Do the bosses of 'Speakasiaonline' have the superhuman power to create money out of thin air?

Shyam

I see that a poor little fellow signing himself 'Madan,' has left a comment on your Blog in defence of the object of his unquestioning devotion, 'Speakasiaonline'.

'Madan's ' blind faith in 'Speakasiaonline' as a viable means for ordinary Indian folk to make money, apparently stems from his existing, alienated world-view that India is a land rife with corrupt politicians and officials who make sure that lots of cash flows into their pockets, but not into the pockets of ordinary Indian folk (like himself). 

Madan's delusional belief can be summarized as follows:

'Speakasiaonline' is not a corrupt or unlawful company (even though its 'income opportunity' fulfils the criteria of a money circulation scheme as defined and prohibited by Indian law), because (due to a lack of complaint and the fact that the company advertises widely) the bosses of 'Speakasiaonline' must be selfless and honest philanthropists recirculating the money flowing into their pockets from ordinary indian participants, and making sure that profits flow back into the pockets of all ordinary Indian participants.

It is no wonder that 'business opportunity' racketeers exist when there are financially-illiterate dreamers (like 'Madan' ) for them to prey on. Perhaps this deluded fellow believes that 'Santa Claus' exists as well?

The intellectually-rigorous question that 'Madan' is currently incapable of posing, let alone answering, is:

Since 'Speakasiaonline' has had no significant or sustainable source of revenue other than its existing participants, where would all the miraculous money keep coming from to pay all the new recruits their 'profits'? 

The answer to this question is not an unsubstantiated opinion (as 'Madan' will doubtless need to believe), it is an axiomatic statement of fact:

Unless the bosses of 'Speakasiaonline' possess the superhuman power to create money out of thin air, then this unoriginal company is the front for an unlawful enterprise in which  a bunch of greedy little parasites, posing as selfless and honest philanthropists, have peddled countless, needy and ill-informed Indians (like Madan) a fake 'income opportunity' based on the specious economic theory that endless-chain recruitment + endless payments = infinitely-expanding profits for recruits.

The world is full of dishonest politicians and officials. Consequently, many ordinary folk (like 'Madan') already feel that they are losers drowning in a sea of corruption. Sadly, 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. These have invariably been designed to attract alienated losers by telling them that they too can become winners. This is why  'business opportunity' racketeers should not be treated as common thieves. Whilst they remain generally misunderstood, criminogenic groups like 'Speakasiaonline'  (which are totalitarian in nature) remain an ongoing threat to democracy and the rule of law. Tellingly, the deluded victims of these reality-inverting cults, are always the first people to defend them.

David Brear (copyright 2011)

Trivedi is lying, because 'MLM retailing rules' have never been enforced

Shyam

It beggars belief that your intellectually-castrated correspondent, Trivedi, still keeps posting his group's thought-stopping 'MLM' jargon on your Blog. 

This unquestioning little 'Amway' adherent keeps inviting your free-thinking readers to ignore the simple reality that 'Amway' is a criminogenic organization (which has never enforced its own fake 'retailing rules'), and, instead, plunge their minds into the dark 'Amway' labyrinth of mathematical and linguistic treacle. In doing this, Trivedi is slavishly copying his leaders' 'positive' example. The poor little lad is steadfastly trying to deceive your readers using one of the classic, hypnotic, techniques of confidence tricksters, but he is too arrogant to realize that we can see right through him.

A particularly devious confidence trick is known as change-raising. It involves essentially the same, hypnotic technique which young Trivedi has been using (without success) here on Corporate Frauds Watch. The change-raiser (posing as an honest member of the public) asks the victim (a helpful shopkeeper or trader) to give change for a banknote, but then distracts the victim's mind, and robs him/her, by introducing extraneous, thought-stopping, mathematical complication into a straight forward transaction. At all times, experienced change-raisers smile sweetly and give their victims the illusion that they are making a free-choice. 

http://www.youtube.com/watch?v=grCE0LPGBbI&feature=related

Since 1979, all 'MLM business opportunity frauds' have hidden behind essentially the same counterfeit 'retailing rules' and extraneous, thought-stopping, mathematical complexity, which has all been maliciously designed to distract casual observers' minds from the simple reality that a form of theft (by deception) is taking place; making it appear that the instigators of these frauds, and their followers, are honest persons who have endeavoured to act within the law. Once inside an 'MLM' fraud, victims' critical and evaluative faculties have been progressively shut down using co-ordinated, devious techniques of social, psychological and physical persuasion. In this way, the worst 'MLM' victims have been induced to ignore their mounting losses and duplicate an unlawful, and economically-unviable, plan of consumption and recruitment on the pretext that this is the secret of achieving 'total financial freedom.' In other words, exactly like the victims of change-raisers, 'Amway' victims have been robbed whilst their minds have been occupied elsewhere, but, at all times, the thieves have smiled sweetly and given the victims the illusion that they were making a free-choice. 

For decades, grinning gangs of 'Amway' copy-cat racketeers have been allowed to continue thieving from tens of millions of ill-informed people around the world. These wealthy, but otherwise mediocre, little parasites have dodged prosecution by pointing to their own books of 'rules' and then steadfastly pretending that the 'MLM business opportunities' (which they offer) must be lawful, because it says in black and white that reward is dependent on retailing: rather than on recruiting. In the adult world of quantifiable reality, there has never been an effective, independent mechanism introduced anywhere in the world, to verify that the unquestioning followers of criminogenic groups like 'Amway' have regularly retailed products, and/or services, to the public for a profit.

Some of the selectively deaf, dumb and blind, senior American regulators, who have allowed this terrifying situation to develop, should really be facing criminal charges themselves.

David Brear (Copyright 2011)

Few victims have the courage to accept the truth about 'MLM business opportunity' fraud

Shyam

The cowardice, arrogance, general ignorance and total lack of self-awareness displayed by your reality-denying correspondent, Trivedi, is painful to observe. Sadly, people like Trivedi (whose own egos obstruct their psychological and intellectual development) are an open-book to confidence tricksters. Without them, confidence tricksters could not exist. Currently, Trivedi is still telling puerile lies on Corporate Frauds Watch, because his own ego prevents him from facing the cruel adult reality that he is being deceived, and used

to deceive others, by confidence tricksters. Consequently, unless he suddenly grows-up, Trivedi is little better than a sullen child. He does not merit our respect, but he is, however, an excellent example to demonstrate how 'MLM business opportunity' frauds function. 

Before he signed up for 'Amway,' Trivedi should have checked-out some of the many forms of confidence trick:

Advance fee fraud · Art student scam · Badger game · Bait-and-switch · Black money scam · Bogus escrow · Boiler room ·Charity fraud · Clip joint · Coin rolling scams · Drop swindle · Embarrassing cheque · Employment scams · Fiddle game  · Fine print ·Foreclosure rescue scheme · Forex scam · Fortune telling fraud · Get-rich-quick scheme · Green goods scam · Hustling · Intellectual property scams · Kansas City Shuffle · Long firm · Miracle cars scam · Mock auction · Patent safe · Pig in a poke ·Pigeon drop · Ponzi scheme · Pump and dump · Pyramid scheme · Reloading scam · Shell game · Slavery reparations scam ·Spanish Prisoner · Strip search prank call scam · Swampland in Florida · Teaser rate · Telemarketing fraud · Thai gem scam ·Thai tailor scam · Thai zig zag scam · Three-card Monte · Trojan horse · White van speaker scam 

·Work-at-home scheme

Before he signed up for 'Amway,' Trivedi should have checked-out the positive/negative techniques of mental manipulation used by confidence tricksters:

 

Positive reinforcement	Attention · Charm offensive · Flattery · Giving gifts  · Giving money ·Grooming (adult ·child) · Ingratiation  · Love bombing ·Praise ·Seduction · Smiling  · Superficial charm ·Superficial sympathy
Negative reinforcement	Anger · Character assassination · Crying  · Emotional blackmail ·Frowning · Glaring  ·Guilt trip · Inattention · Intimidation · Nagging  ·Nit-picking criticism · Passive aggression · Punishment  · Relational aggression · Shaming · Silent treatment  · Sulking · Swearing ·Threats ·Victim blaming  · Victim playing · Yelling

It is generally accepted that the overwhelming majority of fraud victims never complain, because it is human nature for us to want to justify our previous actions. Very few people find it easy to admit openly that they were so stupid as to allow themselves to believe lies. However, there is no shame is being fooled: there is only shame in refusing to admit it; for experienced confidence tricksters progressively draw their victims into attractive 'positive' scenarios of control, but which are also designed to incriminate their victims and prevent them from approaching law enforcement agencies. The classic confidence trick involves persuading victims to part with their money by getting them to participate in a criminal, or embarrassing, act. Thus, in order for them to complain, victims first have to find the courage to confess that they were manipulated by their own instinctual desires and that their resulting behaviour was shameful, and/or criminal.

Although he still refuses to confess, Trivedi has been participating in an 'MLM business opportunity' fraud. Through the manipulation of his instinctual desires, Trivedi has been drawn into an attractive 'positive' controlling scenario in which a fabulous 'Amway' lifestyle of infinite wealth and leisure appears to be attainable simply by duplicating a 'positive' plan of consumption and recruitment. Since Trivedi now understands that, in the Republic of India, it is a criminal offence to promote a money circulation scheme (i.e any closed-market scheme without external profits), he steadfastly pretends that he only retails 'Amway' products to the Indian public for a profit. Laughably, Trivedi is using transparently-obvious mental manipulation techniques in the child-like expectation that you and I, Shyam (and your free-thinking readers like 'Joecool'), who will believe this fairytale.

David Brear (copyright 2011)

Surely the Amway bosses are winners all the time

First let us look at what Amway is gaining through enrollment. It is getting Rs. 995 entrance money (earlier it was Rs. 4,400)  and at least Rs. 2,000 through purchase of products.

Amway India says that it has 450,000 members in India in its affidavit. That means it has already pocketed a substantial amount. and every member has to pay a renewal fee of Rs. 995 every year which resulted in pocketing another substantial amount every year. This is what was pointed out by Andhra Pradesh High Court as easy and quick money.

Trivedi says that he has seen the judgement. Seeing one thing and reading and understanding is another thing.

Let us look at that part of the judgement.

"As pleaded by the petitioners themselves, out of Rs.4,400/- a substantial part, namely Rs.1,800/- is collected as subscription fee, license fee, business kit etc.  To qualify for earning commission a member has to earn the minimum monthly PV of 50 which he will get by selling products worth Rs.2,000/-.  Respondent No.6 in para-11(c) of his counter affidavit specifically pleaded that  “Amway” (First petitioner) would automatically get a business of the quantum of Rs.1080/- crores (4,50,000 x 2,000 x 12(months) ) per annum which would yield an astronomical profit and it cannot but be stated as “easy/quick money” without any service to the distributors/members irrespective of whether they sell the products or not, though the company may conveniently refer it as “turnover by sale of products”.  Significantly, this assertion made in the counter affidavit is not denied in the rejoinder of the petitioners. They have merely tried to explain the said allegation by offering certain justifications.  The petitioners have not specifically denied that the first petitioner would get a sum of Rs.1,080/- crores by ensuring that each distributor maintains the minimum sales level.  Even though the scheme per se does not stipulate that each distributor has to maintain the minimum required business level, prescription of minimum level of 50 PV to qualify for getting commission is sufficient inducement for the members to relentlessly strive for maintaining the PV level at or above the said minimum levels.  (Para 33). 

It is, thus, evident that the whole scheme is so ingeniously conceived that the inducement for aggressive enrollment of new members to earn more and more commission is inherent in the scheme.  By holding out attractive commission on the business turned out by the downline members, the scheme provides for sufficient inducements for its members to chase for the new members in their hot pursuit to make quick/easy money.  On the part of the promoter by pushing each member to achieve the minimum sales worth Rs.2,000/- per month, (this sale includes enrollment of new members) he is assured of about 1000 crores per annum.  All this squarely satisfy the description of quick/easy money.  In addition to this, it is an admitted fact that each person in order to continue to be the distributor, shall pay renewal subscription fee of Rs.995/- per annum.  In para-11(b) of the counter affidavit on the admitted number of distributors of  4,50,000 this amount is calculated at about Rs.45 crores per annum.  These figures are not denied by the first petitioner in its rejoinder.  The plea of the first petitioner that there is no compulsion that a member shall renew his distributorship looks to us to be specious.  Once a person becomes a distributor in a scheme of this nature where the sops in the shape of commission are so luring, it would be very difficult for a member to withdraw from their membership to avoid payment of the annual renewal subscription fee. (Para 34).

It is, thus, evident that the whole scheme is so ingeniously conceived that the inducement for aggressive enrollment of new members to earn more and more commission is inherent in the scheme.  By holding out attractive commission on the business turned out by the downline members, the scheme provides for sufficient inducements for its members to chase for the new members in their hot pursuit to make quick/easy money.  On the part of the promoter by pushing each member to achieve the minimum sales worth Rs.2,000/- per month, (this sale includes enrollment of new members) he is assured of about 1000 crores per annum.  All this squarely satisfy the description of quick/easy money.  In addition to this, it is an admitted fact that each person in order to continue to be the distributor, shall pay renewal subscription fee of Rs.995/- per annum.  In para-11(b) of the counter affidavit on the admitted number of distributors of  4,50,000 this amount is calculated at about Rs.45 crores per annum.  These figures are not denied by the first petitioner in its rejoinder.  The plea of the first petitioner that there is no compulsion that a member shall renew his distributorship looks to us to be specious.  Once a person becomes a distributor in a scheme of this nature where the sops in the shape of commission are so luring, it would be very difficult for a member to withdraw from their membership to avoid payment of the annual renewal subscription fee. (Para 34).

It could be safely said that Amway Bosses are the winners all the time and people are losers. Moreover, Trivedi says that he has been selling products worth Rs. 20,000-30,000 every month. Though it could not be said that he is lying but it is hard to believe that he could sell that amount of products every month. It could be believed after verification of his account with Amway India. However, Amway India never parts with it. So, there is no chance of verification.

Let us look at what the members gain through enrollment in the next post.

Trivedi! kindly do not feel that you are defeated in the argument. Please realise the fact and come out of it.

Has the horse bolted ? How can we shut the stable door?

Shyam 

I have been sent a list of questions recently posed (to an interested third-party) by some UK politicians. Here are some of them:

1). Since Amway came to our shores, what have been the mathematical chances of ordinary persons joining this scheme here in the UK, making their living ? -  Why does it remain impossible to calculate such an all-important figure from Amway's income disclosure?

2). Where could persons considering joining Amway consult the financial records of a large sample of Amway sales Reps ?

3). Are Amway sales Reps now required to prove they retail products to the public in the UK? If yes: How? If no: What then prevents an illegal pyramid scheme where Amway sales Reps and recruits buy products, then claim they retail them, to receive higher commission payments? 

4). How can MLM be regulated successfully in the UK?

The answers to these questions are:

1). The chances of ordinary persons making a living from 'Amway' have always been Zero -  obviously, if the 'Amway' organization were to reveal this information, no one would want to join.

2). The tax authorities hold this information, but potential 'Amway' recruits cannot consult it, because it doesn't physically exist. In reality, no ordinary 'Amway' adherents have paid income tax in the UK on net-profits which derived from their so-called 'Amway businesses.' Consequently, the fact that, over a period of more than 30 years, no income tax receipts exist for hundreds of thousands of UK 'Amway' adherents, clearly demonstrates what has actually been happening.

3). In reality, thanks to the naivety of the UK High Court, there is still no independent mechanism in place to prevent the bosses of any 'MLM' gang from operating a camouflaged, closed-market swindle in the UK and persuading their ill-informed victims to promote it.

4). More than 30 years of evidence, proves that 'MLM' is a blame-the-victim racket. If the UK authorities want to show that they are serious about combating 'MLM business opportunity' fraud, then a good way to start would be find a token 'Amway' victim, and then file a major class-action lawsuit in the USA against the billionaire bosses of the'Amway' mob using the federal Racketeer Influenced and Corrupt Organizations, Act, 1970.

Over a period of 50+ years, an estimated 40+ millions individuals (including around one million in the UK) have signed at least one annual contract with the corporate structures which form the ongoing, major organized crime group most-commonly referred to as 'Amway.' The percentage of 'Amway' adherents who have managed to remain under contract to 'Amway' for more than 5 years, is negligible. Indeed, the hidden, overall, rolling failure/drop out rate of so-called 'Independent Business Owners'  has been effectively 100%, whilst, for obvious reasons, only the members of two billionaire 'Amway'  families have been involved from the start. 

David Brear (copyright 2011)

More damning-evidence that 'MLM' companies shield 'Prosperity Gospel' cults

Shyam

Despite the reality-inverting propaganda of the unmasked 'Amway' Lord Haw Haw, Mr.'IBOFB' Steadson, Corporate Frauds Watch is not part of an anti-capitalist/pro-communist cult. On the contrary, we have merely endeavoured to tell ill-informed people the ego-destroying truth about 'Prosperity Gospel' cults like: 'Amway', 'Fortune Hi-Tech Marketing', 'Club Asteria'. 'Speakasiaonline,'  etc. They are all criminogenic or pernicious organizations which have generated, and continue to generate, fortunes for a handful of sanctimonious racketeers who have peddled the ego-building Utopian lie of 'total financial freedom,' whilst promoting unlawful money circulation schemes based on endless-chain recruitment and consumption.

It is often very difficult for casual observers to understand how, and why, the castrated minds of cult adherents fail to function. However, in order to understand cultism, you have always to remember that cult adherents have been conditioned to stop thinking critically and to accept essentially the same, addictive, closed-logic fiction as fact. Whilst they remain under the malign influence of their groups, cult adherents all believe that eventually they will achieve redemption in a future secure Utopian existence, but only if they follow their leaders' positive example without question, and believe 100% in the existence of Utopia. If you try to tell them that they are, in fact, being deceived by an age-old fairytale which has been updated to fit the spirit of the times, 'Prosperity Gospel' cult adherents systematically see you as not only a 'negative loser' who cannot achieve 'total financial freedom', but also as being a threat to their own redemption (and they act accordingly). 

Tellingly, here on Corporate Frauds Watch, we keep receiving peevish comments from former 'Prosperity Gospel' sheep who, on the one hand now accept that so-called 'MLM business opportunities' are deceptions, but on the other, bleat indignantly at you and me Shyam, for not offering them an alternative 'business opportunity' to achieve Utopia.

Interestingly, one of the most-courageous 'Properity Gospel' cult dissidents has been Eric Scheibeler - the American author of 'Merchants of Deception,' in which he explains how he came to waste 10 years of his life under the malign influence of the billionaire shepherds of the 'Amway' flock ; losing approximately $100 000 whilst passing at least $4 millions to his 'Upline'. During this period, Eric recruited thousands of further adherents, rising to an admired and respected level in the 'Amway' para-military hierarchy known as 'Emerald Distributor.'  Eric freely-admits that whilst he was an 'Amway' adherent, he was conditioned to hate any free-thinking individual who challenged the authenticity of his group and its kitsch Utopian myth of 'total financial freedom.' In the course of running his Site, 'Merchants of Deception,' Eric was contacted by many thousands of destitute former-believers in the 'Amway' lie from all around the globe. Some of these people accepted that 'Amway' was a deception, but they were still desperate to find another means to achieve their Dreams and they bleated at Eric to guide them.

Sadly, even when they have abandoned their flock, 'Prosperity Gospel' sheep are often unable to decide which direction to take by themselves, and they hunt round frantically for another leader. My advice to them is a quotation from the excellent 'Monty Python' film, 'The Life of Brian' http://www.youtube.com/watch?v=jVygqjyS4CA:

'You don't need to follow anybody!'

'You've got to think for yourselves!'

'You are all individuals!' 

 

David Brear (copyright 2011)

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Prize Chits & Money Circulation Schemes (Banning) Act, 1978

Many people are not aware of the existence of this enactment which came into force in 1978. This enactment could be effectively used to curb the menace of money circulation schemes or ponzi schemes. Many companies, like Amway India, Herbalife, Hindustan Unilever Network Ltd, Forever Living Products, speakasiaonline, ramsurvey, jeevanseva and others, are indulging in money circulation schemes in the name of selling products and services. Section 2 (c) of the Act clearly defines a money circulation schemes and with its help anyone could easily identify a money circulation scheme. A copy of this enactment could be printed while lodging a complaint with the police. Recently many people talking on speakasiaonline in the Headlines Today news channel rather erroneously stated that there is no effectively law which punishes ponzi schemes. 

The Prize Chits and Money Circulation Schemes[Banning] Act, 1978 [No. 43 of 1978] is an Act to ban the promotion or conduct of prize chits and money circulation schemes and for matters connected therewith or incidental thereto.
Be it enacted by Parliament in the Twenty-ninth Year of the Republic of India as follows :-

1. Short title and extent:-

(1) This Act may be called the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

(2) It extends to the whole of India expect the State of Jammu and Kashmir.

2. Definitions:- In this Act, unless the context otherwise requires,-
(a) “conventional chit” means a transaction whether called chit, chit fund, Kuri or by any other name by or under which a person responsible for the conduct of the chit enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money(or certain quantity of grain instead)by way of periodical installments for a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be provided for in the chit agreement, be entitled to a prize amount.

Explanation:- In this clause “prize amount” shall mean the amount, by whatever name called, arrived at by deducting from out of the total amount paid or payable at each installment by all the subscribers,
(i) the commission charged as service charges as a promoter or a foreman or an agent; and
(ii )any sum which a subscriber agrees to forego, from out of the total subscriptions of each installment, in consideration of the balance being paid to him;

(b) “money” includes a cheque, postal order, demand draft, telegraphic transfer or money order;

(c) “money circulation scheme” means any scheme, by whatever name called, for making of quick or easy money, or for the receipt of any money, or valuable thing as the consideration for a promise to pay money, on any event or contingency relative or applicable to the enrolment of members into the scheme, whether or not such money or thing is derived from the entrance money of the members of such scheme or periodical subscriptions;

(d) “prescribed” means prescribed by rules made under this Act;

(e) “prize chit” includes any transaction or arrangement by whatever name called under which a person collects whether as a promoter, foreman, agent or in any other capacity, monies in one lump sum or in installments by way of contributions or subscriptions or by sale of units, certificates or other instruments or in any other manner or as membership fees or admission fees or service or service charges to or in respect of any savings, mutual benefit, thrift, or any other scheme or arrangement by whatever or the income accruing from investment or other use of such monies for all or any of the following purposes, namely:-
(i) giving or awarding periodically or otherwise to a specified number of subscribers as determined by lot, draw or in any other manner, prizes or gifts in cash or in hand, whether or not the recipient of the prize or gift is under a liability to make any further payment in respect of such scheme or arrangement ;
(ii) refunding to the subscribers or such of them as have not won any prize or gift, the whole part of the subscriptions, contributions or other monies collected, with or without any bonus, premium interest or other advantage by whatever name called, on the termination of the scheme or arrangement, or on or after the expiry of the period stipulated therein, but does not include a conventional chit;
(f)“Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934 (2 of 1934).
3. Banning of prize chits and money circulation schemes or enrolment as members or participation therein: - No person shall promote or conduct any prize chit or money circulation scheme, or enroll as a member to any such chit or scheme, or participate in it otherwise, or receive or remit any money in pursuance of such chit or scheme.

4. Penalty for contravening the provisions of Section 3:- Whoever contravenes the provisions of Section 3 shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to five thousand rupees, or with both ; (3) Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than one thousand rupees.

5. Penalty for other offences in connection with prize chits or money circulation schemes:- Whoever, with a view to the promotion or conduct of any prize chit or money circulation scheme in contravention of the provisions of this Act or in connection with any chit or scheme promoted or conducted as aforesaid,-
( a ) prints or publishes any ticket, coupon or other document for use in the prize chit or money circulation scheme; or
( b ) sells or distributes or offers or advertises for sale or distribution, or has in his possession for the purpose of sale or distribution any ticket, coupon or other document for use in the prize chit or money circulation scheme ; or
( c ) prints, publishes or distributes, or has in his possession for the purpose of publication or distribution-
(i) any advertisement of the prize chit or money circulation scheme; or
(ii) any list, whether complete or not, of members in the prize chit or money circulation scheme ; or
(iii) any such matter descriptive of, or otherwise relating to the prize chit or money circulation scheme, as is calculated to act as an inducement to persons to participate in that prize chit or money circulation scheme or any other prize chit or money circulation scheme; or
(d) brings, or invites any person to send, for the purpose of sale of distribution, any ticket coupon or other document for use in a prize chit or money circulation scheme or any advertisement of such prize chit or money circulation scheme; or
(e) uses any premises, or causes or knowingly permits any premises to be used, for purposes connected with the promotion or conduct of the prize chit or money circulation scheme; or
(f) causes or procures or attempts to procure any person to do any of the above-mentioned acts, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to three thousand rupees, or with both:
Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than one thousand rupees.

6. Offences by companies: –(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceed against and punished accordingly : Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Not withstanding anything contained in sub-section (1),where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly .
Explanation: _ -For the purposes of this section –
(a) “Company” means any body corporate and includes a firm or other association of individuals; and
(b) “Director”, in relation to a firm, means a partner in the firm.
7. Power to enter, search and seize: - (1) It shall be lawful for any police officer not below the rank of an officer in charge of a police station,
(a) to enter, if necessary by force, whether by day or night with such assistance as he considers necessary, any premises which he has reason to suspect, are being used for purposes connected with the promotion or conduct of any prize chit or money circulation scheme in contravention of the provisions of this Act ;
(b) to search the said premises and the persons whom he may find therein;
(c) to take into custody and produce before any Judicial Magistrate all such persons as are concerned or against whom a complaint has been made or credible information has been received or a reasonable suspicion exists of their having been concerned with the use of the said premises for purpose connected with, or with the promotion or conduct of , any such prize chit or money circulation scheme as a foresaid;
(d) to seize all things found in the said premises which are intended to be used, or reasonably suspected to have been used in connection with any such prize chit or money circulation scheme as aforesaid.
(2) Any officer authorised by the State Government in this behalf may-
(a) at all reasonable times, enter into and search any premises which he has reason to suspect ,are being used for the purpose connected with , or conduct of, any prize chit or money circulation scheme in contravention of the provisions of this Act;
(b) examine any person having the control of ,or employed in connection with, any such prize chit or money circulation scheme;
(c) order the production of any documents, books or records in the possession or power of any person having the control of, or employed in connection with, any such prize chit or money circulation scheme; and inspect and seize any register, books of accounts, documents or any other literature found in the said Premises.
(3)All searches under this section shall be made in accordance with the provisions of the code of Criminal Procedure, 1973(2 of 1974).

8. Forfeiture of newspaper and publication and publication containing prize chit or money circulation scheme:-Where any newspaper or other publication contains any material connected with any prize chit or money circulation scheme promoted or conducted in contravention of the provisions of this Act or any advertisement in relation thereto, the State Government may, by notification in the Official Gazette, declare every copy of the newspaper and every copy of the publication containing such material or the advertisement to be forfeited to the State Government.
9. Power to try offences:- No court inferior to that of a Chief Metropolitan magistrate, or as the case may be,Chief Judicial Magistrate, shall try any offence punishable under this Act.
10. Offences under this Act to be cognizable:-All offences punishable under this Act shall be cognizable.
11. Act not to apply to certain prize chits or money circulation schemes.-Nothing contained in this Act shall apply to any prize chit or money circulation scheme promoted by-
(a) a State Government or any officer or authority on its behalf; or
(b) a company wholly owned by a State Government which does not carry on any business other than the conducting of a prize chit or money circulation scheme whether it is in the nature of a conventional chit or otherwise; or
(c) a banking company as defined in clause ( c ) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), or a banking institution notified by the Central Government under Section 51 of that Act or the State Bank of India constituted under Section 3 of the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank constituted under section 3 of the Banking Companies(Acquisition and Transfer of Undertakings)Act, 1970 (5 of 1970),or a Regional Rural Bank established under Section 3 of the Regional Rural Banks Act, 1976 (21 of 1976) or a co-operative bank as defined in clause (ii) of Section 2 of the Reserve Bank of India Act, 1934 ( 2 of 1934);or
(d) any charitable or educational institution notified in this behalf by the State Government, in consultation with the Reserve Bank.

12. Transitional provisions: - (1) Notwithstanding anything contained in this Act, a person conducting a prize chit or money circulation scheme at the commencement of this Act may continue to conduct such chit or scheme for such period as may be necessary for the winding up of the business relating to such chit or scheme, so however that such period shall not in any case extend beyond a period of two years from such commencement: Provided that the said person shall furnish to the State Government or to such officer as may be authorised by it in this behalf and to such office of the Reserve bank as may be prescribed, in such form and within such period as may be prescribed, full information regarding the chit or scheme along with a winding up plan prepared in accordance with the provisions of any rules that may be made by the State Government in this behalf under this Act:
Provided further that if the State Government is satisfied, on an application made by the person conducting the prize chit or money circulation scheme, that the chit or scheme cannot be wound up within the period fixed in the winding up plan furnished to the State Government under the foregoing proviso, it may , in consultation with the Reserve Bank, permit such person to continue to conduct the business relating to the said chit or scheme for such further period as may be considered necessary having regard to the circumstances of the case and the interests of the members of the said chit or scheme.

(2)The State Government may, in consultation with the Reserve Bank, approve the winding up plan furnished under sub-section (1) with or with out modifications or reject the same and may grant- or refuse to grant permission to continue to conduct that chit or scheme:
Provided that no such winding up plan shall be modified or rejected without giving an opportunity of being heard to the person who conducts such prize chit or money circulation scheme.
(3)If any person fails to furnish full information regarding the said chit or scheme along with its winding up plan in the form and within the period prescribed, he shall forfeit his right to continue the business relating to the said chit or scheme on the expiry of such period.
(4) Notwithstanding anything to the contrary contained in any agreement or arrangement entered into between any person conducting any such chit or scheme and the subscriber, the person conducting the chit or scheme shall, within such period as may be prescribed, refund the monies or the subscriptions collected till the date of default referred to in sub-section (3)
(5) If any person fails to comply with the provisions of sub-section (4), he shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to three thousand rupees, or with both:
Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than one thousand rupees.
13. Power to make rules:- (1) The State Government may, by notification the Official Gazette and in consultation with the Reserve Bank, make rules for the purpose of carrying out the provisions of this Act.
(2) In Particular and without prejudice to the generality of the foregoing power, such rules may provide for-
(a) the office of the Reserve Bank to whom full information regarding any prize chit or money circulation scheme may be furnished under the first proviso to sub-section (1)of Section 12, and the form in which and the period within which such information may be furnished;
(b) the particulars relating to the winding up plan of the business relating to prize chits or money circulation schemes.

14. Repeals and saving.-(1) The Andhra Pradesh Money circulation Scheme (Prohibition) Act, 1965 (Andhra Pradesh Act 30 of 1965), as in force in the State of Andhra Pradesh , and in the Union territory of Chandigarh and the Madhya Pradesh Dhan Parichalan Skeem (Pratishedh) Adhiniyam, 1975 (Madhya Pradesh Act of 19 of 1975) , are hereby repealed.
(2) Notwithstanding the repeal of any Act referred to in sub-section (1) , anything done or any action taken under the provisions of any such Act shall, in so far as such thing or action is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the provisions of this Act as if the said provisions were in force when such thing was done or such action was taken and shall continue in force accordingly until superseded by anything done or any action taken under this Act.

'Amway' is a racket in which only the bosses can win

Shyam

Before he was banned, Corporate Frauds Watch was plagued by the unmasked 'Amway' Lord Haw Haw, Mr. 'IBOFB' Steadson.

Ignoring all quantifiable evidence to the contrary, Mr. Steadson assured your free-thinking readers that 'Amway' was neither a cult nor a fraud and that you and I Shyam were sociopaths, liars, communists, conspiracy theorists, lunatics, etc. for calmly stating that 'Amway's' core-adherents are deluded individuals who have been conditioned to believe that their 'Dream' of 'Total Financial Freedom' will eventually come true if they 'duplicate a 100% positive plan of recruitment and self-consumption' and exclude all 'negative'  influences from their lives. 

The 'Amway' Ministry of Truth, via Mr. Steadson, endeavoured to broadcast  the lies that:

Significant numbers of law-abiding 'Amway' adherents (like himself) have respected 'Amway's' published 'rules' and regularly retailed 'Amway' supplied products and services to the public for a profit.

Only an insignificant minority of 'Amway' adherents have become involved with rogue 'Network Leaders' who have taught them to break the law, and 'Amway's' own published 'rules', and only buy 'Amway' products and services, and recruit others to do the same.

He personally has never encountered 'Amway' adherents who believed that they were going to become millionaires via an unlawful plan of recruitment and consumption.

Yet Corporate Frauds Watch is still regularly receiving comments from the very-same, intellectually-castrated 'Amway' adherents whom Mr. Steadson and the 'Amway' Ministry of Truth steadfastly pretended do not exist. Yesterday, a deluded little fellow called 'Prakhar' said: 

 'Amway is not a scam. It is a kind of business in which you can earn millions just by devoting some time in it.'

Unfortunately, between 1972 and 2006, at least one million UK and Irish citizens are known to have been churned through the 'Amway' racket.  Since 1959, tens of millions of people around the globe have signed contracts with the corporate structures which have fronted  the major organized crime group known as 'Amway/Quixtar.'  

For more than half a century, the so-called 'Amway business opportunity' has had an effectively 100% failure/drop-out rate, but its core-adherents( like Prakhar) have been conditioned to exclude this reality and then to blame themselves for failure. 

David Brear (copyright 2011)

'Speakasiaonline' exhibits the characteristics of a cult

Shyam

For centuries, the contemplation of the infinity of creation has had a hypnotic effect on the human mind. Today, for obvious reasons, it is much easier to persuade people to contemplate financial infinity, but the thought-stopping effect remains the same.

No one disputes that the only source of revenue in 'Speakasiaonline' is the group's own adherents. However, without infinite recruitment of further adherents, where would the infinite money come from to pay the 'Speakasiaonline' adherents their infinite profits ?

For a while, Corporate Frauds Watch has been receiving reality-inverting comments from a few deluded followers of the 'Speakasiaonline' lie, but, since the mainstream Indian media has finally begun to expose 'Speakasiaonline' as a dissimulated fraud, we now see clear evidence that adherents of this unoriginal group have been subjected to co-ordinated, devious techniques of social and psychological persuasion designed to shut down their critical and evaluative faculties without their fully-informed consent..  

Typically, the most-deluded core-adherents of the 'Speakasiaonline' lie, are now convinced that their group is wholly lawful and honest, whilst the media is corrupt and tells lies.

The inability of cult adherents to accept external reality is one of the identifying characteristics of the phenomenon. The leaders of pernicious cults seek to control all information entering not only their adherents' minds, but also that entering the minds of casual observers. This is achieved by constantly denigrating all external sources of information whilst constantly repeating the group's reality-inverting key words and images, and/or by the physical isolaton of adherents. Cult leaders systematically categorize, condemn and exclude all free-thinking individuals and any quantifiable evidence challenging the authenticity of their imaginary scenarios of control. In this way, the minds of cult adherents can become converted to accept only what their leadership arbitrarily sanctions as reality.

It is interesting to note that an intellectually-castrated, 'Speakasiaonline' adherent, 'Madan' (who claims to be a doctor from Lucknow) has posted the following closed-logic warning to the media on CFW for daring to challenge the authenticity of his group's deluded model of reality:

'Always remember that BURE KAAM KA BURA NATIZA.... If you do bad to innocent peoples then definetely you will get harm from god.'

In the adult world of quantifiable reality, Corporate Frauds Watch has actually been attempting to prevent innocent people from swallowing the same-old, thought-stopping poison which continues to be repackaged, and peddled, as 'beneficial' by the instigators of 'business opportunity' cults like 'Speakasiaonline' , 'Amway', 'Fortune Hi-Tech Marketing' , 'Club Asteria', etc. To date, tens of millions of people around the globe have swallowed varying doses of this divisive poison, but effectively none of them have received any quantifiable benefit. In far too many cases they have wound up destitute and dissociated from external reality. In the most extreme cases, they have wound up in psychiatric hospitals and on mortuary slabs.

David Brear (copyright 2011)

The instigators of the 'speakasiaonline' fraud are greedy parasites

Shyam

The clear intention of Indian legislators was to protect the Indian public from thieves by banning the instigation, operation and promotion all money circulation schemes based on the specious economic theory of endless-chain recruitment + endless-payments = endless-profits for all participants (no matter how cleverly these frauds might be disguised). During the late 1970s, Indian legislators compiled what they considered to be the essential identifying characteristics of this type of crime. Thus, allowing qualified Indian law enforcement agents and prosecutors to gather the evidence which would allow learned Indian judges to decide whether such a pernicious theft is actually being perpetrated. 

 

The unqualified Indian television journalists who have reported the 'speakasiaonline' fraud, have apparently decided that there is a loophole in the Indian law which bans money circulation schemes, but this only demonstrates their own lack of understanding of what are the essential identifying characteristics of an unlawful money circulation scheme. Like many casual observers, these journalists imagine that such frauds can only be clearly recognised and successfully prosecuted if they are disguised as 'investment opportunities,' and that their instigators cannot be held to account if they, and their legal representatives, steadfastly pretend unlawful payments to be 'lawful transactions within a lawful business opportunity.'

 

I have to say that although the existing Indian legislation was well-conceived, and is probably adequate, it could be made even more effective.  I would again respectfully point out to Indian legislators, law enforcement agents and judges, that the simple test to determine whether an unlawful money circulation scheme (dissimulated as a 'lawful business opportunity') is being operated, is to discover whether significant numbers of the scheme's participants have regularly been retailing the scheme's products, and/or services, to the public for a profit, or whether they have merely been buying effectively-unsaleable products, and/or services, and endeavouring to recruit more and more participants to do the same. If any so-called 'business opportunity' has no significant, or sustainable, revenue (other than payments from its own participants - no matter how these payments are arbitrarily defined by the scheme's instigators, and/or its apologists), then it is actually a closed-market swindle in which ill-informed victims have been peddled infinite shares of their own finite money.

Therefore, it might be a good idea for Indian legislators to make it an additional criminal offence to dissimulate this type of fraud. That said, what the instigators of 'speakasiaonline' have been doing is already defined, and banned, by common law; for they have been lying to, and hiding the truth from, the Indian public in order to make money, which is clearly a form of theft.

The fact that the real beneficiaries of the 'speakasiaonline' fraud have also hidden their criminal activities behind a labyrinth of corporate structures (some of which are registered outside of India) in order to prevent, and/or divert, investigation and isolate themselves from liability, proves them to be not just common thieves, but major racketeers. If Indian law does not define racketeering, then surely, given the scale of this pernicious criminal enterprise, the reality-inverting instigators of 'speakasiaonline' (and their reality-inverting apologists) should be dealt with as an ongoing threat to democracy and the rule of law within the Republic of India.

Until all these greedy 'business opportunity' parasites are fully-recognised, and severely punished, they will continue to gnaw their way into traditional culture around the world. 

David Brear (copyright 2011)