'MLM' has been a pernicious hoax

Shyam

A while ago, I observed Mr. Kasey Chang posting false and defamatory comments about me on one of his own Blogs, because I'd taken the trouble to explain that his ill-informed comments about 'Amway' being judged 'lawful' in the USA and around the world, were unhelpful and potentially dangerous to Indian readers of Corporate Frauds Watch. Furthermore, Mr. Chang had arrogantly stated on CFW that what happens in India, is none of his business.

As a result of his egocentric behaviour, Mr. Chang was warned that he wasn't welcome on this Blog.

Recently, Mr. Chang has ignored this warning and has posted some more potentially-dangerous comments on Corporate Frauds Watch, but which he still imagines to be helpful. He now says:

'Having registration of business in India only proves that they have done proper paperwork. It does NOT certify that their business model is legitimate or you will earn any money. Whether the company is registered with the government or not is merely ONE of MANY MANY factors on whether it has legitimacy. If you do NOT do your own "due diligence", do NOT expect the government to save you.

Unfortunately, although Mr. Chang is partly correct, what he completely fails to explain is that the Indian victims of 'MLM income opportunity' frauds, have all been betrayed by their government; for they have been led to believe that, since their government has allowed MLM companies to exist, then their govennment must have done due dilligence and, consequently, these companies must be all legitimate. Indeed, Mr. Chang has himself previously put forward essentially the same reality-inverting bull-shit when he stated that 'Amway' has been judged lawful in the USA and around the world. Thus, Mr. Chang (although he will deny it) continues to play right into the hands of 'MLM' racketeers, who always seek to blame their victims.

I, on the other hand, take a far more rigorous approach. I would contend that in any democracy, the first role of government should be to protect its citizens. Therefore, given 50+ years of damning evidence from all around the world, it beggars belief that Indian government agencies still allow racketeers to legally-register so-called 'MLM' companies which have all steadfastly pretended that they will respect Indian law and recruit non-salaried commission agents who can earn money lawfully from regularly retailing goods, and/or services, to the Indian public for a profit. If the Indian authorities simply examined the tax-record, then they would quickly discover that the effectively 100% failure-rate of countless so-called  'MLM income opportunites' proves the entire phenomenon to have been nothing more than a pernicious hoax.

As ever, if you pass a law, but then fail to enforce it,  you effectively authorize the very crime which you sought to prohibit.

Mr. Chang says that it is the media which often pushes the police to investigate frauds. In reality, it is far more accurate to say that it is the media which can persuade significant numbers of 'MLM income opportunity' fraud victims to face reality and complain to law enforcement agents. However, he grossly simplifies events in Canada, when he says:

'To cite a similar case in Canada, "Business in Motion" (not related to Research in Motion) was investigated by CBC TV to be a pyramid scheme in a TV investigative special in 2009. However, RCMP (police) did not charge BIM principals with fraud until 2011.'

What Mr. Chang ignores is that the vile little racketeer behind the 'MLM' income opportunity' fraud known as 'BIM', Alan Kippax, had already escaped criminal prosecution in the UK, where trade regulators first foolishly allowed him to register a privately-controlled, limited-liability, commercial company, but then later (due to mounting complaints about this 'MLM' company being a dissimulated pyramid fraud) filed a public interest bankruptcy petition against it. Mr. Kippax was not personally held to account for stealing millions of pounds from countless UK citizens. On the contrary, he was allowed to return to his native Canada with his pockets stuffed full of stolen cash, where he had member of his family who is a high-ranking officer in the Royal Canadian Mounted Police. The CBC television exposé of 'BIM' actually showed Dave Thorton being arrested by corrupt RCMP officers for peacefully demonstrating outside an Illegal 'BIM' recruitment meeting.

Mr. Chang is again correct when he says Alan Kippax had finally been charged with fraud. However, it is Dave Thornton who has done more than anyone to expose 'MLM income opportunity'  fraud in Canada, and who has also tried to expose the extent to which this criminogenic phenomenon has infiltrated, and corrupted, traditional Canadian culture. For years, the RCMP has completely ignored 'MLM' income opportunity fraud. Indeed, whilst significant numbers of RMCP officers have been involved in the promotion of 'MLM' income opportunity  fraud, honest Canadian citizens have been far more likely to have been arrested for protesting against it, than for perpetrating, and/or promoting, it.

Alan Kippax was recently sent to prison for causing the death of his cousin in a road accident, and for maiming a young couple in the same incident. Kippax and his cousin were racing in Canadian streets in luxury sports cars (paid for with stolen money) at speeds estimated to have been more than 100 mph. The pair lost control of their vehicles and struck an on-coming car. Kippax' cousin was instantly killed and Kippax suffered a broken leg. He was later found hiding in a side street, pretending that he'd been several miles away when the tragic accident happened.

David Brear (copyright 2011)