Monday, 5 September 2011

The victims of 'MLM income opportunity' fraud are not to blame

Law enforcement agents and legislators agree that the overwhelming majority of fraud victims do not make any form of criminal complaint, because they are too ashamed, and/or too embarrassed, to admit publicly that they could be deceived. Often charlatans, construct fiendish frauds which require their victims first to admit that they were willingly participating in a criminal act, before they can complain to the police. 
So what does this perplexing fellow, Mr. Chang, do now?

It's amazing isn't it. You keep politely telling Mr. Chang that he is not welcome on Corporate Frauds Watch because of his egocentric attitude and because he has posted false and defamatory opinions concerning the authors of CFW on one of his own Blogs in response to our daring to challenge his ill-informed comments on the grounds that these are unhelpful and potentially dangerous to certain Indian readers of CFW. 
He returns to CFW, and posts yet another false and defamatory opinion in defense of his ego and (as predicted) repeats a comment which is unhelpful and potentially dangerous to some Indian readers of this Blog, who (out of shame, embarrassment, fear, etc.) are still reluctant to make criminal complaints to the police about 'MLM'fraud. Mr. Chang has completely ignored my detailed explanation (which he arbitrarily brands hostile and condescending towards him) and again says:
'government will NOT save you if you don't do your due diligence.' 
How many times are we going to have to tell Mr. Chang, before it finally sinks into his mind? The position of Corporate Frauds Watch, remains that, Mr. Chang has been a blinkered nuisance who, if he took the trouble to do due diligence himself (and examine the wider-evidence, which he actually has boasted he has not done), would quickly discover that, without exception, all 'MLM income opportunities' have been examples of essentially the same cultic racket, and that, without exception, all  'MLM income opportunity'  racketeers have sought to avoid being held to account by blaming their victims. Therefore, Mr. Chang (even though he continues to deny it) is playing right into the hands of 'MLM income opportunity' racketeers by making half-baked statements like the one above, which effectively blames the victims of 'MLM'fraud. 

To any individual who has already been the victim of 'MLM income opportunity' fraud, I would like to say that it is most certainly not your fault. The majority of 'MLM'victims have been recruited by persons whom they already know and trust. All 'MLM' recruiters insist that 'MLM is approved by governments around the world.  Furthermore, no ordinary person can be reasonably expected to investigate the backgrounds of individual 'MLM' racketeers (like Alan Kippax) who have been allowed to escape criminal prosecution, and who have invested considerable sums of stolen money hiding the truth about their criminal objectives and portraying themselves as God-fearing philanthropic businessmen.
The taxes of ordinary citizens pay the salaries of law enforcement agents. In theory, the job of law enforcement agents is to protect ordinary citizens without fear or favour. Sadly, in the case of 'MLM income opportunity' fraud, many law enforcement agents have not been doing their job, and some of them have actually been directly involved in protecting, and/or promoting,  'MLM income oppotunity' fraud.  Sadly, by telling your readers that it is up to the individual to do 'due diligence,' Mr. Chang's ill-informed attitude towards 'MLM income opportunity' fraud has been essentially the same as the ill-informed attitude of many cowardly, and/or corrupt, law enforcement agents.
Without their fully-informed consent , 'MLM' victims have been drawn into reality-inverting cultic groups which employ co-ordinated devious techniques of social, psychological and physical persuasion designed to shut down their adherents critical and evaluative faculties.  

In reality, Governments have been to blame for allowing 'MLM income opportunity'fraud to grow out of control without any rigorous challenge. Therefore, anyone who continues to insist that 'MLM income opportunity' fraud is a serious problem, but that the victims of 'MLM income opportunity' fraud have been (partly or entirely) to blame, cannot have entirely honest motives. 
David Brear (copyright 2011)


Shyam Sundar said...

Many a time I too face the same question during public meetings. They ask, "If MLM is illegal, why the government is not taking action against it."
At the same time, when I approach the Government officers to ban companies like Amway, they immediately ask how many criminal cases were filed against such companies.
The Government takes action if people complained and people, as David Brear says, do not complain out of shame or reluctant to complain against their own friends and relatives.
That doesn't mean they are all legitimate companies. People with little brains never understand this.

GuyReviews said...

Mr. Brear,

Once again, there seem to be a difference between what I wrote and what you think I wrote.

The statement "government will not save you if you don't do your due diligence" certainly does NOT imply that the victims have partly themselves to blame if they joined.
I honestly have NO CLUE where you got that idea from.

The reality of the matter is governments are SLOW acting upon financial frauds. Both you and I have cited examples where it took 2 YEARS for the government and/or law enforcement to crack down on a fraudulent pyramid scheme, and those are the OBVIOUSLY illegal ones. For the more subtle forms (such as the currently legal Amway and its clones) changes in law and enforcement are required, and that would take even longer.

Thus, the statement "government will not save you" is a statement of reality. By the time government intervene, usually 2 years later, it would be too late for most people already embroiled in the scam.

Thus, the only reliable prevention is do your own due diligence, such as reading this blog.

And that is all I meant.

Why would I call you condescending and hostile, Mr. Brear? Because you have a way of making a mountain out of a molehill. This blog entry is an excellent example. You extrapolated "blame the victims" out of a normal statement of act. You had assumed that I have hidden meanings behind the sentence. Is that not "hostile"?

However, I have no intention of getting in a word-for-word deconstruction of your various prior statements and see how many other extrapolations you have made. That gets us nowhere. As I have said, we are on the same side. We should be commenting on the OTHER evils of MLM and pseudo-MLM scams, not sniping at each other.



GuyReviews said...


The problem is education, and this is true everywhere.

For past 50+ years, since the start of MLM, the industry had steadily attempted to legitimize itself and distance itself from its CLOSE cousins, the pyramid scheme and the Ponzi scheme. While it has some superficial differences, as Mr. Brear would put it, law enforcement was fooled into seeing it as not a scam (when it should be).

The industry had also steadily built up its image as well as "train" (or as you and Mr. Brear would say, indoctrinate) its members into believing that they are NOT really related to their illegal cousins, the pyramid scheme and the Ponzi scheme.

The MLM system is very interesting in that it can "turn" the failure of individuals upon the individual members, so they blame themselves instead of the system, through various means such as indoctrination and through "leaders" who reinforce the notions. However, when 99% of the participants lose money, it clearly is the system at fault, not the individuals.

In discussion with Dr. R Fitzpatrick, he had commented that the best way to combat MLM is to get the word out about the system's failure to enrich those who participate (except those on top or near top).