Tuesday, 17 July 2012

The 'Xango dream' turns into a nightmare for hundreds in Russia and Khazakstan

'Xango' racketeer, Aaron Garrity, posing as a 'businessman'.
'Xango' racketeer, Daniel Laroque, posing as a 'businessman.'

Several weeks ago I posted an article containing a brief analysis of the absurd, but nonetheless pernicious,  'MLM Income Opportunity' racket known as 'Xango.'


A reader has now contacted this Blog with the following new information about two of the 'Xango' racketeers, Aaron Garrity and Daniel Laroque :

'Have you seen the videos of the protests and protestors in Russia and Khazakstan protesting XanGo? Hundreds of people have come together demanding their money back. It appears that Founder Aaron Garrity and President Daniel Laroque promised people money to invest in a false film investment. The film investment company was named MIG PROD. You can watch the videos detailing it all here.

Please make people aware so they know about XanGo and mig prod.

Thank you.'


  1. I think you should really emphasize the importance of people contacting the FDA and FTC about this. they can't act until enough people have filed complaints, and this company is in MASSIVE violation of FDA and FTC regulations

  2. At the risk of sounding ungrateful for your comment:

    Perhaps you should try openly complaining to government agencies yourself about 'MLM income opportunity' fraud?

    I complained to government agencies in the UK about 'MLM income opportunity' cults in general, and 'Amway' in particular. I also directed several 'Amway' victims to the same agencies, and to their political representatives.

    Apparently, due 'to a lack of victims coming forward,' it took the British version of the FTC, 14 years to launch a low-level civil investigation of 'Amway' which fizzled out in a failed-attempt to close 'Amway UK Ltd.' using civil bankruptcy procedures. UK Government investigators finally discovered that between 1973 and 2006, around 1 million UK citizens had been churned through the so-called 'Amway income opportunity.' During the civil investigation, 'Amway UK Ltd.' was represented by none other than the former Deputy Director of the UK Serious Fraud Office, Peter Kiernan.

    Faced with media exposure in the 1990s, the bosses of 'Amway' took the precaution of buying the services of two so-called 'cult advisors' in the UK, Graham Baldwin and Ian Howarth. These unqualified charlatans managed to round up quite a number of potential 'Amway' dissidents and prevent them from going to law enforcement agents, legislators, the press, etc.

    The overwhelming majority of all fraud victims never complain (mostly out of embarrassment, shame, fear, etc.). In the case of blame-the-victim 'MLM income opportunity' frauds, the percentage of chronic victims who have found the strength of character to come forward, has been even lower. This has a lot to do with the fact that 'MLM' victims are usually recruited by a friend or a relative, and, in turn, they tried to recruit their own friends and relatives.

    Since the instigation of the first US-Based 'MLM income opportunity' racket, 'Nutrilite,' the FTC and the FDA have been a significant part of the 'MLM' problem, and not the solution to it.

    To get a clearer picture of my reaction to your comment, please read the first article posted on this Blog:

    The absurd origins of the big 'M (multi) L (level) M (marketing)' lie.


    David Brear (copyright 2012)

  3. yeah. I hear you. I have filed complaints, and it is beyond frustrating that nothing gets done in response to documented illegal activity, and I'm really not surprised by the revolving doors in these industries/regulators. I still feel like it is important for people to file those complaints, but websites such as are most seriously needed. so again, sincerest thanks.

  4. It's always nice to be appreciated, but my wider role in all of this has always been as follows.

    Since cults are, self-evidently, occult totalitarian movements which attempt to shut down the critical, and evaluative, faculties of not just their adherents, but also all casual observers, I have been inviting my readers to do some serious thinking.

    Even persons with a reasonable understanding of the cult phenomenon, often remain convinced that 'religion' is the only reality-inverting label which can be slapped over cultic groups. However, 'MLM/direct selling' is just another reality-inverting label which, for obvious reasons, was slapped in 1950s USA, over the age-old form of major organized crime most-commonly-referred to as cultism.

    'MLM/direct selling' is not, has never been and will never be, a business in the traditional sense of the word. Therefore, the fact that less-than intellectually rigorous officials responsible for regulating business have been tasked with tackling 'MLM income opportuniy' fraud, is itself a major victory for the reality-inverting racketeers behind it.

    'MLM' cult bosses have become so rich and numerous, that they now represent a serious threat to democracy and the rule of law. However, this evolving criminogenic problem should never have been left to a bunch of ill-informed, albeit legally-qualified, trade regulators to tackle. Far too many amoral attorneys working in law enforcement have taken much higher paid jobs in the private sector.

    The problem remains: few chronic 'MLM income opportunity' cult victims have the strength of character to confront the ugly reality that they have been the victims of a pernicious fraud designed to dissociate them from external reality, incriminate them and prevent them from complaining.

    In my experience, even the minority of chronic 'MLM' victims who accept that they were defrauded by a cult, continue to describe their experience using reality-inverting, and essentially-meaningless, 'MLM/business' jargon.

    David Brear (copyright 2012)

  5. XanGo just sent several cease and desist letters to websites reporting on this. On top of that they are waging an SEO war campaign. Here is the email from XanGo Founder Joe Morton to distributors. VERY VERY telling......

    XANGO has some of the top leaders in the industry and one of the top selling products in the history of direct sales. Our success makes us a target. Here are some suggested ways to respond.

    * Do not post links to videos or articles that are designed to hurt the business you've built. Posting just spreads false information. If you respond, do it with the voice of a leader.

    In EMAIL...
    * Anything you put in writing lives on. Give them a message of leadership and focus on putting energy into building business.

    In MEETINGS...
    * To those who ask "I've read things online about XANGO..." remind them they could read the same rough things online about Facebook, Amway and Avon. Big companies are often targets of attack because of their success and the amount of people they reach. Companies like XANGO, in business for a decade, have passed may business tests and are proven ventures.

    In COMMENT sections to online articles...
    * Make it count, make it short and make it reasonable. "These articles offer no
    proof and no credible sources for the information they attempt to spread. XANGO
    is one of the top companies in the industry, proven and in business for nearly a

    Some key messages to remember:

    * Many of these kinds of attacks are accompanied by links to other companies, such as start-ups or secret events you "must attend." They've chosen to try to recruit by attacking others. We've chosen to build by helping others. We have a story to tell. They're story is built on falsehoods.

    * The videos in circulation show a few people who are playing to the camera in a staged protest. That pales in comparison to our events where hundreds (even thousands of people) are speaking about their personal experience and success. Anyone with a phone can shoot a video and upload it online.

    * In networking, we measure success by the leaders involved in the business. These individuals are attacking the
    success of XANGO, built by gifted leaders around the world.

    * XANGO is in business nearly 10 years. In that time employees and distributors have left the company. That's the natural, expected course of business and we see that in our own businesses.

    * There are hundreds of start-ups every year in our industry. Few make it beyond the first year. Less make it to five years. An elite number make it to a decade. XANGO has reached 10 years in business as a high-profile company by empowering leaders to grow and succeed. Any company that begins by attacking that success is doomed to fail.

    * As leaders, we are proud of XANGO and proud of what we've built. Our focus is building business and we will not be distracted by false attacks.

    In addition to keeping me posted, XANGO has established an email to receive your
    feedback and questions: DistributorQ&A@xango.com

    Let's keep building,

    Joe Morton

  6. It will not matter if XanGo is reported to the FTC or the FDA apparently the IRS can do nothing about them either! The amount of fraud that takes place at that company is astounding. Read for yourself. The Salt Lake City Tribune just did an article on the tax fraud perpetuated by XanGo.


  7. Amidst lawsuits and everything else, XanGo has just fired more than 40 of its employees. This while they plan on having a party for their distributors in September. Their convention. Corporate greed at its finest. You can read about it, just google XanGo layoffs and you will see. Also XanGo plans to launch a company within their company in September as a way for their distributors to"double dip" in their compensation plan. I would advise any XanGo employees former or currently employed to contact the appropriate authorities. Its fraud, it's embezzlement.

  8. Is it true that Xango is filing bankruptcy and moving all of their distributors to a new company because of their lawsuits and the fact that they are under investigation for pyramid scheme?