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

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 ?

David Brear (copyright 2011)

Kerala High Court dismisses writ petition filed by RMP Infotec

IN THE HIGH COURT OF KERALA AT ERNAKULAM

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

1. RMP INFOTEC PRIVATE LIMITED,                                    ...  Petitioner

Vs

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

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. 

David Brear (copyright 2011) 

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

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?

David Brear (copyright 2011)

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

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.

David Brear (copyright 2011)

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

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.

David Brear (copyright 2011)

YouTube - Videos from this email

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

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.

Corporate Frauds Watch (copyright 2011)