Hopefully the last load of unsolicited 'MLM' bullshit for 2010 has been dumped

Shyam

I see that a certain Mr. Bryan Lever (who bears an uncanny physical resemblance to Bernie Madoff) http://www.blogger.com/profile/17907768431204718589 has left an intellectually-castrated comment under your factual post Mannatech to pay millions to victims for false cla...".

Mr. Lever states that:

'Mannatech is listed on the NASDAQ stock exchange. You need to ask yourself why if it is an illegal operation or pyramid scam. I suggest you do your homework and learn about the technology of NWM as the most efficient distribution method in the world today. That is why it is endorsed by the likes of Warren Buffet, Robert Kiosaki and Donald Trump and thousands of professional people around the world. Are you better qualified than them? Get some education and then rewrite your blog.'

Unfortunately, although Mr. Bryan Lever steadfastly pretends moral and intellectual authority, this unqualified (and unquestioning) fellow is merely repeating essentially the same old scripted-bullshit which has been previously dumped (ad nauseam) on your Blog by the unmasked 'Amway' Lord Haw Haw, and which has obviously been fed to Mr. Lever by 'Mannatech's' own reality-denying propagandists.

Contrary to what Mr. Lever apparently believes to be reality, Warren Buffet does not endorse any 'MLM' fraud and it is libellous for Mr. Lever to imply that he does.

Robert Kiosaki is a notorious 'MLM' parasite, posing as a 'business guru' and 'positive role model,' who has bagged a dubious fortune from peddling 'motivation'/'positive thinking' to countless insolvent 'MLM' victims.

Donald Trump (who has lately become involved with 'MLM' fraud) requires no further comment.

Bernie Madoff was the Chairman of NASDAQ, so'Mannatech's' listing on this stock exchange is hardly a guarantee of commercial authenticity.

Apparently, Mr. Lever is a professional photographer and video producer. Exactly how these twin artistic pursuits qualify him to judge the authenticity of any confidence trickster(s), he doesn't care to explain. However, Steven Spielberg is one of the world's most-successful film director/producers; yet, he couldn't spot that Bernie Madoff was a dangerous sociopath, liar and criminal.

Mr.Lever can read about more of Bernie Madoff's celebrity victims in Forbes magazine http://www.forbes.com/2009/03/12/madoff-guilty-plea-business-wall-street-celebrity-victims.html . Perhaps this shocking information will stimulate Mr. Lever's critical faculties and help him to confront the painful reality that narcissistic racketeers have cheated well-educated persons (like himself), by first tricking rich and famous opinion-makers into endorsing camouflaged, closed-market swindles.

Perhaps Mr. Lever can think back to a time before he became an unquestioning adherent of the self-gratifying 'MLM' lie.

David Brear (copyright 2010)

AgriGold is collecting deposits sans RBI permission

AgriGold has been collecting deposits from the poorest of the poor daily at a minimum of Rs. 10 a day. They have no voice and could not go to anyone to demand back their money. There are hundreds of people who are waiting to get back their money from AgriGold. They do not know whom to approach.

Some apologists say that there have been no complaints against AgriGold but that does not make a wrong right. Collecting money without RBI permission from the public under any name is a crime.

The Reserve Bank of India in letter No. DFC (COC) 386/44/83-84, dated 24.2.1984 addressing the chief secretaries of all State Governments in the country authorising suitable officers to search for documents relating to acceptance of deposits in contravention of provisions of Section 45 S of the Reserve Bank of India Act, 1934 for effective implementation of the provisions of the Act. The RBI Governor authorised the police officers not below the rank of Inspector to apply any court having jurisdiction to issue a search warrant under the CrPCfor issue of a warrant to search for documents relating to acceptance of deposits in contravention of the provisions of Section 45 S of the RBI Act.

In another Notification, the RBI Governor also authorised the police officers not below the rank of Inspector, to take a complaint in writing in respect of any offence punishable under the sub-section (5-A) of Section 58B of the RBI Act to any court having jurisdiction.

While the fact is that the police officers should take initiative and file criminal cases against companies like AgriGold, the police would not move an inch to bring the culprits to book for the reasons better known to them.

It is high time people realised these facts and keep themselves off from such fraudulent companies and deposit their money in scheduled banks.

All Amway apologists are liable to be punished

We have gone through the Section 2 (c) of the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 which defined money circulation schemes. Let us now look at the Section 3 which states, "No persons shall promote or conduct any prize chit or money circulation scheme, or enroll as a member to any such chit or scheme, or participate in it otherwise, or receive or remit any money in pursuance of such chit or scheme."

In other words, joining or making others join such schemes is completely banned under this section.

Likewise, the Section 4 states that "Whoever contravenes the provisions of Section3 shall be punishable with imprisonment for a term which may extend to three years or with fine which may extend to five thousand rupees or with both; Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgement of the court, the imprisonment shall not be less than one year and the fine shall not be less than one thousand rupees.

Section 5 states, "Whoever, with a view to the promotion or conduct of any prize chit or money circulation scheme in contravention of the provisions of this Act or in connection with any chit or scheme promoted or conducted as aforesaid,-

(a) prints or publishes any ticket, coupon or other document for use in the prize chit or money circulation scheme; or

( b ) sells or distributes or offers or advertises for sale or distribution, or has in his possession for the purpose of sale or distribution any ticket, coupon or other document for use in the prize chit or money circulation scheme ; or

( c ) prints, publishes or distributes, or has in his possession for the purpose of publication or distribution-

(i) any advertisement of the prize chit or money circulation scheme; or

(ii) any list, whether complete or not, of members in the prize chit or money circulation scheme ; or

(iii) any such matter descriptive of, or otherwise relating to the prize chit or money circulation scheme, as is calculated to act as an inducement to persons to participate in that prize chit or money circulation scheme or any other prize chit or money circulation scheme; or

(d) brings, or invites any person to send, for the purpose of sale of distribution, any ticket coupon or other document for use in a prize chit or money circulation scheme or any advertisement of such prize chit or money circulation scheme; or

(e) uses any premises, or causes or knowingly permits any premises to be used, for purposes connected with the promotion or conduct of the prize chit or money circulation scheme; or

(f) causes or procures or attempts to procure any person to do any of the above-mentioned acts, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to three thousand rupees, or with both:

Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, the imprisonment shall not be less than one year and the fine shall not be less than one thousand rupees."

In essence, all apologists of such schemes should be brought to book.

Section 6 deals with the offences by companies. It states who should be punished if companies committed such offences. "Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceed against and punished accordingly : Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Not withstanding anything contained in sub-section (1),where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly .

Explanation ;_-For the purposes of this section –

(a) “company” means any body corporate and includes a firm or other association of individuals ; and

(b) “director”, in relation to a firm, means a partner in the firm.

So, all the office-bearers of such companies which indulged in conducting money circulation schemes or prize chits are liable to be punished.

We shall look into other provisions later.

New York Attorney General jumps in where SEC has feared to tread

Shyam

At first glance, the latest news from the de facto American kleptocracy is rather difficult to fathom. Apparently, in the absence of a prosecution by the unaccountable (and possibly corrupt) senior officials at the US Securities and Exchange Commission, the New York Attorney General has decided to prosecute the London-based accounting firm, Ernst and Young, for assisting the (now failed) New York-based investment bank, Lehmann Bros., to hide the truth about how its (multi-million dollar salaried) company officers had managed to acquire debts totaling $768 billions against assets valued at only $639 billions. Your readers will remember that the sudden collapse of Lehmann Bros. signalled the start of the current world financial crisis which we are all now paying for.

http://news.bbc.co.uk/today/hi/today/newsid_9311000/9311770.stm

This latest, amoral, corporate twist in the Lehmann Bros. scandal, and the complacent way it has generally been reported, are emblematic of our times. The expert from the Wall St. Journal (who was interviewed by the BBC) just accepts that (so far) no individual responsible for Lehmann Bros.' collapse has been held fully to account, and that the case against Ernst and Young will almost certainly not go to trial, because a 'financial settlement' will be reached. However, on March 11th. 2010, Jenner & Block (a court-appointed examiner) published the results of a year-long investigation into the failure of Lehmann Bros. This complex document revealed the simple truth that the senior officers of Lehmann Bros. maliciously agreed to the occulting of the bank's massive trading-losses (for which they were responsible) by repeatedly using a devious 'accounting procedure' known as 'Repo 105.' In plain English, on various occasions the bank's bosses secretly swapped $50 billions of the banks assets temporarily into cash just before publishing the bank's regular financial statements in order to mislead its investors by maintaining the appearance of solvency. Apparently, against the advice of certain more-honest employees at Ernst and Young, this so-called 'procedure' was proposed and executed by the accounting firm's less-than-honest senior officers, and approved by the ( now former) boss of Lehmann Bros, Richard S. Fuld, Jr. The corporate structure known as Ernst & Young now stands accused of financial malpractice, but Mr. Fuld still faces a prison term.

Lehmann Bros.' bankruptcy was the largest collapse (by value) of an investment bank since Drexel, Burnham, Lambert folded (amid fraud allegations) in 1990. Immediately following Lehmann's bankruptcy, an already weakened stock-market began to fluctuate massively. The Dow-Jones Index suffered its largest one day loss and largest one day gain. What followed has been labelled the 'perfect storm' of 'economic distress factors'. Eventually, a bailout package (Troubled Asset Relief Program) was prepared by Henry Paulson, Secretary of the US Treasury, in which the US Congress promised to prop up the crumbling US banking system by giving it $700 billions of US tax-payers money. Thus, preventing the entire world economic system from collapsing. The Dow-Jones index eventually closed at a six-year low of 7,552.29 on November 20th 2008. Three months later it had nose-dived to 6626.

The fall of Lehmann Bros. had a catastrophic effect on small investors; particularly bond holders and holders of so-called 'Minibonds' - e.g. in Germany, these essentially-worthless pieces of paper (linked to the artificially-high values of the share- index system), were peddled mostly to ill-informed, elderly persons, students and families by the German arm of Citigroup (the German Citibank now owned by Credit Mutuel).

David Brear (copyright 2010)

The 'Sunrise Travel Club' - Yet another 'Amway' copy-cat

Shyam

I see that an individual has left an abusive comment on your Blog under the rather unusual name of 'George Spicker.'

A quick look on the Net. reveals a certain 'George Spicker' to be promoting yet another 'Amway' copy-cat. Although this fellow claims to have studied philology (the science of language), his publicity is stuffed with schoolboy mistakes:

'George Spicker is an enterpreneur at the the Sunrise Travel Club, a new entry in the 8 Trillion dollar travel industry. All members get a 4 Day/3 Night hotel or villa accommodation in cities worldwide (like London, New Your and Paris) and the change to earn great income. You can get more information at http://www.sunrisetravelclub.com/blog or contact him directly at jobsforeverybody@hotmail.com.'

It will come as no surprise to your readers to discover that (in theory) all anyone has to do to achieve their Dreams in the 'Sunrise Travel Club' is duplicate a proven '100% Positive Business Building System,' i.e. buy 'Sunrise's' exclusive good-value travel products' and recruit their 'Positive' social contacts to do the same - these recruits will then 'duplicate' the same 'System' and buy the 'Sunrise' travel products and recruit their own 'Positive' social contacts, etc. ad infinitum. All 'Negative' persons must be avoided.

This 'George Spicker' steadfastly pretends that the 'Sunrise Travel Club,' is a perfectly viable and legal 'MLM Business Opportunity.' Unfortunately, the 'George Spicker' who has recently left an abusive comment on your Blog would appear to be the very same, unoriginal and inflexible charlatan who has been peddling the endless-chain, closed-market swindle camouflaged as the 'Sunrise Travel Club.' I would, therefore, advise you to ban 'George Spicker' from your Blog Shyam.

David Brear (copyright 2010)

The made-up term, 'Multilevel Marketing,' hides major organized crime

Shyam

Personally, I don't know how the average, senior American regulator at the FTC has the cheek to keep cashing his/her salary cheques when the deconstructed explanation of how the bosses of major organized crime groups like 'Amway' have been committing fraud for decades, has always been right under their noses. However the same can be said about the dunces with diplomas at the US SEC who refused to confront the terrifying reality that Bernie Madoff was one of the most dangerous economic alchemists since the demise of the 'Third Reich.' These selectively-blind officials have been part of the de facto American kleptocracy, and not a remedy for it.

The simple truth, which a clique of complacent (and possibly corrupt) senior US regulators have failed to accept, is that, by definition, no one can make a lawful profit from a closed-market, because, in the final analysis, all closed-markets (no matter how they are camouflaged) are absurd, but nonetheless pernicious, games of make-believe based on the crack-pot, pseudo-economic theory of perpetual expansion = perpetual profits. In the adult world of quantifiable reality, since the money being circulated in a closed-market obviously comes (largely or entirely) from the participants, the most any participant can hope to receive lawfully, is only what he/she contributed in the first place. This is why closed-market swindlers should have long-since been recognised by senior US regulators as economic alchemists who peddle the public infinite shares in their own finite money. One would have thought that this type of rigorous analysis is what senior US regulators have been paid to produce (they are, after all, paid by the public), but nothing could be further from the truth. Indeed, it is difficult to imagine what the average senior American regulator does all day long, apart from possibly lunching with the likes of Bernie Madoff.

In the classic, closed-market Ponzi scheme, provided more and more persons keep participating, the instigator(s) can continue to pay out what appear to be real profits. In this way, Bernie Madoff managed to keep expanding his Ponzi scheme for at least two decades - although certain observers believe his career as an economic alchemist began in the 1960s. Madoff's closed-market swindle was effectively ignored by the regulators who refused even to check whether he was generating real external profits. The fact that he wasn't, was only exposed when the overall economic climate changed and too many participants all demanded their fictious profits at the same time. The 'Amway' closed-market swindle has been effectively ignored by the regulators who have similarly refused to check whether it has been generating real external profits. So far, the fact that it hasn't, has been maliciously occulted for 50+ years by constantly-churning insolvent participants who have been systematically conditioned to blame themselves when inevitably they fail to make money. This is what has recently been identified as a pattern of major ongoing racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act) by attorneys representing the destitute plaintiffs in the Pokorny v.'Amway/Quixtar' civil lawsuit.

The question remains unanswered: Why haven't US federal prosecutors also recognized so-called 'MLM' companies as the front for major organized crime?

David Brear (copyright 2010)

50% of all participants in Madoff's Ponzi scheme made an overall profit

Shyam

The billionaire bosses of the 'Amway' mob, and their criminal associates, capitulated in the recent Pokorny RICO lawsuit, and agreed to a settlement which will cost them $155 millions, because they knew that, if the case went to trial, they would be convicted of racketeering and their long-running, abusive game of make-believe would soon be over.

In the adult world of quantifiable reality, the percentage of persons who have lawfully received an overall material benefit from participating in the so-called 'Amway MLM Business Opportunity' (out of all the tens of millions who have been churned through it during the previous 50+ years) has been effectively zero. Of the comparatively-tiny percentage of grinning 'Amway Diamond' schills who have appeared to have benefited-massively, the main source of their illegal profits has not been the so-called 'Amway Business,' it has been a related advance fee fraud (a.k.a. 'tool scam'). Indeed, Bernie Madoff's closed-market swindle had, in comparison, an enormous percentage of fake 'winners' amongst its participants.

According to Iving H. Picard, the Trustee in Bankruptcy for the so-called investment company arbitrarily and falsely defined by its instigator, Bernie Madoff, as 'Bernard L. Madoff Investment Securities LLP', approximately 50% of all the persons who gave their authentic cash to this fake company (during several decades) received an overall material benefit in return. However, as Irving H. Picard is fully-aware, the real source of all these so-called 'profits' (regularly paid out by Bernie Madoff) was not, as he steadfastly pretended, from his miraculous dealings on the stock market, but actually from the latest participants in his closed-market Ponzi scheme. In other words, whether they knew it or not, all Madoff's 'winners' were in receipt of stolen funds.

One of Madoff's (apparently innocent) schills, Jeffry Picower, received more than $7 billions stolen from other participants. His widow has just agreed to pay every stolen cent back to Madoff's victims via the Trustee for 'BLMIS' and the US government.

http://www.madofftrustee.com/documents/2010_December_17_Trustee_Picower_Press_Release.pdf

http://www.madofftrustee.com/

http://www.bbc.co.uk/news/business-12023902

Bernie Madoff's Brother, Peter, has so far refused to pay back voluntarily his own fake 'winnings' from the fraud. He claims to have been completely unaware that his brother was a crook. However, according to the Trustee in bankruptcy, one year Peter Madoff invested only $14 (forteen) and received around $30 (thirty) millions stolen from the victims.

Peter Madoff is evidently almost as big a liar as his narcissistic brother. Fortunately, there is a very strong probability that he will also be bankrupted and jailed.

David Brear (copyright 2010)