Corporate Frauds Watch

The 'Amway' Lord Hee Haw continues to bluff

2012-01-27T19:57:00.000-08:00

Shyam

Mr. Steadson a.k.a 'IBOFB,' still seems unable to comprehend that you have definitively banned him from CFW as the de facto agent of the 'Amway' crime bosses.

The unmasked 'Amway' Lord Hee Haw has yet again foolishly tried to post a provocative comment on CFW. In this, he is attempting to get your free-thinking readers to believe that if I put one million dollars on the table, only then will he show his winning-hand and produce the quantifiable evidence proving that at least one honest person (himself) has managed to generate an overall net-income lawfully from regularly retailing 'Amway' wampum to the public for a profit.

It's curious, that the arch-bluffer, Mr. Steadson, has only now volunteered to produce the many years of 'Amway'- related income-tax payment-receipts which he has previously implied that he has been withholding (for undisclosed reasons).

In reality, the real challenge has already been formally thrown down many times on this Blog (and internationally) to the billionaire bosses of the 'Amway' mob. To date, these narcissistic racketeers have been unable to prove that a significant number of all the tens of millions of persons who have been churned through their so-called 'MLM income opportunity' during the previous 50+ years, have received one cent of overall, net-income lawfully as a result of regularly retailing significant quantities of over-priced 'Amway' wampum to the public for a profit.

Indeed, when the 'Amway' crime bosses' multi-billion dollar 'MLM income opportunity' bluff was formally called in California recently, their shyster-attorneys attempted to give the equivalent of $155 millons to a significant group of insolvent victims, in order not to have to lay their employers' losing hand down on a federal court's table for the entire world to see.

One wonders why (given his claimed winning hand) the 'Amway' Lord Hee Haw didn't offer to turn-up for free in Court in California as a star defence witness?After all, the stakes on that formal occasion were far higher than a mere one million dollars.

Where are Kuntal's 'Amway'-related income-tax receipts?

2012-01-27T04:28:00.000-08:00

Shyam

You free-thinking readers should be both alarmed and amused to read the following intellectually-castrated comment posted on Corporate Frauds Watch by a poor little fellow signing himself 'Kuntal's Blog.' He says:

'You may keep on shouting & screaming bad things about AMWAY but I have 7 of my Family members including me doing AMWAY for 3 years...My uncle was an Auto Rickshaw driver today he gets cheque's worth 22-25000 everymonth he is at 15% stage of Amway n this will continue to increase...and it will reach to amounts of 55000-60000 as soon as he touches the Silver Pin of Amway..My Mom is presently at 9% she at an average gets Rs9000-14000I am presently at 6% and from my Heart & Soul I wish AMWAY grows & we grow with it together.'

One thing is absolutely certain, 'Kuntal' (if he really exists) will never have seen any quantifiable evidence (in the form of his so-called 'Upline's' audited accounts; particularly, income-tax receipts) proving that the so-called 'Amway MLM income opportunity'is economically-viable and lawful. Tellingly, if we were to offer 'Kuntal'one million dollars to produce the quantifiable evidence (in the form of audited accounts; particularly, income-tax receipts) proving that he, or any member of his family (if they really exist), has (during the previous 3 years) received one Rupee of overall net-profit lawfully as a result of regularly retailing over-priced, 'Amway'- supplied products to the Indian public: then we would be met with stoney silence or a stream of scripted-abuse/excuses.

Unfortunately, it is a matter of public record that, during the previous 50+ years, tens of millions of hopeful persons have been churned through the so-called 'Amway MLM income opportunity' around the world. The quantifiable evidence (i.e. the total absence of any significant income-tax revenue) proves beyond all reasonable doubt that, apart from an insignificant minority of grinning 'Diamond' schills (the majority of whose wealth has secretly-derived from a related, advance fee fraud a.k.a. 'tool scam'), 'Amway' has actually been the corporate cover for a ongoing, closed-market swindle in which illegal internal payments have been laundered as 'sales' (i.e. 'Amway' victims have received effectively-unsaleable wampum to obscure the reality of their situation and prevent them from complaining).

The billionaire bosses of this sustainable, global, blame-the-victim racket (of which 'Kuntal' and his family are apparently deluded Indian victims) have been hiding the fact that their so-called 'Amway MLM income opportunity' has had an overall, drop-out/failure rate of 100%. Futhermore, deluded 'Amway' victims have been subjected to co-ordinated devious technques of social, psychological and physical persuasion. In this way, countless poor persons like 'Kuntal' and his family have been programmed like robots systematically to hide the truth about their overall losses in 'Amway,' in order to recruit further victims.

So come on 'Kuntal' don't be shy, prove my analysis wrong. Where exactly, young man, are your 'Amway' accounts; particularly, your income-tax receipts?

Money laundering: Amway India under ED scanner

2012-01-27T02:31:00.000-08:00

New Delhi, Jan 23: The Amway India Enterprise (AIE), a popular direct marketing company, has come under the scanner of the Enforcement Directorate (ED) for forcing multi-level marketing (MLM) by registering people as members by offering them lucrative commissions on exorbitantly priced products, reports Daily Mail.
Report further claims that Hyderabad ED unit has already started the probe into the matter. Moreover, ED has registered an economic crime information report (ECIR) under Section 3 (proceeds of a crime) of the Prevention of Money Laundering Act (PMLA) after taking over the cases from the Hyderabad police.
Further more Criminal Investigation Department (CID) had also lodged a charge-sheet against AIE for violating the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
ED filed report claims that most people lose their investment in the Amway scheme. Also, ED revealed that "Being the promoters, the initial members - who enrolled the majority members into the scheme - get easy money without any effort. Thus, they are unlawfully enriching themselves at the cost of innocent members/distributors down the line."
Reacting to the issue, Amway India senior vice-president of legal and corporate affair Yoginder Singh said that company has not received any information from the ED with regard to their having filed a case against Amway or the allegations therein.
OneIndia News

'Homeopathy's' star product, 'Oscilloccinum,' is a harmless sugar pill

2012-01-26T06:45:00.000-08:00

Shyam

Your free-thinking readers should be aware that, in response to my recent article, I have been sent some very alarming information about the 'homeopathy' racket collected by a group of French and Italian critics.

The world's largest 'homeopathic' company, 'Boiron', is French, and last year an Italian Blogger, Samuele Riva, was threatened by 'Boiron's' aggressive echelon of attorneys when he posted two truthful articles about the company's most-profitable product, 'Oscilloccinum' http://en.wikipedia.org/wiki/Oscillococcinum . These malicious threats were subsequently withdrawn, when 'Boiron's' wealthy bosses quickly began to realize that such bully-boy tactics were only drawing more, unwelcome attention to their global deception; for Mr. Riva is not the only free-thinking person who has openly-challenged 'Boiron's' mystifying, corporate fairy tale.

Two US-based, associated organizations, the 'Center for Inquiry' and the 'Committee for Skeptical Inquiry,' have sent petitions to the US Food and Drug Administration denouncing 'Oscilloccinum' as latter-day snake oil. http://www.thepharmaletter.com/file/107384/citizen-petition-calls-on-us-fda-to-review-regulation-of-homeopathic-drugs.html. A class-action lawsuit has been filed on behalf of all Californians who bought the product within the last 4 years and who were led to believe that it contained an active ingredient which has been proven to stop flu symptoms in two days. http://www.topclassactions.com/lawsuit-settlements/lawsuit-news/1309--boiron-oscillococcinum-class-action-lawsuit

Here is perhaps the best detailed-analysis of 'Oscilloccinum' by Mark Crislip (http://www.quackcast.com/ ) http://www.sciencebasedmedicine.org/index.php/ososillyococcinum-and-other-flu-bits/ .

In brief, without any independent quantifiable evidence to support their absurd, non-rational narrative, the bosses of 'Boiron' have been allowed to peddle vast quantities of a misbranded, harmless placebo during the previous 65 years. This unoriginal fiction has been given the essentially-meaningless, but technical-sounding, made-up name 'Oscilloccinum.' Whilst the harmless placebo's alleged active ingredient, 'Anas Barbariae Hepatis et Cordis Extractum,' is actually the rancid extract of duck liver and heart, impressively described in Latin. However, no matter what thought-stopping, pseudo-scientific jargon has been used to exclude the adult world of quantifiable reality, this cheaply-procured, common substance has been diluted in water to such an astronomical degree that (according to the fundamental laws of science) none of it can possibly remain present in 'homeopathy's' star product.

Sadly, the bosses of 'Boiron' continue to generate countless millions of dollars by steadfastly pretending that their company's harmless sugar pill contains water which, in turn, contains the 'memory' of an 'active ingredient' which, in turn, is a 'scientifically-based remedy for Influenza.'

Chain Money - A concern of economical drain

2012-01-26T05:15:00.000-08:00

By: Thoudam Opendro Singh*

Many of us would have heard of many chain money businesses like Amway or Smart Jobs or mail order, so on. I'm an expert neither in these businesses nor in general financial economics. But I would like to expose some of the obviously ugly side of such a business.

When I heard about Amway, it had already spread all across the villages of Manipur. I was then curious to know what it was. When I discovered it's working, I couldn't stop admiring the sick brain behind it. Amway was reportedly started by an American and spread across India through NRIs. Let me explain briefly how this works with assumed figures. X is the owner or the founder of this business (the top of hierarchy). He enrolls say 10 people as member of the business, with a non-refundable deposit, say Rs.2500 for each member (actually it is about Rs.4000, out of which the member will get a package of consumer items worth say Rs.1500). So, X owns Rs.25,000. These 10 people will be the second in hierarchy or call them level-2 here afterwards.

Now X lurches these 10 members promising some points, say 30 points for every 3 new members they bring into the enrolment and that these points will become en-cashable when the 3 members bring in another 3 members. Let's assume each of these 10 people in level-2 brings 4 members, which gives 40 more members at level-3 and 400 x Rs.2500 = Rs.1,00,000. Now X is the owner of Rs.1,00,000 + Rs.25,000 = Rs.1,25,000.

Now with the same bait, these 40 members will try to get 3 new members below each of them. Meanwhile X enjoys with Rs.1,25,000 collected from others. After sometime assume each of the 40 members in level-3 enrolls 3 new members below them. This results in another 40 x 3 = 120 new members at level-4 and 120 x Rs.2500 = Rs.3,00,000. Now X is the owner of Rs.1,25,000 + Rs.3,00,000 = Rs.4,25,000. Now, X has enough money to pay those 10 people at level-2 since the depth of the hierarchy has gone down upto level-4.

To make the bait attractive, X sells some cheap products at a discount of say, 20%. Wait, the item is not anything like rice or vegetable that we daily need. It can be something like tooth paste that we hardly consume one tube per month. So, by giving toothpaste worth Rs.100 at Rs.80, the member is assumingly gaining Rs.10 per month.

The hierarchical tree graph goes like this:

X (owner)	Total members
10 members at level-2	10
10 x 4 = 40 members at level-3	50
40 x 3 = 120 members at level-4	170
A minimum of 120 x 3 = 360 members at level-5	530
and so on.....

The profit margin that an earlier member at the higher level enjoys from the lower level is very minimal. As the tree goes deeper and deeper, the profit from the members at further level will reduce since it is shared by members of more number of levels. But the number of members grows same as the Uranium explosion of three uncontrolled neutrons for each atom. So, the small margin multiplied by the explosive number of members gives enough heat to make the members at the top-level filthy rich, but at whose expense? At the expense of those uncountable members in the last level. At a particular level, let's say there are 10,000 members who have not been successful to enroll another new member. Now, each of these 10,000 members will be loitering around to get rid of a transferable disease by catching the friends and relatives. I have seen it. Any such poor member in the village will try to convince at least 3 people in the neighbors and around to join it so that he or she gets rid of the headache and guilt of loss. To cure one infected patient, 3 more patients have to be brought in. What to do? The only cure for any unfortunate member is by transferring it to another 3 new persons.

Smart jobs or mail orders are even worse than Amway.

My roommate, a BE (EEE), who was then a project trainee, was desperate to get some money and joined one Smart Jobs. The bonus point was that he had the choice to withdraw from the membership with full refund!! Let's me tell you how it works.

Smart Job or mail order does not involve any marketing, sales or buys. Assume I'm the first owner of this business. I ask 100 people to join this by paying say Rs.700 each. Now I have 70,000 in hand. Then I ask these 100 people to do that same job as me, i.e. advertise it to others and collect people who want to be a member. Let me assume that each one collect 10 new members, i.e. totally 1000 new members. Each new member again pays Rs.700 to me, i.e. 7,00,000. Now I have 7,70,000. Consequently I pay some commission to the members who have brought these newer people. What do I lose?? I gain without doing any job. So will anybody who has more new members under his hierarchy.

Now, my roommate decides to resign. Please note that he sent a Demand Draft. Now he is issued a cheque as refund. The cheque is crossed as "Account Payee only". This poor fellow does not even have enough money to open an account, how will he get this money back?

Please don't take it personally if any of you, my friends, has joined it. It is very unethical to earn money without any productive works. I'm not jealous if you might be a gainer, but I'm only against gaining at the cost of somebody. And the ratio of gainers to losers is very small. It is irony that even the governments allow state lotteries for some tax returns to them.

Let me tell a similar story in US, which I heard from my colleagues rather than my eyes, but logically feasible. One American put up an online sales "50% off" on so many famous branded items, but not costly. He collects all the cheques and money through credit cards and credited into his account. This fellow finally sends off duly crossed cheques as refund with reason as "not able to give the limited offer since the response was enormous". But the cheque was marked somewhere or issued by something like "pornographic xxx" account. The people (buyers), who have received such cheques as refund, hesitated to drop the cheque and ignored since it was a small amount. Now the smart fellow who has collected a huge amount into his account will become the owner of the amounts if the cheques are not debited within the accepted time limit. So was he. When he was held "not-guilty", he still apologized for his tactics. Forgive me if this is a fake story.

The point is "There is no magical way to generate money other than hard work and wise use of it". The term "wise" should not harm others pocket. It is even okay if you are emptying someone else's pocket by giving him some good dinner in a hotel, but not like putting him into an illusion of making him rich. Imagine the amount of money that are being pumped out of poor economies like Manipur. Please spread a word of caution to the eager youths who tend to fail in this bait.

* The writer can be reached at opendro_st@yahoo.com
http://e-pao.net/epSubPageExtractor.asp?src=news_section.opinions.Chain_Money-A_concern_of_economical_drain

Harmless placebos are lawful, but 'Homeopathy' remains a deception

2012-01-24T23:43:00.000-08:00

Shyam

Like 'Santa Claus', 'homeopathy' can be either a benign or (if it is in the hands of persons with hidden criminal objectives) an exploitative deception, but it remains a deception. Once this is understood, a purely-objective study of 'homeopthy', takes your free-thinking readers into a particularly difficult area, for, self-evidently, not all deceptions are unlawful.

Today, conventional medicine accepts that many illnesses are psychosomatic (i.e. they are caused, or aggravated, by mental conflict, stress, etc.). Qualified, conventional, medical practitioners, themselves, are, therefore, permitted to give harmless placebos (including 'homeopathic remedies') to their patients, due to the genuinely beneficial psychological, and resulting physical, effects that this 'white lie' can bring to certain people. The regulation and prevalence of 'homeopathy' varies-reality from country to country. As far as I am aware, there are no specific laws anywhere in the world, either prohibiting 'homeopathy' as a fraud or identifying its legitimate use as a harmless placebo. In some countries, licenses or degrees in conventional medicine from accredited universities are required. In various countries, 'homeopathic treatment' is wholly or partly refunded by national insurance schemes. In other countries, it is fully integrated into national health-care programs. However, since legislators have invariably ignored 'homeopathy', strict laws which govern the regulation, development and testing of conventional drugs often do not apply to 'homeopathic remedies.' That said, if there is no independent regulation of 'homeopathy,' nor any effective means of enforcing existing regulation, then the deception can easily be perverted and used by charlatans to exploit vulnerable people. Indeed, there are many parallels between the always-unlawful 'MLM income opportunity' deception and the often-unlawful 'homeopathy' deception. In the past, I have described criminogenic organizations like 'Amway' as 'peddling an economic placebo' dissimulated as a harmless scientifically-proven cure for poverty. All active 'MLM' participants have lost their time and money, but they have mostly survived their brief encounter with the 'MLM' deception. However, just as with the exploitative version of the 'homeopathy' deception, if vulnerable people start to accept the 'MLM' lie as total reality (and persist to a level of delusion), eventually, they risk destitution and destruction.

To its many satisfied adherents, 'Homeopathy' (also spelt 'homoeopathy' or 'homœopathy'), is a proven, alternative medical science.To free-thinking observers, it is an absurd, latter-day revival of an absurd, 19th century pseudo-science based on an assemblage of absurd, ancient, non-rational or superstitious beliefs.

Like their 19th century counterparts, today's 'homeopathy' practitioners point to their many satisfied customers and confidently claim to be able to treat patients using massively-dilutedpreparations. These preparations are supposed to cause healthy people to exhibit symptoms similar to those exhibited by the unhealthy people they are supposed to treat. However, the overwhelming bulk of quantifiable evidence proves 'homeopathy' to be no more and no less effective than any other harmless placebo.

'Homeopathy' is supposedly based on what is known as the 'law of similars' - a term coined by a German doctor, Samuel Hahnemann, in 1796. However for many centuries, prior to this, it had been a widely-held superstition that anything resembling a particular part of the human body could be used to treat illnesses, or failings, of the same body part. (e.g. walnuts look like the human brain, so it was once thought that walnuts and walnut oil are good for ailments of the brain - confusion, memory loss, headaches, etc.).

In reality, so-called 'homeopathic remedies' are prepared by progressive dilution in water (involving shaking and striking), of animal, vegetable or mineral substances. These substances are arbitrarily chosen according to the so-called 'law of similars.' Practitioners describe the dilution process as 'succussion and potentization.' This typically complex, ritual, hocus-pocus (involving thought-stopping jargon and the contemplation of infinity) is claimed 'to increase effectiveness.' However, dilution can continue until no trace of the original substance remains. Apart from the symptoms, so-called 'homeopaths' examine their 'patients'' physical and psychological state, then 'homeopathic' publications known as 'repertories' are consulted, and a 'remedy' is chosen. Common-sense reveals that, at very high-rates of dilution, so-called 'homeopathic remedies' contain few, or no, pharmacologically active molecules. Thus, 'homeopaths' are, in fact, peddling water which, for it to have any pharmacological effect, would violate the fundamental laws of science. Consequently, certain so-called 'homeopaths' have lately-pretended that 'water has a memory' allowing homeopathic preparations to work without any of the original pharmacological substance remaining. Unfortunately, there is neither quantifiable evidence nor any plausible physical mechanisms by which such a convenient phenomenon can be proved.

The total absence of quantifiable evidence to support what 'homeopaths' steadfastly pretend to be reality, and particularly their peddling of water as a remedy, is what has led qualified observers to describe certain 'homeopaths' as charlatans and quacks, exploiting vulnerable persons with a cruel deception. Oral 'homeopathic remedies' are safe at the high dilutions (for the simple reason they are likely not to contain any active substance), but they may be unsafe at lower dilutions. Whilst a delusional, unquestioning faith in the power of 'homeopathy' can expose vulnerable persons to significant risks; particularly, if they are advised against vaccinations, anti-malarial drugs and antibiotics.

'homeopathy' became widespread in the 19th century, particularly in the USA. Dr. John Franklin Gray (1804–1882) was the first American 'homeopathic' practitioner, in New York City. The first 'homeopathic school' opened in 1830. During the 19th century, many 'homeopathic' institutions were begun in Europe and America. By 1900, there were 22 'homeopathic colleges' and 15,000 practitioners in the USA. In the past, many conventional medical treatments were useless and dangerous quackery, whereas harmless 'homeopathic' placebos often had better results. It has been suggested that the relative success of 'homeopathy' as a placebo in the 19th century was one of the factors that led to the disappearance of the useless and harmful quackery of 'bleeding and purging.'

As conventional medical science advanced, in leaps and bounds 'homeopathy' was generally derided by mainstream scientists and rejected by the public. Like all fashions, its popularity soon waned. By 1920, the few remaining schools in the USA exclusively teaching 'homeopathy' had closed. Sadly, the US federal Food, Drug, and Cosmetic Act of 1938 was sponsored by a New York Senator and 'homeopathic' doctor, Royal Copeland. This legislation, foolishly recognized 'homeopathic remedies' as drugs. Even then, by the 1950s, there were only 75 homeopaths practising in the USA. By late 1970s alternative medicine had become fashionable again, and 'homeopathy' reappeared in America and Europe, where sales of some 'homeopathic' companies multiplied. The medical profession then started to adopt 'homeopathic remedies' in the 1990s.

Today, all over the world, the owners, and/or corporate officers of pharmacy chains have recognized the massive potential for profit, and they have begun selling vast quantities of harmless placebos branded as 'homeopathic remedies.'

Homeo Care racketeers on the prowl

2012-01-23T23:49:00.000-08:00

Recently, after the British Parliamentary Committee recommended discontinuation of State funding to the Homeopathy stream of medicine as it is unscientific and has no rational base, there was furore in many countries. In India it caused real commotion as Homeopathy medicine is widespread all over country with tall claims it cures all diseases without any side effects.

The British Parliamentary Committee stated that Homeopathy medicine has only placebo effect and there is no medicine in it.

Suddenly there are statements from a number of persons who claim that they had been using Homeopathy for the last several years and they got great relief from a number of ailments. They started narrating how the other streams of medicine miserably failed and when they have taken to Homeopathy, the ailments were cured.

After listening to all these statements, generally people are confused about the whole issue. Whenever a new ailment like bird flu, Japanese encephalitis, and others the practitioners of Homeopathy immediately claim that they are ready to administer the doses of homeo medicine to prevent the ailment. It is apt to note that it is a new ailment and there is a need to know the cause of the disease. Any discerning person easily understands that it is a hoax.

It is apt to recall that former director of Centre for Cellular and Molecular Biology (CCMB), Hyderabad, Mr P M Bhargava has challenged the homeopathy practitioners to prove exactly what type of medicine is there in these sugar pills. Nobody answered him.

THE MAJOR RACKET:

Nowadays, the homeopathy medicine has become a racketeering activity in India. I am not sure about other countries. The other day a person approached us stating that he was cheated by Homeo Care International, Vijayawada. He said that when he approached Homeo Care International clinic for curing his ailment, he was told that they give medicine for the ailment for six months and it would cost him Rs. 9,000. Though he was immediately stuck by the business model as if it is a contract, he obliged and paid the amount. But the symptoms only aggravated after using the medicine. He immediately rushed to the clinic with the complaint. But he was told to pay some more money for further treatment. Aggrieved, he approached Corporate Frauds Watch.

The patient issued a legal notice to the clinic. The management instead of answering to the legal notice or offering further treatment, wanted to strike a deal to prevent the patient to go ahead with consumer case. They offered Rs. 40,000 to settle the issue.

This is only a tip of the iceberg. The homeopathy racket is widespread.

Corporate Frauds Watch appeals to people all over world not to fall prey to the racketeering activity of homeo practitioners.

Neither Newt Gingrich nor Mitt Romney is fit to serve as US President

2012-01-23T03:09:00.000-08:00

Shyam

Your free-thinking readers might be interested to learn that, in response to my recent posts, a timid, conservative, mainstream journalist has defended her profession by claiming that (privately) lots of her conservative, colleagues would be in broad-agreement with my analysis of Messrs. Gingrich and Romney (as being too stupid, and/or corrupt, to be US President). However, she then goes on to say that even liberal, mainstream editors cannot afford to publish, or broadcast, similar accusations, because they would be hit with costly defamation suits.

If what this correspondent claims, is true: then, numerous mainstream journalists and their editors (of all political persuasions) are currently too scared to inform the world that the two front-runners for nomination as the Republican party candidate for the US presidential election of 2012 , Newt Gingrich and Mitt Romney, are both unfit to hold office. Apparently, a silent flock of mainstream hacks accept that this greedy pair have been bought by 'MLM' racketeers (posing as pious patriots and philanthropic capitalists). However, I personally would like to know where exactly any alleged 'defamation' might be found, when it is a matter of public record that the billionaire bosses of the 'Amway' and 'NuSkin' frauds, have paid Messrs. Gingrich and Romney fortunes to make propaganda-recordings in which they have given credibility to, and/or enthusiastically-endorsed, the essentially-identical totalitarian/criminal enterprise. Thus, making Messrs. Gingrich and Romney de facto traitors to the American Republic and the recipients of stolen money.

According to the 'Bible,' two thousand years ago, the going-rate for this shameful activity was '30 pieces of silver.' Today , in Mr. Gingrich's case, the standard reward has risen to $60 thousands per act of betrayal; whilst Mr. Romney admits to receiving approximately $400 thousands in what he describes as 'speaking-fees' during 2010.

http://www.huffingtonpost.com/2012/01/17/mitt-romney-not-much-definition-speaking-fees_n_1210522.html

http://www.huffingtonpost.com/2011/11/29/newt-gingrich-lobbyist-speaking-fees_n_1119431.html

Self-evidently, America is a land that has become so morally-bankrupt that any celebrity-Judas can sell his/her soul to the highest bidding Devil in disguise, simply by arbitrarily defining this intellectual prostitution as 'lobbying'. In plain English,'lobbying' often means the bribing of law-makers in order to subvert the democratic process and rule of law.

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

Laughably, Mr. Gingrich boasts that he didn't need to become a 'lobbyist' after he retired from Congress, since he was paid so handsomely to make speeches. However, Mr. Gingrich is merely playing with words, because it's a matter of public record that he did become a paid-adviser to other persons who described themselves as 'lobbyists,' but who were actually attempting to subvert the democratic process and rule of law on behalf of the banksters behind the multi-billion dollar 'liar-loan' fraud known as 'Freddie Mac.'

Apparently, Mr. Gingrich indirectly received $1.6 millions from the 'Freddie Mac 'banksters between 1999 and 2008. In return, he gave these shysters what was euphemistically-described as 'strategic advice.'

Self-evidently, Mr. Gingrich and his ilk, have made a habit of betraying their fellow citizens for a pile of silver.

Newt Gingrich has also been the de facto agent of 'MLM' racketeers.

2012-01-22T06:31:00.000-08:00

Shyam

Your free thinking readers should be alarmed to discover that Newt Gingrich http://www.bbc.co.uk/news/world-us-canada-16669714 has become the new front-runner to become the Republican party's candidate for the US presidency in 2012.

Unfortunately, Newt Gingrich is another stupid, and/or lazy, and/or corrupt, US politician who steadfastly pretends moral and intellectual authority, but who has sold his soul for a few pieces of silver (stolen by 'MLM' racketeers).

Life-long conservative, and courageous 'Amway' whistle-blower, Eric Scheibeler, actually met Mr. Gingrich at 'Amway' mass-rallies where he had been a paid, key-note speaker. At one of these profitable-orgies of deluded 'MLM' self-gratification, Mr. Gingrich (in return for a reported $50 000) proclaimed that

'Nothing would do more to help the people who used to live in the Soviet empire achieve prosperity, to achieve freedom, to achieve opportunity than to have sixty or seventy thousand Amway folks go over there and start recruiting.'

Click On MP3 Icon To Hear Newt Gingrich
Proclaim Amway As Russia's Economic Savior

This absurd, but nonetheless shameful, recording proves that Newt Gingrich has betrayed the American Republic by enthusiastically participating in a serious fraud that has secretly stolen, and continues to steal, from tens of millions of his fellow citizens and those of America's allies.

Self-evidently, Mr. Gingrich's scripted-propaganda broadcasts on behalf of the billionaire bosses of the 'Amway' mob were part of an overall pattern of ongoing, major, racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970).

As I have previously stated, if Newt Gingrich truly believes that the so-called 'Amway MLM income opportunity' is genuine, and I have no reason to doubt that he does not, then he is probably far too stupid to be held fully to account for his crimes.

However, how is it possible that the mainstream media has failed to report these stomach-churning matters and has, instead, allowed such a greedy numb-skull as Newt Gingrich, to become a serious contender for the White House?

You can fool some of the people all of the time, and all of the people some of the time, but you can't fool all of the people all of the time. '

2012-01-19T07:00:00.000-08:00

Shyam,

A particularly foolish Indian 'Amway' addict has left a comment on Corporate Frauds Watch under the name of 'Vikky1979.'
This brainwashed commentator says:

'You can make fool to some of people for some time. But you can't make fool a lot of people for long time. Amway is running since 1959 in more than 90 countries. Also you are not having correct information how it works. Remember Direct Selling is future.

For 'Vikky1979's' information, the exact quote is:

'You can fool some of the people all of the time, and all of the people some of the time, but you can't fool all of the people all of the time. '

Another interesting quote which might kick-start 'Vikky1979's' critical faculties, is:

'If you tell a big enough lie and keep repeating it, eventually people will accept it as the truth.'

From 1959 until the early 1970s, the big 'Amway' ('direct selling/MLM income opportunity') lie only existed in North America. 'Amway' was first challenged as a dissimulated fraud by US trade regulators during the 1970s. At this time, the big'Amway' lie began to spread around the world to countries where it wasn't yet being challenged.

It is a matter of public record that, between 1973 and 2006, the big 'Amway'lie fooled around one million people in Britain. At one time, in the 1980s, the organization claimed approximately 100 thousands British 'Independent Business Owners,' but declared an annual drop-out rate of more than 50%. By 2007, when the UK government finally took civil regulatory action against 'Amway UK Ltd.,' the organization claimed only around 35 thousands British followers, but still with an annual drop-out rate of more than 50%. Today, 'Amway UK Ltd.' claims just a few thousands British followers, who can no longer be falsely described as 'Independent Business Owners.'

There is absolutely no quantifiable evidence (in the form of audited accounts) which proves that any of the persons who signed contracts with 'Amway UK ltd.'between 1973 and 2006, received one penny of overall net-income as a result of regularly retailing 'Amway' wampum to the public for a profit. The actual failure/drop-out rate in the so-called 'Amway MLM income opportunity' in the UK was effectively 100%, because it was a dissimualted closed-market swindle and related advance fee fraud. This means that, since this vital information was deliberately withheld from the UK public, the so-called 'Amway MLM income opportunity' was fundamentally fraudulent in Britain during 34 years. However, in 2008, a UK High Court refused to close 'Amway UK Ltd.' when the organization's shyster-lawyers managed to fool him into believing that the 34 year old 'direct selling scheme,' which hadn't directly sold anything (except a fake income opportunity), had been completely reformed in Britain.

Perhaps 'Vikky1979' would like to explain to the free-thinking readers of CFW why it is that the US Internal Revenue Service does not consider 'Amway' participation to be a viable business activity from which it is possible to make a net-profit. No doubt this brainwashed fool will maintain that US tax officials also do not have correct information about how 'Amway' works.

In the adult world of quantifiable reality, US tax officials have access to the evidence proving that, during the previous 50+ years, effectively no one has ever declared an overall net-income as a result of regularly retailing 'Amway' wampum to the public for a profit. On the contray, countless American 'Amway' addicts have fraudulently tried to deduct their substantial 'Amway' costs from their income tax declarations by falsely describing them as 'legitmate business expenses.' The US Internal Revenue Service has taken the extraordinary measure of issuing a document to its officials which instructs them to disallow all false 'business expense' claims from 'Amway' addicts.

Tellingly, the US Internal Revenue Service classifies 'Amway' participation as being an expensive social activity (akin to attending a pay-to-enter Church or practising a pay to play sport).

The 'Amway' Lord Haw Haw exhibits the Diagnostic Criteria of Amway (MLM) Addiction Disorder

2012-01-16T02:33:00.000-08:00

The unmasked 'Amway' Lord Haw Haw, Mr. David Steadson, is so preoccupied with'Amway/MLM' that, for the last several years he has spent almost 24 hour per day, 7 days per week, defending it.

In literally thousands of tightly-scripted, propaganda interventions on the Net, and ignoring all quantifiable evidence to the contrary, Mr. Steadson has foolishly broadcast to the world his apparent complete faith that Amway (MLM) is not a dissimulated fraud, and/or cult, and that it really is a viable 'income opportunity,' but he has never once produced any quantifiable evidence (in the form of audited accounts) to support this demonstrably-deluded model of reality.

Although Mr. Steadson, knows he's been banned from Corporate Frauds Watch, our posting of the Diagnostic Criteria of Amway (MLM) Addiction Disorder have obliged him to post a typically-provocative, reality-inverting comment, in which he steadfastly pretends moral and intellectual authority. However, the arrogant 'Amway' Lord Haw Haw seems to have blown a fuse. He first accuses me of 'ranting' (i.e empty talk), but then makes the following empty boast:

'Happy New Year! Or maybe not so happy for you, as Amway breaks through $10 million in sales, and even the UK grows strongly!'

It is always interesting to note Mr. Steadson's manipulative use of the English language, but on this occasion he has made the child-like mistake of putting millions: instead of the usual billions.

In reality, the academically-qualified, law-abiding, unpaid 'IBOFB' character, is merely a sophistic front for the unqualified, law-breaking, billionaire bosses of the 'Amway' mob. These narcissistic charlatans have very-specifically never actually said that their company retails anything to the public for a profit; what they have very-specifically said is that their company 'sells' $billions of products, and services, annually, via networks comprising millions of self-employed, non-salaried commission agents. However, there is no quantifiable evidence (in the form of audited accounts) proving that any of these transitory, so-called 'business owners' have themselves regularly retailed significant quantities of their own 'Amway' purchases directly to the public for a profit. Furthermore, the US Internal Revenue Service, does not classify 'Amway' participation as a viable commercial activity from which it is possible to earn an overall income. The quantifiable evidence, + common sense, proves beyond all reasonable doubt, that the so-called 'Amway MLM income opportunity' has always been a dissimulated closed-market swindle, in which regular losing-investments made by the poor victims to the wealthy perpetrators (on the pretext that they can earn an overall income) have been laundered simply by calling these illegal payments, 'sales,' and by giving the victims cheaply-procured, grossly-over-priced and, therefore, effectively-unsaleable wampum, in return. Apart from an insignificant minority of grinning schills (whose apparent wealth has secretly derived from a secondary advance fee fraud a.k.a. 'tool scam'), during the previous 50+years, the so-called 'Amway MLM income opportunity' has, in fact, been hiding a 100%, overall, drop-out/failure rate.

Given the above, irrefutable analysis, Mr. Steadson's latest, tightly-scripted, propaganda intervention on CFW, in which he yet again attempts to futher the clandestine criminal objectives of his masters, is revealed as being part of an overall pattern of ongoing, major, racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970).

Mitt Romney's dream/goal of becoming US President, has blinded him to the ugly racket lurking behind 'NuSkin'

2012-01-15T07:48:00.000-08:00

Shyam

You free-thinking readers should be interested to learn that the following, typically, loaded-question has been put to me by an attorney :

'Do you honestly think that Mitt Romney knows that NuSkin is a fraud: Yes or No?'

Contrary to what this legally-qualified correspondent imagines, what I honestly think, is what I have previously stated. However, just so that there can be no room for any further doubt, I shall elaborate:

The quantifiable evidence proves that 'NuSkin' has been the title over the entrance to one of numerous 'MLM income oportunity,' and related-advance fee, frauds. It is a matter of public record that Mitt Romney has accepted millions of dollars via a corporate structure (temporarily created by the bosses of this 'Amway' copy-cat), ostensibly to finance his declared-dream/goal of becoming US President. However, in return, Mr. Romney has actually associated with, and actively-participated in, a criminal enterprise. Unfortunately, he's not the only ambitious politician to have fallen into this particularly-deceptive type of self-incriminating, cultic trap.

The mainstream media has generally portrayed Mr. Romney as a positive-thinking 'Mormon' businessman and a potential President of the USA. However, if your free-thinking readers care to examine his background more-closely, they will discover that Mr. Romney has also been an enthusiastic advocate of the original, absurd 'self-help' guru, Napoleon Hill, who invoked his followers to stop thinking critically and, instead, develop 100% positive thinking as a means of achieving their wildest dreams and goals of success http://en.wikipedia.org/wiki/Mitt_Romney. Classically, the manipulative charlatans behind 'NuSkin' have pretended affinity with Mr. Romney, posing as positive-thinking 'Mormon' businessmen and supporters of his declared-dream/goal of becoming US President. Self-evidently, the huge 'contributions' made to Mr. Romney's presidential campaign by the billionaire bosses of the 'NuSkin' mob, have been bribes maliciously-designed to further their own clandestine criminal objectives, and are, therefore, part of an overall pattern of ongoing, major, racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970).

Before he snaffled the cash, Mr. Romney (as a graduate of the Harvard Law, and Business, Schools) ought to have made it his business to find out that 'NuSkin' is part of a criminogenic phenomenon that continues to damage countless ill-informed individuals around the world. Unfortunately, the front-runner in the race to become Republican presidential candidate for 2012, is apparently now suffering from a classic case of Confirmation Bias http://en.wikipedia.org/wiki/Confirmation_bias .

Thus, currently, it is impossible for Mitt Romney to see beyond his own ego, and discover the mountain of quantifiable evidence proving that he has foolishly betrayed his country in return for a few bedazzling pieces of stolen silver.

The Diagnostic Criteria for Amway (Multi-Level Marketing ) Addiction Disorder

2012-01-13T09:14:00.000-08:00

In response to our latest crop of intellectually-castrated commentators, here are:

The Diagnostic Criteria for Amway (Multi-Level Marketing ) Addiction Disorder

1 - Do you feel preoccupied with Amway (MLM)?

2 - Do you have complete faith that Amway (MLM) is not a dissimulated fraud, and/or cult, and that it really is a viable income opportunity?

3 - Have you never seen the audited accounts (particularly, income-tax receipts) of persons who have made verbal claims to have earned income from Amway (MLM)?

4 - Do you have complete faith that Amway (MLM) products and services are of sufficient quality and value that they can be regularly sold for a profit on the open market (i.e to the public)?

5 - Do you have complete faith that the instigators of Amway (MLM) are law-abiding and can be trusted?

6- Do you have complete faith that the persons above you in the Amway (MLM) Network hierarchy are law-abiding and can be trusted?

7 - Do you have complete faith that all quantifiable evidence proving, and all persons suggesting, that Amway (MLM) is a dissimulated fraud, and/or cult, cannot be trusted?

8 - Do you regularly buy Amway (MLM) products, and/or services?

9 - Have you never regularly sold Amway (MLM) products, and/or services, to the public for a profit?

10 - Have you regularly bought Amway (MLM)-related publications, recordings and tickets to meetings?

11 - Do you have complete faith that Amway (MLM)-related publications, recordings and meetings contain secrets vital to achieving freedom and success?

12 - Have you changed your usual manner of speaking since becoming involved with Amway (MLM)?

13 - Do you find yourself habitually-repeating key words, phrases and acronyms (IBO, PV, BV, BSM, etc.) which have been constantly-repeated to you in Amway (MLM)-related publications, recordings and meetings?

14 -Have you changed your usual manner of dress since becoming involved with Amway(MLM) ?

15 - Have you changed your usual sleep pattern, and/or diet, since becoming involved with Amway (MLM ?

16 - Have you fixed positive images of your dreams and goals at strategic places in your home?

17 - Have you regularly focused on positive images of your dreams and goals and visualised yourself achieving them?

18 - Do you dream of achieving Amway (MLM) freedom and success as a means of escaping from personal, and/or financial, problems or of relieving a distressed mood (i.e. feelings of helplessness, guilt, anxiety, depression, alienation, etc.)

19 - Do you believe that a 100% positive attitude (complete faith) is one of the secrets of achieving freedom and success in Amway (MLM), and that if you fail to achieve freedom and success this will be the result of a negative attitude and, therefore, you will only have yourself to blame?

20 - Do you find yourself habitually dividing everything in your life into: Amway (MLM) and positive, for winners (to be included)versus non-Amway (MLM) and negative, for losers (to be excluded)?

21 - Do you have complete faith that you can achieve total financial freedom within just a few years, through duplicating a positive plan to buy Amway (MLM) products and to recruit others to duplicate the same positive plan?

22 - Have you drawn up a prospect list (i.e. all the names of all the people you have ever encountered in your life)?

23 - Have you tried to find and contact the individuals on yourprospect list with the intention of recruiting them into Amway (MLM)?

24 - Have you used a positive script to try to recruit people intoAmway (MLM), but which actually hid your real objective?

25 - Do you believe that all tactics are justified to recruit others into Amway (MLM), because, in the end, Amway (MLM) will be of great benefit to everyone ?

26 - Have you repeatedly made unsuccessful attempts to control, cut back or stop your Amway (MLM) involvement?

27 - Do you feel restless, moody, depressed, or irritable when attempting to cut down or to stop your Amway (MLM) involvement?

28 - Have you spent far more time and money on Amway (MLM) than you originally intended?

29 - Have you jeopardised or risked the loss of a significant relationship, job, educational or career opportunity because of Amway (MLM)?

30 - Have you lied to friends and family members, professional advisers, and/or to others, to conceal the extent of your losses in Amway (MLM)

Anyone truthfully answering 'yes' to more than 5 of the above question, is suffering from Amway (MLM) Addiction Disorder

With whom have the billionaire 'Amway' bosses really been associated?

2012-01-11T14:20:00.000-08:00

Shyam

In the past, if the agents of an enemy power had tried to set up a serious fraud in Britain, presumeably, British security services would have been interested. Yet, the evidence proves beyond all reasonable doubt that (starting in 1973) a gang of Americans (linked financially to the Republican party) was allowed to set up, and shield, a multi-billion dollar, corporate fraud in Britain (and operate it for 34 years without the slightest regulatory challenge) whilst British security services never even noticed.

Similarly, today, if the agents of an enemy power tried to set up a serious fraud in India, presumeably, the republic of India's security services would be interested. Yet, the evidence again proves beyond all reasonable doubt that (starting in the late 1990s) the same gang of Americans (linked financially to the Republican party) was allowed to set up, and shield, the same multi-billion dollar, corporate fraud in India (which they continue to operate without the slightest regulatory challenge) whilst the republic of India's security services haven't even noticed.

One would have thought that, at the very least, the Indian security services would be interested in the fact that the American-based bosses of 'Amway,' have been linked to the instigator of 'Blackwater.'

The mediocre, but rich, little Prince who apparently created 'Blackwater,' is Erik Dean Prince http://en.wikipedia.org/wiki/Erik_Prince. If your free-thinking readers care to take a look at his background, they could almost be reading the life-story of the second generation of deluded billionaire 'Amway' crime bosses (with whom he has been so closely-associated).

However, perhaps more than any other single person, Erik Prince reflects the morally and intellectually (and soon-to-be financially) bankrupt America of the 21st. century. Behind his wealthy, clean-cut, patriotic, Christian, capitalist, hero mask, lurks a puerile narcissist of no real importance, but who inherited sufficient cash to live-out a kitsch, comic-book, 'Rambo'-style fantasy of his own moral and intellectual authority as though it is total reality.

http://www.youtube.com/watch?v=4vZDaMqAP_I&feature=related

http://www.youtube.com/watch?v=t_oPmS7pKiA&feature=related

Erik Prince, and his equally-unimportant ilk, will probably never be able to face external reality, but why should they, when (to date) no grown-up, true, morally and intellectually authoritative, potential leader has emerged in the USA, with the courage and vision to try to re-establish the Constitution, and the rule of law, before it's too late.

The 'Blackwater' company went from nothing, to become the corporate front for perhaps the most-profitable, private mercenary force in history. At one time, the US Congress began to investigate what was going on, because Prince had been awarded annual, unclassified contracts of more than $1.6 billion with the US government (+ an unknown quantity of classified contracts), but there didn't seem to have been any real competition for this juicy business, or any truly-independent control over the budget. In 2007, Prince was finally asked to appear before a Congressional committee, and one of the financially-dependent politicians politely asked him: what influence members of the DeVos family had in his acquiring all this cash from the Bush administration? Young Erik simply smiled, and replied in the negative. Faced with further investigations, Prince was later obliged to sell his multi-billion dollar company (but only on paper).

http://www.youtube.com/watch?v=wxj812hxZc0

There is very little essential difference between Erik Prince and the global terrorists he has claimed to oppose; for he is undoubtedly a self-righteous sociopath who believes that he is one of God's chosen people and that Christian America is engaged in a never ending struggle against evil. This two-dimensional fiction, has allowed Erik Prince systematically to justify his grandiose objective that the US government should de-regulate its armed forces to run them like a business - renting-out American military muscle for a profit (presumeably, to anyone who is willing to pay).

YouTube - Videos from this email

The bosses of the 'Amway' and 'Blackwater' armies have obliged their expendable foot-soldiers to sign away their rights as US citizens

2012-01-08T08:50:00.000-08:00

Shyam

'Blackwater' a.k.a. 'Academi', is the corporate front for a deceptive organization which I personally find very difficult to believe has been allowed openly to exist by the US people and their elected-government. On the contrary, what anyone with an ounce of common-sense should have immediately-recognized as an unconstitutional, and potentially-dangerous, military Order, which has required of its members an absolute subservience to the organization and its leadership above all other persons, has been sub-contracted by the democratically-elected American government to carry-out military tasks on behalf of the American people, which previously were the sole-preserve of America's official armed forces (the commanders, and members, of which are all subject to the rule of law). Thus, 'Blackwater' has operated in a legal no-man's land, where its US-based commanders and their deployable agents, have been neither subject to US military law, nor to the laws of the various foreign lands where they have been deployed. This has led many free-thinking people to assume that 'Blackwater' has been the US Central Intelligence Agency under another name, and that it was deliberately set up by US Intelligence chiefs, to prevent, and/or divert, investigation and to isolate these same chiefs from liability.

The available evidence indicates that 'Blackwater' has been a multi-billion dollar private army, financed, and armed to the teeth, by US tax-payers, but commanded by a handful of persons apparently suffering from delusions of grandeur and self-righteousness, and who have been compelled to pursue grandiose objectives, but whom their many American, and international, victims cannot hold to account.

The latest headlines about 'Blackwater,' and the supine reaction of the mainstream media, is, frankly, terrifying

http://www.washingtonpost.com/national/settlement-ends-blackwater-wrongful-death-suit-7-years-after-4-contractors-killed-in-fallujah/2012/01/06/gIQA5YgIfP_story.html

Exactly like the all-powerful commanders of the 'Amway' army, the all-powerful commanders of the 'Blackwater' army, have sent their powerless foot-soldiers on suicide missions. However, they have taken the precaution of getting them to sign (take-or-leave-it) contracts which have obliged them to abandon their rights as US citizens to take any disputes with their masters to an independent tribunal (i.e. a court of law). Instead, the poor, bloody 'Amway' and 'Blackwater' infantry, have been obliged to enter into what has been defined as 'arbitration,' but which their billionaire commanders have refused to finance.

It is a matter of public record that 'Blackwater' and 'Amway' are linked via their commanders. 'Blackwater' instigator, Erik Prince, is married to the sister of Dick DeVos.

Mitt Romney is a paid traitor to the American Republic

2012-01-05T05:08:00.000-08:00

Shyam

Your free-thinking readers ought to be more-than-alarmed to discover that, Mr. Mitt Romney http://www.bbc.co.uk/news/world-us-canada-16404413 , the apparently pious, perceptive and patriotic 'Mormon' front-runner in the race to win the Republican party's nomination for candidate in the 2012 US Presidential election, has been bought by the gang of 'MLM income opportunity' cultic racketeers behind the pernicious 'Amway' copy-cat known as 'NuSkin.

In return for large bundles of stolen cash, Mr. Romney has become a misleading guarantee for criminals who has already enthusiastically-participated in promoting, and hiding, the blame-the-victim 'NuSkin' fraud.

http://motherjones.com/politics/2011/09/mitt-romney-nu-skin-mormon-church

http://www.msnbc.msn.com/id/44011308/ns/politics-decision_2012/t/firm-gives-million-pro-romney-group-then-dissolves/

'NuSkin' has been described as the 'Mormon Amway.' The organization's US front-company has been investigated, and prosecuted on behalf of the public, by the Federal Trade Commission, for lying about the effectiveness its absurd pseudo-medical products ('weight-loss supplements, baldness cures,' etc.) and about the amount of money it is possible to make from participating in the so-called 'Nuskin MLM income opportunity.'

In the adult world of quantifiable reality, 'NuSkin' has merely been the title over the entrance to yet another, classic, dissimulated closed-market swindle and related advance fee fraud. Apart from an insignificant minority of grinning schills, the hidden failure/drop-out rate in the so-called 'NuSkin MLM income opportunity' has always been a solid 100%, because victims have not been regularly retailing 'NuSkin's' banal, and grossly-over-priced, wampum to the public for a profit. Predictably, in 1994, the company's shyster-attorneys halted the case with the FTC, by making a series of familiar, 'Amway'-style, false-undertakings to introduce 'retail rules' and to stop telling lies. However, in 1997, 'NuSkin's' bosses were obliged to hand over $1.5 millions to the FTC for continuing to do what their shyster-attorneys had faithfully-promised they would stop. The less-than-intellectually-rigorous interest of US civil trade regulators has apparently led to the billionaire bosses of the 'NuSkin' mob shifting their criminal activities overseas. Currently, 85% of the constantly-churning-victims of the inter-related 'NuSkin' frauds, are to be found in Asia - where the demonstrably-false undertakings given to wide-eyed US trade officials and federal judges, do not apply.

This means that, although it is public-knowledge in the USA that huge quantities of stolen cash (removed from countless Americans and Asians by US-based 'MLM income opportunity' racketeers) is currently being used to corrupt a potential 'Mormon' President of the USA, apparently no US law enforcement agency is in the slightest bit interested.

Obviously, the wealthy criminal, Mr. Romney, and all his wealthy criminal backer/associates, should be facing investigation, and prosecution, under the federal Racketeer Influenced and Corrupt Organizations Act, 1970. However, in an ideal world, they would all be facing charges of treason - as defined by the US Constitution; for, exactly like the billionaire bosses of the 'Amway' mob, these sanctimonious 'MLM' racketeers have been steadfastly pretending moral and intellectual authority, whilst prosecuting an extensive economic, and psychological, war against their fellow citizens and against the citizens of America's allies.

Belgian Court rules that 'Herbalife' has been hiding a closed-market swindle

2012-01-04T09:05:00.000-08:00

Shyam

Your free-thinking readers (and particularly, senior Indian police officers and anti-corruption investigators) might be interested to learn that on November 28th, 2011, after 7 years of typical, legalistic/sophistic argument (leading to procedural delay), a Belgian court finally concluded that 'Herbalife International Belgium' has always been the corporate front for a dissimulated pyramid scheme based on the pernicious, self-perpetuating lie that endless-chain recruitment + endless payments by the recruits = endless profits for the recruits.

http://pyramidschemealert.org/wordpress/wp-content/uploads/2011/12/Belgian.Court_.Decision.pdf

In a civil case brought on behalf of the Belgian public by an independent, Belgian consumer protection association, 'Test-Aankoope,' the Belgian commercial tribunal in Brussels, accepted the plaintiff's common-sense arguments, and ordered that 'Herbalife' should be obliged to produce quantifiable evidence which would support its own published claim to be a 'direct selling' company as defined by Belgian law. However, in the end, no such evidence could be produced by 'Herbalife's' Belgian corporate officers or attorneys, because it doesn't exist. The court then ruled that, in the absence of this evidence, although it might have been theoretically possible for 'Herbalife' participants to sell 'Herbalife' products directly to the public for a profit, in practice, the persons whom 'Herbalife' has always arbitrarily defined in its own propaganda as 'direct sellers,' cannot have done this. On the contrary, all active participants in the so-called 'Herbalife MLM income opportunity' can only have been induced to give the Belgian branch of this US-based organization, thousands of dollars annually in exchange for effectively-unsaleable products, on the fraudulent pretext that, by doing this, and by recruiting more and more persons to perpetuate the same hermetic-system of consumption and recruitment, ad infinitum, eventually, all active participants could receive a vast residual income without any further effort.

The Belgian court rejected 'Herbalife's' absurd defence that its 'sales people are retail customers,' or 'consumers' revealing that the racketeers behind 'Herbalife' have maliciously hidden their criminal objectives by falsely describing their victims as 'customers' or 'consumers' in declarations to the US Securities and Exchange Commission and to 'Herbalife' shareholders, but, at the same time, the organization has always told its victims that they are 'direct sellers' or 'distributors.'

In plain language, 'Herbalife's' claim to be 'a lawful direct selling company,' was blown out of the water.

Ignoring this common-sense civil lawsuit in Belgium, and ignoring similar common-sense, class-action civil lawsuits filed in the USA (which 'Herbalife's' bosses have been allowed to halt by handing over millions of dollars of stolen cash to the plaintiffs), to date, no US federal law enforcement agency has taken any rigorous action against the billionaire bosses of 'Herbalife' under the US Federal Racketeer Influenced and Corrupt Organizations Act, 1970.

Intellectual prostitutes cannot defend 'RMP' or any other 'MLM income opportunity' fraud

2012-01-03T05:58:00.000-08:00

Shyam

I observe that a suspicious character signing himself 'D.L.' has committed a criminal offence, by leaving this absurd incitement to commit fraud, on Corporate Frauds Watch:

'nobody can stop the RMP..... RMP will again rock.... so think positive and go ahead...... shift your paradigm.... and join RMP....'

Your free thinking readers should be aware that as soon as they see, or hear, the tell-tale word, 'paradigm,' in connection 'MLM income opportunity' fraud, then they are almost-certainly confronted with a co-opted academic - an intellectual prostitute trying to invert quantifiable reality and blind them with 'science.'

At one time, 'paradigm,' was used only in linguistics to mean an 'example or pattern.' However, the word has come to mean 'an established pattern of thinking; particularly, in academic disciplines' http://en.wikipedia.org/wiki/Paradigm. The term, 'paradigm shift' generally refers to a revolution in established scientific thinking. 'Paradigm paralysis' is the non-rational refusal, or inability, of persons to accept quantifiable evidence that would change their established pattern of (mistaken) thinking. 'Confirmation bias,' is a term used by psychologists to describe the same, reality-denying phenomenon http://en.wikipedia.org/wiki/Confirmation_bias. It has long-since been recognized that the more highly-educated a person is, the less likely he/she is to admit that his/her thinking can be wrong.

Thus (supported only by selective, anecdotal evidence and thought-stopping propaganda), various academic apologists of 'MLM income opportunity' fraud, have tried to invert quantifiable reality, by steadfastly pretending that 'MLM' is a proven, revolutionary economic/commercial theory that goes against an established pattern of thinking, and that biased persons such as you, me, Robert FitzPatrick, etc, are all suffering from paradigm paralysis and who have excluded reality by only examining selective, anecdotal evidence which confirms our absurd, existing, non-rational belief that 'MLM' is a fraud.

Meanwhile, in the adult world of quantifiable reality, no evidence exists (in the form of audited accounts; particularly, income tax receipts) which proves that a significant percentage of participants in any so-called 'MLM income opportunity' has ever received an overall net-income lawfully from regularly retailing goods, and/or services, to the public for a profit. On the contrary, 50+ years of quantifiable evidence, proves beyond all reasonable doubt that (apart from an insignificant minority of grinning schills) all so-called 'MLM income opportunities' have had effectively 100% hidden drop-out/falure rates, because they have all been dissimulated money circulation schemes, or closed-market swindles, based on propagating unquestioning belief in the absurd, but nonetheless pernicious, non-rational, pseudo-economic theory that endless chain recruitment + endless payments by recruits = endless profits for recruits.

Over the decades, the greedy racketeers behind various 'Amway' copy-cat 'MLM income opportunity' cults, have continued to launder countless billions of dollars of unlawful payments by arbitrarily defining these shameful transactions as 'lawful direct sales' whilst, at the same time, giving countless millions of constantly-churning 'MLM' victims effectively-unsaleable wampum in return. A significant proportion of this mountain of stolen cash has found its way into the pockets of not only stupid, and/or lazy, and/or corrupt legislators and law enforcement agents, but also into the pockets of stupid, and/or lazy, and/or corrupt academics who, for obvious reasons, now all refuse to face up to the ugly reality that they have been profiting from an extensive psychological, and economic, war against humanity.

RMP Infotec faces rude shock in AP High Court

2012-01-02T08:43:00.000-08:00

RMP Infotec faced a rude shock in Andhra Pradesh High Court on Monday after Honourable Judge Justice Raja Elango refused to give any written order to release crores of rupees as requested by the counsels of the fraudulent company.

Earlier, the former Advocate General of Tamil Nadu, another former Advocate General of Andhra Pradesh and a former Public Prosecutor of AP High Court pleaded in vain to convince AP High Court about the business model of RMP Infotec. One could understand how these stolen cash-rich companies hire top counsels to plead on thier behalf. All these monies were stolen from public, people must understand.

In spite of the presence of these three legal luminaries and their pleadings about the RMP business model, they could not cut any ice as the Honourable judge of AP High Court stated that he was well aware of the facts of the case and their further pleadings would only do further damage to their own case.

The senior counsels appealed to the High Court to release some crores of rupees to facilitate payments. However, the High Court refused to give any written order and adjourned the hearing further after vacations to the third week of January.

Now the 'proud RMPians' who are very optimistic of coming out clean after January 10, might have to wait for more weeks before they learn the fact.

Some stupid fellows have even hurled abuses against me with over-enthusiasm in the belief that they are going to get some relief. They would be the disappointed lot.

'MLM income opportunity' racketeers are The Scum Of The Earth

2012-01-02T04:51:00.000-08:00

Shyam

Your free-thinking readers know that, in the absence of any real government attempt to educate or protect the public, 'Corporate Frauds Watch' is an independent, Indian-based Blog, warning the people of the Republic of India about the danger of organized fraud in general, and of 'MLM income opportunity' fraud in particular.

It is currently estimated that out of a total population of 1.2 billions, 121 millions Indians use the Internet. However, more than half of these people do not have a computer. They access the Net. via their mobile smartphones. There are already 898 millions mobile phone subscribers in India, with an estimated 200 millions more for 2012 http://www.bbc.co.uk/news/business-16354076 . The majority of Indians who seek information on any particular subject, now go to the Net. Thus, the battleground to establish the truth about 'MLM income opportunity' fraud has long-since become the Internet. Yet, no mainstream academic (writing on the Net.) has addressed this major global problem directly. Sadly, 'MLM income opportunity'fraud has been maliciously designed to be beyond the understanding of not just its deluded victims, but also, all casual observers.

I've just finished reading an end-of-the-year article by John Gray, author of 'False Dawn: The Delusions of Global Capitalism' http://www.bbc.co.uk/news/magazine-16245250 . Mr. Gray is certainly not the first academic commentator to recognise that we humans keep repeating the same 'follies and delusions' which have often led us to disaster in the past, but, at the same time, each new generation foolishly imagines itself to be far more clever than all previous generations and, therefore, immune to such avoidable-catastrophies. Mr. Gray also puts forward the unoriginal idea that political/social/economic systems, based on the apparently-laudable theory of 'endless human progress,' have been demonstrably-dangerous Utopian myths, written in a secular, rather than a religious, vocabulary.

The foundation upon which Mr. Gray's (difficult-to-understand) article has been built, is the (easily-understood, but ultimately-inaccurate) metaphor of 'termites secretly-eating a wooden structure,' previously used by the Hungarian writer, Arthur Koestler, to describe (in his book, 'Scum Of The Earth,' published in 1941) how, one dark-day in 1940, western Europeans suddenly woke-up and discovered that a migrating colony of unthinking, and voracious, 'Nazi' insects had turned their carefully-constructed, but destabilized, democratic, world to dust.

Unfortunately, Mr. Gray's thinking remains anchored in the vocabulary of his own academic discipline (political philosophy) and, therefore, his general analysis of present day events is typical of most contemporary intellectuals; for, if your free-thinking readers go through Mr. Gray's article, they will not find any reference to: fraud, manipulation, pseudo-science, corruption, greed, narcisissism, deception, racketeering, lying, etc. Yet these are the enduring cancers (albeit dressed-up in the latest ephemeral-disguise of 'free-market capitalism') which have produced the current world economic crisis and which previously-produced the 'Wall Street Crash' and 'Great Depression' which, in turn, fed the secondary 'Nazi' cancer in Europe, and which are again being allowed to eat their way (largely-unobserved) into the heart of our carefully-constructed, but destabilized, democratic world (this time dressed-up as Utopian 'MLM income opportunities').

'Amway's' survival in the UK was nothing short of miraculous

2011-12-22T08:08:00.000-08:00

Shyam

A wise correspondent of mine, has observed that my analysis of the 'MLM' racket as a dissimulated form of unlawful, closed-market bookmaking (where all losing-bets have simply been laundered as 'purchases'), which has been maliciously-designed to provoke a form of chronic gambling addiction, reveals 'Amway's' recent escape from closure in the UK to be nothing short of miraculous; for how is it possible that, when faced with such a wide-open-goal, the UK government brought on a team of short-sighted lawyers who failed to score?

Despite my calls for an intellectually-rigorous criminal inquiry, in 2007, the UK government Trade Minister only filed a low-level public-interest civil bankruptcy petition against 'Amway UK Ltd.', on the technical grounds that the company had been breaking not only UK trading schemes legislation, but also UK lotteries legislation. UK government lawyers and forensic accountants subsequently produced a mountain of unchallenged documentary evidence to demonstrate that, out of the approximately 35 000 British 'Amway' adherents registered in 2006, the hidden loss-rate was effectively 100%, and that, for the insignificant percentage of winning 'Amway' participants to receive some payment, the overwhelming majority had to keep paying into the 'scheme.' In presenting their far-from-intellectually-rigorous case to the UK High Court, UK government lawyers described the minority of chronic-losers in this demonstrably-dangerous, rigged game of 'commercial' make-believe, as being 'deluded.' However, no psychotic 'Amway' victim, nor expert witness to his/her dangerous state of mind, was called to give evidence. Instead, after a lot of legalistic arguments, Mr. Justice Norris accepted the UK government's simplistic claim that the 'Amway trading scheme' had been in breach of trading schemes legislation (because unlawful registration fees had been required), but curiously, he rejected the government's other simplistic claim that the 'Amway trading scheme' had been in breach of lotteries legislation (because it was not advertised as a 'lottery' and a few lucky participants had apparently been paid out). The Judge then broke established legal precedent and refused to order 'Amway UK Ltd.' to hand over all the millions of pounds of what he accepted to be unlawful registration fees (which would have forced the company into technical-bankruptcy and obligatory-closure), when 'Amway's' lawyers made the demonstrably-false declaration, and absurd related-promise, that their employer's previous unlawful activities had all been completely involuntary, but had now been completely reformed, voluntarily.

Later, the UK Appeal Court (in a two to one majority verdict), upheld Judge Norris' controversial decision to accept the word of 'Amway's' lawyers, and not to order the immediate-closure of 'Amway UK Ltd.', after the UK government's short-sighted legal team had challenged it on the not-unreasonable grounds that it was neither safe for the public, nor correct in law. This typically-complicated legalistic outcome allowed the 'Amway' Ministry of Truth to pretend that the 'Amway MLM income opportunity' had now received the full-approval of the UK Courts. In other words, 'Amway UK Ltd.' effectively plead guilty to running an unlawful trading scheme for 34 years, and was duly found guilty of running an unlawful trading scheme for 34 years, but received no punishment other than that which the demonstrably-dishonest legal representatives of this demonstrably-dishonest organization, falsely-claimed to have imposed on itself.

Yet, consider for a moment, if the demonstrably-fake 'Amway MLM income opportunity' had been advertised as a 'viable gamble' rather than as a 'viable trading scheme'. Also, consider for a moment, if the wider-evidence had been presented to the UK Courts, in an intellectually-rigorous, criminal prosecution.

What would any honest Judge have said when it was proved, beyond all reasonable doubt that, for 50+ years, tens of millions of constantly-churning 'Amway' adherents around the world (including at least one million from the UK) have been deceived into participating in a completely-incomprehensible, endless-chain recruitment game (presented as a viable income opportunity), in which they haven't had a hope of winning, but in which they have been subjected (without their fully-informed consent) to co-ordinated devious techniques of social, psychological and physical persuasion, designed to shut-down the individual losing-players' critical and evaluative faculties, and oblige them to keep betting on themselves to win, no matter what suffering this has caused ?

Core-'MLM' victims are like chronic gambling addicts

2011-12-21T08:03:00.000-08:00

Shyam

In all lawful and unlawful gambling, the (unwritten) golden rule for the house, is 'keep the gambler playing,' because, no matter what is won in the short-term, in the long-term, the odds on winning are tipped in the favour of the house and, consequently, the chronic-gambler will eventually almost-certainly lose overall. Thus, the profession of running a casino, or of bookmaking, is to make sure that the odds are always tipped in the favour of the house. In lawful gambling, regulation exists which ensures that gamblers have some chance of winning in the short-term, but in unlawful gambling, no such regulation exists.

In France, private, or open-market, bookmaking has been illegal for decades. However, the Internet has recently led to radical changes in French gambling laws. The bookmaking system that has been operated lawfully in France, is the 'Paris Mutuel' a.k.a 'Totalizer.' In this, all bets on any particular horse race have been gathered through government-licensed, and tightly-regulated, offices, into a closed central fund. The odds on each horse winning, can fluctuate right up to the start of the race, because they are worked-out depending on how much of the fund has been gambled on any particular animal. A small fixed-percentage of the fund is retained by its organizers, whilst a higher fixed-percentage is paid out to the winning gamblers. This closed-market 'Paris Mutuel' system resembles an inverted, mutual insurance fund. When run correctly, the system is guaranteed never to lose money for its organizers, because it is based on transferring the losing gamblers' money to the organizers and to the winning gamblers.

Unless they have been chronic gambling addicts (dissociated from external reality), then all players of the 'Paris Mutuel', have been fully-aware that they risk losing what they bet.

More than 50 years of evidence, in the form of tens of millions of previous losers, proves that (for the ordinary player) the odds of winning any net-benefit in the effectively closed-market 'Amway' game of 'business' make-believe, have been zero. Exactly as in the 'Paris Mutuel,' the only real money flowing into the 'Amway' system has come from the players and, thus, the organizers, who have retained a significant fixed-percentage, can never lose. However, unlike the 'Paris Mutuel' the insignificant few players who have been seen to be winning massively, are always the same grinning schills, whilst the overwhelming majority of constantly-churning players have can never ever win, because the game has been secretly-rigged to produce, and to hide, universal loss.

Chronic 'MLM' addicts have been conditioned to believe that they are Independent Business Owners who, if they do not question the authenticity of their 'risk-free MLM income opportunities' and continue to duplicate the '100% positive' example of their leaders (i.e. consume and recruit), will soon also become massive winners. Unfortunately, this is a cruel lie designed to load its victims with guilt.

All the evidence proves that if you fall for this pernicious blame-the victim fraud, you will lose some money. However, the longer you remain, the more you will lose. The worst 'MLM' victims have quite literally lost everything, and some have wound up killing themselves.

Many observers have compared core-'MLM' victims to chronic gambling addicts; for both groups live in denial of external reality - only ever declaring their short-term winnings and hiding their overall net- losses.

How does anyone lose money in Amway scam?

2011-12-20T08:56:00.000-08:00

People wonder sometimes how do they lose money if they simply join schemes like that of Amway Enterprises or for that any matter any such scams. Moreover, recently Amway Enterprises has announced that there is no entrance fee to join it as IBO. If anybody asks them to become they would readily agree to become a member. They never realise that they are entering a cobweb.

This is how they lose their hard-earned money.

Every IBO must buy products worth at least Rs. 2000. That means in effect they purchase products worth Rs. 24,000 every year. They would be encouraged to approach their friends and relatives to become members and purchase products with the inducement that they would earn more commission if the new recruits also buy products. However, it would be very hard for them to convince the new recruits to purchase products. On the other hand, they could find no one to purchase products which are exorbitantly priced from them. Wisdom would dawn upon them soon and they would be ready to stop purchase products within a short period. However, his upline would bring pressure on him to buy products and recruit more people. The new recruit would be told that if he creates his own group he would earn lot of commission.

He could not create his own group who would be willing to buy products every month. He would be disillusioned soon and starts blaming himself. He hears from his upline blatant lies that every other IBO is making lots of money and it is his fault for his failure.

By that time the IBO would have spent sizable money from his pocket to buy products. He does not know what to do. It is a Catch 22 situation.

Ultimately he resigns and stops buying products. But by that time he is poorer by several thousands of rupees.

Shame on Kevin Kiley, head of the Massachusetts Bankers Association, who supports the bankster, Richard Syron

2011-12-19T04:31:00.000-08:00

Shyam

This time, I had to laugh when I read the demonstrable lie that the Chief Operating Officer of the Massachusetts Bankers Association, Kevin Kiley, has apparently told reporters from the Boston Globe about his friend, Richard Syron (the former CEO of 'Freddie Mac') who stands accused of securities fraud.

Mr. Kiley (apparently sober and in all seriousness) described Mr. Syron (a liar who presided over the secret ruining of one of the largest mortgage agencies in the world) as 'an outstanding businessman,' and he went on to declare that he was 'surprised that the Securities and Exchange Commission had taken action' against him.

http://www.thisismoney.co.uk/money/news/article-2075244/Fannie-Mae-Freddie-Mac-bosses-charged-misleading-public-mortgage-risks.html?ITO=1490

Here, in the adult world of quantifiable reality, we are surprised that the US Justice Dept. has not yet charged Mr. Syron (and his lying associates) with offences under the US federal Racketeer Influenced and Corrupt Organizations Act, 1970.

Mr. Kiley obviously was not one of the direct victims of Mr. Syron's lies. His supine commentary is self-evidently based on his friendship with Mr. Syron, and on his friend's other lawful, commercial activities. However, Mr. Kiley's morally and intellectually bankrupt statement insults the intelligence of every tax-payer around the world who has been made ultimately responsible for the catastrophic results of Mr. Syron's multi-billion dollar fraud.

Mr. Kiley's absurd opinion, is the same as suggesting that a previously-respectable banker, charged with passing (what anyone with an ounce of common sense should have known to be) billions of dollars of counterfeit banknotes, should be judged on the grounds that 86% of the money in the bank was not fake, and only 14% this, otherwise-honest, fellow's 'money' contained flaws.

If Mr. Kiley reflects the general moral and intellectual standard of leading American bankers, then it's no wonder that the world is on the verge of an economic melt-down.

Six US 'banksters' now face civil fraud charges

2011-12-17T07:32:00.000-08:00

Shyam,

As ever, I didn't know whether to laugh or to cry, when, today, I read the latest news from the USA. http://www.bbc.co.uk/news/business-16228158

Six former executives of what were once styled as 'the world's largest mortgage agencies', 'Fannie Mae' and 'Freddie Mac,' have been charged (in a civil prosecution filed in a federal court in New York city, by the US Securities and Exchange Commission) with fraud.

Meanwhile, years after the event (and with a global economic depression looming), the US Justic Dept. says it has 'begun investigating.'

According to the NY lawsuit, 53 year old Daniel Mudd, 50 year old Enrico Dallavecchia and 53 year old Thomas Lund (the former: CEO, Chief Risk Officer and Executive Vice President of 'Fannie Mae'), along with 68 year old Richard Syron, 58 year old Patricia Cook and 53 year old Donald Bisenius (the former: CEO, Executive Vice President and Chief Business Officer of 'Freddie Mac') made'material mis-statements.'

In plain English, these shameful, but shameless, 'banksters' actually stand accused of telling multi-billion dollar lies, and of provoking, and attempting to conceal, the onset of the largest global financial catastrophy since the 'Wall Street Crash' of 1929 (which itself triggered the 'Great Depression' of the 1930s - and which, in turn, led to rise of Fascism and WWII).

The lawful traditional business of 'Fannie Mae' and 'Freddie Mac' was the buying of secured mortgage loans from banks and other institutional lenders, packaging these debts into guaranteed-bonds and then selling them to investors internationally. During the early years of the 21st century, a significant part of the previously-lawful enterprises of both these companies became completely unlawful, because their chief executives oversaw the buying, packaging and peddling of liar-loans which (in the pursuit of huge short-term profits for banks and resulting huge bonus payments for bankers), had been fraudulently-approved to many millions of poor Americans who could not afford to repay them (in the long-term). Whilst the US real estate market remained strong, the looming-catastrophy remained hidden. However, when the market collapsed, 'Freddie Mac' and Fannie Mae' had already knowingly: bought, packaged, peddled and fraudulently 'guaranteed' a phenomenal quantity of worthless paper to countless victims around the world.

In 2007, the 'Fannie Mae' executives falsely-declared that their company held just $4.8 billions of high-risk loans, when, in fact, it was facing inevitable collapse due to $43 billions of toxic-debt (some 11% of its total portfolio). Similarly, in 2006, the 'Freddie Mac' executives falsely-declared that their company held between 2 and 6 $billions of high-risk loans, when, in fact, it was facing inevitable collapse due to $141 billions of toxic debt (some 10% of its total portfolio). Furthermore, by 2008, 'Freddie Mac's' toxic debt had climbed to $244 billions (some 14% of its total portfolio).

In September 2008, the truth finally came out, and Bush administration was obliged to take control of both these secretly-insolvent agencies to prevent them from collapsing. Their top executives were either fired or they were forced to resign. To date, US tax-payers have given $150 billions to keep them afloat, and this could rise to a colossal $259 billions.

All this, means that certain US civil regulators have lately-accepted that persons in control of at least two major US financial institutions were engaged in a pattern of ongoing major racketeering activity, comprising fraud and the obstruction of justice, etc., during 2006- 2007. However, the US Justice Dept has (so far) refused to enforce federal RICO legislation which covers these serious criminal acts.

Perhaps the most extraordinary thing to come out of these recent civil charges, is the immediate defence to them. The executives' attorneys don't actually deny the charges, what they say is that US government regulators are in no position to charge their clients with fraud, because US government regulators were, at all times, fully-complicit with what was occurring.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/12/16/BU1A1MDGSM.DTL&feed=rss.business

I would respectfully suggest that the US Justice Dept. should perhaps be investigating, and charging, certain officials at the SEC, under RICO legislation, but then there are certain officials at the US justice Dept. who probably should be investigated themselves.

Difficult as it is to believe, Daniel Mudd ( who was fired from 'Fannie Mae' in 2008) currently holds the position of CEO of the 'Fortress Investment Group' in New York; whilst Richard Syron (who resigned from 'Freddie Mac' in 2008) is an Adjunct Professor at Boston College.

Personally, I wouldn't want to employ either of them (not even to sweep my floor).

What possible legitimate reason could US Justice Dept. officials have for refusing to indict the crooks whose greed triggered the world economic crisis?

2011-12-14T07:22:00.000-08:00

Shyam

I observe that, under pressure from campaigners (like Anna Hazare), the Indian government is reluctantly still trying to decide how to appear to be tackling the problem of corruption.

http://www.ndtv.com/article/india/lokpal-bill-all-party-meeting-today-cbi-the-only-flashpoint-157760

However, I would respectfully-suggest to your free-thinking readers that, if they take the time to examine the wider-picture, all this apparently laudable activity in India, is merely the equivalent of trying to catch (and to re-arrange) one sliding-deck-chair on the rapidly-sinking Titanic.

It is generally accepted that the current world economic crisis (which is probably about to turn into another Great Depression) was triggered by a chain-reaction of related-frauds perpetrated by the greedy, and increasingly-desperate, bosses of American financial institutions. These wealthy crooks, gambled that they would not be held to account, because their government (influenced by their own agents occupying key-positions in the Federal Reserve) could easily be made to feel obliged to print, and/or borrow, and inject into their collapsing-criminogenic system, vast sums of money (the interest on which would ultimately be born by ordinary tax-payers), believing this fundamentally-unjust strategy to be the only way to stop the entire global economy from collapsing. However, various well-informed observers (like William K. Black) warned that 'bail-out' was only a way of delaying the entire global economy from inevitably collapsing.

http://www.youtube.com/watch?v=Rz1b__MdtHY

Instead of a corrupt doctor's prescription of a diluted socialist medicine to cure the symptoms this purely-criminogenic cancer dressed-up as 'free-market capitalism,' intellectually rigorous, and honest, commentators simply called for the underlying problem, fraud and corruption, to be cut-out, and for the rule of law to be restored in the USA.

In brief, the real position is as follows: Right under the noses of stupid, and/or lazy, and/or corrupt, US financial regulators, on the obviously-specious grounds that the value of American real-estate would continue to increase ad infinitum, a significant number of major, and minor, American financial institutions all began to make apparently 'secure and profitable,' but actually unsecured and catastrophic, mortgage loans to countless, aspiring poor persons who had no means of repaying them. However, since it appeared that the high-levels of projected-interest from these 'liar loans' was going to boost the lenders' profits, the individual bankers who approved them, pretended success; thereby, allowing them all to keep claiming increasingly-juicey, but fraudulent, commission, and bonus, payments on theoretically-expanding profits which couldn't actually exist. Thus, it became in the short-term financial interests of all these greedy criminals, to ignore reality and keep approving more and more 'liar-loans.' Consequently, they were aggressively-marketed.

When the American real-estate market inevitably began to stagnate and the bosses of certain American financial institutions faced the reality that, eventually, they could be left collectively-holding trillions of dollars of effectively-worthless assets, they conspired to get rid of their stinking heap of toxic-debt; so-they packaged it up, gave it various sweet-smelling labels and fake ribbons of approval, and began to peddle it to countless ill-informed victims all around the world as a 'secure investment.' However, since there was too much of it, the same criminals (knowing that their economically-suicidal enterprise was on the point of collapse and exposure) took out insurance to protect themselves. This had the added-effect of pushing one of the world's largest insurance companies, 'AIG,' into a position of insolvency.

To date, despite billions of tax-payers around the world being penalized by the resulting-economic-crisis, no one responsible for perpetrating, or permitting, these frauds has been indicted by the US justice system. Furthermore, we do not yet know what the final catastrophic results of allowing these historically-significant crimes to go completely unpunished, will be.

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'Essar' and 'Loop' executives face life sentences for their part in the '2G Spectrum' fraud

2011-12-13T06:59:00.000-08:00

Shyam

Here on Corporate Frauds Watch, we have been regularly explaining how, for decades, a minority of billionaire racketeers have been allowed to perpetrate 'MLM income opportunity' fraud all over the world, behind labyrinths of legally-registered corporate structures pursuing lawful, and/or unlawful, enterprises - preventing investigation and isolating their bosses from liability. We have also been explaining how it is possible for the same greedy crooks to use their ill-gotten gains to employ so-called 'lobbyists' to further-subvert the democratic process and rule of law, by co-opting stupid, and/or lazy, and/or corrupt, legislators, regulators and law enforcement agents.

Just over a year ago, it was reported that India's Communications and Information Technology Minister, Andimuthu Raja, and 13 other people had been charged with conspiracy, forgery and fraud, in connection with the deliberate under-selling (by an estimated $39 billions) of 21 lucrative, '2G Spectrum,' telecoms 'Unified Access Service' licences to a privately-owned Indian company, 'Loop Telecom,' in 2008-2009. However, this scandal only came to light after Indian income tax officials began to investigate a so-called 'lobbyist,' Nira Radia.

It has now been reported that 5 more people, and 3 companies, have been (separately) charged in connection with the same titanic fraud.

http://www.thehindu.com/news/national/article2709193.ece

After an apparently rigorous criminal inquiry, India's Central Bureau of Investigation alleges that 'Loop Telecom' was the product of a complex corporate conspiracy to cheat the people of India, and that this conspiracy was hatched by the top executives of the 'Essar Telecom Group,' Ravikant and Anshuman Ruia. The charge-sheet also names the CEO of 'Essar Teleholdings,' Vikash Saraf, and the promoters of 'Loop Telecom,' Kieran and I.P. Khaitan. In brief, these 5 persons, and their respective companies, are charged with conspiring to create 'Loop Telecom' as a front to dodge Indian Dept. of Telecom regulations designed to prevent individuals, and corporate structures, from acquiring a potentially-dangerous monopoly of the Indian telecom market. If found guilty, the accused risk life sentences. In support of the charges, chief CBI officer, Vivek Priyadarshi, has submitted 398 files (containing more than 20, 000 pages of prosecution evidence) to Special Judge, O. P. Saini.

Apparently, CBI investigators were unable to find any evidence that senior Indian Dept. of Telecom officials had been aware that 'Loop Telecom' was an ileligible fake acting in breach of the regulations. If this is true, and I have no reason to doubt that it is, then these public servants are probably too stupid to be held to account in a court of law. However, I would suggest that, when the overwhelming case against the 5 telecom executives is proved, all the incompetent DoT officials who failed to do their job, should (at the very least) be sacked and obliged to hand back their salaries for the period 2008-2009.

Perhaps that might wake up other dozy Indian regulators who have (so far) failed to spot numerous 'MLM income opportunity' frauds ?

Kerala High Court dismisses writ petition filed by RMP Infotec

2011-12-11T06:28:00.000-08:00

IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 18975 of 2011(V)

1. RMP INFOTEC PRIVATE LIMITED, ... Petitioner

1. THE DIRECTOR GENERAL OF POLICE AND ... Respondent

2. ADGP (CRIMES),

3. SUPERINTENDENT OF POLICE

4. SUPERINTENDENT OF POLICE,

5. SUPERINTENDENT OF POLICE

6. SUPERINTENDENT OF POLICE,

7. SUPERINTENDENT OF POLICE,

8. THE COMMISSIONER OF POLICE,

9. THE COMMISSIONER OF POLICE,

10. THE COMMISSIONER OF POLICE,

11. THE COMMISSIONER OF POLICE,

For Petitioner :SRI.K.T.SHYAMKUMAR

For Respondent :ADDL.ADVOCATE GENERAL

The Hon'ble MR. Justice PIUS C.KURIAKOSE

The Hon'ble MR. Justice C.K.ABDUL REHIM

Dated :25/07/2011

O R D E R

PIUS C.KURIAKOSE & C.K.ABDUL REHIM,JJ.

-------------------------------

WP(C).NO. 18975 of 2011

---------------------------------

Dated this the 25th day of July, 2011

JUDGMENT

Abdul Rehim,J.

The petitioner is a Private Limited Company incorporated under the Indian Companies Act having its registered office at Chennai. Petitioner is engaged in multi-level marketing of various products like laptops, solar lamps, water purifiers etc. For implementation of the multi-level marketing, the company has devised a network marketing concept in which the consumers are approached through a network system of customers. The products are introduced to the consumers through the customers and the consumers, after buying the products, will become customers and will start introducing further consumers who in turn will become customers again. On the basis of enrolling of new customers and by widening the network, the existing customers can earn more and more income.

2. The petitioner company has got franchisee offices in Thiruvananthapuram, Cochin, Thrissur and Calicut. It is stated that all the transactions are conducted on payment of tax and duties payable to the State Government and the petitioner company is regularly paying Income Tax due to the Central Government. It is further stated that the petitioner company has done large volume of business by purchasing goods from very reputed manufacturers.

3. Grievance voiced is that, as part of investigation started to curb, 'money chain' business transactions in the State, the police authorities have closed down the franchisee offices of the petitioner and they have taken away the keys of such offices. It is complained that the keys taken into custody were not even produced before the Magistrate Courts having jurisdiction at the respective places. The police are not even giving any proper explanation regarding the forceful closing of the offices and in preventing the petitioner's activities which according to the petitioner was conducted in a perfectly lawful manner. It is alleged that the search and seizure was conducted without getting any orders from the Magistrate Courts and that not even a proper mahazar or search list have been prepared with respect to the articles seized from the offices. The key of the business premises were taken away in clear violation of the procedure contemplated under the Code of Civil Procedure, is the allegation. It is further alleged that the police is illegally refraining the petitioner company from continuing its business.

4. It is stated in the writ petition that some persons have lodged complaints against the petitioner company, due to compulsion and threat from the side of the police authorities. Several such persons have later approached the petitioner and offered to withdraw such complaints. But since the police authorities are threatening them with dire consequences, the complaints are not withdrawn. Under the above mentioned circumstances the writ petition is filed seeking direction to refrain the respondents from causing any sort of harassment to the petitioner in the functioning of its franchisee offices and to its distributors. Petitioner inter alia seeks direction against the respondents to refrain from coercing or compelling the individual distributors to lodge complaints against the petitioner and also to refrain from preventing the existing complaints being withdrawn.

5. We heard Sri. K.A.Jaleel, learned Additional Advocate General. It is submitted that, under the guise of the multi level marketing of products, the petitioner is promoting money circulation, which is banned under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. It is submitted that, with respect to the petitioner company as well as other companies engaged in similar line of activities, various complaints were received from different Districts and so many cases have been registered in various police stations. The Additional Advocate General highlighted that the business of these companies and other establishments are concentrated on innocent and illiterate villagers who are more vulnerable to cheating. It is stated that the activities conducted by the petitioner company will constitute offences punishable under sections 3,4,5 and 6 of the above said Act, apart from offences punishable under sections 405 and 420 of the IPC. It is further stated that very huge amounts have already been collected through such illegal activities by the promoter and other companies from innocent public. It is submitted that the State Government have constituted a 'special investigation team' headed by the Additional Director General of Police (Crimes) to investigate into all the cases registered against such companies and persons conducting business activity of the like nature, under the guise of multi level marketing .

6. However, learned Addl. Advocate General conceded that if commission of any cognizable offence is detected with respect to the petitioner company, the police will take action for arrest of any of its officials or customers only after due compliance of the provisions contained in section 41A to section 41D of the Cr.P.C. Further it is also assured that if presence of any of the officials of the company is required in connection with investigation into the cases already registered or which will be registered later, then due notice as contemplated under the provisions of Cr.P.C will be issued. The relief sought for with respect to permitting the business activity being conducted or with respect to handing over of key to the franchisee offices could not be allowed, because the petitioner could not be permitted to perpetrate the alleged business activity which will amount to violation of the provisions contained in the Act, is the submission.

7. Having considered the rival contentions we are of the opinion that none of the reliefs sought for by the petitioner can be granted in exercise of the jurisdiction vested under Article 226 of the Constitution. However it is left open to the petitioner to approach the Magistrate Courts concerned, having jurisdiction in the respective area for appropriate reliefs.

8. We take notice of two judgments issued by this court in similar circumstances, in WP(C).No.17410/2011 and connected cases, dated 6.7.2011 and in WP(C).No.18708/2011 and connected cases, dated 15.7.2011. We notice that those writ petitions were filed in identical circumstances and this court had had already dismissed those writ petitions.

9. Under the above mentioned circumstances, the writ petition deserves no merit and the same is accordingly dismissed, subject to observations contained hereinabove.

PIUS C. KURIAKOSE,JUDGE

C.K.ABDUL REHIM,JUDGE

pmn/

No evidence supports the 'MLM income opportunity' lie

2011-12-11T05:43:00.000-08:00

Shyam

I observe that you have removed Kasey Chang's latest false and defamatory comment from Corporate Frauds Watch. This perplexing fellow refuses to accept that 50+ years of evidence proves 'MLM income opportunity' fraud to be a historically-significant, global criminogenic phenomenon built on an exploitative, non-rational pseudo-science - the economic equivalent of creationism.

Our irrefutable, purely rational position (which Mr. Chang has falsely characterized as 'fanatical') is, that unquestioning belief in the authenticity of the 'MLM income opportunity' lie, has caused, and continues to cause, considerable financial, and psychological, damage to countless millions of ill-informed individuals around the world. Furthermore, the number of persons who have lost everything and committed suicide as a result of falling victim to 'MLM income opportunity' lie, continues to mount, and will probably never be fully-known.

Mr. Chang's easily-refuted non-rational position, is the equivalent of someone recognizing and condemning one gang of counterfeiters, but then refusing to condemn other gangs of identical counterfeiters on the grounds that their product is possibly dangerous, but not quite as dangerous, because it contains fewer errors and has, so far, fooled legislators. Unfortunately, Mr. Chang ignores the easily-established fact that 'MLM' racketeers have used their stolen wealth to infiltrate the democratic process all around the world - subverting specific legislation, and rules, defining, and governing, the traditional commercial practise of direct selling. To intellectually rigorous and honest observers, the key to determining whether any system of economic exchange is an unviable fake and, therefore, fundamentally dangerous, is to establish (by examining the quantifiable evidence in the form of the audited accounts of a significant number of its participants) if it is an open or an effectively closed-market. Any specific legislation which has been written in such vague terms as to ignore this fundamental truth, is revealed as having been tampered with by the agents of 'MLM' racketeers. This subversion of the rule of law, is obviously part of an overall pattern of ongoing, organized criminal activity.

What Mr. Chang has said is frighteningly familiar; for the apologists of 'MLM income opportunity' fraud have fanatically pretended that their controlling scenario is reality, and that anyone challenging the authenticity of their controlling scenario is a fanatic in denial of reality. Exactly like Mr. Chang, these fanatical propagandists have not sought to establish that they are telling the truth by producing quantifiable evidence (in the form of audited accounts) proving that significant numbers of 'MLM' adherents have received a net-income lawfully from regularly retailing 'MLM' wampum to the public for a profit.

Former 'Amway Diamond,' and 'Xango racketeer, Jean Godzich, is a wanted criminal in France

2011-12-09T23:40:00.000-08:00

Shyam

Last June, I posted to clear warning about the 'MLM income opportunity' racket known as 'Xango.' I explained that one of the criminal-promoters of this unoriginal cultic quackery, Jean or John Godzich, is a former 'Amway Diamond' and a long-time criminal-associate of the sanctimonious 'Amway/Prosperity Gospel' charlatan-preachers, Dexter Yager and Doug Wead.

http://corporatefraudswatch.blogspot.com/2011/06/doug-weads-mlm-xango-associate-jeanjohn.html .

Although at the time, I didn't declare my sources, it is a matter of public record that Mr. Godzich is a wanted criminal in France. He is listed in various French parliamentary reports on cultism, and there are literally hundreds of articles available on the Net. which expose Mr. Godzich's clandestine criminal/cultic activities in France.

http://www.lepoint.fr/actualites-societe/far-les-secrets-d-une-pyramide/920/0/98847

http://www.info-sectes.ch/secte-gepm.htm

http://www.lexpress.fr/informations/haro-sur-le-groupement_609897.html

http://www.lexpress.fr/informations/l-echappee-belle-du-gourou_599373.html

http://www.liberation.fr/medias/0101131572-envoye-special-met-a-nu-le-systeme-de-la-secte-du-groupement

Your free-thinking readers might be interested to know that an arrogant clown signing himself/herself 'Cochran Family Blog,' has posted some familiar, intellectually-castrated comments on Corporate Frauds Watch. However, this pathetic persona would appear to be a cover for the 'Xango' Ministry of Truth.

'Cochran family Blog' has made the demonstrably false and defamatory statement that everything reported on CFW concerning M. Godzich and his criminal associates, is 'at best, Hyperbole.' This is simply because I didn't declare my sources, but then, why should I - when no intellectually-castrated apologist of 'MLM income opportunity' fraud has ever produced any quantifiable evidence (in the form of audited accounts) proving that anyone has ever received an overall net-income lawfully, from regularly retailing 'MLM' wampum to the public for a profit?

'TVI Express' hides an international criminal racket, so why are only national, civil trade regulators investigating ?

2011-12-05T04:54:00.000-08:00

Shyam

Your free-thinking readers will recall that, earlier this year, Mr. Kasey Chang was banned from posting his generally obstructive, inaccurate and misleading comments on Corporate Frauds Watch, after he posted (on one of his own Blogs) a stream of false and defamatory statements about me. Ignoring your clear decision, Mr. Chang has now contacted CFW again, this time to inform us that 'South Africa' (presumeably, he means a South African Journalist, Bongani Mthethwa, working for the 'SA Sunday Times' ) 'named Tarun Trikha as the head of the TVI Express Scam.'

For Mr. Chang's information, Corporate Frauds Watch has been closely-monitoring what was originally reported in the mainstream South African media many months ago, concerning 'TVI Express'. http://www.timeslive.co.za/world/2011/08/07/worldwide-probe-into-r1bn-scheme

Your free-thinking readers will observe that the Journalist who offered this definitive opinion of Tarun Trikha, only interviewed persons in South Africa who were described as 'State-appointed forensic auditors' and 'attorneys and forensic investigators working for the Reserve Bank of South Africa.' It was also reported that investigators had been consulted internationally, as well as persons described as 'former representatives of TVI Express' (whoever they might be). Based on these interviews, it was reported that it has been established in S. Africa that:TVI Express had more than 50,000 members in S. Africa (in August 2011)

Twenty-three different South African bank accounts, associated or linked to TVI Express, had been uncovered by investigators;

More than Rand 144-million worth of cash transactions and investments had been identified through the bank accounts and paper work. The investigators said they expected the figure to increase quite significantly in the course of the investigation;

On average, investors had paid between Rand 2,700 and Rand 21,600 into the scheme;

Some early investors had been paid out, receiving as much as Rand 108000;

An estimated 70,000 people were visiting the company's website daily;

TVI Express was under investigation for violating consumer protection laws in Britain, China and other parts of Asia; and The Australian Competition and Consumer Commission (ACCC), the country's consumer protection watchdog, had banned all TVI Express operations.

In reality, what has been established by this less-than intellectually-rigorous S. African journalist, Bongani Mthethwa, is that a bunch of diverse, civil trade regulators in various countries (who are apparently neither expert in organized crime nor pernicious cultism) have followed their noses and independently discovered that Tarun Trikha is officially-listed as the owner of the demonstrably-counterfeit corporate structure known as 'TVI Express'. Personally, I find it very difficult to believe that a 27 year old Indian is the sole and unique person reponsible for organizing this unoriginal, multi-billion dollar, global racket. Thus, I stand by my recent analysis - almost anyone could now be lurking behind 'TVI Express,' or any other 'MLM income opportunity' racket, including a terrorist group or a non-democratic regime. Probably, the last people who should be tasked with investigating isolated examples of this criminogenic phenomenon, are mainstream journalists and civil trade regulators, because (to date) they have usually been a significant part of the problem, and not the solution to it.

Almost anyone could now be lurking behind 'TVI Express', or any other 'MLM income opportunity' racket

2011-12-01T04:54:00.000-08:00

Shyam

In my experience, most educated-Europeans naively assume that we all live in civilised countries ruled by laws drawn-up by democratically accountable legislators, and that these laws are enforced without fear or favour.

In reality, we now live in an intellectually, and morally, bankrupt world where gangs of fabulously wealthy 'MLM income opportunity' racketeers, hiding behind their thought-stopping 'direct selling' jargon and 'Mafia'-style labyrinths of legally-registered corporate structures, are apparently allowed to subvert the democratic process and the rule of law wherever, and whenever, they want.

When you look at what has just happened in Australia with the 'TVI Express' mob, it beggars belief that the de facto agents of a foreign-based organised crime group can steal so much money from so many Australian citizens, without the real beneficiaries of this crime facing the slightest risk of investigation or charge. It also beggars belief that no one in the mainstream Australian media has (so far) tried to shine a light into the dark heart of this largely-unrecognised criminogenic cancer. Australian journalists should be demanding:

How is it possible that the directors of our country's law enforcement agencies and security services are so stupid, and/or lazy, and/or corrupt, that they did not launch a full-scale, international inquiry into what actually lurks behind the demonstrably-counterfeit 'direct selling' company known as 'TVI Express' ?

Indeed, almost anyone could be behind this profitable racket, including murderous terrorist groups or murderous non-democratic regimes. Yet when you consider the fact that exactly the same mass-fraud has been perpetrated on an even greater scale by numerous 'MLM income opportunity' racketeers for decades all over the world, what the 'TVI Express' mob have recently got away with in Australia, is revealed as being the latest, almost-insignificant drop in a historically-significant ocean of organised crime. Again, almost anyone now could be behind these profitable rackets including murderous terrorist groups or murderous, non-democratic regimes.

The Australian authorities might as well have issued an open invitation for criminals to come to their land; for when they have discovered foreign-based thieves committing mass-fraud against the citizens of Australia, they have foolishly only tackled this major, ongoing, organised criminal activity by pursuing a low-level, civil investigation and prosecution, of three pathetic little Australians who are quite obviously not the instigators, or the final beneficiaries, of this particular 'MLM income opportunity' racket.

If the free-thinking readers of Corporate Frauds Watch examine this frightening video of a fraudulent pay-through-the-nose to enter 'TVI Express' orgy of self-gratification http://www.youtube.com/watch?v=6QobkAuqaug , they will discover that they are watching almost any fraudulent pay-through-the nose to enter 'MLM' orgy of self-gratification. As the world economy continues to sink deeper into a recession triggered by mass fraud, this multi-billion dollar, non-rational, pseudo-scientific, belief system, continues to feed off the general ignorance, and growing desperation, of the public.

CFW still challenges any instigator, or apologist, of any so called 'MLM income opportunity' to produce the quantifiable evidence in the form of audited accounts (particularly, income tax receipts) which would prove that significant numbers of so-called 'MLM business owners' have lawfully earned an overall profit from regularly retailing goods, and/or services, to the public.

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'TVI Express' is judged to be a pyramid fraud in Australia, but the beneficiaries of this major crime have not faced charges

2011-11-29T20:44:00.000-08:00

An Australian federal judge (in broad-agreement with the analysis previously posted on Corporate Fraud Watch) has recently ruled that the so-called 'MLM Income opportunity' known as 'TVI Express' is an unsustainable pyramid scheme under Australian law.

http://www.dailytelegraph.com.au/money/tvi-travel-offer-really-a-pyramid-scam-federal-court-finds/story-e6frezc0-1226209159301

However, this common-sense judgement came only as a result of a low-level, national, civil investigation and prosecution, and not as a result of a rigorous, international, criminal investigation and prosecution. Furthermore, the front company for this global racket is registered in Cyprus. Thus, the real beneficiaries of this major crime have not faced the slightest charge in Australia. Exactly like the billionaire bosses of the 'Amway' mob (whom they have copied) the 'TVI Express' bosses have set up their Mafia-style labyrinth of corporate structures in order to prevent investigation and isolate themselves from liabiltiy.

In an unprecedented case brought by the Australian Competition and Consumer Commission, Justice John Nicholas has found that 3 promoters of 'TVI Express' in Australia, Lualhati (a.k.a. 'Teddi') Jutsen, Tina Aroha Brownlee and David Graeme Scanlon have been breaking the sections of the (Australian) Trade Practices Act which prohibit misleading and deceptive conduct. They now each face a maximum fine of $220 000.

Undercover agents of the ACCC infiltrated 'TVI Express' and posed asnaive recruits in order to gather evidence that its so-called 'MLM income opportunity' was a 'deliberate scam designed to benefit the originators while taking advantage of later recruits.' Government agents discovered that 'TVI Express' actually operated on the economically-unsustainable basis that participants could receive payments by recruiting new participants, who then could also receive payments by recruiting new participants, etc., ad infinitum. Thus, the so-called 'TVI Express MLM business model' was not only fundamentally unlawful under existing Australian civil legislation, but also a form of theft as defined by Australian Common Law. The organization's attractive offers of 'discounted accommodation and travel opportunities' and 'income-earning opportunities' were found to be lies. Victims of these lies were obliged to hand over $US 250 to obtain what was arbitrarily defined as a'travel certificate - entitling them to free accommodation for six nights and seven days, a free companion flight, access to an exclusive website and access to exclusive business tools'. These lies had already generated in excess of $300 000 in Australia. Predictably, no evidence could be produced to prove that any victim had received any of the material benefits which had been promised.

Judge Nicholas said:

'I am satisfied that the TVI Express System was a pyramid-selling scheme... I am satisfied that the single most important inducement held out to prospective members of the scheme in this case was the prospect of them making money, large amounts of it, by encouraging other people to join who would have to pay a membership fee to do so... The vacation representation was misleading or deceptive or likely to mislead or deceive because people would not expect the travel certificates to be of no value.'

It was also discovered that the 3 Australian promoters of the 'TVI Express' racket had decieved their victims into believing, and into promoting, the additional lies that 'TVI Express ' has created hundreds of thousands of successful business owners in 150 countries, and that the company acts in association with the 'Hertz Group, Carnival Cruise Lines and Malaysia Airlines.'

I'm sure that the free-thinking readers of Corporate Frauds Watch would be very interested to know why, during the previous 30 years, the Australian Competition and Consumer Commission has never investigated, or attempted to prosecute, any of the countless promoters of the essentially-identical, self-perpetuating 'MLM income opportunity' lie?

Indeed, numerous 'MLM' racketeers have been allowed to operate, and are still being allowed to operate, in Australia, behind the reality-inverting cloak of 'direct selling.' Classically, their de facto agents (in the form of the officers of the so-called 'Australian Direct Selling Association') have sought to subvert the democratic process and the rule of law.

Police freeze Rs. six crore in Bank accounts of RMP Infotec

2011-11-29T03:02:00.000-08:00

One of our free-thinking readers Mr Jaipal Reddy writes the following facts about RMP Infotec for the world-wide audience of our blog. However, the apologists of RMP have been spreading rumours about the company that they re-started the business. This is only to attract new victims into the scam. That facts are as follows:

Dear Sir,

Few days back Andhra Pradesh Government Authorities / Ongole(Andhra pradesh) police arrested RMP INFOTEC Directors in Chennai. Police booked cases and raided in Chennai by special team and arrested two directors Rajesh Chandan, Dilip Chandan and others. And police seized Rs 25 lakh worth gold, Rs 2.27 lakh in cash, Rs 6 crore amount from bank accounts of the company.

The recovered amount is very small. The company has amassed thousands of crores of Rupees and diverted to their other sister companies.

All the Bank accounts of the company were frozen and all the websites were closed by the authorities so that company cannot dupe more innocent people.

The names of three websites which were closed are as follows:

WWW.RMPINFOTEC.BIZ

WWW.RMPINFOTEC.INFO

WWW.RMPINFOTEC.TV

However, In order to collect the money from the people of far areas of other states of the country, who do not know the above facts, the agents of the company are fully promoting the company in Rajasthan, Bihar, Gujrat, Punjab, Uttar Pradesh ect. and the company has made its new website at different web address which is as follows:

WWW.RMPINFOTEC.NET

I request you to use your good offices to bring the above facts to the knowledge of the Govt. Authorities so that the new website ie. WWW.RMPINFOTEC.NET is immediately closed down. This will save so many innocent people from the fraud as the agents of the compny are showing this new website and collecting money.

Thank You,

Jaipal Reddy

(JPLRDYX@REDIFFMAIL.COM)

James Arthur Ray's pseudo-scientific racket is essentially no different to 'Scientology' or to 'Amway'

2011-11-28T06:41:00.000-08:00

Shyam

I have been asked two questions by a journalist :

- Even if he once worked for 'Amway,' what has James Arthur Ray killing people in a sweat lodge, got to do with 'Amway?'

- Why do you consider 'self-betterment' to be so dangerous?

The answers to these questions have already been given, but I'll try to make my responses even more clear.

James Arthur Ray's so-called 'self-betterment business' is one of countless, essentially identical, pseudo-scientific rackets which have all been effectively authorized in the USA by stupid, and/or lazy, and/or corrupt, legislators; for all pernicious cults have been built around fraudulent, pseudo-scientific mystification invariably designed to fit the spirit of the times. Cultic charlatans all seek to overwhelm their adherents emotionally and intellectually by pretending that progressive initiation into their own superior or superhuman knowledge (coupled with total belief in its authenticity and unconditional deference to the authority of its higher initiates) will defeat a negative or adversarial force of impurity and absolute evil, and lead to future, exclusive redemption in some form of secure Utopian existence. By making total belief a prerequisite of redemption, cult adherents are drawn into a closed-logic trap (i.e. failure to achieve redemption, is solely the fault of the individual who didn't believe totally).

Thus, if, on the pretext that you are an entirely honest person who wants to benefit humanity, you coerce ill-informed individuals into submitting to impermissible techniques designed to shut down their critical, and evaluative, faculties and, thus program them to dissipate all their mental, and/or physical, and/or financial resources to your benefit, and to persist in following a demonstrably-unviable 'plan' no matter what suffering this entails, then you are perpetrating, and dissimulating, a blame the victim fraud. Furthermore, a mountain of quantifiable evidence proves that, when taken to extremes, the co-ordinated, devious techniques of social, psychological and physical persuasion which have been inflicted on many millions of ill-informed individuals by unqualified pseudo-scientific charlatans like James Arthur Ray and his criminal associates, L. Ron Hubbard and his criminal associates, and by the billionaire bosses of the 'Amway' mob and their criminal associates, can cause serious psychological, and/or physical, damage and even death.

James Arthur Ray's so-called 'Science of Success' is an unoriginal title for an unoriginal fraud

2011-11-25T21:09:00.000-08:00

Shyam

Senior Law enforcement agents and legislators around the world should take note that James Arthur Ray is just one of many copy-cat charlatans who have been peddling the closed-logic pseudo- 'Science of Success.' Classically, Mr. Ray, has steadfastly pretended moral and intellectual authority. Even though he has just been sentenced to prison, he still poses as a philanthropic, autodidact scientist and philosopher who, after years of selfless research, has discovered the secret magic formula by which anyone (no matter what their sex, race, creed or colour), can lawfully achieve wealth, health, happiness, freedom, etc. http://www.youtube.com/watch?v=RfZ6CJmUyo0&feature=related . Tellingly Mr. Ray has traded off the names and reputations of widely-respected American television celebrities like Oprah Winfrey and Larry King. He has organized his fraud behind a legally-registered corporate-front known as 'James Ray International.' He has produced several, strangely-familiar works of fiction presented as fact, including one entitled 'The Science of Success.' Apparently, this absurd comic-book has sold 20 millions copies around the world. However, I very much doubt whether this (also strangely-familiar) unsubstantiated claim is entirely accurate, whilst Mr. Ray has been reported as drawing an annual salary from his company of $10 millions. The vast majority of money flowing into 'James Ray International,' has come from the sale of endless publications, recordings and tickets to meetings; the contents of which can be summarized in just a couple of lines, because they have constantly bombarded the followers of Mr. Ray with a mass of incomprehensible 'New-Age, Mystic-Dream' hocus-pocus behind which has lurked a classic, 'negative versus positive' totalistic, thought-reform program.

In accurate terms, what Mr. Ray has actually been peddling is a dissimulated religion, or a non-rational belief system, based on a closed-logic pseudo-science. Mr. Ray has called his dissimulated religion 'The Secret of Harmonic Wealth' or 'The Science of Success.' Thus, he has taught his followers that they can only achieve their dreams and goals (i.e. paradise on Earth) through excluding all negative influences and by developing 100% positive thinking (i.e. unquestioning faith). Self-evidently, this type of fraud is not at all original.

A while ago, the free-thinking readers of Corporate Frauds Watch were treated to some welcome comic-relief in the form of a string of intellectually-castrated comments from a poor Indian 'MLM' 'Amway' adherent who had fallen under the spell of Napoleon Hill (1883-1970), the best-selling charlatan author of :

The Law of Success (1928)

The Magic Ladder To Success (1930)

Think and Grow Rich (1937)

How to Sell Your Way through Life (1939)

Success Through a Positive Mental Attitude (1960)

You Can Work Your Own Miracles (1970)

Napoleon Hill's Keys to Success: The 17 Principles of Personal Achievement

Grow Rich!: With Peace of Mind

The Master-Key to Riches

Succeed and Grow Rich Through Persuasion

Mr. Hill has been described as the first 'Personal Success/Development' or 'Rags to Riches Guru' and, by an extraordinary coincidence, one of his above comic-books, 'Think and Grow Rich,' also has apparently sold 20 millions copies around the world.

In brief, as a young man, Mr. Hill got a job working for the once-ruthless, multi-millionaire steel magnate, Andrew Carnegie, who after suffering an attack of conscience in his later years, had decided to give most of his fortune away to educate the masses, whom he'd previously exploited without mercy. As part of this philanthropic campaign, starting in 1908, Hill (aged 25) was paid by Carnegie to interview hundreds of the most famous, and rich, men and women of the day (many of whom were Carnegie's ruthless business rivals), to discover their own secrets of success so that these could be passed on to humanity. Strangely, not one interviewee suggested that he/she had become wealthy as a result of any lack of morality. Hill then spent the rest of his life trading off all these widely-respected celebrities' names and reputations whilst peddling essentially the same fiction as fact. In a series of never-ending publications, recordings and pay-to-enter meetings, Hill steadfastly pretended moral and intellectual authority. He posed as a philanthropic, autodidact scientist and philosopher who had conducted years of selfless research from which he had discovered the secret magic formula by which anyone (no matter what their sex, race, creed or colour), could lawfully achieve wealth, health, happiness, freedom, etc.http://www.youtube.com/watch?v=J4mo0pz8oi4 .

In accurate terms, what Hill was actually peddling was a dissimulated religion, or a non-rational belief system, based on a closed-logic pseudo-science. Hill called his dissimulated religion, 'The Philosophy of Personal Achievement' or 'The Science of Success.' Thus, Hill taught his followers that they could only achieve their dreams and goals (i.e. paradise on Earth) through excluding all negative influences and by developing 100% positive thinking (i.e. unquestioning faith).

Obviously religions, or non-rational beliefs, and closed-logic pseudo-sciences are not dangerous in themselves, but the propagation of one form of exploitative non-rational belief (popularly known as a pyramid scam or dissimulated money circulation scheme) is forbidden by law. Unfortunately, if racketeers apply co-ordinated devious techniques of persuasion designed to shut-down individuals' critical and evaluative faculties in order to perpetrate a dissimulated money circulation scheme and prevent victims from facing reality and complaining, then the result can only be described as evil. However, as James Ray has again recently proved, when taken to extremes by narcissistic charlatans, these techniques (which are, in fact, impermissible experiments on humans) can cause serious physical, and/or psychological, damage, and even death, to the ill-informed persons upon whom they are inflicted.

Once you know what Napoleon Hill was actually doing, it becomes immediately obvious that this narcissistic charlatan really had hit upon a secret magic formula, but only to benefit himself. Indeed, it would have been far more accurate for Mr. Hill to have entitled his best-selling comic-book : 'Stop Thinking and Make me Rich.'

The latest generation of narcissitic 'Personal Success/Development' or 'Rags to Riches' gurus, like James Arthur Ray, are no different. They have simply worked out how Napoleon Hill's age-old, blame-the-victim fraud functioned, and they have tailored it to fit the spirit of the times. But then L. Ron Hubbard, set up essentially the same unoriginal fraud in the early 1950s, which he also first peddled as the 'Science of Certain Success'.

James Arthur Ray gets just 2 years, but he should have faced far more serious charges

2011-11-23T07:41:00.000-08:00

Shyam

This video clip http://www.youtube.com/watch?v=wvMyoFLdQQ0 shows American television coverage of the trial of James Arthur Ray, and it also includes an interesting analysis of cultism by a psychologist.

It has now been announced that Mr. Ray has been sentenced to a total of just 2 years in prison for the 'negligent homicide' of three of his followers in Arizona. He has also been ordered to pay $57 000 to each of the families of his victims. In theory, Mr. Ray could have been sentenced to 27 years (i.e. 9 years for each count of negligent homicide). However, despite his tearful assurances to the judge that he has learnt his lesson, Mr. Ray has stated his arrogant intention to file an appeal. For years, he has exhibited the diagnostic criteria of severe and inflexible Narcissistic Personality Disorder; the tragic events of October 2009, had come very close to happening on previous occasions, but Mr. Ray had sought to prevent this damning evidence from being introduced into his recent trial.

Tellingly, Mr. Ray, who once declared his intention of becoming the world's first self-betterment billionaire, initially ran away from the scene of his crime in 2009.

Undoubtedly, Mr. Ray remains a highly-dangerous charlatan/guru associated with'Amway' and 'Herbalife' and reputedly initiated into 'Scientology.' Significant quantitiesof marijuana, vitamins, food-supplements and pseudo-medical products (some claimingto slow-down the process of human ageing), are reported to have been recovered during the investigation of 2009. It seems that Mr. Ray was peddling all manner of over-priced wampum to his followers, and that they were being induced to recruit 'Spiritual Warriors' on the pretext that consumption and recruitment of more consumer/recruiters, ad infinitum, was a 'secret positive plan' which, if followed without question, could enable all 'Spiritual Warriors' to achieve their dreams and goals. Thus, Mr. Ray was running his very own, pint-sized 'MLM' racket in which victims were subjected to co-ordinated devious techniques of social, psychological and physical persuasion, designed to shut down their critical and evaluative faculties and render them incapable of distinguishing between what was, and what was not, in their own interests. The deaths and serious injuries which were inflicted on 21 of Mr. Ray's deluded followers in what was, in fact, a giant steam-oven for pushing persons to the limit of their physical endurance (and beyond) after having been previously deceived into a vulnerable psychological state where they had become unable to save themselves from what would obviously be a life-threatening situation, forms part of wider-pattern of racketeering activity as defined by the US federal Racketeer Influenced and Corrupt Organization Act, 1970. Furthermore, since Mr. Ray is neither a qualified scientist nor a licensed medical practitioner, by posing as a form of scientist and trustworthy self-betterment mentor and by performing such an obviously-dangerous series of experiments on human beings (without their fully-informed consent and with the sole purpose of making money by means of a fraud), he was clearly in breach of the Nuremberg Code which, since 1947, has governed all physical and psychological experimentation on humans, in the USA. http://en.wikipedia.org/wiki/Nuremberg_code

Under the Nuremberg Code, the voluntary consent of a human experimental subject is absolutely essential. This means that the person involved should have legal capacity to give consent; should be so situated as to be able to exercise free power of choice, without the intervention of any element of force, fraud, deceit, duress, over-reaching, or other ulterior form of constraint or coercion; and should have sufficient knowledge and comprehension of the elements of the subject matter involved as to enable him/her to make an understanding and enlightened decision. This latter element requires that before the acceptance of an affirmative decision by the experimental subject , there should be made known to him/her the nature, duration, and purpose of the experiment; the method and means by which it is to be conducted; all inconveniences and hazards reasonable to be expected; and the effects upon his/her health or person which may possibly come from his/her participation in the experiment. The duty and responsibility for ascertaining the quality of the consent rests upon each individual who initiates, directs or engages in the experiment. It is a personal duty and responsibility which may not be delegated to another with impunity.

The ten points of the Nuremberg Code are:

The experiment should be such as to yield fruitful results for the good of society, unprocurable by other methods or means of study, and not random and unnecessary in nature.
The experiment should be so designed and based on the results of animal experimentation and a knowledge of the natural history of the disease or other problem under study that the anticipated results will justify the performance of the experiment.
The experiment should be so conducted as to avoid all unnecessary physical and mental suffering and injury.
No experiment should be conducted where there is a prior reason to believe that death or disabling injury will occur; except, perhaps, in those experiments where the experimental physicians also serve as subjects.
The degree of risk to be taken should never exceed that determined by the humanitarian importance of the problem to be solved by the experiment.
Proper preparations should be made and adequate facilities provided to protect the experimental subject against even remote possibilities of injury, disability, or death.
The experiment should be conducted only by scientifically qualified persons. The highest degree of skill and care should be required through all stages of the experiment of those who conduct or engage in the experiment.
During the course of the experiment the human subject should be at liberty
During the course of the experiment the scientist in charge must be prepared to terminate the experiment at any stage, if he has probable cause to believe, in the exercise of the good faith, superior skill and careful judgment required of him that a continuation of the experiment is likely to result in injury, disability, or death to the experimental subject.

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Warning, 'MLM Self-Betterment Guru,' James Arthur Ray, Kills !

2011-11-21T23:03:00.000-08:00

Shyam

I thought that your free-thinking readers might be interested to learn that a self-styled 'Self Betterment' guru, previously linked to 'Amway' and 'Herbalife,' is currently awaiting sentencing in Arizona after having been found innocent of manslaughter, but convicted of the 'negligent homicide' of three of his followers.

http://www.bbc.co.uk/news/world-us-canada-15800898

http://abcnews.go.com/GMA/spiritual-leader-james-ray-arrested-sweat-lodge-deaths/story?id=9741781

In reality, in the Autumn of 2009, James Arthur Ray (b. 1957) persuaded 50 adults to give him payments of up to $10 000 each. In return, he lured them to a remote 'Retreat Center' where, for 7 days, he planned to subject them to a barrage of potentially-lethal, co-ordinated, devious techniques of social, psychological and physical persuasion, designed to shut-down individuals' critical and evaluative faculties, but without their fully-informed consent. However, Mr. Ray has been running this frighteningly-familiar, blame-the-victim, advance fee fraud for many years, and he has apparently made millions of dollars out of it. He seems to got many of his unoriginal ideas from L. Ron Hubbard's 'Scientology' scam. Amongst his many published lies, Hubbard claimed to have lived amongst the Blackfoot Indians as a small boy after WWI and during the early 1920s, and to have been initiated into the secret medicine of the tribe. Hubbard began peddling what he described as 'Purification Rundown' to his 'Scientology' adherents in the 1950s. This comprised a progressively-expensive program of intense fasting and sauna baths which Hubbard claimed could remove negativity (in the form of invisible extra-terrestrial creatures) from the human mind and body, and enable 'Scientologists' to transform into superior human beings, physically and intellectually.

In brief, exactly like L. Ron Hubbard, James Ray (who has appeared on US network television and who features on the New York Times Best-Sellers List) has also steadfastly pretended that he possesses a secret 'spiritual/scientific' knowledge which can help anyone to achieve whatever it is that he/she most desires from life, and that (for a price) he is prepared to share this exclusive wisdom.

Using a typically-hypnotic cocktail of pseudo-scientific/'New Age Religious' bullshit (partly plagiarized from traditional Native American beliefs), Mr. Ray (the son of a preacher) persuaded his Arizona victims to stop eating for several days and to enter a 'sweat lodge' (i.e. a form of rudimentary sauna bath comprising a tent structure in which water is turned to steam by pouring it over a pile of rocks which have been previously heated in a bonfire). Whilst Mr. Ray continued to perform what he arbitrarily defined as a 'purification ceremony,' more than 20 of his starving, would-be 'Spiritual Warriors,' began to exhibit the symptoms of dehydration and kidney failure.

Kirby Brown (aged 38), James Shore (aged 40) and Liz Neuman (aged 49) died, whilst 18 others were hospitalized.

In the introduction to his best-selling comic-books, Mr. Ray boasts that he has worked as a self-betterment consultant to many famous companies, including 'Amway' and Herbalife.'

http://en.wikipedia.org/wiki/James_Arthur_Ray

http://www.jamesray.com/

Mysteriously, James Arthur Ray has (so far) not been charged with fraud, or with racketeering, by US federal or Arizona state prosecutors, but presumably his surviving victims will be filing a civil action.

Predictably, Mr. Ray says that, after sentencing, he will file an appeal against his recent conviction. His attorneys continue to describe Mr. Ray's highly-organized crime in Arizona as 'a tragic accident.'

Kerala High Court throws out writ filed by RMP Infotec

2011-11-21T03:24:00.000-08:00

Kerala High Court on 21-11-2011 rather angrily threw the writ petition filed by RMP Infotec Private Limited out after it was found that the fraudulent company suppressed the material facts.

The RMP Infotec filed a writ petition in the Kerala High Court with a plea to instruct the Police Department to reopen their shops. Another writ petition filed a public-minded persons is pending in the Division Bench headed by the Chief Justice of the Kerala High Court and the RMP suppressed this fact.

It may be recalled that this fraudulent company is already facing a number of criminal cases all over country. Andhra Pradesh Police had filed at least five criminal cases and are seriously investigating the case.

The fraudulent RMP stated in its writ petition that it is actually distributing laptops concealing the fact that it is distributing suit lengths and other things.

Corporate Frauds Watch is looking forward for the full judgement of Kerala High Court in this regard.

Team Life Care is violating IRDA regulations and indulging money circulation scheme

2011-11-19T16:12:00.000-08:00

One of our free-thinking readers Mr B K is writing: Before reading the following The Editor of this blog feels it is apt to recall that the Corporate Frauds Watch filed a criminal case against Team Life Care and Bajaj Allianz for indulging in money circulation scheme in selling life insurance policies.

Why the fuss is only about 500/- membership fee when everything TLC is doing is unethical n illegal? Can any of the TLC supporters explain the below violations by TLC and still say TLC is LEGAL?
1. Amended IRDA regulation clearly says procuring business by any means other than by specified agents is a violation. Procuring insurance by Referral method (popularly known as MLM and Chain system) and passing on commission to referrers is being done by TLC which is a clear violation.
2. The defending members of TLC are unaware that TLC has two different companies to carry out their fraudulent ways intelligently.
3. TLC universal is the company in which all the members are working under and paid their commission. TEAM LIFE CARE Co. I Pvt Ltd is the company which has a corporate tie up with Bajaj Allianz and supposed to procure business through their specified agents licensed by IRDA.
4. Sourcing of insurance business by TLC universal members and submitting to Bajaj Allianz through Team Life care is a clear violation of IRDA regulation act which is not known to most of the members.
5. Every single insurance proposal form should have Specified Person attestation about details of how long he has known the policy seeker .In case of TLC Universal sourced business, the same is done by Team Life care staff later on before submitting to Bajaj Allianz. The customer who receives a policy bond through TLC doesn’t even know the attested licensed agent as mentioned in the policy bond. Doesn’t it ring any bells?
6. None of the pending petitions are against IRDA regulations and allows getting the business in the above mentioned methods and doesn’t regularize the violations of IRDA Corporate agent’s policy.
One can access the amended regulations on 12th July 2010 in this respect by pasting the below link in browser…

http://www.irda.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo773&flag=1&mid=Insurers >> Life >> Regulations

The purpose of inflicting regulations is to avoid mis-selling and allowing transparency to the insurance seeker to know the complete details of the policy being taken. This can only be done by an IRDA licensed agent.
Now, the said company has many people sourcing business by inducing the money to be earned by being a member of the system. To be a member one has to buy insurance policy and refer more people for income. The members are not aware anything about insurance and products being sold. One can verify the same by attending their seminars as listed on their website which incidentally happens in Mr.Shyam’s town also regularly.
The owners of the company are getting richer and richer by getting huge commission from Bajaj Allianz by fooling the members about the legality of the TLC Universal P Ltd & Team Life care Co I P ltd and suppress the facts. For a corporate agent the commission received would be around 40 % to 60% product wise on the sourced business. For every 1 lakh they get about 50 k first year the amount spent for commission would not be more than 10k for all sort of commission payments to the members.
One has to decide what is fair….. real pain to see that none of the above bloggers even think about the poor man who has bought insurance only because of the dreams shown to him about earning in lakhs which doesn’t serve his purpose …TLC claims to be having over 30 lakh members, but never mentions the success ratio.

'MLM income opportunity' fraud is central to understanding the 'Occupy Wall Street' protest

2011-11-18T03:35:00.000-08:00

Shyam

'MLM Income Opportunity' fraud is only part of a much wider historical phenomenon which has been described as a 'corporate coup d'etat.' For, today, in the USA (and many other countries), there exist a host of insatiable corporate parasites, feeding off the people and off our planet, but which are controlled by a minority of fabulously-wealthy bosses who have been allowed to subvert the democratic process, and the rule of law, through the bribing of stupid, and/or lazy, and/or corrupt, legislators via a criminogenic system arbitrarily defined by its instigator/beneficiaries as 'lobbying'. That said, 'MLM income opportunity' fraud is perhaps one of the most-extreme examples of this secret revolution, but which many people (including the members of the 'Occupy Wall Street' movement) still have not fully-recognised.

In now appears that the US authorities are making a conscious effort to break up the 'Occupy Wall Street' movement on the grounds that by occupying a public space, its members are breaking the law. http://www.bbc.co.uk/news/world-us-canada-15784439 . Ironically, just like you and me (and the supporters of Corporate Frauds Watch) the members of the 'Occupy Wall Street' movement, are only asking for the rule of law to be restored.

The 'Occupy Wall Street' movement started two months ago and has quickly spread all accross the USA. Although, the mainstream corporate media has generally tried to dismiss its members as an insignificant minority of work-shy, left-wing nut-cases, violent anarchists, dangerous radicals, without any elected leaders, or clear objectives to their futile protest, in reality, the 'Occupy Wall Street' movement has mainly comprised free-thinking, everyday Americans of all ages, sexes, ethnic backgrounds and walks of life. In short, these are the ordinary decent people of the American Republic - dissidents who recognise that they have been betrayed, not by traditional capitalism or their traditional democratic system of government, but by successive elected-governments whose stupid, and/or lazy, and/or corrupt, members have ignored the US Constitution and allowed themelves to become financially-dependent on gangs of corporate racketeers posing as 'compassionate capitalists.'

A perfect illustration of the tragedy that is now unfolding in the USA, occurred yesterday, when a retired Philadelphia police Captain, Ray Lewis, was arrested. He was one of the 'Occupy Wall Street' protestors. Proudly wearing his dress uniform, Ray Lewis was cheered and applauded by the crowd as he was handcuffed and led away by the officers of an unthinking police force whom he pities as 'Wall Street mercenaries'.

http://www.youtube.com/watch?v=ocdnl4XlTOU http://www.youtube.com/watch?v=jRhAVsICe6U

Far from being dangerous radicals and revolutionaries, dignified men like Ray Lewis, are actually conservative heros; for he has been acting in defence of his Republic and of its Constitution, in the face of a corporate coup d'etat.

In my not so humble opinion, Ray Lewis should be given a medal.

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'MLM income opportunity' racketeers have been buying stupid, and/or lazy, and/or corrupt, legislators for decades

2011-11-16T05:14:00.000-08:00

Shyam

Your free-thinking readers (including some honest, senior law enforcement agents), know that, for more than half a century, 'Amway' has been the thought-stopping title for a pernicious/criminogenic cultic organization (i.e. 'Amway' hides a self-perpetuating, non-rational, totalitarian belief system instigated for the clandestine purpose of human exploitation). They are also aware that 'Amway' has generated such vast profits for its greedy bosses, that it has been copied by countless greedy racketeers. We now have a tidal wave of essentially-identical, parasites and parasitic organizations - a criminogenic cancer consuming the unprotected population and quietly multiplying, and gnawing, its way into the democratic process and rule of law in every country it visits. Meanwhile legislators have remained too stupid, and/or lazy, and/or corrupt, to identify, let alone cut out, this malignant disease, whilst the mainstream media (with a few notable exceptions) has concentrated its attention in other more-marketable directions.

When is the wider-world finally going to face up to the ugly reality that, for decades, the secret goal of 'MLM income opportunity' racketeers has been to introduce, their own thought-stopping jargon into legislation around the world, subverting the democratic process and, thus, obtaining a corrupt license to reap billions of dollars from the rest of us, by running dissimulated money circulation schemes and related advance fee frauds, on an unprecedented scale, but without any risk of being held to account for these titanic crimes. Although it remains very difficult for many people to accept, the plain truth is, that these absurd, but nonetheless dangerous, cultic gangsters disguised as 'pious and philanthropic capitalists,' have infiltrated traditional culture and have effectively legalized a particularly cruel type of mass-theft by deception, which traditional culture has (to-date) failed to identify accurately as being just another form of closed-market swindle, or money circulation scheme.

Closed-market swindles dissimulated as 'MLM income opportunities' are always essentially the same false beacon of hope which can lure their most vulnerable victims into a delusional, self-destructive state, akin to a chronic gambling addiction. In reality, no matter how they are disguised, closed-market swindles only enrich their instigators and a few early recruits, with their latest victims' money, but since (by definition) a closed-market has no real external revenue, the latest victims are, in turn, promised the same chance or right to be paid from future victims, ad infinitum. Thus, closed-market swindles dissimulated as 'MLM income opportunities,' propagate the malicious false promise that endless-chain recruitment + endless contributions by the recruits = endless profits for all contributing recruits. Self-evidently, by design, this economic Utopia cannot be fulfilled, but the cruel illusion has been sustained simply by hiding its catastrophic results. Thus, preventing its victims from complaining. Consequently, although all 'MLM income opportunity' rackets have secretly produced loss/drop-out rates of effectively 100% (other than for their instigators and earliest recruits), they have continued to function, because this key-information has been deliberately withheld from the wider-world by criminals. Indeed, the act of occulting this information, has itself been fraudulent.

'MLM income opportunity' racketeers have sought to prevent prosecution of endless-chain recruitment schemes by laundering most of these schemes' unlawful internal transactions through what they have arbitrarily defined, in their thought-stopping jargon, as 'product purchases.' Each smokescreen 'purchase' has included at least 40-50% margin for apparent 'profit payments' collectively, to persons arbitrarily defined as 'Distributors' or 'Business Owners' , but who have actually been insolvent victims of a closed -market swindle - temporary de facto slave recruiters, doomed to failure. This 40-50% has been apportioned according to an incremental percentage-formula based on the victims' position in the endless-recruitment chain above the latest victims. Thus, any payments to the instigators and to the earliest recruits have been the product of fraud, whilst the remaining payments going to the so-called 'MLM' companies from the smoke-screen 'purchases' of the latest victims, were also the product of fraud.

In the USA, various court decisions, and some State laws, specify that any payments apportioned to the participants in a multi-tiered sales organization (ignoring the fact that these organizations, have all been criminogenic) must derive from outside of the sales organization and be the result of genuine retail sales to the public, not from smokescreen 'purchases' made by the recruits themselves. However, to avoid court rulings in the USA that might identify, and outlaw, closed-market swindles dissimulated as 'MLM income opportunities,' their instigators infiltrated and subverted an existing, US-registered, corporate structure known as the 'Direct Selling Association,' to acquire influence over legislators in more than a dozen States. Thus, existing US anti-pyramid laws were rewritten in precise, but essentially meaningless, terms (like 'anyone' , 'products', 'consumers', etc.) to exempt closed-market swindles in which the revenue is secretly derived from smokescreen transactions arbitrarily defined as 'product purchases,' thereby illegally removing the key-distinction as to whether the participants are actually making authentic retail sales to the public. Using these subversive tactics, closed-market swindles dissimulated as 'MLM income opportunities' have been effectively legalized in the USA (and in various other countries), but the false promise that endless-chain recruitment + endless contributions by the recruits = endless profits for all contributing recruits, upon which all 'MLM income opportunities' have been based, remains intrinsically fraudulent under universal criminal laws which define theft by deception.

Corporate Frauds Watch has recently uncovered these same subversive tactics evidently being pursued in the Indian State of Kerala, where the de facto agents of the'Amway' bosses (i.e. the officers of the 'Indian Direct Selling Association') have also been attempting effectively to legalize dissimulated money schemes which launder illegal internal payments through smokescreen transactions arbitrarily defined as 'product/service purchases'. Stupid, and/or Lazy, and/or corrupt Kerala officials have recently been caught red handed trying to redefine traditional direct selling in the familiar, effectively meaningless terms, to include the unlawful continuous-recruiting of insolvent victims (arbitrarily defined as 'direct sellers'),who illogically will not be obliged to sell anything directly to the public, by fake corporate structures (arbitrarily defined as 'direct selling' companies), which illogically will be allowed to derive the overwhelming majority their revenue from their victims, who merely make smokescreen 'purchases' under the delusion that eventually, by exactly duplicating a plan of recruitment and self-consumption, ad infinitum, they will be able to retire and receive reward in perpetuity. However, all such closed, money circulation schemes are already banned by existing, Indian, criminal legislation.

Readers of CFW should be aware that the subversion of the democratic process and the rule of law in the USA by 'MLM income opportunity' racketeers, included a proposed Bill, HR1220, in the US Congress. This shameful document was written by officers of the so-called 'Direct Selling Association' and it was introduced into the US House of Representatives by a traitor to the American Republic, who, ironically, was an elected Republican Member for Texas, Joe Barton. Co-traitors, included a small flock of apparently pious Republican/Christian Congressmen/women whose political campaigns had been largely-funded by money produced by 'MLM income opportunity' fraud. In simple terms, these legislators had been bribed with stolen cash, but they have not yet been held to account. The corrupt Bill they proposed, would have created a federal law, maliciously designed effectively to legalize 'MLM income opportunity' fraud throughout the USA, and to override common-sense federal court decisions which had previously served as the guide in all other federal court cases dealing with the 'MLM' question. However (probably due to the invasion of Iraq in 2003), the law was never passed.

Jack Abramoff has recently admitted that he was part of an extensive, corrupt 'lobbying' system in Washington which has been partially exposed, but not halted. Abramoff has confessed that he was paid millions of dollars to bribe stupid, and/or lazy, and/or corrupt, US federal legislators to conceal modifications in federal legislation which were secretly of great financial benefit to his clients, and against the interests of the people. These modifications were the product of crime. They were written in precise, but incomprehensible, terms often referencing (but not explaining) previous laws or obscure sub-sections of previous laws. Similarly, 'MLM income opportunity' racketeers have used corrupt 'lobbyists' to cloak their own modifications to legislation in thought-stopping, apparently pious terms like, 'reform' , 'updating', 'anti-pyramid,' etc. To casual observers, terms like, 'anyone', 'consumer' , 'product', etc. can appear quite harmless. However, to intellectually-rigorous observers, this obvious subversion of the democratic process and the rule of law by the manipulation of language, is revealed as a co-ordinated devious campaign launched by cultic gangsters, to redefine traditional direct selling, and thus, include, and effectively legalize, the cancer of 'MLM income opportunity' fraud (which has no real connection with traditional direct selling), from which these parasites continue to reap billions of dollars from countless millions of their constantly-churning victims.

Amway suddenly posing as a pious woman

2011-11-14T20:26:00.000-08:00

Amway, nowadays, is heavily advertising throughout India spending several millions of rupees. What happened to its principle of no advertisement all these years.

An adage in Sanskrit says, "vriddha naari pativrataa". Suddenly this aged prostitute is posing as a pious woman. It says that there is no entry fee to become a distributor and there is no compulsion to purchase products at entry level. In the headlines of the Advertisement itself Amway says that it is regularizing its business activities. That effectively means it has been illegally and irregularly doing business all these years spanning over a decade. What is the punishment for Amway's illegal business activities all these years and what happened to the stolen money from the gullible all over India and the rest of the countries.

However, its business model is still enrollment which is a banned activity under the provisions of Prize Chits &; Money Circulation Schemes (Banning) Act, 1978. Amway's website states that if a Distributor sells Amway products along with his 'GROUP' they are entitled commission ranging from 6 % to 21 %. From where does this group emerge without enrollment. That is the crux of the racket Amway is indulging in.

Moreover, the price of these products is so exorbitant that no sane person would buy these products unless he is promised with huge returns by way of enrollment.

For instance, the price of Glister toothpaste ranges from Rs. 125 to Rs. 199. No fool would buy these products at such exorbitant price. A 250 ml coconut oil bottle is sold at Rs. 109, a toothbrush for Rs. 116, a

250 ml shampoo for Rs. 379, one litre Dish washing liquid for Rs. 519. These are only samples. There are more.
Amway also states in its website the Distributor should give a hand written receipt to the purchaser while selling products. Is there any sanctity to the hand written receipt? Who would recognise it? IF there is any patent or latent defect in the product, will the consumer forum recognise it as an authentic receipt?

The main issue is the money circulation scheme camouflaged with sale of products and services. If Amway believes its products are of great value, it could sell them in the open market. Anyway, it is advertising heavily spending millions and there is now no justification for its camouflaged activity. It is high time, people realised its nefarious activities and throw Amway out.

Kerala officials have been caught red handed helping 'MLM' racketeers

2011-11-12T21:15:00.000-08:00

Shyam

The bosses of the 'Amway' mob continue to behave as though the rest of the world is too stupid, and/or lazy, and/or corrupt, to work out how their insidious racket functions.

The ongoing, extensive 'payment for legislation' racket that Jack Abramoff has admitted once being a part of in Washington, and which he lately-condemns, is exactly the same as the one which is now evidently appearing in the Indian State of Kerala.

Abramoff has described how, just by introducing precise, but essentially meaningless, language into US federal legislation, it was possible to subvert the democratic process to the financial advantage of anyone who supplied him with piles of loot to bribe greedy US politicians and key members of their advisory staff, with valuable gifts and highly-paid job offers. These traitors to the American Republic, then unlawfully gave Abramoff a free-hand to write the legislation. Abramoff does not hide the alarming fact that he had significant influence in the offices of around one hundred key Washington legislators, and that his ambition had been to own all of them.

The available evidence strongly suggests that the 'Amway' bosses are currently attempting to buy stupid, and/or lazy, and/or corrupt, key legislators in Kerala in order to try to continue to commit the same fraud which they have already paid stupid, and/or lazy, and/or corrupt, key Washington legislators to ignore.

The size, and duration, of this (still-largely hidden) scandal is absolutely without precedent, but where the Hell is the mainstream media?

Some more of the obvious questions I have, are:

- What are the names of the Kerala officials who claim to have written the 'direct selling guidelines,' but who obviously haven't written them at all?

- What has been the exact nature of the relationship between these Kerala officials and persons representing 'Amway India Enterprises' from the so called 'Indian Direct Selling Association' who have been allowed to draft these precise, but essentially meaningless, 'direct selling guidelines' to the financial advantage of the billionaire 'Amway' bosses in the USA?

- How can we get a rigorous corruption investigation started in Kerala?

It's been child's play for 'MLM income opportunity' racketeers to buy protection in Washington?

2011-11-10T20:04:00.000-08:00

Shyam

I think that your free-thinking readers should watch this video of a recent, frank interview with ex- Washington 'lobbyist,' Jack Abramoff. http://www.youtube.com/watch?v=EMMppBhOLXA .

Jack Abramoff, has just served three and a half years in prison. He received this remarkably-lenient sentence after agreeing with US federal prosecutors to plead guilty to serious corruption, conspiracy and tax-evasion charges. In the television interview, he freely-admits that he owned scores of US politicians and political aides. Although he once earned $20 millions a year, Jack Abramoff now says he works in a pizza restaurant.

Former Republican Representative, Tom DeLay, was supposed to be one of the 'main targets' of the US Justice Department's investigation into Jack Abramoff. However, the US Justice Dept. has (to date) mysteriously ignored the fact that for decades, the 'Amway' mob has corrupted various US politicians, including Tom DeLay. In fact , Tom Delay has been an enthusiatic apologist for the 'Amway' fraud himself. Sadly, he's just one of a gang of loathsome traitors to the American Republic, who have been paid to allow various racketeers to write the essentially-meaningless federal and State legislation which has permitted 'MLM Income opportunity' fraud to spread (largely-unchallenged) not just in the USA, but also around the world. In plain language, Tom DeLay is one of the amoral little shits who carries the Stars and Stripes in one hand and the Bible in the other, but who is actually (in part) responsible for the widespread personal, and financial, suffering that is occurring in today (particularly in India) as a result of 'MLM income opportunity' fraud.

US Justice Dept. officials, managed to discover that Abramoff provided DeLay with trips, gifts, and 'political donations' in exchange for favours to Abramoff's 'lobbying' clients. These included the government of the U.S. Commonwealth of the Northern Mariana Islands, Internet gambling services, and several Native American tribes. Yet, only two of DeLay's former aides, Tony Rudy and Michael Scanlon, as well as Abramoff himself, were charged as a result of this investigation of DeLay. It was reported that Abramoff had no derogatory information about Tom DeLay and did not implicate him as part of his plea bargain with federal prosecutors. However, Abramoff has admitted that he 'lobbied' (i.e. bribed) DeLay to stop legislation banning sex shops and sweatshops that forced employees to have abortions in the Northern Mariana Islands when Abramoff accompanied DeLay on a 1997 trip there. In return for payment, DeLay gave his undertaking not to put the bill on the legislative calendar.

In 2000, the U.S. Senate unanimously passed a reform bill to extend the protection of U.S. labour, and minimum-wage, laws to the workers in the Northern Mariana Islands. DeLay (then the House Republican Whip) stopped the House from considering the bill. DeLay later blocked a fact-finding mission planned by Representative Peter Hoekstra, by threatening him with the loss of his sub-committee chairmanship.

DeLay received piles of valuable gifts from Abramoff, including paid golfing holidays to Scotland, concert tickets, and the use of Abramoff's private sports-stadium boxes. DeLay, Tony Rudy, another aide and Abramoff took a trip to London and Scotland. Abramoff paid for the airfare for the trip. 'Lobbyist', Ed Buckham, paid for the hotel at St. Andrews golf course in Scotland. Abramoff was reimbursed by 'The National Center for Public Policy Research', the non-profit organization that arranged the trip. On the same day that the trip began, The 'National Center' received large 'donations' from two of Abramoff's clients, Internet lottery service 'eLottery, Inc.', and the Mississippi Band of Choctaw Indians. Both organizations denied that they had intended to pay for DeLay's trip. House rules forbid members to accept travel expenses from 'lobbyists,' and require that members establish the actual sources of funds that non-profit organizations use to pay for trips. DeLay simply denied knowing that 'lobbyists' had paid for travel expenses. In July 2000, DeLay voted against a bill that would have restricted Internet gambling. Both 'eLottery' and the Choctaws opposed the bill. TonyRudy, who was then DeLay's deputy chief of staff, killed the bill by engaging a parliamentary procedure that required a two-thirds majority vote, rather than a simple majority, in order for the bill to pass. Rudy's illegal actions on behalf of Abramoff's clients during this time were mentioned in Abramoff's guilty plea in January 2006.

Michael Scanlon, who had become Abramoff's 'lobbying' partner, plead guilty in November 2005 to conspiracy charges. Abramoff plead guilty to fraud, tax evasion, and conspiracy charges on in January 2006, agreeing to co-operate with the government's investigation. His co-operation forced DeLay to abandon his efforts to return to his position as House Majority Leader, a decision that DeLay announced only a few days after Abramoff's plea bargain. Tony Rudy plead guilty in March 2006, to acting illegally on Abramoff's behalf, in exchange for gifts.

Abramoff referred clients to Ed Buckham's 'Alexander Strategy Group' (ASG), a 'lobbying' firm. Abramoff's clients gave more than $1.5 million to Buckham's 'U.S. Family Network', which then paid ASG more than $1 million. From 1998 to 2002, ASG paid Tom DeLay's wife, Christine, a monthly salary averaging between $3,200 and $3,400. DeLay's attorney, Richard Cullen, first said the payments were for telephone calls that she made periodically to the offices of certain members of Congress seeking the names of their preferred charities, and that she then forwarded that information to Buckham, along with some information about those charities. In early June 2006, Cullen changed his story and said the payments were also for general political consulting she provided to her husband. In total, Christine DeLay was paid about $115,000 directly by ASG, and got another $25,000 via money put into a retirement account by the firm. Her work with ASG has also been the subject of a feeble inquiry by the US Department of Justice, but, mysteriously, no charges have been filed.

In August, 2010, the federal government suddenly dropped its six-year investigation into the web of corruption spun by the convicted criminal, Jack Abramoff. However, a State case continued in Texas. Last year, Tom DeLay was tried in Austin, Texas. On November 24th, 2010, a Texas jury convicted him of money laundering and conspiracy to money launder. He faced a prison sentence of anywhere from 2 to 20 years for conspiracy and 5 to 99 years, or life, for money laundering. On January 10th, 2011, Texas Senior Judge, Pat Preist, sentenced DeLay to just 3 years in prison.

To add insult to injury, 'Amway's' long-time Washington stooge, immediately filed an appeal.

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Have Kerala government officials made a public confession of guilt?

2011-11-08T20:04:00.000-08:00

Shyam

Years ago I was advised by an American academic not to accuse government officials of being stupid, and/or lazy, and/or corrupt, to their faces, because this is counter-productive. Regular readers of Corporate Frauds Watch will know that I didn't follow that timid advice. Indeed, judging by their intellectually-feeble content, perhaps the stupid, and/or lazy, and/or corrupt, Kerala government officials who recently came up with these so-called 'Direct Selling Guidelines,' were drunk at the time? Self-evidently, they have allowed this essentially-meaningless document to be written by the de facto agents of US-based 'MLM income opportunity' racketeers; for it is certainly against the interests of the people of Kerala.

The blatantly-obvious point which these stupid, and/or lazy, and/or corrupt, Kerala government officials have completely missed, is that, when rigorously-investigated, in all so-called 'MLM income opportunities,' lawful direct selling to the public of goods, and/or services, which these 'Direct Selling Guidelines' seem to describe in theory, cannot be proved to have occurred in practice. However, notice how these 'Guidelines' deliberately use the ambiguous and inaccurate term, 'the consumers,' and not the unambiguous and accurate term, 'the public.'

Thus, if these Kerala government officials had not been stupid, and/or lazy, and/or corrupt, their description of direct selling would have read as follows:

'Lawful Direct Selling' means any viable system of economic exchange, in which it can be proved by independent quantifiable evidence (in the form of audited accounts) that a significant percentage of non-salaried commission agents under contract to an individual or to a commercial company, have regularly retailed significant quantities of consumer goods, and/or services, directly to the public for a profit outside of traditional fixed retail outlets, usually through explanation, and/or demonstration of the goods, and/or services, by the commission agents.

If these Kerala government officials want to prove their intelligence, diligence and honesty to the readers of Corporate Frauds Watch, then all they have to do is make the neccessary amendments to their essentially-meaningless 'Direct Selling Guidelines' without further delay. Indeed, I have kindly done their job for them, and I will take their failure to act on my common sense advice, as a public confession of guilt. Perhaps they will be frightened that I might send them a bill?

Kerala bureaucrats copy & paste IDSA definition of direct selling

2011-11-08T08:12:00.000-08:00

The Kerala police has taken initiative to curb the activities of an international crook who has been bleeding the Indian economy by closing down the operations of Amway India. In fact, it is a bold step on the part of the police to stop these fraudulent persons with honesty and integrity. However, the Kerala bureaucrats reversed the hard work done by the police by simply handing over the cheating business back to the crooks.
Indian Direct Selling Association (IDSA) in its website http://www.idsa.co.in/Faqs.html describes What is direct selling?
Direct Selling means the marketing of consumer products/services directly to the consumers generally in their homes or the homes of others, at their workplace and other places away from permanent retail locations, usually through explanation or demonstration of the products by a direct seller.
Now let us take a look at what the Kerala Government said in its guidelines to regulate the direct selling.
Definition:
1. Direct selling
Direct selling means marketing of consumer products/services directly to the consumers generally in their homes or homes of others, at their work place and other places away from the permanent retail locations, usually through explanation or demonstration of the products by a direct seller or by mail order sales.
Here it is amply clear that the bureaucrats who prepared the guidelines are highly influenced by the IDSA that is Amway India. The whole issue is stinking and one can imagine what actually influenced the bureaucrats to prepare such guidelines. I don't believe that it is coincidence and intellectuals thinking alike.
In this backdrop, how could anybody stop these crooks from looting our country.

RMP Infotec cannot dare file writ petition in AP High Court

2011-11-05T23:10:00.000-07:00

The crooks who are supporting the fraudulent company RMP Infotec Private Ltd have been spreading canards that the Andhra Pradesh High Court has issued stay orders in favour of RMP Infotec only to cheat some more people into the scam. In fact, the fraudulent company did not file any writ petition in the High Court.

Moreover, the police continue to file criminal cases against the agents and the officials of the company at more places in Krishna district after the Guntur district police filed the criminal case.
A criminal case against RMP Infotec was filed in the Ibrahimpatnam police station in the limits of Vijayawada Police Commissionerate and another criminal case was filed in Chatrayi police station in Krishna district.

In effect, the days are numbered for this fraudulent company in Andhra Pradesh and it may soon fade out in the State. Once the news spreads all over the country, the company might be compelled to close down shop.

These fraudsters, instead of showing their credentials and prove their 'great business model' to the police, are tucking their tails and slinking off. This shows how these cheats have been duping the gullible with the promise of easy and quick money. They are even offering the members perennial income even to their children and grand children.

People should realise that there is nothing like easy and quick money and should not fall prey to the easy and smooth talk of these fraudsters.

Can Kerala legislators begin to understand how 'MLM income opportunity' fraud functions ?

2011-11-01T05:31:00.000-07:00

Shyam

Robert FitzPatrick (whose telephone number has never been a secret) has recently posted this typical conversation between himself and an 'MLM' hopeful.

http://www.falseprofits.com/files/My%20new%20blog%20post.html .

MLM Hopeful: I just read your article, “The 10 Big Lies of Multi-Level Marketing.” I was wondering when you wrote it and if you still stand by it? FitzPatrick: Are you asking me about something in particular?MLM Hopeful: Well, I’ve heard that Amway is now a $10 billion dollar business with millions of customers and has been around since the 1960s, so how could you say it doesn’t work? You probably wrote that article around 2000. But Amway keeps growing.FitzPatrick: Okay, well first of all, Amway is a private company and nobody outside the owners really knows how big it actually is. The numbers could be hype. They aren’t verified. But I think you are saying that because Amway is so large it must be legitimate, right?MLM Hopeful: It’s huge! So how can you write about lies and collapse?FitzPatrick: This is not sarcasm; but we should remember that the biggest and fastest growing Hedge Fund on Wall Street was Bernie Madoff’s and the fastest growing and most respected company in America at one time was called Enron. I’m just reminding you that big or fast-growing do not automatically mean legitimate. In fact, anything growing fast in a Recession should be examined with special skepticism.MLM Hopeful: You predicted Amway would collapse soon.
FitzPatrick: Actually, my article did not predict collapse for Amway, but failure or “collapse” for the recruits. MLM Hopeful: What do you mean? I am pretty sure you predicted Amway would fall apart. (Looks for a reference in the article but doesn’t find one.)FitzPatrick: Here’s the way “collapse” happens at Amway. It offers a business proposition to millions of consumers in which you pay a fee to join; then you buy Amway products…MLM Hopeful: (Interrupts) Buying products is not required!FitzPatrick: Right, but to get bonuses, you have to meet a quota of “points”. To get your points, you buy qualifying Amway products. Most of the Amway salespeople, or IBOs as they are called, do buy Amway’s products to meet their point quota so they can start getting bonuses, at least they hope they will. In fact, the recruits are just about the only people who ever buy Amway products. It’s called “self-consumption.” That’s where Amway gets its money -- from the salespeople, not from customers.MLM Hopeful: Okay. I buy the products because I use them. I buy toothpaste, so why not buy Amway’s toothpaste?FitzPatrick: Nothing wrong with buying Amway products, if you want to. If you think they are good and competitively priced, why not? But my article, and I thought the reason you called me, had to do whether you as a consumer can make money working as an Amway sales rep. You don’t make money from buying products from Amway, right?MLM Hopeful: No, you make money selling the products.FitzPatrick: Okay, now, have you ever seen anyone actually selling Amway products? There are supposed to be hundreds of thousands of Amway sales people in the US. Shouldn’t we see some of them knocking on doors?MLM Hopeful: Actually, I have seen someone. I saw them selling Amway energy drinks.FitzPatrick: Okay, do you think you can make money selling “energy drinks” person to person, one at a time, on your own? It doesn’t seem very feasible, does it, when people can buy energy drinks, usually for less, in any convenience store? But, the facts are that Amway IBOs really don’t make money from selling the products. They make money by first paying a fee to join, then buying products to meet the points quota and then recruiting other people to do the same thing.MLM Hopeful: What’s wrong with that?FitzPatrick: Well, think about it. If you need to recruit 20 people for you to start making money on their purchases, each of those 20 would also need to do the same thing. That would be 400 more for them to recruit. The 400 they recruited would need 8,000 and the 8,000 would need to recruit 160,000 and they would have to find 2.4 million to be profitable. This is not going to happen. The proposition is not possible. Yet, each new person has to tell all the people they recruit that they can always recruit more. That’s why I say the plan is based on a lie. To see what I mean, just use a calculator, and you can see that the sales force cannot continue expanding forever. In our example, we just went five levels deep and got to over 2 million, and those people would then have to recruit half the households in the USA – to become “salespeople”! Who would be their “customers.” It can’t happen. What does happen is that thousands of people invest, fail and quit each year. That’s what I meant about “collapse.” It is the latest recruits who bear the cost. But as long as Amway can replace them, the company itself stays standing. To do that, it must recruit more and more future losers while telling them all, year after year, that it’s the “greatest income opportunity in the world.”MLM Hopeful: I was told that Amway completely changed its model in 2008 and now people are selling the products and making money and that’s why the company has exploded in size! I think you are talking about the past.FitzPatrick: Well, I have studied their income disclosure statistics and it shows plainly that almost no one makes any money and most of the commissions go to the few at the top. Also, more than half of all Amway salespeople still quit in less than a year. Those figures have not changed. Amway makes it money from the salespeople’s purchases. But, almost none of those salespeople make any money themselves. They turn out to be the “end-users.” That’s how Amway makes money -- from the investments of the salespeople, nearly all of whom get no return on that investment.MLM Hopeful: The company has changed!FitzPatrick: It’s true that Amway was sued by consumers in a class action lawsuit and as a result of that suit Amway has offered to pay millions in restitution and to make some changes in their “tools” business and to lower prices on some Amway products. But that would not affect the basic proposition of pay-to-join, buy-products and then recruit-others-to-do-the-same. MLM Hopeful: But even if that’s true, what’s wrong with making money based on recruiting more people? I’ve gone to the meetings and it looks like a lot of people are making money. It must be working!FitzPatrick: Maybe it is working for those up on the stage. Remember, they make money from you, whether you profit or not. They even make money on the fee you paid to hear them speak or if you bought their CDs. But, if the company has 3 million people in the sales forces, when you join, you will be IBO #three-million-one, right? But most of those 3 million are in the very bottom ranks alongside you, and most, like you, just joined this year. They are all starting out just like you with millions of others above them and the need to recruit tens of millions more! All of you now have to find 20 more, or whatever it takes to start making a profit from others who sign up. And, if you do recruit your friends and relatives, you have to work hard to keep them in your downline, because more than half of all Amway IBOs quit each year and 99% never do make a profit. What odds do you think you as IBO #three-million-one really have? MLM Hopeful: (Silence)FitzPatrick: Sorry, are you there? Hello? Hello?
(Dial Tone)

This conversation, in which Robert FitzPatrick gently tried to stimulate the critical, and evaluative, faculties of a typical 'MLM' hopeful, clearly demonstrates how 'Amway,' and its many copy-cats, hide an exploitative, non-rational belief system, tailored to fit the existing beliefs and instinctual desires of ill-informed individuals and, eventually, dissociate them from external reality. It is evidence like this, that legislators in Kerala should be examining in order for them to arrive at a full-understanding of the threat to democracy, and to the rule of law, that 'MLM income opportunity' fraud represents. No matter what rational argument (supported by quantifiable evidence) 'MLM' believers are confronted with, they will invariably continue to deny the reality that it has always been effectively-impossible to earn an overall net-income from participating in a so-called 'MLM income opportunity.' Thus, the last people whom legislators should be consulting (with regard to this problem), are the deluded victims of 'MLM' or the 'lobbyists' of 'MLM' racketeers.

In many cases, the victims of 'MLM income opportunity' fraud have been indoctrinated to cut themselves off from all rational persons challenging their non-rational beliefs.