Post-Madoff, why aren't governments more vigilant?

Shyam

Confidence tricksters all use variations of essentially the same old techniques to shut down their victims' critical, and evaluative, faculties in order to part them from their money and avoid being held to account. Hardened grifters practise the dark (theatrical) art of preventing their marks from facing reality and complaining. Unfortunately, unless significant numbers of victims complain, then a grifter can remain at large almost indefinitely. Currently, the US Dept. of Justice estimates that (largely due to fear, and/or shame, and/or embarrassment) 85% of all frauds perpetrated in America are not reported to law enforcement agencies. However, when you look at what happened in the Bernie Madoff affair, even this shocking figure cannot be trusted.

The US Securities Exchange Commission was approached no less than 5 times during 7 years by Harry Markopolos http://www.youtube.com/watch?v=_D8asfMtx1o with not just an isolated complaint about, but a comprehensive explanation of, what Madoff was actually doing, but senior federal officials did precisely nothing. Yet, it would have been as simple task for these dunces with diplomas to discover that the grinning 'Exclusive Investment Opportunity' guru's claimed permanently-profitable, multi-billion dollar, stock-market trading activities were part of a comic-book controlling scenario being acted out as total reality; for Madoff had no independent evidence (in the form of audited accounts) to prove that his company was active on the stock-market and, thus, trading legally. His only source of revenue was his marks, to whom he sent endless reams of paper on which he arbitrarily and falsely defined them as 'Investors'. These impressive-looking documents were replete with the names of some of the largest public companies in the world, but they were the equivalent of counterfeit bank statements which were maliciously designed to deceive marks into believing that they owned a piece of the miraculous 'Madoff Hedge Fund' which, contrary to overall trading conditions, had been constantly expanding at a rate of around 10% per year during several decades. So long as more and more new unquestioning participants kept playing along with Madoff's addictive controlling scenario, he was able to sustain his fraud by using their authentic cash to pay out some fictious profits to the rest.

After being allowed to expand his pernicious game of make-believe for decades without any rigorous official challenge, the current world economic crisis hit and too many of Madoff's so-called 'investors' all demanded their fictious profits at the same time. Even then, he still tried to sustain the fraud, but he soon ran out of authentic cash. Only at that point, was Madoff forced to confess to what he had really been doing - i.e. running a vast ponzi, or money circulation, scheme (which is exactly what Harry Markopolos had explained to the SEC dunces almost a decade previously). When Madoff was finally held to account, the FBI discovered that, on paper, his so-called 'Hedge Fund' had more than $50 billions of liabilities, but, in reality, he controlled only around $1 billion of assets.

After being allowed to expand their pernicious game of make believe for decades without any rigorous challenge, it would still be a simple task for US law enforcement agents to discover that numerous grinning 'Exclusive Business Opportunity' gurus' claimed, permanently-profitable multi-billion dollar, direct selling activities have been part of a comic-book controlling scenario being acted out as total reality; for they have no independent evidence (in the form of audited accounts) to prove that a significant percentage of their constantly-churning, non-salaried commission agents have been actively retailing profitably and, thus, trading legally. For countless copy-cat 'MLM' grifters, their only significant source of revenue has been their marks to whom they have sent endless reams of paper on which they arbitrarily and falsely defined them as 'Independent Business Owners' in order to prevent them from facing reality and complaining.

David Brear (copyright 2010)

YouTube - Videos from this email

Cell tower racketeers on the prowl

Here is another racketeer on the prowl. These crooks are advertising in almost all regional newspapers with the promise of huge returns. The hook is very attractive and it is very difficult for common man to resist the temptation.

The advertisement goes like this. "The cellular service providers are looking for suitable site or a high-rise building for installing their towers to expand their services. Approximately 35 square yards of land or equivalent vacant space on residential complexes is enough for installation of the towers. The cellular services providers would pay Rs. 30,000 per month and advance an amount of Rs. 40 lakh (Four hundred thousand rupees) for installing the towers. The interested parties may contact at the following number 09962461261." However, you receive communication from another mobile number 9884886380.

It is really an attractive proposal. Many people have that size of land or structure. They are lured to contact them. The racketeers would convince the caller that it is a wonderful proposal. They claim that they have almost all the cellular service providers in their rolls. All the interested parties have to do is simply send in their details along with the photo copies of the land.

Now the racket begins. The racketeer asks you to register with themselves and their case would be considered in the order of priority. For registration purpose, the applicants have to pay an amount of Rs. 5,200. Once you paid the money, there would be no communication from them.

The racketeer gives the address "Sky Network, 605, Sixth Floor, Maruti Plaza, Sanjay Place, Agra-282002, Uttar Pradesh." Nobody goes to Agra to file a criminal case against these racketeers for Rs. 5200. Moreover, they are ashamed that they were cheated and feel shy of revealing the facts even to their friends or relatives leave alone the police.

That is how these racketeers are escaping the dragnet of the law.

My dear fellow humans all over world! Crooks always come out with new ideas to rob you. Beware of these crooks!

Useful idiots are still with us

Shyam

Over the years, various people have asked me essentially the same question:

Why has a rather obvious little flock of useful idiots http://en.wikipedia.org/wiki/Useful_idiot been given UK taxpayers money to run a charity, 'INFORM,' http://en.wikipedia.org/wiki/INFORM_(Information_Network_Focus_on_Religious_Movements) that has had no apparent function other than to bleat the reality-inverting propaganda, and/or play down the dangers, of deceptive totalitarian cults which have been arbitrarily defined by their instigators as all manner of banal groups ('religious', 'cultural', 'political', 'commercial', etc.)?

The short answer to this question is, that history keeps repeating itself. Just as in the time of 'Stalinist' Russia, an academic diploma is no guarantee that unwary observers cannot be fooled, and/or corrupted, by dangerous Narcissistic charlatans and their deluded followers. Interestingly, various reformed-grifters have confessed that the easiest people to deceive are invariably well-educated types who have a high opinion of themselves, and who are, consequently, completely convinced that no one can deceive them.

David Brear (copyright 2010)

The paranoid chapter of the 'Amway' fairy-tale

Shyam

I see that the unmasked 'Amway' Lord Haw Haw, Mr. 'IBOFB' Steadson, has delivered another stale load of unsolicited, bullshit to your Blog. However, I note that he hasn't yet sprung to the defence of Prof. Eileen Barker, or admitted that she is, in fact, one of the (unnamed) 'mainstream academics' whom Mr. Steadson has previously claimed on your Blog to have proved scientifically that totalitarian brainwashing only exists on the pages of comic-books and in the minds of deluded conspiracy theorists like David Icke http://en.wikipedia.org/wiki/David_Icke

Apparently, the little 'Amway' monkey is now claiming that he doesn't dance to his masters' paranoid tune, but, in the same breath, Mr. Steadson claims that (unnamed) 'competitors' of the billionaire bosses of the 'Amway' mob, and their many copy-cats, have been secretly financing you and me, Shyam, to 'attack' (what he arbitrarily and falsely defines as) 'the direct selling industry.' Yet, for years, Mr. Steadson has been steadfastly pretending to be under contract to, but acting completely independently of, 'Amway' whilst posting endless, provocative, reality-inverting pro-'Amway' comments on literally hundreds of Blogs, and forums, around the world. He has also run several paranoid 'Amway' propaganda Sites using various masks. These have been available in multiple languages. On one of these Blogs, Mr. Steadson has raved at length about the 'Internet war against Amway' and sought to brand all free-thinking individuals challenging the authenticity of the comic-book 'Amway' myth as, 'deluded liars' and 'communists' who know nothing whatsover about business and whom he suspects to be the obsessed members of an 'international cult.'

Unfortunately, Mr. Steadson has already been forced to admit on your Blog, that more than 90% of all the tens of millions of transient persons who, over the decades, have signed a reality-inverting contract with 'Amway' (in which they were arbitrarily and falsely defined as 'Independent Business Owners') haven't actually managed to directly-sell one item of over-priced 'Amway' wampum for a profit to a person who was not under contract to 'Amway' and, consequently, completely contrary to what their reality-inverting contracts stated, these so-called 'IBOs' have not actually been in business at all. Mr. Steadson has then steadfastly pretended that failure to sell over-priced 'Amway' wampum for a profit was not the fault of the bosses of 'Amway' who supplied it, and who controlled its quality and price, it was entirely the fault of all the tens of millions of transient lazy persons who, over the decades, have signed a contract with 'Amway' (in which they were arbitrarily and falsely defined as 'Independent Business Owners') and who, unlike himself, just didn't try hard enough.

In the adult world of quantifiable reality, during the previous 50+ years, only a tiny percentage of Insolvent Bullshit Offerers have managed to remain under contract to 'Amway' for more than 5 years. Indeed, the overall, rolling, drop-out/failure rate in the so-called 'Low-Risk Amway Business Opportunity' has been effectively 100%. The various grinning, well-groomed, heterosexual couples who have been constantly presented in the kitsch 'Amway' propaganda as shining examples of success to be copied, have either been reality-denying dupes or wealthy schills whose profits have secretly derived from a secondary advance fee fraud (a.k.a. 'tool scam').

Self-evidently, in respect of 'Amway,' the reality-inverting terms,'Low Risk', 'Business Opportunity', 'Independent Busines Owner', 'Direct Selling', etc., are part of a blame-the-victim controlling-fiction which has been maliciously constructed, presented and peddled as fact by a gang of dangerous and inflexible, cultic grifters.

As previously stated, each time Mr. Steadson has recited the various chapters of his 'Amway' fairy-tale, he has actually been pushing its authors closer to a prison cell.

David Brear (copyright 2010)

'Amway' is a self-perpetuating totalitarian con

Shyam

As you know, despite stiff competition from the bosses of the 'Scientology' mob, the billionaire bosses of the 'Amway' mob have been some of the most-dangerous, and inflexible, cultic grifters ever spawned in the USA.

Shielded by a mafia-style labyrinth of (apparently independent) corporate structures (pursuing lawful, and/or unlawful, enterprises) combined with a mafia-style hierarchy of command, the billionaire bosses of the 'Amway' mob have (so far) prevented, and/or diverted, rigorous investigation of their crimes and isolated themselves from liability. In this way, the De Vos and Van Andel clans, and 14 associated families, have run one of the most-sustainable, and profitable, self-perpetuating totalitarian confidence tricks since the demise of the 'Third Reich.' At the same time, these sanctimonious charlatans have used a proportion of their ill-gotten gains to infiltrate, and corrupt, traditional culture to a degree which makes most contemporary racketeers look like a disorganized rabble.

Over a period of 50+ years, the 'Amway' grifters, and their criminal associates, have constructed, presented and peddled a fictitious, closed-logic scenario as fact. This addictive, comic-book rags to riches 'Business Opportunity' myth has controlled not just the beliefs and behaviour of tens of millions of transient marks, but also the attitude of most casual observers (including many law-enforcement agents, judges, journalists and legislators).

Any less-than-intellectually-rigorous commentators who (like Prof. Eileen Barker and her followers) have blithely repeated the reality-inverting shielding-terminology of cultic fairy-tales, but without detailed qualification (or heavy irony), have demonstrated that they remain at a pitifully low-level of understanding of how these pernicious frauds function. As far as I am concerned, an individual has the absolute right to believe in whatever he/she wants. Should an individual want to believe in 'Unicorns,' that perfectly OK with me. However, if some charlatan takes that belief and starts peddling 'shares' in a counterfeit 'company' which claims 'to be producing Unicorn meat', that's fraud.

David Brear (copyright 2010)

Without enrollment there is no Amway business

In spite the feigned innocence of the Independent Business Owners of Amway, there would be no business at all without enrollment. Some IBOs put forward an absurd argument that enrollment would result in losing their business. If they enroll more members each member would purchase compulsorily products worth Rs. 2000 to maintain minimum PV. That way, the sponsor would also get additional income on downline member's turnover.

An IBO would never earn Rs. 62, 150 unless he ensures there are 102 members his downline. That is what the sales and marketing plan of Amway India clearly states in its website. And among these 102 members, everyone would be on hot pursuit of enrolling more members to achieve that income. That is why it is called a vicious circle. They would be chasing the mirage to quench their thirst.

When it is a clear case of cheating under Section 420 of IPC and attracts the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978, (PCMC Act) these crooks pretend that it is a direct selling and wants a separate legislation to legalise the nefarious business activities.

Indians are fortunate that there is a powerful legislation like PCMC Act, 1978 to file criminal cases against this type of fraudulent companies. However, few people are coming forward to file complaints with the police.

Let us look at the reasons for their inaction. Firstly, they are introduced into these schemes by their own friends and relatives which deters them from complaining against their sponsors. However, they never trust them again in their life time. Secondly, the victims are discouraged due to the attitude of the police when they go to them to lodge complaints. This aspect is addressed as far as Andhra Pradesh is concerned. Thirdly, many people resign that it is their fate they lost money in a business transaction. They never realise that it is not a business at all but a fraud. Fourthly and very importantly, these people are not aware that it is a crime to join and make others join in such schemes. They never join such schemes if they know that it is a crime. Out of ignorance of the law and the propaganda that it is a good business opportunity by these unscrupulous crooks, they join such schemes. Moreover, these crooks keep on saying that it is his fault that he could not bring in more people, otherwise it would be a wonderful business opportunity. This is nothing but blame-the-victim policy. A friend of mine who has been an advocate for three decades confided that he was not aware of the law, otherwise he would have never joined in such schemes. How could anybody expect the common man to be aware of the law, when a senior advocate is not aware of it?

These are the basic reasons behind the flourishing of these crooks all over world.

My dear fellow humans all over world! Do not fall for the sweet talk of these crooks. You may end up losing your hard-earned money as well as the relations with your own people. Beware of these crooks!

'INFORM' should really be MISINFORM

Shyam

As you know, Britain has never had an official government policy towards pernicious or criminogenic cultism. Legalistically, this global, historical phenomenon does not exist in the UK, but two months ago the instigator, and self-appointed sovereign ruler, of an extremely dangerous, counterfeit religious group, Michael Lyons, was sent to prison in the UK for 10 years for raping one of his endless-chain of women followers and assaulting another. Police and prosecutors knew that Lyons was a psychologically dominant charlatan who had given himself an impressive, made-up name and title, 'Dr. Mohan Singh,' and that he held himself accountable to no one. They also knew that for every former-adherent who was prepared to file a complaint, Lyons had dozens more who remained silent, as well as numerous current adherents who were illogically prepared to invert-reality on his behalf. During Lyons' trial, prosecutors openly described his group as a 'cult,' his silent victims as 'traumatized and terrified' and his current victims as 'brainwashed.' However, as far as I am aware, it did not come out during the trial of Lyons that he undoubtedly suffered from severe and inflexible Narcissistic Personality Disorder. This resulted in his grandiose sense of self-importance/righteousness and the compulsion to take advantage of others and to control others view of, and behaviour towards, him. For 22 years, Lyons steadfastly pretended moral and intellectual authority whilst pursuing various hidden criminal objectives (fraudulent, sexual, and violent). The admiration of his adherents only served to confirm, and magnify, Lyons' strong sense of self-entitlement and his fantasies of unlimited success, power, brilliance, etc.

Sadly, Lyons' totalitarian state in microcosm was neither original nor unique. His parallel kingdom exhibited the universal identifying characteristics of a pernicious or criminogenic cult. Yet a UK government-funded organization, known as, 'INFORM' (which comprises a co-opted clique of sociologists at the London School of Economics), has spent the last 20+ years ignoring the ugly reality lurking behind various, essentially-identical groups; all of which have employed co-ordinated, devious techniques of social, psychological and physical persuasion. These techniques are designed to fulfil the hidden criminal objectives of their narcissistic leaders, by provoking in their co-narcissistic core-adherents an infantile total dependence on the group to the detriment of themselves and of their existing family, and/or other, relationships.

To the eternal shame of successive British governments, more than $2millions of UK taxpayers' money has been diverted to fund the reality-inverting activities of the founder of 'INFORM', Prof. Eileen Barker, who has steadfastly tried to misinform the world that various camouflaged organized crime groups are 'new religious movements' being unjustly attacked by an isolated bunch of irrational 'anti-cutists' and a small minority of 'disgruntled former members.'

It is no wonder, Shyam, that the unmasked 'Amway' Lord Haw Haw, Mr. 'IBOFB' Steadson, has been so keen to identify on your Blog (albeit indirectly) with this co-opted clique of fellow, useful idiots; for their inverted model of reality, is exactly the same as his own.

David Brear (copyright 2010)

Charlatan convicted of crimes which sociologists claim 'do not exist'

Shyam

I thought that Indian law enforcement agents (whom I know are are regular followers of your Site) might be interested in a 'debate' which I have recently had with an academic. This (apparently highly-educated) person first gave me a potted lecture on the origins, and inevitability, of crime, according to the 'Marxist Theory of Conflict'. She then confidently informed me that 'sociology divides crime into three main groups: crimes against property (theft, vandalism, fraud, etc.), crimes against the person (assault, murder, rape, etc.) and victimless crimes (drug-taking, prostitution, etc.). However, when asked what sociology has to say about criminogenic cults ruled by sanctimonious charlatans (who suffer from severe and inflexible Narcissistic Personality Disorder) who have steadfastly pretended moral and intellectual authority whilst perpetrating all-manner of crimes in which they have systematically blamed their victims to prevent them from complaining, there was stoney silence. The academic (who had previously scoffed at my contention that a clique of co-opted sociologists have conveniently failed to recognize the obvious fact that crimes can be committed against the human mind) claimed to be completely unaware that the US Dept. of Justice currently estimates that more than 85% of all frauds perpetrated in the USA are not reported to law enforcement agencies. She did, however, accept that a recent trial in the UK has revealed that a sanctimonious charlatan, Michael Lyons, was able to pose as a 'Spiritual Healer' for 22 years - during which time he raped probably more than 100 young women, the majority of whom didn't approach law enforcement agencies http://www.telegraph.co.uk/news/uknews/crime/7911698/Michael-Lyons-may-have-raped-dozens-more-women.html .

As you already know, a controversial government-funded charity, 'INFORM' ('Information Network Focus on Religious Movements'), is run by group of sociologists in the UK who are followers of Prof. Eileen Barker http://en.wikipedia.org/wiki/Eileen_Barker. These academics (who perversely refuse to employ the term 'cult', but who talk about 'anti-cultists') were involved in the Lyons case. Some of his many victims are known to have been in contact with 'INFORM', but it remains unclear when these victims first broke silence, how many there were or whether they were immediately passed to law enforcement agents. A senior member of 'INFORM', Amanda Van Eck Phd., has recently made a non-specific public declaration to the effect that 'INFORM' worked with the UK police and prosecutors on the Michael Lyons case. In reality, UK police and prosecutors tried to force 'INFORM' to release all its Lyons-related records, but the organization hired expensive attorneys (presumeably using UK tax-payers' money) who successfully argued that these were confidential documents, subject to the UK Data Protection Act and European Human Rights Legislation, which could only be released with the permission of the persons involved.

After a mistrial in 2009, Lyons was finally convicted and sentenced to 10 years prison in July 2010, for raping one woman and assaulting another. The prosecution had taken great pains to explain to the jury how Lyons was a dangerous and manipulative guru who had brainwashed not only the women whom he was accused of raping and assaulting, but also a number of other uncomplaining victims who, under his influence, had perversely and falsely tried to discredit as 'liars,' his few complaining victims. Even though, legalistically, brainwashing does not exist in the UK, the jury accepted this common-sense explanation of how a serial rapist had managed to remain at large for 22 years. Interestingly, the unmasked 'Amway' Lord Haw Haw, Mr. 'IBOFB' Steadson, has previously made vague reference on your Site to the founder of 'INFORM', Prof. Eileen Barker. She is, in fact, one of the nameless 'mainstream academics' whom Mr. Steadson has claimed support his own declaration (as a qualified psychologist) that mind control and brainwashing techniques only exist as discredited, comic-book conspiracy theories.

David Brear (copyright 2010)

Pakistan Advocate wants to punish MLM companies

A reader from Lahore, Pakistan, Mr Hassan Makhdoom wants to know the citation of Madras High Court judgement against M/s Apple FMCG, a multilevel marketing company which cheated several thousands of people and finally was shut down.

Our friend Mr Shaik Mastan Vali, advocate in the Andhra Pradesh High Court, who is also an MCA graduate created a wonderful website www.skmastanvali.com in which the judgements of various courts against multilevel marketing companies. Just with a click on MLM judgements, one could read various judgements in full.

The website also presents various aspects of legal issues.

The Pakistan Advocate's query makes it amply clear that several countries in Asia are affected adversely by these multilevel marketing companies.

It is high time, Pakistan government also enacted a legislation on the lines of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 to punish the culprits who have been cheating the gullible in the name of selling products and services.

My dear fellow humans of Pakistan, beware of crooks! Do not fall prey to the machinations of these fraudsters and lose your hard-earned money.

TVI Express is a sure racketeer fleecing gullible

A big discussion has been going on in this blog about TVI Express with several readers accusing me for criticising the company. http://corporatefraudswatch.blogspot.com/2009/06/tvi-express-is-another-rackeer-fleecing.html

What they do not understand is that it is their money they are sharing and huge chunks of that money is actually going to the company which has no office at all. The address the company gives is not in London. But it is only a virtual office.

However, the critics did not answer to the queries by our reader Akshya who wrote in this blog this week and they could not answer to Mr Rajesh who is a management graduate. Instead, they say that I am jealous to criticise that company.

Whatever I am writing in this blog it is only in the larger interest of people. Do not fall prey to these companies and lose your money and spoil your relations with your friends and relatives. Ultimately this is the message of this blog.

The latest posts on TVI Express reveal that it is a sure racketeer and fleecing the gullible. My dear fellow humans all over world! You are only encouraging the racketeers by joining such schemes apart from losing your valuable time and money.

Kindly go through the latest posts and learn about the company.

Do not fall for cheating companies like TVI Express or Amway

One of our readers Rajesh says:

Hello All,

First let me tell you that I am an I.I.M.A graduate, the most reputed institute in Asia for management and top in India (for those who don't know!).

Two days back I came to know about this TVI Express scheme and I was surprised as in past five years I have seen many such network marketing companies cheating many and making few wealthier e.g. in India RCM, Anway (not Amway), FIC (Free India Concept) to name some of them. These companies used all the same tricks saying that we are different and in the net were the most fallible kind of guys like many gentlemen here in support of TVI.

WHY TO CARE ABOUT $250 ? Many say what is there in $250 to bet upon? OK, do it. But remember, you catch your preys out of your close friends and relatives only and technically you sell that relationship for your gain as they would be believing what you say or they are not educated enough to analyse the fate of it. If you don't know how money-lusted agents like you, are treated in the society then let me tell you that you become the most unwanted person everywhere and people stop talking to you in fear of your persuasion (except few greedy who want to turn millionire in short time by using verbal skills!)

WHAT IS REALITY? Please check yourself. It is not that difficult to have an address in London to print on broochure. These TVI guys talk a lot and their brochure shows a huge building as their Head Office which is totally untrue. Next fraud is that they have used the names of Warren Buffet, Bill Clinton, Robert and one more gentleman as if they are promoters and that is worst kind of start you can expect with any such company because these guys are nowhere related to TVI. Only their quotes have been used on the site of TVI and that too in general remarks on network marketing companies. The company is a totally fraud as it does not have any CEO or founder on its website. Also there is no other tangible proof like Company Regn No. or any trade/currency txns related approvals on the site or their brochures.

WHAT DO THEY GIVE YOU? When they collect a lot ($250) then they promise to give you some $500. Can't you see the cheating here? The ultimate thing is that the last line of the chain will be stagnant very soon as it is very expensive joining and in countries like India you can count the number of such persons on the fingers. You can imagine how fast this will stop.

MY LEARNINGS FOR LAST 13 YEARS: I have learnt a lot in last thirteen years. I also tested one of the motivational meeting by Amway where an Emerald-type person was lecturing and at last he told in nude words that "someday someone made me a fool, and I have made hundreds of others fool since then, and you see I get some 50-60 thousand rupees cheque every month. You also do that!!" That is the ultimate short cut suggested by these gurus in so-called support programmes which are nothing but to propel you when you start feeling reality of this dirty game. They will show you some who have achieved a lot and again you are ready for new start. That is all !!

THERE IS NO SHORT CUT !That may not hold good for all as many have done that and same is done by Amway-like comanies in the shelter of far overpriced items trade and actually pocketing the difference. I think that network marketing of Amway may hold it ground in the US and European market as the level of price is not much higher than usual items there and that way it is a boon. But for third world countries, it is nothing but exploitation where the opportunities are limited and people finding their dreams dying jump on the boat.

TVI EXPRESS: A PURE WHITE COLLAR FRAUD:Here they promise you a lot, do little. When one is kicked in some way, he puts that up to him as he will lose confidence of his preys. I don't know how you cannot realise that who the hell in this world can make it possible to give you these many prizes at so cheap offer which in itself is unsustainable!

HAVE YOU HEARD ABOUT MONEY DOUBLING GURUS OR BABAS? This works pretty much on similar lines, difference is that this is structured. The first movers get advantage and make money. When the business of paying the promises by taking money from other fools become difficult, the frauds come into limelight. Not to mention it keeps on happening, like two months back in Gujarat and three nearby States, in U.P. several times.

That is how other chain marketing companies like RCM, FIC, Anway died after cheating thousands.

One line about this business this is a totally UNVIABLE business and runs out of fuel soon.

COME ON ! WANT DO DO BIG ..DON'T GO FOR SHORT CUTS: I am from a village in Uttar Pradesh, India, educated there, joined a small job, then worked hard to get bigger job and got, again thought to earn more money, tried IIMs and got. Now I can have money in short time to start or support any business. So it takes little time to reach upto there but don't be so impatient to have money through this complete fraudulent way.

Rajesh

Amway India's IBOs remain at 4.5 lakh from 2007

The latest updated website of Amway India, it seems, is still living in the past.

The Amway really does enable you to be in control of your own life. With the Amway business opportunity, you work for yourself, not for Amway or your sponsor. (The fact is all IBOs are slaves of Amway spreading blatant lies about Amway).

It’s entirely up to you how much time and effort you put into your business. Like anything else in life, the amount you achieve reflects the amount you put in. (The fact is one has to spend many hours to sell these products as there would be no takers for them and there is no comparison between the amount put in and amount realised because you keep on losing money)

There were more than 4.5 lakh Business Owners in India In 2007-08. (It seems there has been no growth of Amway India since 2007-08. It shows that Amway India could not enroll more members into its fold since then)

The core of the Amway Sales and Marketing Plan's income opportunity is the sale of quality AMWAY products to retail customers. (The fact is without enrollment there is no growth and the core issue is only enrollment)

As your Amway business grows, the rewards you earn grow in proportion. The Amway Sales and Marketing Plan does not compensate anybody for simply recruiting others as Amway Business Owners.(The fact is along with enrollment, the IBOs should purchase products whether they could sell or not otherwise their names would be deleted from the list.)

To start the Amway Business one needs to buy the Amway Business Kit and be sponsored in the business by an already existing Amway Business Owner.(The business kit contains no products but only a couple of books and CDs. In fact the amount is nothing but entry fee to make fast buck by Amway India as reflected in the Andhra Pradesh High Court judgement.)

Business Kit Priced at Rs.995 only

Contents of the kit

1. All Product Handbook

This is an attractive book with a size customized to fit the business kit. It gives information on the entire product range including colours and will play an important role in retailing.

2. Unique Opportunity Unmatched Products.

A set of 2 CDs

1. Opportunity CD

2. Product CD

(Earlier, Amway India collected Rs. 1800 as subscription fee and now it is reduced to Rs. 995. They claim the fee is reduced that means in effect they admit they robbed a hefty amount earlier and now they are robbing only a small amount. So, the robbing continues.)

'Amway' - a play within a play within a play

Shyam

As you probably know, there is an old theatrical tradition (used by William Shakespeare) where a play appears within a play.

Confidence tricksters, or grifters, can be described as a dishonest hybrid of playwrights, plagiarists, theatrical producers and directors, actors and stage illusionists. They are psychologically-dominant, narcissistic individuals who present a fictitious scenario as fact . However, there is no limit to the number of mind-numbing scenes which can be added to a grifter's controlling scenario.

In all confidence tricks, there comes a point where the grifter takes the money from the victim, or mark, because he/she unconsciously accepts the grifter's controlling scenario as reality. However, in some of the most-sophisticated cons, the money has been taken by persons secretly acting in association with the grifter, but whom the mark has been led to believe are totally independent.

As I have previously explained, the French grifter, Christophe Rocancourt, was not part of an organized gang. Acting alone (but invariably accompanied by useful idiots, who had little idea of what he was really doing), Rocancourt progressively duped his marks into bringing large sums of cash to hotel suites by first acting the role of a fabulously wealthy and successful international play-boy, then offering his marks the exclusive opportunity to exchange their real money for twice as much in undetectable, counterfeit US banknotes. Rocancourt swore his marks to secrecy and he insisted that they come alone. He was so confident that his marks couldn't complain to law enforcement agents, that he simply robbed them at gunpoint and also informed them if they tried to come after him themselves, he would kill them. Even today, no one really knows how many people Rocancourt robbed, or how much money he took, using this controlling scenario combined with the threat of exposure, and/or violence. However, had he been part of an organized gang, he could have expanded his controlling scenario to dupe his victims into silence.

The classic 'long con' has involved grifters luring their marks into agreeing to participate in fake undetectable major criminal acts (such as buying counterfeit perfect banknotes). However, at the moment of transfer, fake law enforcement agents have burst in on the fake fool-proof deal and siezed the marks' authentic cash whilst pretending to arrest or kill the grifter. At the same time, the marks have been allowed to flee, and/or walk away without charge, convinced that they have escaped a bullet or a long prison term.

In the extra long 'Amway' con, marks have been told to ignore 'Amway's' own fake (unenforced) 'rules' about retailing products to outsiders. Instead, 'Amway' marks have been lured into committing the crime of propagating a closed-market swindle, but at the same time they have been assured that what they are doing is perfectly lawful, has government-approval and cannot be prosecuted, and that the exact duplication of a plan of self-consumption and recruitment has already made countless persons fabulously wealthy and successful. The 'Amway' grifters have invariably been accompanied by useful idiots who had little idea what was really happening. In the 'Amway' con, long-term marks have been progressively duped into handing over relatively small, but regular sums, to the grifters who have hidden behind two main types of corporate structure which the marks have been led to believe are totally independent, but whose bosses have secretly been acting in association.

Even now, when you read material posted on the Net. by former, long-term 'Amway' marks who have accepted that they were duped, and used to dupe others, few of them begin to understand how what lurks behind 'Amway' is merely a much more complex, and sustainable, version of a well-known con with a tired old fictitious scenario that has been plagiarized, greatly-expanded and presented as fact, by the billionaire bosses of major organized crime group.

David Brear (copyright 2010)

Who guards the guardians ?

Shyam

As you know, the UK Serious Fraud Office has (so far) refused to investigate the obvious closed-market swindle and related-advance fee frauds which lurked behind the fake 'Direct Selling' company known as 'Amway UK Ltd.,' and which generated hundreds of millions of tax-free dollars for a gang of US-based racketeers during 34 years.

Amazingly, despite him being clearly informed as to what he was involved in, the former Deputy Director of the UK SFO, Peter Kiernan, was one of the echelon of amoral attorneys who managed to obstruct justice by preventing 'Amway UK Ltd'from being bankrupted and closed, after a public interest petition was filed against it by the UK government in 2006-07 (as a result of years of complaints lodged by myself and others). Mr. Kiernan is now a 'partner' in the UK law firm, Crowell and Moring LLP, http://www.crowell.com/Professionals/Peter-Kiernan . However, this firm is linked to the billionaire bosses of the 'Amway' mob in the USA via the the billionaire boss of what used to be known as 'Blackwater' http://en.wikipedia.org/wiki/Blackwater_Worldwide . After working for UK tax-payers for 17 years, Mr. Kiernan's current annual salary (including profit shares) in the private sector, is probably around $1 million.

To give some idea of the true scale of the global problem that Corporate Frauds Watch is trying to highlight, I thought your readers might like to take a look at the latest annual report published by the UK government agency where Mr. Kiernan learnt his trade as an expert in 'high value and highly sensitive domestic and international investigations, fraud, international corruption, corporate crime, and regulation.'

http://www.sfo.gov.uk/media/112684/sfo%20annual%20report%202009-2010.pdf

The UK SFO's impressive-looking (26 page) 2009-2010 brochure which was proudly presented by its current Director, Richard Alderman, to Parliament July 26th. 2010, is one of the most absurd, but nonetheless disturbing, documents I have read for a long time. Once you ignore all the Orwellian images, mystifying technical diagrams and reality-inverting SFO-speak, and simply read the bottom lines, you discover that the almost total lack of quantifiable performance of this agency cannot be preventing economic crime in the UK. On the contrary, it must be encouraging it. Indeed, if the SFO was a public company, then these shameful balance sheets would be the equivalent of the declaration to its share-holders of a massive net-annual loss by its corporate officers, who are self-evidently more interested in justifying their annual salaries ($200 000 - $300 000), and protecting their jobs (and future jobs), than explaining their dismal failure as law enforcement agents.

The UK SFO currently accepts that fraud is costing the UK economy a massive £30 billions annually, but the same agency, with 307 staff and an annual budget in excess of £34 millions, only prosecuted 13 cases of fraud (involving a grand total of less than £34 millions of stolen funds) and convicted 22 individuals (17 of whom pleaded guilty) during 2009-2010. The derisory amount of money which the UK SFO actually managed to recover to compensate victims of fraud in the UK during 2009-2010, represents only a fraction of a fraction of 1% of the total amount which the UK SFO accepts was stolen by fraud in the UK during the same period. Laughably, compensation payments to the victims of fraud in the UK during 2009-2010, didn't even add up to the SFO's own annual budget during the same period. In plain language, it cost UK tax-payers more than £34 millions to recover less than £5 millions for victims. Yet this costly failure to protect the British public from racketeers, is what the current Chief Executive Officer of the UK SFO, Phillipa Williamson, proudly describes as:

'...continuously improving to deliver better outcomes for victims and society as a whole...'

If the Director and the Chief Executive Officer of the UK SFO really were the corporate officers of a public company (who were accountable to their share-holders), then they would both now be looking for new jobs (possibly at Crowell and Moring LLP).

David Brear (copyright 2010)

The big hoax of My Video Talk

A reader Akshya writes:

I was introduced to this MVT stuff today by one of my friends. I sincerely doubt their modus-operandi. And since the laws in India are not strong enough to keep a tab on any such scams, I have strong intutions that this is a big fraud.

Forget about the marketing part, being a Computer Science Engineer, I was not moved by any of the features of the product. Few of the questions that remain un-answered were:

1. They claim that we can post 10 GB of videos on their site. This means a lot of data storage capabilites and also state of the art network support systems and of course backed-up by the lightening fast servers. But where are their servers located ? Which company's servers are they using ? Are they using IBM's, Oracle's or any other big companies servers to support their system ? If yes, then they must be a huge customer for these big companies, then why they do not feature in any of the client list of these companies ?

2. If they are a service company, then why their 24X7 customer support number doesn't work.

3. The technology which they are claiming to be cutting edge technology is soon going to be out-dated once 3G comes in India. Of-course that may not be free but everyone needs the latest technology even if that comes for a price. You wouldn't take a black & white TV even if it is for free... right??

4. Who are the site developers ? Who is paying for their salaries ? What if the company simply shuts down its operations?

Frankly speaking its not about me or my money, its about the money of my knowns and relatives that I can't risk. Therefore I am have decided not to go for this.

Akshya

'Amway' - an extra-long con with ordinary folk as its marks

Shyam

As you know, American confidence tricksters are known as 'grifters' in their own jargon. Their victims are known as 'marks.' Grifters have been generally divided into two main types: small-timers who specialize in 'short' or unsustainable 'cons' (who mainly target ordinary folk), and big-timers who specialize in 'long' or more-sustainable 'cons' (who invariably target wealthy individuals, and/or institutions). However, there is a third type of grifter who has specialized in extra-long cons. These reality-inverting racketeers have steadfastly pretended absolute moral and intellectual authority (waving the Stars and Stripes with one hand and carrying the Bible in the other), whilst targeting ordinary folk whom they have also tried to prevent from complaining.

History proves that, in the end, no confidence trick can be sustained indefinitely. You can fool some of the people all of the time and all of the people some of the time, but you can't fool all of the people all of the time.

By simply using his latest marks' cash to pay-off his earlier marks, Bernie Madoff illegally-acquired absolute control over several billions dollars. In this way, he managed to sustain a counterfeit 'hedge fund' con for more than 30 years, until his absurd lies were exposed when too many marks demanded their non-existent 'profits.'

In his counterfeit 'half-price perfect fake money' con, the French grifter, Chrisophe Rocancourt, just took his marks' cash and then relied on the fact that, in order for them to complain to law enforcement agents, they first had to confess that they had agreed to commit a major federal crime.

The extra-long 'Amway,' or counterfeit 'perfectly-legal business opportunity,' con, has so far been sustained for more than 50 years and it has generated billions of dollars; yet, essentially, it has been no different to what Bernie Madoff and Christophe Rocancourt got caught doing.

In all these three cons, marks were shown a fantasy world where money miraculously grows on trees. Once seduced by this Utopian fiction, marks were then essentially told that they too could have exclusive access to the miraculous money tree - provided they were prepared to hand over some of their own cash. In the 'Amway,' con, the cash has been taken in relatively small, regular amounts by the grifters themselves and by various (apparently independent) individuals and corporate structures, from millions of constantly-churning, relatively-poor marks, whereas in the Rocancourt and Madoff cons, it was mainly taken by the grifters themselves (although Madoff also used apparently independent 'feeder hedge funds') in large amounts, from fewer, but far more-wealthy, individual marks and institutions.

In the 'Amway' con, marks have not just been induced into handing over their cash. They also been tricked into handing over their absolute belief in the authenticity of the miraculous money tree and in the means (i.e. the 'Exact Duplication of a Multilevel Marketing Plan') of achieving exclusive access to it.

Thus, even after they have wasted their time and money, most 'Amway' marks have remained silent, convinced that they only had themselves to blame. The few 'Amway' marks who have worked out that the miraculous money tree doesn't exist, and that 'MLM' can never work, and who have tried to complain to law enforcement agents and the press, and/or warn the public themselves, have illogically described themselves as 'Independent Business Owners.'

David Brear (copyright 2010)