For 50+ years, virtually no 'MLM' wampum has been sold to the public for a profit

Shyam 

Last year, we posted an exposé of a grotesque, narcissistic charlatan, Alan Kippax, and his pernicious 'MLM business opportunity' cult, known as 'Business In Motion.' We later informed readers that Mr. Kippax had been jailed in Canada for causing the death (by wreckless driving) of his cousin and for maiming an innocent young couple, and that his ongoing 'MLM/BIM' racketeering activities were finally facing limited, criminal investigation in Canada. At that time, I severely criticized UK government trade regulators who (6 years previously) had caught Kippax red-handed, running the identical 'Amway' copy-cat cult in Britain behind an absurd corporate front known as 'Treasure Traders Corp.', but who had then allowed this dangerous little liar to flee to his homeland of Canada with stolen funds totalling several millions pounds which he used to set up the 'BIM' fraud. 

In 2005, instead of the UK police immediately arresting Kippax under the Theft Act and seizing his ill-gotten gains, this affair was left to UK government trade regulators who have absolutely no powers to make criminal investigations. Consequently, legal advisers to the UK Dept. of Trade and Industry could only file a civil, public interest bankruptcy petition against Kippax' front company. It was then revealed in court that the 'Treasure Traders Plan for Financial Freedom' was, in point of fact, a dissimulated closed-market swindle, contrary to UK Trading Schemes and Lotteries legislation, in which Kippax had arbitrarily defined unlawful internal payments (in exchange for effectively-unsaleable wampum), as lawful external 'sales.'

http://www.insolvency-service.co.uk/viewpiucasedetails.asp?companyname=Treasure%20Traders%20Corporation%20Limited .

In this way, Kippax had deceived several thousands UK citizens into handing over regular cash payments to his counterfeit 'direct selling company' on the pretext that anyone could retire from work by being their own loyal 'Treasure Traders' customer and by recruiting their friends and relations to be their own loyal customers, etc. ad infinitum. In simple terms, Alan Kippax was proved to be a common thief who had stolen millions of pounds from thousands of UK citizens, but he never faced the slightest criminal charge in the UK. 

Corporate Frauds Watch received various supporting comments from a middle-aged American couple, Mr. and Mrs. Basset, who were, apparently, former, deluded adherents of Mr. Kippax' unoriginal, economic pseudo-science. However, these same people have subsequently posted unsubstantiated material on the Net denying the reality of our wider-analysis of 'MLM business opportunity' fraud, in which they steadfastly pretend intellectual authority, by insisting that I have not conducted enough research to pronounce all MLM companies to be hiding esentially the same racket. However, Mr. and Mrs. Basset would appear to be under the spell of yet another gang of grinning 'MLM business opportunity' racketeers http://togethertothetop.com/ . The fact that senior agents within the US Federal Trade Commission have recently issued a blanket-warning to the American public about 'MLM business oportunity' fraud http://www.youtube.com/watch?v=OoB2PKYbu4Q , whilst, for years, other senior FTC agents have refused to enforce criminal laws which prohibit it, has had the effect of authorizing major, ongoing racketeering activity not just in the USA, but also around the globe. Essentially, the FTC currently holds the same reality-denying position as Mr. and Mrs Basset. On the one hand, US government trade regulators (like Eileen Harrington) fully-accept that 'MLM business opportunities' are fraudulent, whilst on the other hand, these same officials need to cling to the fairytale that other 'MLM business opportunities' are viable. Indeed, if senior FTC officials (like Eileen Harrington), were publicly to face up to the ugly truth that their own colleagues have been acting under the influence of racketers, the US government would be buried under an avalanche of litigation and certain corrupt FTC officials would risk disgrace and long prisons terms. Tellingly, I have recently tried to speak with Eileen Harrington, but I was told by her Orwellian assistant that she doesn't accept calls from the public. Yet the public are her employers. 

Meanwhile, in the adult world of quantifiable reality, the mountain of evidence proving our wider-analysis of 'MLM' to be accurate, continues to grow. 

Like the bosses, and reality-inverting propagandists, of the 'Amway' mob, the bosses, and reality-inverting propagandists, of the 'Fortune Hi-Tech Marketing' mob have steadfastly pretended that: 

Their direct selling company is perfectly lawful and is associated with all manner of trusted household-names in the USA. They cannot be held responsible if some rogue 'Independent FHTM Business Owners' do not obey the company's own rules which oblige them regularly to sell significant quantities of good-value products, and services, to the public for a profit.  

At the same time, numerous dissidents, testify that the 'FHTM' plan for financial freedom is, in point of fact, a dissimulated closed-market swindle, in which unlawful internal payments (in exchange for effectively-unsaleable wampum) have been arbitrarily defined as lawful external 'sales.' In this way, tens of thousands of 'FHTM' adherents continue to be deceived into handing over regular cash-payments to a counterfeit 'direct selling company' controlled by a little gang of sanctimonious racketeers, on the pretext that  anyone can retire from work by being their own loyal 'FHTM ' customer and by recruiting their friends and relations to be their own loyal customers, etc. ad infinitum. 

http://www.youtube.com/watch?v=UIHmRvK1chw 

Independent evidence from all around the world proves beyond all reasonable doubt that, for the previous 50+ years, virtually no 'MLM' wampum has been sold to the public for a profit, and that all so-called 'MLM companies' are absurd fakes which  have actually been peddling variations of essentially the same 'business opportunity'lie to tens of millions of constantly-churning victims. 

I have previously been criticized as 'grossly over-reacting,' for describing this multi-billion dollar global-fraud as a financial holocaust (with a small 'h') of which many people are in denial, but how else would one accurately describe it?

 David Brear (copyright 2011)

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The adherents of 'business opportunity' frauds confirm the accuracy of our analysis

Shyam 

I observe that your recent post about the blame-the-victim 'business opportunity' fraud known as 'Agrigold' has attracted an avalanche of intellectually-castrated comments. 

The indignant little fellow who signs himself 'developmentfuture' would be absurd, if it wasn't for the fact that he is in real danger. Self-evidently, his closed-logic arguments in defense of the object of his unquestioning devotion, have all been fed to him by his 'Agrigold' handlers. Indeed, these reality-inverting, propaganda arguments have been copied word for word from the 'Amway' originals. 

'Developmentfuture' is actually putting forward the dangerous concepts that: 

- in all fields, collectivism is far more productive than individualism.  

- a group should always takes precendence over the individual.

- an individual will always benefit from being a member of a group. 

Yet, blind obedience to the group, no matter what suffering this entails, is an identifying characteristic of all totalitarian regimes and pernicious cults. During the 1930s, in the name of 'communism,' the 'Soviet' dictator, 'Stalin,' used the identical closed-logic arguments to collectivize agriculture. Millions of individual farmers were herded onto enormous farms which were supposed to be far-more productive. 

'Stalin's' Utopian '5-year plan' to eradicate hunger and produce a surplus of food to be exported, actually led to a famine which cost the lives of at least 25 millions men, women and children. The ugly truth was deliberately hidden from the 'Soviet' people by the 'Soviet' leadership behind a wall of reality-inverting propaganda, until 'Stalin's' death in the 1950s. 

Exactly like the 'Soviet' regime, the catastrophic results of cultic frauds, like 'Agrigold' and 'Amway' have been deliberately hidden behind walls of reality-inverting propaganda. These major organized crime groups all employ co-ordinated devious techniques of social, psychological and physical persuasion. Their bosses seek to overwhelm their victims emotionally and intellectually by pretending that progressive initiation into a secret '2-5 year plan for success' (coupled with total belief in the authenticity of this plan and unquestioning deference to the authority of its fabulously-wealthy, higher initiates) will lead to 'total financial freedom.' 

In the adult world of quantifiable reality, by making total belief a prerequisite of 'total financial freedom,' vulnerable persons like 'developmentfuture' can be drawn into a closed-logic trap. i.e. failure to achieve success in 'Agrigold' is solely the fault of the individual who didn't believe totally. Again, the 'Soviet' regime used essentially identical techniques to repress all internal dissent. 

As for the fellow who signs himself 'welcome,' his tedious list of examples which (I presume) are supposed to demonstrate that prices in any market can fluctuate depending on supply and demand, has absolutely no relevance to 'business opportunity' fraud.  Laughably, all the examples which 'welcome' gives, refer to authentic businesses which have made lawful profits from retailing goods, and/or services, to the public on the open market. 'Business opportunity' frauds, like 'Amway' and 'Agrigold', are dissimulated closed-market swindles which have precious-little to do with authentic business.  The wider evidence proves beyond all reasonable doubt, that, for decades, a never-ending stream of tens of millions of ill-informed victims of 'business opportunity' frauds have retailed virtually no goods, and/or services, to the public for a profit. On the contrary, they have been conditioned to hand-over regular cash-payments to greedy racketeers in exchange for effectively-unsaleable wampum, and to recruit their friends and relations to do the same, in the deluded belief that this is the 'secret plan to achieve total financial freedom.'  

In truth, each time the intellectually-castrated adherents of 'business opportunity' frauds appear on your Blog, Shyam, and spout their puerile bullshit, they are merely confirming the accuracy of our analysis. 

David Brear (copyright 2011)

AgriGold started cheating in neighbouring states too

One of our readers Mr David writes from Bengaluru:

Now theAgirGold is spreading in Bangalore too, they have opened a franchise in Nelamangala and started operations by appointing many agents to pool in funds. I got my hands on a Bond/Receipt offered by them for the New Depositors, the rules and conditions are in English and clearly benefit the Agrigold, there is no mention of returning money but only a maturity period and some piece of land given in return, and if any untoward things happen with the project like calamities or state government problems they are going to deduct the value of the land and return the balance. Considering an individual will pay about 5,000 to 15,000 over a period of 2-3 years (In fact it is 900 days on the basis of daily payment- Ed), either he would be asked to shell out more to get the land or lose what he has paid. 

Also they have put up couple of Hoardings here in Bangalore and advertising in TV9 which these agents ask the potential Bakras (lambs) to watch before taking it up, 

Bangalore has already witnessed one of the largest of Real Estate Frauds in the name of Orange Properties who have cheated to the tune of Rs 100 Crores (Rs one billion)  to hundreds of investors. Most of these are well educated High Society IT Class of Bangalore. But Agrigold seems to be targeting poor lower class who can't even read the fine print conditions written in English. 

To make it reliable, if they want to, they should offer assurance to the State government or RBI. Moreover all disputes are limited to the Jurisdiction of Vijayawada. Imagine people in Bangalore need to go to Vijayawada to recover Rs 5000 and Rs 10000 their hard earned money indeed and dream of owning a land!! 

Mr David,

It is really appreciable that you have gone through whole issue and rightly analysed it. This is the racket launched by AgriGold all over south. Not only that, they are also offering huge commissions to the agents which amount to thirty per cent. In effect, the owner of AgriGold, Mr V R Avvas gets only 70 per cent of the amount deposited by the investors. Anyway, he has not intended to return the amount. Whatever he gets, he coolly pockets leaving the public in the lurch. As long as he gets new deposits, he refunds money to the old depositors. Once the new deposits stop coming in, then the true colours would come out. But do we need to wait till that happens? It is high time, the police swung into action and take suitable action by filing criminal cases against the AgriGold.  

CID police seize documents from the premises of KMJ Land Developers India Ltd

The CID police of Andhra Pradesh raided the premises of KMJ Land Developers India Ltd in the cities of Vijayawada, Vizianagaram and Visakhapatnam in Andhra Pradesh and seized incriminating documents. The team of sleuths headed by DSP Ramana Kumar conducted the raid.

It may be recalled that the KMJ Land Developers India Ltd has been indulging in money circulation scheme in the name of real estate. Each member has to pay Rs. 5,000 and he has to enroll more members to claim commission.

The organisers say that it is the deposit for the land to be allotted to the members. However, they could not explain how much land they could allot for Rs. 5,000. Not even one square yard of land could be  allotted for Rs. 5,000. The land has become scarce and even in small cities it is not possible to allot land for that amount. 

So, it is an open money circulation scheme and the CID has come to conclusion and registered a criminal case against the company.

The CID police warned people not to fall prey to the easy and quick money inducement by such unscrupulous companies. 

'Amway' and 'Fortune Hi-Tech Marketing' are the American Dream made Nightmare

Shyam 

Here are two recent articles from 'USA Today' for your free-thinking readers. 

http://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_CV_N.htm 

http://www.usatoday.com/money/companies/2010-10-15-multilevelmarketing14_CV_N.htm 

The criminogenic organization known as 'Fortune Hi-Tech Marketing' is an 'Amway' copy-cat. i.e. 'FHTM' is the reality-inverting label over the entrance to yet another self-perpetuating 'MLM business opportunity' cult. 'FHTM' was instigated, and is run, by a gang of exceedingly-greedy, but otherwise-mediocre, little raketeers from Kentucky. These narcissistic parasites have begun to grow rich by peddling an unoriginal lie whilst steadfastly pretending moral and intellectual authority. 

In the adult world of quantifiable reality, the authenticity of the 'FHTM' lie is currently being challenged all over the USA, after the State of Montana charged that 'FHTM' was actually a dissimulated pyramid scheme. However, exactly like the billionaire bosses of the 'Amway' mob,  the millionaire bosses of the 'FHTM' mob posed as innocent Christian businessmen/philanthropists under attack and instructed their aggressive echelon of attorneys to negotiate a 'settlement' with the plaintiffs. i.e. without admitting any fault, they agreed to hand-over a significant chunk of their ill-gotten gains in Montana, in order to continue their clandestine criminal activities elsewhere. 

It is common knowledge in the USA that 'FHTM' is a pernicious blame-the-victim scam http://www.youtube.com/watch?v=oZxCK4adtuA . Indeed, it is common knowledge in the USA that all so-called 'Multi-Level Marketing' companies are shielding essentially the same, premeditated, closed-market swindle. 

This general video warning has been recently produced by the Bureau of Consumer Protection at the US Federal Trade Commission http://www.youtube.com/watch?v=OoB2PKYbu4Q . However, it beggars belief that senior FTC officials like Eileen Harrington can use public funds to pretend that the FTC wants to protect the American people from 'MLM business opportunity' fraud, when, for decades, other senior FTC officials have allowed this cancer not only to gnaw its way into the USA, but also into the rest of the world. 

Despite more than half a century of damning-evidence, senior US government trade officials prefer to remain blissfully-ignorant of the fact that behind so-called 'MLM' companies has lurked the ongoing historical phenomenon of criminogenic, or pernicious, cultism.  Meanwhile, the self-appointed bosses of these reality-inverting, totalitarian groups continue to rake-in vast fortunes by peddling variations of the same Utopian fiction as fact. 

'MLM business opportunity' fraud is undoubtedly a form of major organized crime spawned in the USA. It should never have been left to ill-informed, and/or corrupt, American regulators to deal with this internal threat to democracy and the rule of law. 

'Amway' and 'FHTM' are the American Dream made Nightmare. 

David Brear (copyright 2011)

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India's second largest political party has been infiltrated by foreign-based 'MLM' racketeers

Shyam

The fact that the billionaire bosses of the 'Amway' mob have infiltrated the Bharatiya Janata Party (BJP) in India - by recruiting yet another useful idiot , Mr Kishan Reddy - is just one more piece of damning-evidence proving an overall pattern of major racketeering activity. However, Mr Kishan Reddy has apparently attempted to hide his involvement with 'Amway India Enterprises' by setting up his 'Amway' agency in his wife's name. Indeed, if Mrs Kavya was brought before a judge, it is very probable that she wouldn't have the slightest idea what her husband has got her involved in. It makes me wonder: Who else, within his entourage, Mr Kishan Reddy has been deceiving? and: Who else in the BJP has fallen for the 'Amway/MLM' lie?  

For the benefit of your non-Indian readers, the BJP is the second largest political party in India. As Indian political parties go, it is right of centre. The BJP has traditionally advocated Hindu values and Indian nationalism, along with conservative social/economic policies of self-reliance and (in recent years) free-market capitalism. In general terms, the BJP can be compared to the American Republican party.  

Thus, if you were a gang of US-based racketeers employing a shifty labyrinth of legally- registered corporate structures to run, and hide, a vast 'MLM business opportunity' fraud around the globe, the perfect democratic political movement to infiltrate in India (by pretending affinity with its elected-leadership) would be the BJP, and this is exactly what the billionaire bosses of the 'Amway' mob have sought to do. After all, like an undiagnosed-cancer, the 'Amway' racket has been steadily gnawing its way into the democratic process for decades in the USA where the 'Amway' bosses have taken the precaution of carrying the Stars and Stripes in one hand and the Bible in the other. 

Unless Mr. Kishan Reddy considers fraud and racketeering to be the ultimate form of free-market capitalism, then his involvement with the 'Amway' mob has precious little to do with free-market capitalism, Indian patriotism or traditional Hindu values for that matter. Furthermore, there is an almost-exquisite irony in a leading-member of a democratic, Indian nationalist, political party (born out of the struggle for Indian Independence from foreign rule), becoming the deployable agent of foreign-based racketeers who (like the wealthy British Imperialists of old) have invoked the 'Christian God' as their false justification to exploit millions of Christians and non-Christians alike. In truth, if it wasn't for the catastrophic results of 'MLM business opportunity' fraud for millions of ordinary Indians, and for the Indian economy, then Mr. Kishan Reddy's involvement with it would be a sick joke. 

Given the wider evidence, if Mr. Kishan Reddy still believes 'Amway' to be an authentic enterprise, then he is probably too stupid to be held to account. He has already proved quite conclusively that he is not a fit and proper person to represent his BJP electors in Andhra Pradesh, or to hold any form of public office in the Indian republic. 

David Brear (copyright 2011)

BJP MLA Kishan Reddy is the C&F agent of Amway India in AP

The leadership and the cadre of Bharatiya Janata Party claim that they are the real patriots of the country. They spew venom against the spread of religious conversions and they also propagate 'swadesh'. But their own Member of Legislative Assembly (MLA) of Andhra Pradesh State is the C&F agent of Amway India Enterprises in Andhra Pradesh. He is also the Floor leader of the party in the State Assembly. 

The MLA in question is Mr Kishan Reddy, who is the C&F agent of Amway India in Andhra Pradesh. However, the agency is taken in the name of his wife Mrs Kavya. But he is the de facto boss of the agency. 

When a social worker Mr Srinivasa Reddy filed a criminal case against Amway India with the police of Chikkadapally police station, Mr Kishan Reddy through a mutual friend contacted Mr Srinivasa Reddy and asked him to withdraw the criminal case. However, Mr Srinivasa Reddy refused to take back the criminal case and it is pending inquiry with the police.

Mr Kishan Reddy is aware of the pending criminal case against Amway India. He is also aware of the judgement of the Andhra Pradesh High Court which held that the business plan of Amway India is illegal. He is also aware that the Supreme Court of India refused to entertain the Special Leave Petition of Amway India and upheld the judgement of Andhra Pradesh High Court. He is also aware how the Amway India is siphoning out several hundreds of crores of rupees every year from the country. Still, in the name of business, he joined hands with a criminal gang and indulging in criminal activity. It is high time, the activists of the respectable Bharatiya Janata Party raised their voice against their own leader and tell him in an unequivocal manner to withdraw support to a criminal group like Amway India.

'Club Asteria' is a narcissistic fairy-tale peddled by charlatans

Shyam

As you know (as a result of my own brother falling for the'Amway/MLM' myth), for a long time, I have been rigorously observing the ongoing phenomenon of  'business opportunity' fraud, along with the wider-phenomenon of criminogenic, or pernicious, cultism. 

All cosmopolitan people readily accept that cults most-certainly exist, but, due to the prevalent style of media-coverage, we have habitually thought of them as remote, and grotesque, freak-shows. In my experience, if it is suggested that we should all be on our guard against cultism, because it is actually much closer to us than we like to think, the average person is immediately convinced that such an idea is absurd. Obviously, cults never announce themselves, but their many disguises continue to adapt to mirror the changing spirit of the times. Throughout the ages, a dangerous minority of mythomaniacs, charlatans and would-be demagogues have always been able to get their human prey to sail blindly into positions of subjection, by first bedazzling them with all manner of false beacons which seemed so welcoming and authentic that the majority of people could not have been expected to determine exactly what was lurking behind them. 

The latest 'philanthropic business opportunity' cult to appear, the so-called 'Club Asteria,' is a classic of its type. In the adult world of quantifiable reality, its self-appointed leaders are just another greedy little mob of hitherto-mediocre charlatans who have suddenly awarded themselves impressive-sounding, made-up ranks and titles. Indeed, these dangerous clowns exhibit all the diagnostic criteria of severe and inflexible Narcissistic Personality Disorder. Like all aspiring pernicious-cult leaders, the bosses of  'Club Asteria' have been steadfastly pretending moral and intellectual authority  whilst pursuing various hidden criminal objectives. The admiration of their adherents has only served to confirm and magnify, their strong sense of self-entitlement and fantasies of unlimited: wealth, success, power, brilliance, etc. 

Some of the propaganda on the Net. about, Ms. Andrea Lucas (the ostensible boss of the 'Club Asteria' mob), is so ludicrous, that it is difficult to believe that anyone could fall for it. Ms. Lucas' own proud boast that she is a 'former Director of the World Bank,' is a demonstrable lie, but this also means that she can never have 'managed  400+ projects for the International Finance Corporation' or 'negotiated funding for the governments of Russia, Sudan, Yemen, Philippines, China and Cameroon or managed joint venture projects in Hungary, Austria and the Czech Republic.' http://www.entrepreneur.com.ph/board/index.php?topic=62610.0 . Indeed, when the person called Andrea Lucas temporarily worked at the World Bank 1979-1986, Russia, Czechoslovakia and Hungary were all still part of the Soviet Empire. The Czech Republic only came into existence in 1992. Yet these narcissistic fantasies, and others, are being broadcast on the Net. as evidence that 'Club Asteria' cannot be a scam. 

It is also being claimed that : Andrea Lucas is the 'Chairperson of the Asian Development Consortium Inc.,  the President of Development Coordinators International Ltd.' and that she holds a 'PMD from the Harvard Business School. 

It will come as no surprise to your free-thinking readers to learn that, so far, I cannot find any independent reference to 'Develoment Coordinators International Ltd.' or the 'Asian Development Consortium Inc.'  Whilst the impressive-sounding 'PMD from  the Harvard Business School,' actually refers to the 'Program for Management Development.' This was nothing more than an 8-12 weeks (selective) Executive Education Program offered by the Harvard Business School in which approximately 12000 middle managers from all over the world paid to participate 1957-2005. http://www.exed.hbs.edu/programs/pmd/Pages/default.aspx . All these persons automatically received the right to use the academic-sounding title 'PMD (Harvard)' which is apparently why they were so keen to participate. These 'PMD's' were then offered access to discounts on further (open-enrollment) Executive Education Programs sold by the Harvard Business School. But then, one would have expected the boffins at the Harvard Business School to have come up with such a self-gratifying a marketing strategy.  

David Brear (copyright 2011)

Andrea Lucas 'World Bank Director' lie blown out of the water

Shyam 

I have now received further confirmation that no one by the name of Andrea Lucas has ever held a position of Executive Director of the International Finance Corporation at the World Bank. Thus, no person by the name of Andrea Lucas has ever served on the Board of Directors of the World Bank. I am further informed that, at any given time, there are only 24 serving World Bank Executive Directors who represent all the member countries of the World Bank and who are appointees (subject to the approval of the US government). Only the five largest, individual, national share-holders of the World Bank (USA, France, Germany, Japan and the UK), have the right to appoint their own Executive Directors. Thus, Executive Directors of the World Bank are, technically, not employees of the World Bank. 

As previously stated, a woman by the name of Ms. Andrea Lucas was temporarily employed at the World Bank in Washington DC between 1979 and 1986. However, there are currently around 10 000 persons working for the World Bank in Washington DC. All these people operate in 100 different World Bank offices which represent the member countries, and which themselves comprise hundreds of departments and sub-departments. These offices, departments and sub-departments are all run by persons who are misleadingly referred to (internally) as 'directors.' The Andrea Lucas in question, was apparently just one of these numerous departmental/office managers with the misleading title of 'director.'  Indeed, since the World Bank's foundation, the number of individuals who have occupied posts within its Washington HQ, known internally as 'directors,' probably runs into several thousands. 

It seems that whoever is actually running the 'Club Asteria' scam, has simply found one of these numerous former so-called 'directors' at the World Bank, but who left that employment 25 years ago. It also seems that, since that time, Andrea Lucas has actually owned and operated a real-estate agency in the USA, and that one of her 'Club Asteria' associates, Mark Kaplan http://club-asteria-asterios.blogspot.com/2010/09/welcome-message-from-our-new-partner.html ('Director of Strategic Planning and Development'), is also an American real-estate agent. Given the recent catastrophic fall of the US property market, it is no wonder that these narcissistic losers have been obliged to find an unlawful means of making quick and easy money. By the constant repetition of reality-inverting key words and images (including, 'former Director of the World Bank'), this absurd little gang of grinning charlatans has created an illusion of moral and intellectual authority.  

In the adult world of quantifiable reality, 'Club Asteria' is nothing more than an absurd fairy-tale being peddled as fact. 

As a US citizen, by conspiring with others to set up a fake corporate structure and by masquerading as a 'former Director of the World Bank,' in order to commit fraud internationally, Andrea Lucas, has left herself open to serious criminal charges under the US federal Racketeer Influenced and Corrupt Organizations Act, 1970. 

In simple terms, now that the 'World Bank Director' lie has been blown out of the water, the absurd Ms. Andrea Lucas and her absurd criminal associates at 'Club Asteria,' risk being stripped of everything they own and being sent to prison. 

David Brear (Copyright 2011)

The instigator of the 'Club Asteria' scam, Andrea Lucas, before and after

Dear readers

Corporate Frauds Watch  has found these revealing photos of, and commentary by, Andrea Lucas at  http://www.google.fr/imgres?imgurl=http://www.cliffsheats.com/wp-content/uploads/2010/03/andreal.jpg&imgrefurl=http://www.cliffsheats.com/real-people-real-results/&usg=__8gZidy82gwtrc089KR4myIdXjow=&h=320&w=338&sz=53&hl=fr&start=77&zoom=1&um=1&itbs=1&tbnid=tteyuYapLgutzM:&tbnh=113&tbnw=119&prev=/images%3Fq%3Dandrea%2Blucas%26start%3D60%26um%3D1%26hl%3Dfr%26sa%3DN%26rlz%3D1G1GGLQ_FRFR334%26ndsp%3D20%26tbs%3Disch:1&ei=zAOFTZeFLI2XOrifrcwI 

In all honesty, does this woman look, or sound, like a 'former head of the World Bank' who has developed an exclusive, philanthropic 'business opportunity' which can save the world from poverty?

 

 

'Not only have I lost 39 lbs (!) and feel fantastic, I have stopped craving sweets and I am never hungry.  I used to think about food all the time … either because I wanted to eat or because I was dieting.  Now I do not think of food at all, except to remind myself to have a mid-morning and mid-afternoon Parillo Bar snack.  They are delicious, by the way, and totally satisfying.  And the food preparation is simple … even for someone like me who doesn’t cook.  All my friends want to know my dieting secret, and they are incredulous when I tell them that I eat all day long … but it’s true, and you can’t argue with success!”  Andrea Lucas, Ashburn, VA'

 

 

Corporate Frauds Watch

Andrea Lucas is a liar. She was never a Director of the World Bank

Shyam 

As you know, various people, including myself, have taken the trouble to contact the World Bank in Washington DC and enquire about Andrea Lucas, the instigator of the 'business opportunity' scam known as 'Club Asteria.' It turns out, that a person called Andrea Lucas was at the World Bank during the late 1970s and early 1980s, but she was never on the Board of Directors. The Andrea Lucas in question was, in point of fact, briefly employed at the World Bank HQ in Washington DC in the capacity of head of the (internal) Management Systems and Accounts Dept. She was one of numerous employees who were known only within the World Bank HQ as 'directors' (i.e. middle-management staff with fancy titles). Therefore, it is an absurd lie to say that Andrea Lucas is a former Director of the World Bank. Furthermore, I have yet to receive any confirmation that today's Andrea Lucas of 'Club Asteria' and the Andrea Lucas at the World Bank more than 25 years ago, are one and the same. 

http://www.patrickpretty.com/2011/03/16/sea-of-incongruity-surrounds-club-asteria-as-ken-russo-pushes-opportunity-on-talkgold-ponzi-board-world-bank-qualifies-director-claims-made-by-promoters/ 

Perhaps the anonymous individual who has recently contacted Corporate Frauds Watch, and who has posted a thoughtless comment in support of 'Club Asteria,' would like to explain to your free-thinking readers why the instigator of 'Club Asteria' has been deliberately misleading the world about her own background and achievements. 

I am reliably informed that the Andrea Lucas of 'Club Asteria' can't be more than about 50-60 years of age. If nothing else, common-sense would strongly-suggest that it is impossible for a person of this age to have held an important, policy-making position at the World Bank 25-30 years ago. 

David Brear (copyright 2011)

Sale of a lie is not authentic business: Club Asteria is a fraud

One of our anonymous readers with a pseudonym Datablue Systems writes:

Sir , I read your article related to Club Asteria , though not yet a full member, there are so many proofs from close friends of payment as promised by Club Asteria, how come you call their scheme a scam. Many people out there are looking for ways to make money on the net legitimately, as you rightly mentioned on your article about your fight against MLM SCAM. What do you then recommend, or you mean one should stay away from any business advertised on the internet. 

Dear Reader,

Far from condemning business, Corporate Frauds Watch supports of all genuine enterprise which generates lawful profits.  What CFW has been trying to expose, are fake 'business opportunities' where few (if any) products, and/or services, are ever sold to the public for a lawful profit (due to the fact that their price and quality is centrally-controlled by racketeers), and which are actually based on the crack-pot, and unlawful, economic pseudo-scientific theory that endless-chain recruitment = endless profits for recruiters. 

Each and every one of these dissimulated closed-market swindles has been perpetuated by its own victims, who temporarily become convinced that other persons (whom they trust) have made money by purchasing and recruiting others to do the same, and that they too can make money by purchasing and recruiting others, etc. ad infinitum. 

'Club Asteria' exhibits all of the identifying characteristics of one of these camouflaged, endless-chain recruitment scams. Indeed, the fact that its partipants try to recruit their social contacts by steadfastly claiming that they are making money, is one of the main identifying characteristics. Furthermore, another identifying characteristic of 'business opportunity' fraud, is that its apologists invariably attack free-thinking persons challenging the authenticity of 'MLM' by accusing them of being anti-capitalist, and/or ignorant of all matters commercial. 

Common-sense suggests that making large sums of money from business, like acting or playing cricket, is a rare talent which not everyone has, or can learn. 'Business opportunity' frauds are all based on peddling the myth that absolutely anyone can become successful in business. This is as ridiculous as peddling the puerile lie that absolutely anyone can become a film, or sports, star. 

In reality, the simple recipe for success in business (rather than speculation) has remained unchanged for centuries. Find something which the public will buy from you for a higher price than you can manufacture, or procure, it for. Then sell it to the public and keep selling it to the public. 

In no way does 'MLM' adhere to this fundamental recipe, because the sale of a lie is not an authentic business: it's a fraud. 

Corporate Frauds Watch (copyright 2011)

A corporate fraud where the corporation is the victim

Shyam 

Recently, one of your commentators described the victims of 'MLM business opportunity' fraud as 'dumb'. However, I would like to remind your free-thinking readers that literally anyone can be persuaded to part with money after falling for lies; including the Chief Executive Officers of multi-national corporations. Indeed, all confidence tricksters know that the more convinced a person is that he/she cannot be fooled: the more easy it is to fool him/her. 

Last week, the share-value of the major French car-maker, Renault SA, fell by 6.3% (representing more than 500 000 000, or half a billion, Euros). At the same time, it was disclosed that one of the company's own security managers, Dominique Gevrey (a former French Intelligence agent), had been arrested by the French police at Charles de Gaulle airport as he tried to board a plane for Africa. It is now very probable that M. Gevrey, and two other Renault security managers, will soon be facing charges of organized fraud against their employers. 

In total, since this time last year, Renault shares (which are partly-owned by the French State) have fallen by more than 12%. Meanwhile, the Chief Executive Officer of Renault, Carlos Ghosn, has staked his company's future on developing an electric car program. However, M. Ghosn, appeared on French national television at the beginning of this week and courageously admitted that he had been the victim of a hoax in which he was led to believe (by his company's own security staff) that Renault was itself the victim of industrial espionage. As a consequence of these costly gaffs, M. Ghosn declared that he, and several other Renault executives, would return their performance bonuses for 2010. In the case of M. Ghosn, this involves him giving up 1.6 millions Euros. In total, he will still receive 9.2 millions Euros as his joint 2010 salary from Renault and its Japanese affiliate, Nissan. 

Typically, in order to commit fraud, it appears that M. Gevrey had pretended affinity with, and played on the existing fears of, his victims. He acted out an elaborate, fictional controlling-scenario as fact. In brief, M. Gevrey claimed that an undisclosed source would (in return for a cash payment in excess of 300 000 Euros) reveal the names of 3 high-level traitors at Renault who were selling technological secrets to the agents of rival Chinese manufacturers. After pretending to hand over this payment to his secret source, M. Gevrey produced the names of Michel Balthazard, Bertrand Rochette and Matthieu Tenenbaum (all Renault managers closely-involved with the electric car program). The trio were duly fired in January of 2011 and, despite their protestations of innocence, Mr Ghosn publicly claimed that his company's security staff had conclusive proof that they were all spies. The entire affair was then handed over to the French authorities for criminal investigation and the alleged spies were arrested. However, bank accounts in Switzerland and Lichtenstein which M. Gevrey claimed had been used  by the Chinese to pay the Renault traitors were quickly found not to exist. Indeed, the French public prosecutor has concluded that there is no case to answer since the entire affair rested only on the unsubstantiated testimony of M. Gevrey. 

Another former Renault manager, Phillipe Clogenson, has now come forward, complaining that he too was unjustly fired in 2009 on only the word of Renault's security staff who also accused him of accepting bribes from competitors. 

http://www.businessweek.com/news/2011-03-14/renault-s-ghosn-pelata-return-bonuses-over-bungled-spy-case.html 

David Brear (copyright 2011)

'MLM businsss opportunity' fraud is a far more dangerous phenomenon than it first appears

Shyam 

I would like to remind your free-thinking readers that it is counter-productive to use 'negative' terminology when trying to communicate with the unquestioning core-adherents of 'MLM business opportunity' fraud. Their minds have been converted to operate in a dangerous loop of closed-logic which excludes external reality. Consequently, they will only accept what their leadership arbitrarily sanctions as enlightened, positive, etc. - if we say that we are anti-'MLM', its devoted followers systematically categorize us as unenlightened, negative, etc., and they will not listen to what we have to say, even though it is demonstrably for their benefit. 

I don't know about you Shyam, but I'm not anti-anyone or anti-anything, I am, however, pro-truth. 

Your free-thinking readers must remember that 'MLM business opportunity' fraud is a far more dangerous phenomenon than it first appears. It is a form of pernicious or criminogenic cultism (i.e. a self-perpetuating ritual belief system instigated for the clandestine purpose of human exploitation). Many millions of people have fallen, and continue to fall, temporary victim to this form of 'commercial' cultism, because it has been tailored to fit the spirit of the times. However, the instigators of 'MLM' cults are neither original nor unique. Essentially, they have peddled the age-old lie that progressive initiation into their own superior knowledge (coupled with total belief in its authenticity and unconditional deference to the authority of its higher initiates) will defeat a negative force of evil and lead to exclusive redemption in a form of secure Utopian existence. It is by making total belief a prerequisite of redemption that 'MLM' adherents are drawn into the dangerous loop of closed-logic (i.e. failure to achieve financial and personal reward from 'MLM,' is solely the fault of the individual who didn't believe totally).  

Sadly, the fanatical long-term core-adherents of 'MLM' cults are psychotic (i.e. suffering from psychosis, a severe mental derangement especially when resulting in delusions and loss of contact with external reality). Core-'MLM' adherents who manage to find the inner-strength to break with their group and confront the ego-destroying reality that they have been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. 

David Brear (copyright 2011)

Very few free-thinking readers realise crooked ways of Amway copycats

One of our free-thinking readers, Mr Shashank Agarwal, writes:

Dear Shyam,

Good analysis. I totally agree with you Speak Asia Online is a total fraud. The company's main business is to add more panelists (fancy name put for dumb people). Let me share a calculation for all.

Let's say in India, 10 Crore(one hundred million) are potential buyers for this scheme and each will have to add 2 people as left and right child. Then amazingly what the calculation says:

x (log 2)=log(10 Crore)

x=26 (nearly).

This means that if you are first person to buy this scheme then the circulation goes down to 26 levels only which will cover whole of INDIA.

So, all those who are going to buy this make an estimate at what level you will be going into it. Because, that is very much sure that when company reaches to lowermost it will certainly run away. Moreover it's just a website, much easier to reach people and even more easy to run away.

Do not forget company is charging Rs. 11,000 first and then starts to return. If it had been a fair company it should had charged a token of, say, Rs . 500 at first and then would pay for surveys accordingly.

So, all those who are convinced that this company is legitimate, think again.

Dear Shashank,

You got the point right. For many it is not that easy to comprehend this simple analysis. For,  many people are overawed by their friends or relatives and/or easy and quick money inducement by these companies. The same analysis is applicable to Amway India too. You hardly get any money by buying the products worth Rs. 2,000 every month and if you want to make money, you have to invest more money to purchase products and try to sell these exorbitantly priced wampum. After sometime you blame yourself for not achieving the sales and quit. By that time you would have incurred heavy loss.

Many people fall for this easy and quick money and never calculate right. That is pathetic. The Madras High Court rightly commented, "The authorities close the stable only after horse escaped." The authorities turn a blind eye to the problem and never take action against them in the beginning itself. It is high time, people like you joined hands and take initiative to shut down these companies.

Indians ! Your republic is under attack from foreign-based 'MLM' racketeers

Shyam 

The reality-inverting accusations which the 'Amway' Ministry of Truth has hurled in our direction via Mr. David Steadson (a.k.a.'IBOFB'), were maliciously designed to make any free-thinking individual challenging the authenticy of 'Amway/MLM,' appear dishonest, and/or ill-informed, and/or isolated, and/or irrational. The unmasked 'Amway' Lord Haw Haw even went so far as to broadcast the false, defamatory and paranoid claim that an Internet War is being prosecuted against 'Amway' by a form of international, anti-capitalist cult.  Therefore, it is not surprising that this vile propagandist for billionaire racketeers conveniently ignored the fact that a senior Indian police officer, Mr. V.C. Sajjanar, has already recognised various so-called 'MLM business opportunities' as unlawful money circulation schemes camouflaged behind effectively-unsaleable wampum, and that senior Indian Judges have agreed with Mr. Sajjanar's insightful analysis. 

The 'Amway' racketeers, and their flock of reality-inverting 'Direct Selling Association' copycats, have spent decades attempting to propagate, peddle and maintain the profitable lie that 'Multi-Level Marketing' is a viable 'business opportunity.' 

Simply by applying common-sense, the vast majority of people can tell straight away that 'MLM' is a pernicious scam, but few people can offer an accurate explanation of what mystifying organizations like 'Amway' have actually been hiding. 

In reality, 'MLM business opportunity' frauds have been perpetrated by gangs of organized criminals following an established pattern of major racketeering activity as defined by the US federal Racketeer Influenced and Corrupt Organizations, Act 1970, and clarified by various US Supreme Court rulings. Classically, the bosses of these 'MLM' gangs have maliciously constructed, and hidden behind,  labyrinths of Trojan Horse corporate structures pursuing lawful, and/or unlawful, enterprises. These criminogenic labyrinths have been designed  to prevent, and/or divert, investigation and isolate the real beneficiaries of 'MLM' frauds from liability. 

To prove the validity of this wider-analysis, to date, Indian law enforcement agents have only been able to prosecute 'Amway India Enterprises', its corporate officers and its agents. Meanwhile, the grinning billionaire bosses of the 'Amway' mob (i.e. the De Vos and Van Andel clans, and their criminal associates), have been the real threat to the Indian economy and to the social fabric of india, but they are not Indian citizens and, consequently, they are not facing criminal charges in India. 

My advice to any patriotic Indian seriously wanting to put a stop to this ongoing, external menace to their republic would be to gather a token sample of Indian victims of the 'Amway business opportunity' lie, then find US attorneys willing to file a multi-billion dollar class-action lawsuit suit in the USA on behalf of all Indian 'Amway' victims under the US federal Racketeer Influenced and Corrupt Organizations Act, 1970.  Judging by what has happened in Britain, if you wait for the Indian government to take action, you will wait forever. 

The precedent for such an unstoppable RICO lawsuit against 'Amway' has already been clearly established in California. 

David Brear (copyright 2011)

I am against all MLM schemes including Amway India: Sajjanar

Mr V C Sajjanar is the first police officer who filed criminal cases against the fraudulent companies like Japan Life Bed, Amway India, GoldQuest, ebiz.com, etc., which are indulging in money circulation schemes in the guise of selling products. A recent meet with the popular Indian Police Service officer, Mr V C Sajjanar revealed that the police officer has fire in him against the daylight robbery of these crooks and he goes to any extent to check this menace in the larger interest of people. Presently, Mr Sajjanar is the Deputy Inspector General of Police (Intelligence).

Excerpts:

Q: Sir, you are the first police officer all over India and in fact all over world, to file a criminal case against Amway India. You are also instrumental in breaking the Japan Life Bed racket even before Amway India. What made you to take that stand?

Sajjanar: I have been against the multilevel marketing or money circulation schemes from the beginning. Money circulation schemes have been exploiting the gullible since 1960s and it was the Andhra Pradesh State Government which first enacted a law banning money circulation schemes. Later, the Government of India enacted a comprehensive law--the Prize Chits & Money Circulation Schemes (Banning) Act, 1978. However, in the name of selling products and services, many companies are cunningly indulging in money circulation schemes. We have to break that corporate veil and bring these culprits to book.

Q: Apologists of Amway say that you are against Amway India since your family members suffered loss after joining Amway India. Is it true?

Sajjanar: That is nonsense. As a police officer I could sense the criminal activity. It is not the question of Amway India. There are many such copycats operating in the country.

Apart from multinational companies, there are also some indigenous companies indulging in money circulation schemes. For the simple reason, they are Indian we cannot allow them to unjustly enrich themselves. We are after every such operator who wants to make easy and quick money at the cost of our economy.

Q: Amway India says that AP Police falsely registered case against them?

Sajjanar: Cases are registered as per the provisions of Criminal Procedure Code. Sec.10 of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 says that all the offences under this Act are cognizable. It is the duty of police to register FIR immediately and conduct investigation whenever he receives information of a cognizable offence. Top 5 Advocates in India -- Soli Sorabji, Rajiv Dhavan, Anil Kher, Bhargav Desai, R.F. Nariman -- have appeared for Amway India in the High Court of A.P. and the Supreme Court of India and argued for days. Still the Hon'ble High Court of A.P. and the Hon’ble Supreme Court of India have held that the sponsoring scheme of Amway falls within the definition of illegal Money Circulation Scheme. The Hon'ble Courts would have passed strictures against the police, if the action and investigation of police against Amway is illegal.  After analyzing the business model of Amway India, the Hon'ble Courts held that the scheme of Amway is illegal.

Q: Amway apologists  say that you are against only Amway India not other companies?

Sajjanar: Being a police man, I am not against any particular company. The concept of MLM violates the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978. As per the Constitution of India, violation of law is liable for punishment and no violator should go unpunished. Throwing allegation of bias is a tactic of criminals. It is only to divert the attention of public and dilute the issue. When I was working in various districts as Superintendent of Police cases were registered against Goldquest, Agrigold, Tupperware, Herbalife, Hindustan Unilever Network, ebiz.com, Japan Life etc including several other companies whoever violated the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act by promoting illegal money circulation schemes. This shows I was against all these companies. Recently the Supreme Court of India in Kuriachan Chako case clearly held that binary scheme 1:2 sponsoring scheme by whatever name called including Multi-Level Marketing is nothing but illegal Money Circulation Scheme. Being a police man, initiating proceedings as per law does not amount to bias against particular person.

Q: Do you think these companies could damage our economy?

Sajjanar: Certainly. These companies have been immensely damaging the economy of our country. Not only that. These companies have also been damaging the social fabric of our society. These companies encourage people to enroll their family members, relatives and friends into such schemes. After joining such schemes, all these friends and relatives are bound to lose in such schemes. Once they lose their precious earnings, they never trust their friend or relative who joined them in such schemes in future. That is how the social fabric is affected.

Q:  Tell us more about economic damage.

Sajjanar: It is estimated that these companies have been draining out more than Rs 10,000 crores every year. In addition, the indigenous companies have been lining their pockets with Rs. 100,000 crore every year. If this money is rightly invested in the infrastructure the quality of life of Indians would immensely improve.

Q: What should be done?

Sajjanar: People should realize the futility of joining such schemes. Apart from that the Government of India should initiate steps to close down such companies forthwith.

Joining, participating, promoting or helping otherwise in the Multi-Level Marketing   (illegal money circulation schemes camouflaged as sale of products and services) are illegal and punishable. Some people are misrepresenting it by saying that you are not joining but just purchasing the products, but purchasing products under these illegal schemes also amounts to promoting of these schemes and are punishable under PCMCS Act. That the Government is not taking action against them promptly does not mean that these schemes are legal.

It is very painful to note that several people are informing that the police are not accepting their complaints to register cases. The office of the DGP has issued circulars to all the police stations in the State to immediately register such cases. It is unfortunate that many police officers are not aware of the circular.

I appeal to the journalists all over world to take up this social cause and create awareness about these scams which dwarf even the 2G scam. The worth of 2G scam is hardly 1 or 2 lakh crore but the scams of MLM is several times more than it.

How Amway India bit dust in India

Many people wonder whatever happened to Amway in India when nobody could touch it anywhere in the rest of world. How it was made to bite the dust is an interesting story. Very few people know how a criminal case was filed against Amway India and there are several stories making rounds.

The credit goes first to a police officer who fought against the fraudulent activities of this international crook. The tragic stories of a young software professional and a retired scientist only helped to hammer the last nail on the coffin.

This young professional of Hyderabad is an active, enthusiastic and progressive man in his mid twenties. He fell in a love with a girl belonging to another caste. The parents of the girl were reluctant to give the girl to him due to caste prejudices. Somehow he won over them. This girl is also software professional. Theirs was a happy marriage.

Suddenly, one day the elder sister of the girl entered the happy scene and pressured the girl to become a member of Amway. The girl enthusiastically asked her husband to become a member too. However, after closely studying the business plan of Amway India, the young man told her that this is not their cup of tea. But the girl insisted since it is her beloved sister who introduces it. 

The young man tried to reason with the girl saying that they are software professionals and both are making good money after they started their own firm. There is no point in abandoning the firm and run around their friends and relatives selling these products, he told her. However, the girl was persistent. Heated arguments followed but the young man stayed put.

Then something happened. A criminal case of dowry harassment under Section 498A of IPC was foisted against the young man. He was duly arrested and sent to Central Prison. He found himself much to his disbelief in the company of robbers, extremists and hardcore criminals.

The next morning when he was reading the newspaper he saw a Press statement by the then superintendent of police of Economic Offence Wing of CID Mr. V C Sajjanar appealing to people not to become members of money circulation schemes in general and Amway India in particular. He also stated that a criminal case was filed against Amway India. The young man jumped with joy and asked his father to take him out on bail.

By that time, the Amway India filed a writ petition in the Andhra Pradesh High Court with plea to declare its business model legal and it would not attract the provisions of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.

The young man filed an implead petition in the Amway India’s writ petition and a retired scientist who was also a victim of Amway India’s crooked business plan also filed another writ petition.

After going through all these petitions, the Andhra Pradesh High Court held that the business plan of Amway India is illegal. Then the Amway India filed a special leave petition in the Supreme Court of India which also held that there is no merits in the special leave petition of Amway India and the police have every right to file criminal case against it and now Amway India is facing the criminal case in the Nampally court, Hyderabad.

What happened to this young software professional later? He had a lot of patience to win back his loving wife and both are now happily leading the marriage life. Now there is a new member in their family—their son. Not surprisingly, the in-laws of the young man realized that their son-in-law is right and Amway India is a crook. Their small software firm was taken over by a big firm and they are running it efficiently.