Wednesday, 25 December 2013

Digital currency for New Age?

At a time when the dividing line between virtual and real is vanishing faster than what it takes us to realise, the Reserve Bank of India’s guarded warning on dealing with virtual currencies is hardly surprising. In fact, the caution issued on Tuesday was the second of its nature after it reacted to the global phenomenon for the first time in August when the apex bank was reported to be “watching and learning” about bitcoins. Though the craze had started in 2009 and spread slowly to various financial transactions, nobody is quite sure how the virtual currency is traded and exchanged and a value is fixed. Until recently, bitcoin had been considered as a fancy idea put forth by young techies to popularise invisible money in cyberspace. But, as it started firing the popular imagination and illegal financial transactions involving drug dealers and arms merchants came to light, the virtual currency has begun hogging the limelight. The concept, first emerged in a 2008 technical paper published under a Japanese pseudonym Satoshi Nakamoto, and bitcoin’s success in terms of its popularity and value appreciation are unprecedented. The surge in the use of bitcoins as a financial instrument in lieu of real currency is both unnerving and exciting despite the risks involved in dealing with digital money.
For the uninitiated, bitcoin is an electronic currency, minted in the virtual world and stored in, well, in digital wallets (that store the passwords to transact business of any nature on the Net). Bitcoin, as of now, doesn’t have any regulatory mechanism, or authorised by any government or its central bank which means that any operation of such nature does not come under the purview of laws governing national and international banking and finance. Since the operations, run on open software and mutual trust of stakeholders, are conducted in secrecy, they defy written and unwritten laws. It is estimated that India has 50,000-strong bitcoin community of which 30,000 are said to own the digital currency. And, like elsewhere in the world, the bitcoin is gaining currency among the young entrepreneurs and digital technology buffs. That is not surprising, considering the fact that India’s new generation has already been wedded to digital lives and they will jump on to any new innovation. But what concerns the establishment and bankers – as well as security agencies – is the number of frauds that could be easily perpetuated by cyber thieves. In a matter of seconds, millions could be siphoned off from virtual deposits leaving no trace.

In fact, there are many grey areas and loopholes which will be exposed only when frauds are detected like in the case of Silk Road when the American FBI arrested an entrepreneur Ross Ulbricht, the alleged mastermind behind an online marketplace for illegal drugs and arms which accepted only bitcoin payments. Similar cases have also surfaced in China, which is said to be embracing the virtual money enthusiastically, Germany and France. The reason for Chinese interest is it hopes one day the world will replace dollar with digital money, thus ending the domination of greenback. Though it is a wishful thinking at the moment, the possibility of virtual money taking over the major currencies can’t be ruled out. Before that happens, it is necessary to guard ourselves against virtual money deceptions, swindlers and crooks. In the absence of physical evidence, it will be a tough task to lay hands on cyber criminals. Needless to say, we need e-age laws!

Tuesday, 24 December 2013

Enforcement action accelerates against Ponzi and MLM schemes

SUCHETA DALAL | 10/12/2013 06:37 PM |

A burst of enforcement action in the past fortnight raised hopes of crackdown against notorious Ponzi and MLM schemes
A huge burst of long overdue enforcement activity in the past fortnight raises hopes, for the first time, of some check on the mushrooming of dubious ponzi schemes, direct selling companies, collective investment schemes (CIS) and pseudo-chit funds. Consider this.
• On November 22, the Supreme Court, finally, clamped down on the personal freedom of Subrata Roy, founder of the strange Sahara group and barred him from travelling abroad or alienating assets.
• On the very same day, Mumbai’s Economic Offences Wing (EOW) arrested eight agents of QNet, a controversial, Hong Kong-based multi-level marketing (MLM) company promoted by a Malaysian. The police have already frozen the bank accounts of these ‘team leaders’.
• On November 23, Kunal Ghosh, a suspended member of parliament (MP) of the Trinamool Congress, was arrested for colluding and conspiring with Sudipta Sen, founder of the Saradha group which went bust and took down a few thousand crores of savings of poor and low-income people.
• On 28th November, Malabar Gold and Diamonds, the rapidly expanding jewellery chain from Kerala, was raided by officials of the Directorate of Revenue Intelligence (DRI) at Kozhikode. According to a report in The Hindu, the raid followed a statement from one of the accused involved in smuggling gold from the Gulf and selling it to the jewellery group. The group’s turnover has reportedly grown from Rs50 lakh to Rs22,000 crore in just 20 years!
• On 2nd December, the EOW, Mumbai, nabbed the alleged mastermind of SpeakAsia, Ram Niwas Pal, who has fraudulent cornered over Rs300 crore, according to the police. Moneylife was the first to report about this brazen and high-profile ponzi which went bust in October 2010 taking down over Rs2,000 crore belonging to 230,000 people. The key promoters of this Singapore-registered company are still absconding; nor have they been made to return the Rs900+ crore transferred to Singapore alone.
Some of the credit for this flurry of activity by other enforcement agencies probably goes to the Securities and Exchange Board of India (SEBI) which has used its recently acquired powers to crack down on a series of CIS including teak tree investment schemes and a time-share called Orient Resorts. It has also ordered the freezing of assets worth over Rs500 crore of companies involved in various irregularities. Clearly, regulatory overlap leads to better enforcement and  action, if one of the regulators/agencies is willing to act decisively. A similar 
rush of activity is evident on the National Spot Exchange Limited (NSEL) scam where, again, Mumbai’s EOW is leading the crackdown and attachment of properties, rather than any independent regulator. 
But we have a long way to go before we even make a dent in the explosion of Internet-based scams and tricks (work-at-home scams, insurance scams, job scams, lost wallet scams, Nigerian scams) that are sucking up the savings of gullible people everyday. Topping the list are get-rich schemes targeting housewives and people laid-off from work which lure their victims promising high earnings from home-based work. Often, these are variations of the SpeakAsia survey fraud and would correctly be the domain of the Serious Fraud Investigation Office (SFIO). 
But SFIO is one agency that remains somnolent even after the new Companies Act 
2013 has hugely enhanced its powers; it lists SpeakAsia and QNet as ongoing investigations with very little action.

Sunday, 22 December 2013

Govt Launches Drive to Identify and Weed Out Companies Resorting to MLM Schemes: But Sachin Pilot prefers to ignore the real frauds

According to the information available with the Ministry of Corporate Affairs, companies resorting to Multi-Level Marketing Schemes are doing so in contravention of either the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 or by floating unauthorized ‘Collective Investment Schemes’ in contravention of Section 11AA of the Security and Exchange Board of India (SEBI) Act, 1992. Giving this information in written reply to a question in the Rajya Sabha, Minister for Corporate Affairs Sachin Pilot said that none of these companies also appear to be registered as Non-Banking Finance Companies (NBFC). As part of its drive to identify and weed out such companies, Ministry of Corporate Affairs has shared the particulars of around 34,000 companies with objectives of carrying on financial business with the Reserve Bank of India (RBI). RBI has taken up verification of such companies. 

This is the press release issued by the Press Information Bureau, the official organ of the Government of India which sends press releases to the print and electronic media periodically.
Mr Sachin Pilot conveniently forgets that Amway India is the prime accused in implementing MLM schemes in the country and the courts have already drawn conclusion in this respect. Not only Amway but also Herbalife, Tupperware, Forever Living Products and others are also into this fraudulent schemes.
In addition, big corporate giants like Tanishq, Kalyan Jewellers, and others also have launched collective investments schemes attracting the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978 and Section 11AA of SEBI Act, 1992. 
The 'Honourable' Minister Sachin Pilot conveniently turns Nelson's eye to these fraudulent' schemes. 

Sunday, 15 December 2013




Couple of years ago, my Chief Engineer was in my cabin having a drink. 
I felt that he was in a happy mood. I asked him the reason ,and he said that his only 
daughter would be getting married soon. 
Since he was my close buddy ,I asked him what the would be groom does for a living. 
He very proudly states that he is self employed and he has left his job to be in the Amway business. 
Knee jerk, I advised him. After you finish the drink ring up your wife immediately 
and call this alliance off, if you daughter is NOT in love with him.  It is NOT worth it.
My Chief Engineer left his drink and made a satellite call from my cabin itself.  
I could overhear him convincing his wife that the Captain hardly makes wrong decisions .
Then he came back and wanted to know if I had any personal experience with Amway.
 I told him an incident that happened on my previous ship.
I was asleep in port with cargo discharge in progress in a US port.
 I got a call from my Chief Officer from the CCR, and he said that a woman at the 
gangway wants to meet me—and he stressed that I would surely like to meet her.
So I peeped out of my porthole and saw a woman standing on the quay. 
She was allowed up and pretty soon she was in my cabin. 

To be frank, she looked absolutely drop dead gorgeous, young, in perfect shape , blue eyes,
 blonde, in skin tight blue leotards ( with her camel toe , the cynosure of every male eye ).
 Look into Wikipedia if you want to see what a camel toe is. 

She turned out to be an AVON sales woman. Though I offered her a seat, she wanted to
 kneel by my side and display the goodies in her bag.  Pretty soon I caught on , 
she was giving me a free show . Her pink nipples were standing out like bullets .
So I rang up my Chief Engineer 
and told him to come to my cabin el pronto. 
My Chief Engineer came , had a look at her and sort of melted away. Then he called me up, 
on the telephone and said “ Captain saab come to my cabin “ I could feel the excitement in his voice. 
So I gave a Coke to the Avon lady and went to the Chief Engineer’s cabin. 
He was rewinding a video cassette. Pretty soon he started the movie and 
I saw the same Avon woman .
As per the title of the video she was “the queen of anal porn” – and there she was getting serviced by 3 men. 
So I came back to my cabin and told her, that she has permission to go to the crew’s lounge. 
She sold her entire bag of goodies full of perfumes and cosmetics within half an hour,  and she left. 
Get an idea of salesmanship nay sales-womanship?
At least this woman was doing something to earn a living. For she could have
 milked100 times more money in the porn business.
On the way out of this river port, I narrated this incident to the pilot. 
He asked me is she was Avon or Amway, and cried “Stay away from Amway!”.
Then he burst into tears and said that he lost his only daughter to Amway.  She was a very obedient and loving daughter till she fell in love with an aggressive boy in the Amway business.  Pretty soon she too became a distributor.  
After that she became thick skinned could NOT see life except through the Amway prism.  
She tried to head hunt and prospect her own parents,  as if she was in a cult, without a mind of her own.
She shifted out of the home and lived with her boyfriend in a huff . 
When she got married there was NO invite.  

Such was the bitterness sowed, just because she could NOT recruit her own parents or make them buy ridiculously expensive Amway products like vitamin pills, "save the planet" eco-friendly cleaners . 
She was in a fantasy world of quick riches , buying a huge house , sports cars, etc.  
This young girl became mean and aggressive in trying to push her business into her parents 
 circle of friends , due to which they became socially pariah.  
They tried their best to win their only daughter back,  by acquiescing to her demands,
 but she was beyond redemption.
Amway rewards greed in a manner which corrodes the human soul.  
Rather greed is the driving spirit of Amway. 
He who is greedy is always in want—and so in their first motivational meeting ,
 Amway wants to know your goals in life.  They want you to write it down , 
even before you write down the names of your friends and relatives. 
Nowadays your facebook status reveals more to them.

They become very happy when you say that you want your own island, yatch 
and private jet plane, with the Kohinoor diamond thrown in for good measure 
 For this makes you a valuable recruit into 
their cult of greed, and the AMWAY VIRUS can occupy you faster.  
They are NOT happy with you if you just want a small maruti car and a small home 
for a happy family —for that makes you a loser.. 
What is greed?
Greed can make honest men murderers. 
Apathy and loss of human values is inherent in greed.   
Greed is the inordinate desire and the relentless pursuit to possess wealth,   
beyond the dictates of basic survival and comfort. 
Greedy people manipulate and deceive in a mean manner intent only on satisfying 
their own selfish needs.
Greed is a dark bottomless pit .  Once you spiral into this pit, you get centrifuged and exhausted 
in an endless self destructing effort to satisfy the delusional need without ever reaching satisfaction.
There is a sufficiency in the world for man's need but not for man's  greed.  
When morality comes up against profit, it is seldom that profit loses. 
Greed is the inventor of injustice as well as the current enforcer. 
Like the love of comfort, is a kind of fear, if you look at it through a psychological prism.
Growth for the sake of greed is the ideology of the cancer cell.  
Life is a success only if you are happy. You have succeeded in life when all you really want  is only 
what you really NEED. 
When morality comes up against profit, it is seldom that profit loses— yes this is
 the petty minded , selfish and stark American way ( Amway ) 
Ever heard the US president on TV wanting to protect “our way of life”?  Yes, this a way, where 
only the top of the pyramid scheme enjoys life, the bottom slave drones just keep slogging,
hoping to get the golden pot at the end of the rainbow one day. 
They try to run up a down escalator. For an intelligent man will tell you that the 
Amway method does NOT work, unless you have sponsors.
Intensely selfish people are always very decided as to what they wish.
 These ugly people do not waste their energies in considering the good of others.
Be aware that Amway employs a legal army will descend upon any blogger or website 
which is a threat their business.  If they are above board what is the need to do this? 
They will leave the shitty posts intact, and will try and get intelligent posts off.  
So read this up, folks—and spread the word around.  You will NOT get a more INCISIVE 
review anywhere on this planet.  No, Capt Vadakayil does NOT boast- TEE HEEEE !
Our PM Manmoham Singh was a Rothschild employee, befoe he was catapulted to the chair
of the Indian Finance minister . Manmohan Singh took personal initiative to get this pyramid
business model to India in 1995 when he was a finance minister.
The founder of Amway Richard De Vos was a Free mason. He had the support of the banking cartel.
The pyramid organization of Amway has been deemed to be legal, though it makes no sense. 
They say it is legal  because they sell merchandise out of catalogs.  
Why should something be legal when people are sold pipe dreams , which make them lose money? 
Only the privileged few who have their own secrets ( like our Marlboro man ) at the 
top of the pyramid  makes money.
Let me tell you a secret.
A Marlboro salesman came on my ship. He knew what he was upto. He has it all planned out. 
He knew that I had bought 200 cartons for my ship.  He got this inside information from the 
US Customs ( maybe a relative ) and there he was in my cabin,  giving me a fancy red Marlboro cap, 
dozens of souvenir pens and lighters , to soften me up.  
All he wants is my signature and stamp on a booklet which will show to the company 
that he sold the cigarettes to Capt Vadakayil.  He will give me bull that now 
I have secured BLAH BLAH points and next time BLAH BLAH BLAH. 
Do I look stupid?
Let me digress: -
Since I am in a frisky mood, let me tell a non-veg joke.  I hope my wife does NOT read this for she will kick mE ass. Ladies and children less than 18 nay 16 ( we have lowered the age in India ) keep away from the italics .
A couple went for a movie and were petting in the dark. 
Ultimately, the girl got some warm liquid in her hand, and since 
she did NOT have a hand kerchief, she threw it backwards.  
The content landed 4 rows back on the face of a drunk, 
who was rudely woken up.  
He felt the texture , smelt it and cried out to his drunk friend 
snoring away on the seat next to him. 
"Paddy, do I look like a c#nt? " .  
His friend looked at him in the dark and said " Nope!-- 
why do you ask, maan ?" .
He cried out in dismay " Someone just threw a f#ck 
on mE face --BOO HOOOO !!" 
In the 1979 ruling the US Federal Trade Commission determined that Amway was
 not an illegal pyramid scheme because no payments were made for recruitment. 
Hey, the loophole out here is that friends are family are recruited with NIL money. 
 And they cannot sue each other right?
People are forced to join because they do NOT want to hurt the feelings of their friends
 and family. Before they know how deep this dark hole is , it is too late. 
They are brainwashed that only losers escape from the web -- nay brotherhood of Amway.

The bottom line distributors are "strongly encouraged" to listen to at least one motivational
tape a day, tapes that are sold, of course, by their uplines ( persons above them on the pyramid ). 
Amway sends two expensive tapes to each distributor weekly and the distributors are billed for the tapes.  
At the Amway meetings, the distributors are often pressured to buy more tapes, 
books and videos from the diamond and emerald speakers.  Most of the profit from these 
sales goes directly to the diamond and emerald distributors.
If the product is good and reasonably priced, what is the need to sell HOPE
by means of motivational nonsense in CDs’ to gullible people ?   
In any case why do you charge money for these motivational books and tapes?  
There is big money to be milked just by selling these compulsory tapes right? 
Why don’t you put all your motivational bullshit on the net 
and given your dear worker drones a free password, for different levels? 

What is the need to defraud the gullible into thinking that with a little hard work and soap 
in their holes --- OOPS--- hope in their souls, they can become rich beyond their wildest dreams.
There is absolutely no reason to believe that Amway products are better than the 
ones who get for half the price elsewhere. A man is trying to make both ends meet, 
put his daughter into college and you want him to contribute though his nostrils to save the planet? 
Why don’t you do that.  Since you have so much money?  
And how did Amway Corp get rich so fast?  By being compassionate to your own dear people ? 
Why did you need to change your brand name from Amway to Quixtar? 
Hey, why do you have a connection with mercenary org Blackwater?
Why do you need to build up a cult whose main product is Amway itself. 
What is the need to sell --nay brainwash your people with false hopes of early retirement.  
Who else does all this? Is this the American way whose short form you
have lifted and converted to Amway?  
Why are your  seminars and meetings  reminiscent of revivalist meetings,
where the power of positive thinking is deleted and replaced by blind faith
in the Amway “get rich quick” system.

Now, let us look at your “legal” pyramid scheme.  Are you not aware that a
 pyramid scheme even if legal has aSATURATION POINT?

What will an intelligent man call a pyramid scheme where the bottom strata are doomed
to lose money and the top strata makes moolah out of this displaced money.  
The word is SCAM, right?. Here the upper layers support this fraud,  as they want more eager beaver recruits to shore themselves up, in a selfish manner . Salvation lies in rising up the pyramid strata, right?
How can such a Amway cycle sustain itself, without approx. 90% people will losing
 their money somewhere down the line?  Once saturated  how is it possible to 
recruit the number of people required to pay off the previous layer of recruiters? 
Never mind the illusion of legality as presented by  revamped schemes supported 
by “lobbied up” celebrities like ex-US Republican presidents , they are still a fraud
 to an intelligent man, who knows for sure that the "emperor is NOT wearing clothes" .  
Legal multi-level marketing (MLM) involves being 
recruited in order to sell a product that actually 
has some inherent value, and ONLY if it is not OVER PRICED compared to the same products available
 with countless other major popular brands.. 
This is because once you have run out of friends and family 
to recruit, and your reputation as a “ slimy Amyway head hunter" 
or “ugly Amway prospector”  is laid threadbare, and 
people treat you like the plague even in malls and pizza joints, 
you are forced to selling this awfully overpriced consumer 
item to survive.  Making a profit this way is just a pipe fu#kin' dream.
Brainwashed Amway worker drones to the Amway success theory of “fake it till you make it” 
just burn up from inside. Their ego forces them to lie to their own wives and children, and take
 out their frustrations on them. This is how the Amway virus destroys close knit "once 
upon a time very loving" families.
First of all any pyramid scheme which does NOT deliver the return promised in 
writing involves deception and fraud . But hey, Amway has a loop hole to wriggle out of this.
 They will say that this moaning mangy loser man did NOT read our motivational books
 and listen to our tapes and did NOT attend our last seminar ( where he has to foot all expenses ).
 The entire blame comes like a ton of shit on your own head .

Amway forces you to buy the products ONLY from the direct layer on top of you,
 on this pyramid . In this kind of pyramid scheme, you would be required to lie to and 
recruit new members into the MLM ( multilevel marketing (sic) ) in order 
to make a profit and keep the MLM alive.  

The Jewish conman Bernard Madoff stole almost $65 billion by means of a Ponzi pyramid scheme.
 On June 29, 2009, he was sentenced to 150 years in prison, the maximum allowed.
In a Ponzi scheme, there is one person who takes people's money as an "investment" and 
does not necessarily tell them how their returns will be generated.  As such, the 
people's return on investment could be generated by anything; it could come from 
money taken from new investors - which means new investors essentially 
pay off the old investors - or even from money made by drugs,
 gambling or prostitution (or Bollywood or IPL ).
The founder of Amway Freemason Richard De Vos has a Jewish bloodline.  
The first Amway building had a Masonic square and compass symbol on the front facade. 
The luxurious Amway Grand Plaza Hotel in Grand Rapids, Michigan where 
Amway has its international conventions for its distributors was built right onto a huge Masonic temple.
When a so called legal pyramid scheme has more than 98% failure rate of the
 bottom layer,  it becomes a scam. .  The US Federal Trade Commission has
 permitted the fleecing of Amway dupes because the money taken from the pockets
 of these poor victims has funded the lobbying kitty of the Amway empire to
 protect their fleecing of the flock business .

I have seen such a fraud in a casino in England.  My wife saw a machine where lot of 
whole pile of ONE pound coins were precariously perched on a ledge. 
You put one more coin and a big chunk of the pile would obviously come falling down, 
as there was no more place to accommodate a new coin entry..  My wife put a coin
 and a whole lot of coins fell down, and she made a neat profit of 6 pounds. 
So she put another coin. This time nothing happened. So I suggested that she 
give back the machine the remaining 5 coins.  Every time she put a coin 
she was hoping for the pile of coins to fall again.  But I noticed , now a 
small secret window had opened up at the sides.  No pressure would be put 
on the about to fall pile anymore. The new coin would push another coin
 into the sides – into the secret  kitty of the machine owner.  
Now we waited till another person came. She also got lot of coins with his first try. 
 And you should have seen the way she ran to the counter to exchange a
 currency note for coins—so that nobody else can come to the machine 
in her absence and take away the coins will “will” fall for her soon.  
So I showed her the secret slots which had opened up on the side. 
They machine recognizes a new fool , probably by a sensor taking in the color of the dress.   
So the people in Amway who make money are the ones who change the color of the dress 

The people who gave this venomous money sucking squid Amway a legal business
 certificate should be investigated and jailed.

An Amway man is now recognized as the man who screwed his friends and family. 
There are reports than in India promotions and junior job selections are based on 
getting recruited into the Amway brotherhood.  Pretty much the same way Catholic 
convents convert poor Indian Hindu families by offering admission to their young 
children to English medium LG and UKG sections.

Does this Amway company who has become super rich, do any benefit to the national economy?
 Then how have they got in even into India ?  By ministers getting lobbied up, right?
Amway makes a profit on every sale of every product it offers for sale.
 The sales people are considered independent business owners (IBOs) 
and they make money on every sale they make and by recruiting others to makes 
sales of the same products.  They spend money buying Amway products. 
Strangely they also spend a lot of money buying compulsory CDs, books and 
attending seminars aimed at making them believe that having a positive attitude 
and working hard are the keys to success.  

In Amway, one is recruited as an "independent" distributor of Amway products by 
buying a couple of hundred dollars' worth of the products from the one who recruits you,
 known as your "upline." Every distributor in turn tries to recruit more distributors.  
Income is generated by sales of products by the distributor plus "bonuses" from
 sales of his or her recruits and their recruit-descendents. The distributors  
income depends primarily not on their own sales of Amway products but on sales 
made by others whom they've recruited.

In the seminars they use Amway specific slang and abbreviations to give them the 
sense of bonding, like how small convent girls talk in P language and feel important 
as a girly giggling gang.  WAPPAT IPPIS YOPPOUR NAPPAME.( what is your name ).
So when my wife’s Auxilium convent gang came to visit my ship 30 years ago, 
they thought they can hold secret conversations till I gave it to them in P and T language
 combined, twice as fast.
What is unique is the faith, devotion and hope that the Amway foot soldiers
 have—almost like the Mormons.  The way they work themselves into a passionate 
frenzy while prospecting new recruits in a shameless thickskinned manner 
has to be seen to be believed.  
Quitting  would mean giving up hope of a happy future, sipping margaritas 
on a yacht in a Caribbean bay,  right?.

The Amway “hook” is simple enough. You become a “distributor” for a low, low entry fee. 
This makes you a retail franchise, a businessman . You sell Amway products and make your profits.. 
 But if you want to make real money, you sign up other “distributors”.
 They’ll be your “downline”, and when they sell anything, you get paid a 
commission (they call it a “bonus”).
You buy $200 a month of Amway products for yourself, upon which you 
get a few dollars back. But if you can sign up 10 people, and they sign up 10 people apiece 
(and so on, and so on), eventually you’ll have 7,000 people, which will qualify 
you for the “diamond” distributor category. And if each of those people 
buys $200 a month of Amway products, you will generate nearly $17 million in yearly sales! 
Now you can sit back, relax, and just rake in the moolah, right?
The model usually collapses long before that, because quite frankly, most people
aren’t gullible enough to go for it. 
This is why 80% of Amway distributors drop out.  Amway business model is the 
enormous sales volume required in order to make any money.
There’s only two winners in the system: the people who run the parent corporation, 
and the people who sit at the top of the pyramid (even though the whole pyramid is
 losing money overall, they are taking such a large share of the commissions that
 they make money at the expense of the rest at the bottom ). 
In effect, 90% of the people in the pyramid must lose money so that the
 remaining 10% can divide the profits amongst themselves, with the lion’s share 
going to the people at the very top. 
These people then turn around and use this money to “lobby” ( bribe ) the powers
 in the government to keep their scheme operating. Now you know how the 
top of the pyramid gets rich, and how this system continues to be “legal”.
Other hidden expenses for distributors include mailing, handling, doing forms, 
advertising, cell phone roaming bills, and driving personal vehicles to 
deliver or pick up products.  Unless you hire a servant type who will foot slog 
with a bag of goodies , you spend a lot on petrol.
Amway's attitude toward any insider critical of the organization has bordered 
on paranoia. In any seminar of meeting dissidents are not allowed to give their testimony. 
 They are told off and an elaborate guilt trap will be laid on you, 
something you never ever faced in your life 
“ You are just dumb —you are a failure—you did NOT work hard enough—you did 
NOT devote enough time and energy—you did NOT listen to the latest CD,
 here buy one— you have not yet developed the Amway prospector’s 
eye—  you loser, were you serious about your dreams of giving your 
children a good education --  you are low on loyalty and courage of your 
 convictions,  no wonder it didn't work for you--- you didn't do exactly 
as you were taught—you need to retune your prospecting radar— stop worrying,
 it will all fall in place soon—how can you say this,I thought your are a 
bright guy-- is this the level of your commitment to your family?--if 
you have not yet seen the light , whose fault is it ?”
Sometimes you will be told “ Have faith and just keep doing what you're doing,
 Amway’s way is a tried and tested model"  

Something like what Winston Churchill tells through drunken lips, with a heroin
suppository up his a$$hole for good measure  “ If you are going through hell, keep going !!”.
Some will even put a carrot on stick.  “When we find you are ready  
(meaning properly brainwashed to be non-skeptic) we will show you ways how 
you can make extra money from the sales of tools to your own downline.
 You may not understand it now, but it will become clear when you're successful. 
You work more on the front end, but get lots of money at the back end." 
You are too dumbstruck to ask what this back end is.
Because the group is offering their own form of salvation, the deception is
 rationalised because the end goal justifies whatever means are necessary to achieve that goal.
They will never admit that you have been deliberately lied to and dumped 
on an down going escalator and told to run up and take all the money lying for you on top. 
The inherent flaws in the system does NOT allow you to make money unless 
you sell your soul and cheat people.
Deception lies at every step from the first day to the last stage . 
When the new distributor starts to build the business, he is taught to contact people
 about "building a business," not about "building an Amway business."  

I dare anybody to say , that in a mall he pounced on a prospect and said “
 Hi wanna join Amway?”  When a gullible new person is sponsored, 
he is told to make a PIMPING list (using carbon paper in this age ) 
of all the friends and family he knows.  A copy of the list is given to 
his sponsor who can then contact those people for him. 
They will even invade your face book account.
In India where people scam goes further that the West, the Amway people
start the GENI tree and they take a lot of pains, trying to be very pally pally 
with the “see we are all of same blood tree”. 
These Amway people have NIL character, they will lie through their teeth ,
 and they will sacrifice you on the altar of greed. 
The worst is people using nuisance potential, to wrangle a recruit.
 If you want water connection, well can you be an Amway recruit?  
Or you wait, till the cows come home.  

You wife is invited to a “kitty party” to join the sorority , and the moment she reaches 
there everybody looks at her with Amway eyes. 
Amway has injected poison into relationships, which we Indian value, 
unlike the West.  This is the fountain head of our happiness , friends and family. 
The Indian Government must have fast track justice system (  like rape ) for people
 who arm twist innocent and vulnerable people into joining Amway, to realize 
an IMPOSSIBLE pipe dream.
The distributor cannot return unsold over priced products. This forces him to 
use it himself and he just cannot afford this . So he runs from pillar to post to sell it ,
putting his honour in pickle , to recruit more new people .
Amway makes money on their initial sign up fees and the motivational CDs and 
books which are expensive.  Amway gives a damn if the distributor cannot 
sell the products which he bought.  For if products are not sold, since the 
pressure to move products rests with the 'distributors'.   
In India, distributors will have to "renew their contract" by 
paying a fee—more riches for Amway.

In motivational seminars all the jokers stand in a circle bend down with arms over each other in 
a huddle and cry “ GO FOR DIAMOND “ like what to see in American football matches, in a ridiculous manner..  

I am sure a lot of them will be muttering under their breath “ FU#K YOU AMWAY”. 
Some of them have been reduced to using office telephones during coffee breaks , 
to save of cellular roaming charges.
Next time you see an Amway man in a mall trying to brown nose his way 
ask him “ So, selling soap and detergents will make me a millionaire, what else is new ?” 
and then watch his face.
In Amway the only people , the distributors care for is themselves.
Pyramid schemes are generally abusive business practices where thick skinned and
 hard work is forced upon lower-level employees so that more senior workers can relax and profit,  
with little independent effort. 
Lower-level workers always find it hard to make much money under 
these adversely tilted conditions.  In India several doctors  prescribe 
AMWAY herbal products/vitamins to their patients, against medical ethics.
Rothschild is involved in Amway. In China Merrill Lynch International, 
Jardine Fleming International and N.M. Rothschild & Sons was co-managing.
At every function, Diamond distributors who make grand entries in B&W sedans , 
tell stories about their hardships when they were building the business. 
When the Diamonds say "we drove for miles and miles for that 
meeting," the distributors in attendance believe that if they "drive the miles and miles," 
they too will become Diamonds.  
The Diamonds also repeat over and over that, by using the tools, they became successful.
 Therefore, the same tools will work for you as well, never mind that every person is 
different and cultures clash.
For a new recruit to beat the odds, he must develop the “conman gene”. 
As Amway science is NOT suited for the noble honorable man.
 So you can very well gauge the character of the distributors who have risen up 
the pyramids, after beating the odds. They have cheated several gullible new recruits 
with financial salvation. 
Like missionaries, these  Amway distributors have gone out into the world preaching 
that Amway is the only way  to "save yourself" from the lurking  "financial disaster" 
as well as the only way to achieve your lifelong dreams. As long as the new 
distributors feel they are following the tried and tested Amway way, they believe
 like a misled cult  what they are doing is right and fair and many of them 
think nothing of lying and conning.. 
Some of these brainwashed people when asked about their relentless foot slogging 
and rebuffs on the face with  low pay and long hours, actually claim that they are 
rewarded by their own "personal growth." They refuse to accept that they are
 in a catch 22 situation. Amway diamonds and platinums tell on face book about
 their holidays to Aruba and Hawaii, while actually people would have spotted them 
at home in pyjamas over the fence.

These  Diamonds don't have public stockholders to answer to, and since their seminar 
audience is looking to emulate them, they have no one in the audience to critique their 
speeches — only gaping in awe party. Such is the effect of this cult, that its leadership's 
charisma and integrity is not to be questioned.  In the Amway business, distributors
 are taught that there is virtually no other lifestyle worthwhile outside of the Amway business. 
The speeches pound into the heads that a distributor will only be happy when he reaches
 the Diamond level- but he will never tell them it is beyond reach. He will never tell 
you how much time you need to spend to break even, leave alone make a tidy profit.
They are told again and again that this is a "proven system", and if they just follow 
it like a recipe they will retire in about 4 years.
The Amway dream began in 1959 in an old garage , where Jay Van Andel and his 
friend Richard DeVos created a multi-level marketing plan. They offered laundry 
and cleaning supplies to start-up entrepreneurs.  For Jay and Rich, this was 
THE American way, thus the name, Amway.  

Van Andel was born in Grand Rapids, Michigan, in 1924. He met Richard DeVos 
in high school when Van Andel charged DeVos 25 cents for rides to school in his
1929 Model A Ford, so much for being close buddies.  
Their first product was called Frisk, a concentrated organic cleaner developed 
by a scientist in Ohio. DeVos and Van Andel bought the rights to manufacture 
and distribute Frisk, and later changed the name to LOC (Liquid Organic Cleaner)
They went around telling that Multilevel marketing is just a way to remove the average
 person in the buying and selling process of a service or product and give the 
cost of marketing back to the customer. Oh yeah? The more you buy, the poorer 
you get but the "richer" your "upline" gets. Their refrain  was the usual bull
 "you have to spend it to earn it", "work now, play later”. 
You were also highly encouraged to disassociate yourself from quitters because 
they will "try and steal your dream”. So then Amway becomes No.25 among 
the largest private companies in the U.S. by Forbes in 2012. How sweet.
Multi level marketing business that relies on selling to people you know, then they 
sell to people they know and on and on. You are given "gem" names to represent 
where you are in the business regarding your sales to further inflate your ego and 
create more false security. Ruby & Sapphire's are mid range but the big goal 
is to make "Diamond" and then there is also "Double fu#ckin’ Diamond".
Upline is the name given to everyone a head of you and "downline" is for those 
beneath you. All you need is to get fired up to spread the great news to all of your 
family and friends, so you can all retire with lot of moolah.

The 1990s rang in a new generation of leaders. Steve Van Andel and Dick DeVos 
succeeded their fathers as chairman and president, respectively. Doug Van Andel, 
another son of Jay's, is now president. Van Andel and his wife Betty both died in 2004; 
Betty had Alzheimer's disease, and Jay had Parkinson's.
Amway expanded overseas to Australia in 1971, to Europe in 1973, to parts of Asia 
in 1974, to Japan in 1979, to Latin America in 1985, to China in 1995, to 
Africa in 1997, to India and Scandinavia in 1998, to Russia in 2005, and to Vietnam in 2008.
On August 6, 2011 Kerala Police sealed the offices of Amway at 
Kozhikode, Kannur, Kochi, Kottayam, Thrissur, Kollam and 
Thiruvananthapuram following complaints of being sold fake dreams.
The dream sold by the website of Amway India offers its members a monthly
 of Rs. 62,500 if they succeed in enrolling 102 members downline of each member
with the business model of 6-4-3. 
That means every member has to enroll six members and in turn these 
six members has to enroll four members each and these four members
 has to enroll three members each to complete one cycle. If the cycle is completed 
the first member would earn every month Rs. 62,500 without any personal effort, like magic.
Greed is quite common weakness in humans and MLM companies very 
effectively target that and most people don’t find any fault as such in the system 
and easily fall pray.  
QNet ltd, formerly known as QuestNet, GoldQuest, and QI Limited, is a Hong Kong based 
MLM company selling  energy, weight management, nutrition, personal care, home care,
 luxury goods, and fashion accessories.   
QNet was founded in Hong Kong by  a Malaysian businessman  Vijay Eswaran in 1998. 
 In July 2011 issue of Rothschild’s Forbes Asia, he was named as one of 48
 'Heroes of Philanthropy' in the region. 
QNet operates in India through its franchisee Vihaan Direct Selling Pvt Ltd, which 
carries the company's brand name in the country, whose major shareholder is billiards
 player Micheal Ferreira and the minor shareholder another Christian..  

The gullible opportunistic  Egyptians are getting duped whole sale.
QuestNet and GoldQuest, duped people with  limited edition gold coins 
“whose value would increase over time” ( sic ) and we charged and forced to 
shut dowin in India.  However like the quintessential phoneix their new avatar QNet 
came back with more of such products like  bio-discs, Chi-Pendants and 
herbal products for anything between Rs 30,000 to Rs 7 lakh. 
QNet promises fabulously high returns” so long as new distributors are 
enrolled rapidly” TEE HEEEE !
Its product brochure says, “With 8 ways to earn and up to 50% of the sales 
paid out in commissions, QNET offers the most dynamic and innovative 
compensation plan in the direct selling profession.” OH Boy !!
Bottom line: We all can be richer than Amway owners if we are con men.
Punch into google search
So next time some fat lady smiles at you in a mall, look at you with beady eyes and lisps 
 "Oh, have we met before?",  remember, she could be prospecting for a gullible Amway recruit.
Time to lift your lungi and run!  
Grace and peace!