The made-up term, 'Multilevel Marketing,' hides major organized crime
Personally, I don't know how the average, senior American regulator at the FTC has the cheek to keep cashing his/her salary cheques when the deconstructed explanation of how the bosses of major organized crime groups like 'Amway' have been committing fraud for decades, has always been right under their noses. However the same can be said about the dunces with diplomas at the US SEC who refused to confront the terrifying reality that Bernie Madoff was one of the most dangerous economic alchemists since the demise of the 'Third Reich.' These selectively-blind officials have been part of the de facto American kleptocracy, and not a remedy for it.
The simple truth, which a clique of complacent (and possibly corrupt) senior US regulators have failed to accept, is that, by definition, no one can make a lawful profit from a closed-market, because, in the final analysis, all closed-markets (no matter how they are camouflaged) are absurd, but nonetheless pernicious, games of make-believe based on the crack-pot, pseudo-economic theory of perpetual expansion = perpetual profits. In the adult world of quantifiable reality, since the money being circulated in a closed-market obviously comes (largely or entirely) from the participants, the most any participant can hope to receive lawfully, is only what he/she contributed in the first place. This is why closed-market swindlers should have long-since been recognised by senior US regulators as economic alchemists who peddle the public infinite shares in their own finite money. One would have thought that this type of rigorous analysis is what senior US regulators have been paid to produce (they are, after all, paid by the public), but nothing could be further from the truth. Indeed, it is difficult to imagine what the average senior American regulator does all day long, apart from possibly lunching with the likes of Bernie Madoff.
In the classic, closed-market Ponzi scheme, provided more and more persons keep participating, the instigator(s) can continue to pay out what appear to be real profits. In this way, Bernie Madoff managed to keep expanding his Ponzi scheme for at least two decades - although certain observers believe his career as an economic alchemist began in the 1960s. Madoff's closed-market swindle was effectively ignored by the regulators who refused even to check whether he was generating real external profits. The fact that he wasn't, was only exposed when the overall economic climate changed and too many participants all demanded their fictious profits at the same time. The 'Amway' closed-market swindle has been effectively ignored by the regulators who have similarly refused to check whether it has been generating real external profits. So far, the fact that it hasn't, has been maliciously occulted for 50+ years by constantly-churning insolvent participants who have been systematically conditioned to blame themselves when inevitably they fail to make money. This is what has recently been identified as a pattern of major ongoing racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act) by attorneys representing the destitute plaintiffs in the Pokorny v.'Amway/Quixtar' civil lawsuit.
The question remains unanswered: Why haven't US federal prosecutors also recognized so-called 'MLM' companies as the front for major organized crime?