The author of this Blog, David Brear has absolutely no political, commercial or religious affiliations. In the mid-1990s, he began researching, and writing about, cultism, after he witnessed members of his family (in the North of England) undergo a sudden, radical personality transformation. This was first manifest in David's brother losing his critical, and evaluative, faculties and cutting himself off from all external sources of information, whilst giving up his career as a teacher to become a-full-time, unpaid proselytizer for 'Amway' - the original 'MLM income opportunity/Prosperity Gospel' cult.
Although David's family was being defrauded and torn apart by his brother’s fanatical devotion to the billionaire bosses of this notorious, US-based, major organized crime group, his urgent concerns were officially ignored until 2007, when a British government Minister (for Business, Enterprise and Regulatory Reform) filed a Public Interest Bankruptcy Petition against ‘Amway UK Ltd.’ Senior UK trade regulators were finally seeking the immediate, compulsory closure of ‘Amway UK Ltd.,’ but only on the isolated, technical grounds that the company had been charging recruitment fees in contravention of UK Lotteries and Trading Schemes legislation, and that the company (by itself) did not possess sufficient assets to repay years of unlawful accumulated gains. Off the record, senior UK trade officials compared the 'Amway' organization to the 'Ku Klux Klan' in the 1920s, whilst the UK government's attorneys openly-described 'Amway' adherents as 'deluded.'
The UK High Court subsequently found that ‘Amway UK Ltd.’ had indeed been acting unlawfully, but the technically-insolvent corporate structure was not wound-up in bankruptcy and was allowed to continue in the UK without any financial penalty or further independent surveillance, when its attorneys informed the Judge that all Amway's previously-unlawful activities in Britain had already been voluntarily reformed to bring them into line with UK trading schemes legislation.
This apparently naïve, and unprecedented, dismissal of a Public Interest Bankruptcy Petition due to unenforceable undertakings being accepted by a single senior Judge sitting in the UK High Court, was subsequently upheld by two out of three senior Judges sitting in the UK Court of Appeal.
UK government regulators had, in fact, discovered that of the approximately 35 000 UK citizens whom ‘Amway UK Ltd.’ had described as ‘Independent Business Owners’ in 2006, other than an insignificant minority of wealthy decoys, 100% were losing money. Furthermore, during the period 1973-2006, around one million
Currently, no anti-racketeering law exists in the
Shyam Sundar's Corporate Frauds Watch Blog has recently been alive with intellectually-castrated victims of the Indian-based 'MLM Income opportunity/ Prosperity Gospel' cult known as 'NMart', instigated by racketeer, Gopal Singh Shekawat a.k.a. 'Gopalji.' Some of these indignant correspondents are obviously fakes, but others are so deluded that they actually believe that Shyam Sundar is the paid agent of 'NMart's' enemies and that they, and their children, will starve if 'NMart' is closed.
Meanwhile, in the adult world of quantifiable reality, at the end of last month, Gopal Shekawat was arrested in Surat by police officers from Andhra Pradesh, as a result of Shyam Sundar making legitimate complaints (on behalf of the Indian public) that Shekawat, and his associates, have been stealing money from many thousands of people by running a dissimulated money circulation scheme. Shekewat was subsequently released on bail, but he then failed to present himself to a Judge September 1st, and consequently he is now a fugitive.
Shyam Sundar has kindly supplied the following clarification which I think clearly demonstrates that Gopal Singh Shekhawat is no ordinary charlatan; for Shekhawat exhibits the diagnostic criteria of severe and inflexible Narcissistic Personality Disorder:
Gopal Singh Shekhawat was arrested by the Andhra Pradesh police in Surat. However, on the way, the police presented him in Borivali magistrate court, Mumbai, for obtaining prisoner transit warrant popularly known as PT Warrant. However, a large group of advocates descended on the magistrate court on behalf of the accused, Gopal, and appealed to the magistrate that he would not run away and he would present himself before the Ongole court on or before September 1st. On the condition that he would present himself before the Ongole magistrate, the Borivali court in Mumbai set him free on bail with an amount of Rs. 20,000 and two sureties of like amount.
In the civil petition, Gopal appealed to the High Court to direct the police not to interfere in his lawful business. Justice K C Bhanu refused to give any stay order on the investigation and posted the matter after three weeks. He issued notices to the Andhra Pradesh State Government, the Director General of Police, the Kandukuru Circle Inspector of Police, Prakasam district and Corporate Frauds Watch to file their affidavits presenting their case. The HC Justice while refusing to give stay order on the investigation even for a week, said that the crimes mentioned in the FIR are serious and under these circumstances the court has to listen what the complainant and the police have to say in this regard.
- has a grandiose sense of self-importance.
- is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
- believes that he/she is special and unique and can only be understood by other special people.
- requires excessive admiration.
- strong sense of self-entitlement.
- takes advantage of others to achieve his/her own ends.
- lacks empathy.
- is often envious or believes that others are envious of him/her.
- arrogant disposition.
I have to say that 'NMart' is one of the most obvious 'MLM income opportunity' frauds, I have ever examined. Its instigators have openly admitted that in order to make money in 'NMart,' participants don't have to retail anything to the public for a profit. On the contrary, all they have to do is give their cash to 'NMart' (in return for effectively unsaleable materials) and recruit their friends and relations to do the same.
This means that 'Nmart' has had no significant or sustainable revenue other that deriving from a never-ending chain of contributing participants. In other words, victims of the 'NMart' fraud have actually been sold infinite shares of their own finite money.
In recent years, the republic of India has become infested with 'MLM income opportunity' frauds. Sadly, during the first decade of the 21st century, the once exclusively-American problem of closed-market swindles dissimulated as ‘lawful Direct Selling,’ and commonly-referred to as ‘Multi-level Marketing (MLM),’ has quickly become the most-common type of corporate fraud that citizens of the Indian republic are likely to encounter. In the absence of rigorous, independent regulation, the number of Indian-registered companies hiding these absurd, but nonetheless pernicious, swindles has continued to multiply year after year. Millions of Indians have already been left with piles of effectively-worthless wampum, wasted time, broken dreams, financial losses and debts. However, a significant percentage have not only been ruined, but they have also become dissociated from friends and relatives who refused to accept the 'MLM' fiction as fact. Yet, precious few Indians have been able to face up to reality and complain of fraud to the police. This has been due to the facts that ‘MLM’ victims:
- (like most fraud victims) find it hard to admit to the world that they were deceived.
- are, almost without exception, incapable of explaining in accurate, deconstructed terms what they were involved in.
- are invariably recruited/deceived by a friend or relative and, in turn, try to recruit/deceive their own friends and relatives.
- are manipulated by their instinctual desires and self-esteem and are, thus, persuaded to believe the scripted-lies that:
‘MLM’ participants are ‘Independent Business Owners’;
Although initially, their camouflage was pretty thin, the owners of the first two companies peddling a so-called ‘MLM income opportunity’ were not prosecuted for running a pyramid scam. Instead, Messrs. Rehnborg, Mytinger and Casselberry were quickly challenged by officials at the federal Food and Drug Administration for running an updated, and industrialised, version of an age-old pseudo-medical swindle, commonly known as ‘snake-oil selling.’ Indeed, in the late 1950s, after more than a decade of litigation, and counter-litigation, ‘Nutrilite’ appeared to be on the brink of compulsory closure under federal laws concerning the misbranding of medicines.
In 1959, a copy-cat company known as the ‘
Sadly, this sugar-coated, Indian adaptation of a poisonous American fairy story has been swallowed by many casual observers, including members of the Indian financial press. However, in order to put the mainstream media to sleep, all the usual thought-stopping tactics have been employed – expensive magazine and television advertising, gifts to charity, paid association with celebrities, membership of the ‘Indian Direct Selling Association,’ etc. Tellingly, no accurate, verifiable information has been offered by the corporate officers of ‘Amway India Enterprises,’ or those of the ‘Indian DSA,’ as to what percentage of the company’s (apparently impressive) market has comprised authentic, external, retail transactions (i.e. regular, lawful sales to members of the general public who are not themselves insolvent ‘Amway’ sales agents). It seems that, so far, no mainstream Indian journalist has bothered to ask this common-sense key question.
|Indian 'Amway Diamond' schills|
Just a slightly more thoughtful approach from the Indian media would have revealed that ‘Amway/MLM’ is the title for an absurd, but nonetheless pernicious, lie; for, without a sustainable, or significant, source of external revenue (largely due to the deliberately banal quality of products combined with exorbitant fixed-pricing), the so-called ‘Amway MLM Income Opportunity’ has been economically unviable and, therefore, fundamentally fraudulent under Indian legislation which defines, and outlaws, money circulation schemes. In reality, losing-participants in the ‘Amway’ closed-market have merely been peddled an infinite share of what can only be their own finite money. Furthermore, if the 50-60% average, annual churn rate is taken into consideration, we discover that more than one million aspiring ‘Amway Business Owners’ have already vanished in India alone. Classically, only a core-group (less than 5%) of ‘Amway’ adherents (usually with access to independent funds) remain bedazzled by the Utopian myth of ‘future total financial freedom’, for extended periods.
David Brear (copyright 2012)