Thursday, 29 September 2011

More evidence that senior UK govt officials and Ministers must know full-well that 'MLM' is a racket

The following warning has been reproduced from the  British Government's 'Action Fraud'  Website:   http://www.actionfraud.org.uk/node/40


Business opportunity fraud involves an offer to become financially independent, or to generate extra income, by setting up your own business.

More information about business opportunity fraud
A letter, advert or website asks if you are interested in making easy money by working from home, or setting up your own online business.

The scheme allows you to choose when you work and enables you to fit your work around your other responsibilities. The work itself could involve filling envelopes, assembling products or selling goods or services through your own website.

However, any products or services you are asked to sell are worthless and you won’t be able to sell them.
You have to pay money up front to register with the scheme, buy customer leads, set up your web site, buy products to sell on, or receive an instruction manual on how to run your business.

If you’re asked to assemble goods or fill envelopes, the fraudsters will find fault with your work and use it as a reason for not paying you.

Many of these schemes are straightforward pyramid schemes, where you will only earn money by introducing other people to it. For example: by selling them copies of the instruction manual.

Are you a victim of business opportunity fraud?
  • You’ve received an email or letter, seen an advert, or landed on a website explaining how you can make easy money by working at home, or by setting up your own online business.
  • You’ve paid money up front to register with the scheme, bought customer details, set up a new website, bought products to sell. However, the products are worthless.

Pyramid scheme fraud involves an unsustainable business which rewards people for enrolling others into a business that offers a non-existent or worthless product. 

More about pyramid scheme fraud

A fraudster advertises a multi-level investment scheme that offers extraordinary profits for little or no risk.

You’re required to pay a fee to enter the investment scheme.

You’re then required to recruit friends or family members to enter the scheme. If you do this successfully, you’re paid out of their receipts. They are then told to recruit others to keep the chain going.

Your money is not actually invested in any product. Instead, it’s simply passed up the chain of investors. Because pyramid schemes are unauthorised and make no profits, you’re very unlikely to recover any lost investment. While the fraudster at the top will collect most of the profits, those who entered the scheme later end up losing out.

Legitimate trading schemes rely on valuable goods and services, while illegal pyramid schemes focus simply on recruiting more and more investors.

Using hard-sell techniques, fraudsters try to pressure you into making rushed decisions, giving you no time to consider the nature of the investment.

Fraudsters aim to make their business seem legitimate. This means they will often use technical jargon, impressive job titles and mock websites to look credible. If you have any suspicions about a scheme’s authenticity, you should investigate the company’s status and contact details.

Are you a victim of pyramid scheme fraud?
  • You’ve been approached about a multi-level investment scheme that offers great-sounding profits with little or no risk.
  • You’ve paid a fee to join the scheme.
  • You’ve enrolled others on the scheme and already earned money from your efforts.

4 comments:

Chitta Babu said...

Rightly said shyam ji

sir i appreciate ur concern against these mlm companies and have been inspired by u to stop these companies.
i would like to ask you as to how to make the law effective in india . because there are still many companies doing this illegal bussiness. and they are publicly doing this . for eg NMart. it has marts in AP also at 1.NMart Retails Kakinada,Beside
2. town police station, main road,Kakinada 2.NMart Retails Vijaywada,Near Siddartha Collage, Mogalrajpuram, Vijaywada Andhra Pradesh,
3.NMART RETAILS THIRUPATHI,Balaiah Complex, D. NO. 18-1-47,Beside : Karur Vysya Bank, K.T. Road, Thirupathi Thirupathi Andhra Pradesh,N MART RETAILS VISHAKAPATNAM OPP. A R GRAND HOTEL, OLD GAJUWAKA VISHAKAPATNAM Andhra Pradesh Work In Progress
3. N MART RETAILS ADILABAD TULSHAN COMPLEX, BESIDE MAHESHWARI THEATOR, NEAR ANDRA BANK, CINEMA ROAD ADILABAD Andhra Pradesh . Operational
4. NMART RETAILS NARASARAOPET D.NO.9-6-29/14, ARUNDELPET, BESIDE SBI P&S BRANCH,NARASARAOPET NARASARAOPET Andhra Pradesh Operational
8 N MART RETAILS KUNDUKUR BESIDES OF SBI, OV ROAD, KANDUKUR KANDUKUR Andhra Pradesh Work In Progress
9 N MART RETAILS GUNTUR 4/15, BRODIPET, GUNTUR GUNTUR Andhra Pradesh Work In Progress
10 N MART RETAILS KARIMNAGAR H. NO. 3-1-397/A, AMBEDKAR ROAD KARIMNAGAR Andhra Pradesh
...........AND AT KERALA.........

NMART RETAILS TRICHUR PUNKUNNAM ROAD, WEST OF OVER BRIDGE, TRICHUR Kerala,
N MART RETAILS RANNI KACHANATH EBENEZER TRADE CENTRE, NEAR MARTHOMA HOSPITAL,RANNI THIRUVALLA ROAD, ANGDI PO, RANNI, PATHNAMTHITTA RANNI Kerala
N MART RETAILS CALICUT CHRISTIAN COLLAGE, GANDHI ROAD, CALICUT,
KERALA CALICUT Kerala

REFERENCE:http://nmart.co.in/NmartStores.aspx

I WOULD LIKE TO ASK YOU THAT HOW THEE COMPANIES ARE RUNNING AT AP AND KERALA ?? AND WHAT STEPS ARE BEING TAKEN AND WHEN WILL THE INNOCENT PEOPLE STOP LOOSING MONEY IN A STATE WHERE U R PRESENT ?

PLEASE DO SOMETHING FOR THE PEOPLE OF INDIA AND STOP THIS NMART.
**********************************************************************

Chitta Babu said...

shyam ji ,

This is regarding mlm companies who operate in india in all the states.
how come the law enforcing authorities have turned a blind eye to these all which is illegal ?
and , when most companies are visible that they do such types of marketing and make members.

please tell me as to how to stop such nonsense in the name of mlm.and as to how to proceed with filing a PIL in my state of orissa where the companies have well established themselves.
and shyam ji, there are companies who are operating in your city also with proof that they perform mlm and help people loose money.

please do some thing and stop this SOCIAL TERRORISM which spoils the social fabric of our society.

and another thing sir can these companies be tried under the jan lok pal bill(if approved)?

Regards
chitaranjan

Shyam Sundar said...

amjor hurdle Corporate Frauds Watch facing is there are no complainants against thes fraudulent companies. Moreover, the persons who join in such schemes are also accused as per the enactment. That is why nobody comes forward to lodge a complaint with police.
Another problem, most of these victims are joined in this schemes by their friends and relatives against whom they could not complain fearing of losing their relationship. After all they lost some money already but why lose relationship too, they might think.
Moreover, all these fraudulent companies brainwash their victims stating that it is their fault they could not excel in the 'good business opportunity' and everyone of them has been making wads of money. The victims feel that it is really their fault and never suspect that is a racket.
Due to all these reasons, no action would be initiated by these fraudulent companies in the early stage. But by the time, they initiate action, they become monsters difficult to control.

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