more determined to unravel the mask of these hooded monsters. Come out fraudsters. Show your face and real identity.

The amwayindia.com also induces people under the false profits of Rs. 50,850 with bold lettering "We are ready to grow the business... Are You???" If this is not inducement what else is this.

This is how Amway India is cheating the gullible and there are millions of silent sufferers all over India who do not want to come out openly fearing that it would hurt their friends and relatives. That does not make Amway India a legitimate business house.

I call upon my countrymen to file criminal cases against Amway India without hurting their friends and relatives.

Andhra Pradesh High Court admits writ against Amway

The Division Bench of Andhra Pradesh consisting of Chief Justice A R Dave and Justice Ramesh Ranganathan admitted the writ of mandamus filed by Corporate Frauds Watch against Amway India and issued notices to the principal secretary (Home), Additional director general of police (CID), and Amway India to respond.

After a lively argument for more than 40 minutes, the Division Bench has agreed to admit the writ petition against Amway.

Taking up the writ petition, the Division Bench asked the advocate for Corporate Frauds Watch as to how the scheme of Amway India is illegal. Advocate Mastan Vali explained the Division Bench in detail how the Amway is swindling the gullible. He also narrated the judgment of the Division Bench of Andhra Pradesh High Court and how the government failed to implement the law of the land. The Advocate said that Section 7 of the Prize Chits &  Money Circulation Schemes (Banning) ACt, 1978 gives enough powers to the police to raid such premises on mere suspicion and seize incriminating evidence. Though the A P High Court categorically stated that the scheme falls under the Act, the police are not acting to stop the illegal activities of the company.

The counsel for Corporate Frauds Watch pointed out to the comment by the division bench of AP High Court in the para No. 49 of the judgment which said that ''It is a well settled principle of criminal jurisprudence that no person shall be presumed to be guilty until his guilt is proved, but we are unable to accept the broad submissions of the counsel for the Amway that till the conclusion of the criminal case the police have no power to interfere with the business activities of Amway. Section 7 of the Act empowers the police officer to enter, search and seize any incriminating evidence on mere suspicion.'' The counsel for Corporate Frauds Watch said still the police are not acting on various complaints against the scheme of Amway.

The counsel also pointed out to the advertisements of Amway and said these advertisements are nothing but camouflaged ones to perpetuate money circulation scheme. The advertisement directs people to go to Amway website, where the Amway induces people to become members of the scheme which promises more than Rs 50,000 every month if they recruit 102 members his downline.

However, the Division Bench refused to give notices to the electronic media as we could not submit the copies of TV advertisements to the court.

This is a great victory for the right-thinking people all over world and let us hope that the court verdict would do justice to the millions who lost money in this swindle by Amway.

Unjust enrichment is illegal, mind that

One Levi enquires that why complain about pricing of products. I wonder whether Levi has basic knowledge of how things work with the swindlers.

If anybody sells any product at a price and pays taxes to the government it is no problem. Why a scheme? That is, joining the scheme with membership fee and making others join under downline which is an infinite chain. Here comes the swindling process. Then again, as per Noni in India it is sold for Rs. 1400 where its actual cost is only Rs. 50. The question is how much tax is being paid to the government on the ex-factory price of these products and how much they are actually charging the consumer. Who is sharing the extra money and what taxes are being paid by these 'members'. On the other hand, one has to become a member of the scheme to sell these products by paying Rs. 2800 as fee. Half of this amount would be shared by the upline members. If this is not swindling what else?

This is all nothing but 'unjust enrichment' by the company and its top members. All others are losers. They cannot find people to make them members and their mirage of earning 'second income' remains elusive.

These swindlers happily travel towards their bank with a grin on their face when a sizable number of people remain helpless.

This is what is called mathematical impossibility and the organisers of suchschemes know well that it is not going to work forever. Still, they induce the gullible to become members with the false promises of huge earnings. In India it is called money circulation scheme and it is a banned activity.

That is why I call upon people all over world not to fall prey to these mischiefs and lose hard-earned money.

Bernard Madoff locked up for 150 years

Bernard Madoff, who pulled off the biggest hustle in the world single handedly has been jailed by a Newyork judge yesterday for 150 years. You can read the details here.