Amway model is illegal money circulation scheme camouflaged with sale of products

Mud headed Tex thinks that if the products are sold at the half price there would not be any money circulation scheme. The whole thing revolves around enrollment and that is where the money is. If the prices are slashed where would money rain from except from enrollment. Amway makes money from enrollment, compulsory purchase of products to be able to claim commission, renewal of contract every year for a fee and selling products at exorbitant prices.

When so many cunning ways are involved in the dubious good business opportunity of Amway, Clueless Tex pulling an innocent face, asks "what if the products are sold at half the price."

If you do not have anything to say just call everyone idiot, seems to be the policy of Clueless Tex.

Baffled Trivedi asks us to believe 'paid news', but he would not accept the decision of the learned justices of Andha Pradesh High Court.

People are reading these comments and try to be balanced in writing such things Trivedi.

Cluless Tex still asking senseless question

The Clueless Tex keeps on asking the most absurd and stupid question time and again. It has been answered more than once. As long as there is a scheme of enrolling members it is the illegal money circulation scheme. When the whole point is illegal money circulation scheme to dupe the gullible all over world, mud-headed Tex keeps on asking selling of products at half the price. When it was pointed out that the writ petition filed by the Amway India's IBOs was dismissed, Tex felt uncomfortable and queries whether the writ petition filed by Amway India was not dismissed.

And our pitiable lamb, Trivedi is more baffled than before at the usage of words. He could not make out what exactly he has been asked. I hope the latest post of David Brear would give him a clear picture. If he still could not make out what he has been asked, nobody could help him.

The funny Trivedi once again showcases a 'paid news' article in a newspaper and claims that the sale of Amway products have gone up.

These cunning and dishonest companies which filed writ petitions and obtained stay orders, have been cheating my fellow Indians for the last several years and it is high time, the CID of Andhra Pradesh police initiated criminal proceedings against all these companies. Six more such writ petitions are still pending and Corporate Frauds Watch is looking forward for the day these writs are also dismissed.

My fellow humans all over world! Kindly open your eyes and throw these cunning companies from your respective countries. You have nothing to lose but these criminals.

Trivedi is a lamb amongst a pack of wolves

Shyam
As you are aware, I (like you) have a certain pity for young Trivedi who is obviously a naive little lamb amongst a pack of cunning wolves. He, apparently, still cannot comprehend plain English. Tellingly, if we use 'Amway's' own thought-stopping jargon, Trivedi can immediately understand.
I'll try, once again, to explain in accurate, deconstructed terms why the 'Amway' mob's 'multi-billion dollar sales figures' are complex, economic drivel maliciously designed to bedazzle the economically-illiterate.
The vital factor determining whether (for more than half a century) 'Amway' has been a legitimate business opportunity (with sufficient external revenue/income to pay the majority of its participants a profit), or just the front for a pernicious closed-market swindle or money circulation scheme, is the percentage (by value) of its products which have ultimately been sold by its agents (i.e. persons under contract to 'Amway' as so-called 'Independent Business Owners') to non-agents (i.e. persons not under contract to 'Amway' as so-called 'Independent Business Owners').
During the previous 50+ years, each time 'Amway' has been rigorously investigated by independent financial regulators, it has been discovered that 'Amway' s' own agents (i.e. persons under contract to 'Amway' as so-called 'Independent Business Owners') are virtually the only final customers of 'Amway', because they had been taught (by their 'leaders') that, 'if they want to make big money, selling products is a waste of time,' and anyway they were unable to sell 'Amway' products to free-thinking members of the public due to their banal quality and exorbitant prices. Thus, virtually the only cash which has been proven to be flowing into the (effectively) closed 'Amway' market has come from its own agents (i.e. persons under contract to 'Amway' as so-called 'Independent Business Owners') which has made it a mathematical impossibility for the overwhelming majority of them to receive an overall profit.
Put in the most simple terms, if ten people each place ten coins on a table, it is impossible to divide up the resulting one hundred coins so that each contributor receives more coins than they started with. This logic applies whether you have ten contributors, or ten millions. Thus, in reality, the fiercely complex 'Amway Compensation Plan' has been childish nonsense, because it was a precise, but meaningless, mathematical formula for dividing up what could only be 'Amway' participants' own coins.
Sadly, the great strength of the 'Amway' swindle has been that it was maliciously designed to be beyond the understanding of not just its victims, but also beyond the understanding of most journalists, legislators and judges. Trivedi's chronic incapacity to understand how he is being defrauded, is itself evidence of the fraud.
The clarity with which Indian judges have again seen through 'Amway's' camouflage is remarkable.
David Brear

Learned Indian judges rightly pointed out Amway's criminal activities

Bravo Shyam Sundar and Corporate Frauds Watch!
Thanks to your efforts , more clear-thinking, senior Indian Judges have been able to deduce that 'Amway India Enterprises,' and its shifty clones, have been operating a form of pernicious money circulation (or Ponzi) scheme, albeit in an ingenious disguise. The Indian courts (in their wisdom) have paved the way for a rigorous criminal enquiry into the 'MLM' virus? This has been maliciously obstructed in the USA, and UK, by the billionaire bosses of the 'Amway' mob, for decades. Indeed, when the wider evidence is examined, the tactics used by the corporate officers, and legal representatives, of 'Amway India Enterprises' are revealed as being part of a pattern of racketeering activity as defined by the United States Federal Racketeer Influenced Corrupt Organizations (RICO) Act, 1970.
Perhaps the Indian police will now put the same questions which I advised young Trivedi to pose to his 'Amway' handlers and which American, and British, law enforcement have (mysteriously) never asked. I think it would be rather interesting to be a fly on the wall when Indian investigators arrest the corporate officers of 'Amway India Enterprises' and those of the so-called 'Indian Direct Selling Association' and demand:
- Since 'Amway India Enterprises' was created , what percentage (by value) of the organization's published 'Multi-Million Dollar Sales' have actually been to persons who are not agents of the organization?
- Since 'Amway India Enterprises' was created, what has been the overall attrition/ drop-out rate amongst its non-salaried commission agents ?
- Why has this information been kept secret?
- When a so-called 'MLM' or 'Direct Selling' company obliges its non-salaried commission agents to offer products, and/or services, which are sub-standard , and/or banal, yet so exorbitantly priced as to render them (effectively) unsaleable to persons who are not agents of the company, where exactly does all the money come from to pay all, but a tiny minority, of its non-salaried commission agents a profit?
Sadly, the corporate officers of 'Amway India Enterprises,' and those of the so-called 'Indian Direct Selling Association' probably have neither the intellectual capacity nor the courage to face up to the fact that they've been used to front a cult and a fraud. The sanctimonious little gang of charlatans who have raked-in the lion's share the profits from the 'Amway' racket are not Indian citizens. However, the Indian government, or even Corporate Frauds Watch, would be perfectly within their rights to file a private prosecution against the billionaire bosses of the 'Amway' mob in the USA, for violation of the RICO Act. I'm pretty sure that if the DeVos and VanAndel Clans thought that this might happen, they would call a halt to their criminal activities in India immediately, rather than risk being held to account at home.
David Brear

AP High Court dismisses Amway distributors' writ petition on Feb 4

February 4 was a great day for Corporate Frauds Watch. The Andhra Pradesh High Court on Thursday dismissed a number of writ petitions filed by several dishonest companies and individuals paving way for criminal action against them by the police. The modus operandi of such fraudulent companies is that they file writ petitions in the High Court and continue their dishonest business deceiving lakhs of people all over country. If anybody files a complaint against them, the police do not take any action against on the pretext of the writ petition pending in the High Court.

As a remedial, Corporate Frauds Watch has chosen to file implead petitions in all these writ petitions. It has already filed such petitions in as many as 14 instances. On February 4th, a number of writ petitions came for hearing and our Advocate Mr Mastan Vali represented the views of Corporate Frauds Watch. The division bench comprising Justice G Raghuram and Justice Ramesh Ranganathan dismissed seven writ petitions and transferred a writ petition to the Delhi High Court.

The writ petitions filed by M/s Vennela Shopping & Marketing Private Limited, M/s Maheswari Getit Marketing, Sri Sai Empower Marketing, M/s Bodela Technologies & Marketing, M/s V-Can Network, M/s QuestNet were dismissed.

Another writ petition filed by six distributors of Amway India -- Sistla Raviteja of Vijayawada, Tirumala Raja Naren, Tirumala Anjali Naren both from Tirupati, Ummakonda Sreeti Reddy, Ummakonda Ashok Reddy both from Hyderabad and Miss Turaga Radhika Ramani -- was also dismissed. The Division Bench stated that it is a money circulation scheme beyond doubt.

Now, the Corporate Frauds Watch would take up the matter with the CID of Andhra Pradesh Police Department seeking action against the accused companies.

The Division Bench has transferred the writ petition filed by Team Life Care Insurance Private Limited to the Delhi High Court on the plea that another writ petition was pending there.

Amway figures are complex pseudo-economic drivel, Trivedi

Shyam
We now know that Bernie Madoff's so-called 'Hedge Fund' had absolutely no external source of revenue. Although he steadfastly pretended that he was making billions of dollars of legitimate profits on behalf of his investors, Madoff's company was merely the cover for an ingenious, but nonetheless pernicious, money circulation (or Ponzi) scheme in which victims had been peddled infinite shares of what could only be their own finite money. Prior to 2008, Madoff succeeded in maintaining an absolute monopoly of information about his absurd activities. Some of the world's most-respected financial publications published Madoff's fantastic fiction as fact, and he used these (apparently independent) reports to sustain his crimes. He followed the old advertizing maxim:
If you want to hide something, then make as big as you possibly can.
The fact that Madoff pretended affinity with financial regulators and was never rigorously investigated, also convinced many of his victims that he was legitmate.
With financially illiterate regulators and journalists, and naive fellows like Trivedi, in the world, it is no wonder that enormous criminogenic groups like 'Amway' and 'Scientology' exist to dupe them. Sadly, it's not just Trivedi who cannot understand the vital question which I advised him to ask his 'Amway' handlers?
Over the last several years, what percentage (by value) of 'Amway's' published 'Multi-Billion Dollar Sales' have actually been to persons who are not agents of the organization? (i.e. does the 'Amway' scheme have sufficient external revenue to pay the majority of its participants a profit, or is it just another Madoff-style scam hiding behind a wall of complex pseudo-economic drivel?)
In his favour, Trivedi has politely asked us to explain, but how is it possible that he still insists that 'Amway' should be compared to legitimate manufacturers - who wholesale their products to genuinely-independent businesses (which have a vast choice of other manufacturers) to retail them to the public (who have a vast choice of other retailers)?
In simple terms, the profits of all legitimate businesses derive from an external source and they have no reason to be evasive.
Tellingly, 'Amway's' non-salaried commission agents have been arbitrarily defined in their contracts as 'Independent Business Owners' (although this reality-inverting term has recently been forbidden in the UK). However, these same contracts prevent them (on pain of summary excommunication from the organization) from offering 'Amway' products on the open market (in traditional retail outlets) or from offering the products of other manufacturers.
In simple terms, 'Amway' agents are obliged by their contracts only to buy their stock from 'Amway' and to offer no other products.
In reality, so-called 'Amway Independent Business Owners' are completely dependent on 'Amway'. The organization retains absolute control over all the most important factors of any real business, price, quality, nature, etc. of the products being offered.
Each time 'Amway' has been investigated, it has been revealed that due to the banal quality and exorbitant prices, the so-called 'IBOs' are (effectively) the only people buying 'Amway' products, and that the so-called 'Amway Business Opportunity' is, thus, merely the cover for an ingenious, but nonetheless pernicious, money circulation (or Ponzi) scheme in which victims have been peddled infinite shares of what can only be their own finite money. However, for decades, the 'Amway' bosses have escaped criminal prosecution by pretending affinity with regulators - holding up their hands and promising to reform their activities. Prior to these reforms, according to Trivedi, for years, 'Amway' was allowed to publish misleading 'sales figures' that were deliberately exaggerated by more than 30%. In other words, the organization pretended that all its products were being retailed to the public. Trivedi now says that 'Amway's sales figures' only represent 'wholesale' transactions between itself and its own agents.
In plain English, 'Amway' figures are complex pseudo-economic drivel (in the style of Bernie Madoff), for they do not reveal if the 'Amway' scheme has sufficient external revenue to pay the majority of its participants a profit.
David Brear

Trivedi could not comprehend plain English

Shyam

Imagine, if Bernie Madoff had been challenged by his victims in the exactly same way that I advised young Trivedi to challenge his 'Amway' handlers? Imagine, if they'd all got together and demanded that Madoff answer the following, simple question:

Over the last several years, what percentage (by value) of 'Madoff Investments' perpetually-expanding , multi-billion dollar Hedge Fund' have actually derived from persons who are not investors themselves?

In reality, Madoff was challenged by a few of his victims just before he confessed to federal law enforcement agents that the only cash that there had ever been in his miraculous 'Hedge Fund', was secretly that of his victims. In the months prior to his arrest, Madoff was still confidently spouting the same precisely-worded lies and pointing to a long list of 'independent sources' (including The Wall Street Journal) to back him up. In reality, for more than a decade, a whole flock of (apparently well-educated) financial journalists had simply repeated Madoff's 'multi-billion dollar' fairytale (without the slightest qualification). Apparently, it never occurred to these dunces with diplomas to dig deeper and ask the mercurial Mr. Madoff for some proof that he was, in fact, telling the truth.

Trivedi again fails to comprehend plain English. Self-evidently, I didn't ask him any questions at all, because we all know that he doesn't have the beginnings of clue what the answers are. I merely suggested that the poor little lad put his hand up and ask his 'Amway' handlers some vey specific questions which, just like Bernie Madoff, they cannot answer directly. However, Trivedi has revealed that he accepts that 'Amway' makes no distinction in its published 'multi-billion dollar sales figures' between internal ('wholesale') transactions and external ('retail') transactions. This is rather remarkable, considering the fact that, in 1979 (in order to avoid criminal prosecution), 'Amway's' lawyers promised the US Federal Trade Commission that no 'Amway' commission agents would qualify to receive bonus payments unless they could prove that they were retailing the overwhelming majority (by value) of their own purchases on to persons who were not agents of 'Amway'. At this time, the FTC (with a naivety that beggars belief) trusted the bosses of the 'Amway' mob to put their own shifty edifice in order.

David Brear