All posts by Amie

Hey, I have the best Opportunity For You!

mlmscaminfo-i-have-the-best-opportunity-for-you1

Greetings everyone!

I’m delighted to be here to bring you some good news that could change and reward you financially for the rest of your life. Did someone invite you to delve in a new business or opportunity so overwhelmingly excited to share and joined in? Oh well! the internet abounds with plenty of such opportunity and you are usually left on the thinking of whether to join or not?

Like mushrooms.

MLM and networking were like mushrooms sprouting in every corner of the real and the virtual world. The concept of a product created by companies that instead of spending their money on either enhancing their products and media marketing they focus more on developing schemes they will pay on commissions and other compensation systems to build their sales force. According to one source, commissions up to 58% goes to the sales team. That’s awesome, isn’t it? Seems to be better than some profit-sharing schemes of some NYSE or NASDAQ listed companies. In fact, these networking companies hardlyneed an e-commerce site built to offer their wares. They greatly rely on their human team media crawling and sprouting like… yes, you got it right – just like mushrooms!

The stigma that lingers.
The long history of scams has plagued the business that hinders what supposed to be its flourishing glory. In 2003, when the internet based ‘pyramid scam was disclosed by the US Federal Trade Commission wherein customers were made to pay a registration fee in joining what was then called the ‘internet mall’ who offered huge commissions in exchanged of packaged goods and services with facilities provided such as internet mails and all, the internet commerce began the series of schemes and scamming. And in 2006, Ireland became the center of schemes activity by Cork & Galway into the so-called ‘liberty scheme’ patterned from the eight-ball scheme model which later named to ‘Speedball’ and ‘People in Profit.’ it grew into its European neighbor Germany were payment transaction have been taking place to skip and evade Irish taxation law.The same scheme spreads through the United Kingdom in the year 2008 & 2009 under the scheme name ‘Give & Take.’

Today, the MLM industry have grown into a $120-$130 billion dollar industry and there’s no indication that its going to stop as long as there are people who’s visions and goals was to work and earn a living. As long as people are getting something out of it. As long as there are products and consumers. As long as business goes on. MLM through rewards and schemes will be here.

Mumbai’s QNet Game Changer Nabbed

 

In Mumbai, India, the company that said they stand behind the ideologies of the great humanitarian activist Mahatma Gandhi has been gong through some hot waters.
The Mumbai police have frozen bank accounts of Mumbai’s Qnet franchise company, Vihaan Direct Marketing and its organizers in Mumbai namely: Haresh Bhadra (37), Suvija Pai (36) and Monish Bhandarkar (31) who have duped investors and admitted they have received invested money ranging between Rs 30,000 and Rs 7 lakh which basically involved hefty thousands and hundred thousands of US dollars. The group operates by persuading investors to distribute QNet products such as QNet’s Himalayan Crystals and metals such as QNet’s Titanium Metal Treatment which the organizers claimed to have miraculous healing powers in treating various ailments and diseases including cancer.

The Empty Promises of Lien Ket Viet

Lien-ket-viet-1_1

Top executives of the Hanoi based Lien Ket Viet were arrested last Saturday, March 12, 2016 for apparently swindling around 45,000 people in Vietnam involving pyramid scheme scams. Among those arrested were Lien Ket Viet’s Chairman of the Board, Le Xuan Giang and deputy general director Nguyen Thi Thuy.

Vietnam’s Lien Ket Viet
Lien Ket Viet was a Vietnamese marketing and trading company distributing dietary supplements and health care devices. Established in the year 2010, it has been granted a license to operate by Vietnam’s Ministry of Industry and Trade to operate as a multi-level marketing company in the year 2014. But various fraud were discovered when the company involved in its campaign Vietnam’s Ministry of National Defense to gain popularity and confidence from members and customers.
The products.
Among the company’s bestsellers were various types of dietary supplements that goes along with detox machines and other health aids for which some were later found out to be fake and does not necessarily offer any health benefits at all. The starter package for membership which costs around $384.85 were required by recruiters from its lured members.
The operation.
The company operates through a series of chain recruitment scheme requiring membership with an equivalent deposit to guaranty entry and access as the new members likewise do to their own recruits as they promised lucrative earning potentials selling and distributing the products. Recruiters promised members attractive bonuses and commissions as the company amassed around VND1.9 trillion or the equivalent of US $85.2 million from deposits of members that joined the company. Lien Ket Viet operates all over Vietnam with its 21 branches in 19 provinces.
Since last year 2015, thousands of members have claimed to be scammed by the company and demanded their deposits and earnings be returned to them at once.
Case updates.
Seven of the top executive officers of Lien Ket Viet were currently in custody to answer for the various fraud cases filed against them.

Multitel & the Baladjay Conspiracy

Rosario “Rose” Baladjay from photo capture by Rappler

In 1998, Rosario A. Baladjay or simply called ‘Rose’ to her colleagues and business associates registered her company, the Multinational Investors Corporation (Multitel) with the Philippine Securities & Exchange Commission as a lending investor company which under the SEC rules should only provide up to a maximum of 19 lenders only. This safeguard was done as a ruling by the SEC to discourage the company to operate under the illegal pyramiding scheme.

The Multitel multiplication.

As early as 1988, Baladjay initially enticed participants to the organization to each invest voluntarily from  Php2,000($45) up to Php10,000($222) from its investors at the prevailing interest rate return of 1.08 monthly or 12 percent per annum with purpose of lending the accumulated money to businessmen at 2.5 percent a month or 30% per annum. The investment becomes an instant boom and investments to Multitel was exploited and amassed. Baladjay was able to accumulate as much as Php100 billion or roughly around $2.5 billion from nearly 2 million participants during the term of its business.

ponzi pyramid

The Multitel‘s Double Your Money’ scam.

Multitel investments used the Ponzi scheme approach of “pyramiding” fraud wherein Multitel operated in which original investors being the top investors recruits other people as their downlines. Top investors recoups their invested money from the investment of their downlines. Most of the money gains and the only way a participant can recoup their investments was to sign up more people into the organization. But once recruitment stops, the investment recouping system will eventually collapse and by such time, those at the top of the pyramid have already recouped their investments leaving the rest below their lines to lose most of their money investments.  The mathematical odds on the certainty of the pyramid’s collapse on this type of pyramiding scheme was greater.  Losing investment money and recouping invested capital for the downline participants would most likely result in losing rather than gains. Therefore, the chance of losing invested capital in this kind of pyramiding scheme is almost inevitable.

The Multitel flock.

With the promise of the ‘Double Your Money’ gains and fast return of their investments, Baladjay was able to attract her flock of investors. With the launch of the ‘Double Your Money’ scheme, an equally attractive guaranteed package return on the investment at the interest rate of 4 to 5% monthly gains which was later raised to 60% per annum whereas regular prevailing baking interest rate was only 12% per annum have enticed participants to invest more. The investment becomes an instant boom and investments to Multitel was exploited and amassed. Baladjay was able to accumulate as much as Php100 billion or roughly around $2.5 billion from nearly 2 million participants during the term of its business. Many of those duped in the scheme were low-income bracket individuals as well as celebrities, overseas workers, members of religious associates, government employees and other influential people who aimed to get their investment to easily gain and multiply.

Another attractive scheme that Baladjay use to duped and entice investors was riding with the boom of telecommunication in the country at that time. Big companies like Nokia, Motorola and other telecoms company were exploited as subject of the Baladjay scam.  Exploring her luck in duping people to her company, Baladjay using the alibi of investing in Benefon, a competitor of Finland’s Nokia hooked her scamming business during the boom of the telecommunication industry in the country.

The Multitel crack.

But the Benefon project halted its operation when a case of syndicated estafa was filed against Baladjay and her incorporators in her Multitel company before the Makati court in the Philippines. The Philippine Securities and Exchange Commission (SEC) have issued multiple cease and desist orders to Baladjay and her companies but Baladjay continued to ignore these warnings.

In March of the year 2003, a court handed down a warrant for her arrest resulting from violation of the bouncing check law.  She was nabbed in her home province, Mangaldan, Pangasinan, a province north of the Philippines.  Since then, other suit and cases followed emerging from different parts of the country. So big that it reaches the Philippine senate to probe on it. The blown up cases resulted in death threats against her prompting the Senate officials to hold her in their custody during the process of the Senate probe. The case was uphold by the Senate and strengthened her cases with no bail recommended.

See also: http://www.sec.gov.ph/notices/notices/SEC%20Statement%20-%20Baladjay%20Multitel%20-%20Dec%2009%202015.pdf

And in line with the Philippine government’s effort to haunt down scammers and pyramiding initiators that crippled the lives of the people and affect the country’s economy as a whole, the Baladjay case was intensified. With no bail for her multiple cases of estafa, Baladjay was now currently detained at a women’s correctional facility in Mandaluyong City, Philippines. Upon the promulgation of the guilty charges in the court in Makati City, Baladjay and her cohorts were sentenced to 7 to 21 years of imprisonment or a fine of Php5 million for each of their cases or both.

locked-in-jail

EM Goldex Scam: The Alluring Pyramid in Circles

The alluring glitters of gold has attracted many in different parts of the world.  But some have discovered illegalities in the operations of EM Goldex.  Below are some of these countries with revelations about the EM Goldex gold business:

The Interactive Gold Table Circle revealed by Estonia.

EMGOLDEX-LOGO3-SCAM

In March 2013, Estonia’s Consumer Protection Board have investigated the business model and was convinced it was a pyramid scheme. Continue reading

USANA in China: Nutritionals You Can UNTRUST

USANA-UNTRUST-1

In China, MLM and pyramid schemes businesses are illegal and are prevented from proliferation. But in March 2013, USANA reports that 37% of its global revenue were transacted in China. Making China a major role player in USANA’s funding. If China government does not allow MLM, what’s the reason why USANA’s Chinese investors are getting the services of Harwood Feffer LLP, a NY based law firm specializing in consumer fraud and product liability to investigate USANA Health Sciences, Inc.

Continue reading