'XANGO' another 'MLM' hybrid of Ponzi scheme and snake oil selling

This article has been updated as of May 22nd 2013.

Please click on the link below, to read:

 'One author of the Xango lie, Bryan B. Davis, accuses five others of racketeering.'         

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/05/one-author-of-xango-lie-accuses-five.html

________________________________________________________________________________________________

In 1945, whilst most, contemporary mainstream commentators were unable to look beyond the ends of their noses, with a perfect sense of irony, George Orwell (1903-1950) presented fact as fiction in an insightful 'fairytale' entitled, 'Animal Farm.' He revealed that totalitarianism is merely the oppressors' fiction mistaken for fact by the oppressed. In the same universal allegory, Orwell described how, at a time of vulnerability, almost any people's dream of a future, secure, Utopian existence can be hung over the entrance to a totalitarian deception. Indeed, the words that are always banished by totalitarian deceivers are, 'totalitarian' and 'deception.' Sadly, when it comes to examining the same enduring phenomenon, albeit with an ephemeral 'American/Capitalist' label, most contemporary, mainstream commentators have again been unable to look further than the ends of their noses. However, if they followed Orwell's example, and did some serious thinking, this is the reality-inverting nightmare they would find.

_____________________________________________________________________________________________

From 'The Universal identifying Characteristics of a Cult' (Axiom Books, David Brear copyright 2005)

Manipulation. Pernicious cults employ co-ordinated, devious techniques of social and psychological persuasion (variously described as: ‘covert hypnosis’, ‘mental manipulation’, ‘coercive behaviour modification’, ‘group pressure’, ‘thought reform’, ‘ego destruction’, ‘mind control’, ‘brainwashing’, ‘neuro-linguistic programming’, ‘love bombing’, etc.). These techniques are designed to fulfil the hidden criminal objectives of the leaders by provoking in the adherents an infantile total dependence on the group to the detriment of themselves and of their existing family, and/or other, relationships. Pernicious cults manipulate their adherents’ existing beliefs and instinctual desires, creating the illusion that they are exercising free will. In this way, adherents can also be surreptitiously coerced into following potentially harmful, physical procedures (sleep deprivation, protein restriction, repetitive chanting/ moving, etc.) which are similarly designed to facilitate the shutting down of an individual’s critical and evaluative faculties without his/ her fully-informed consent.

______________________________________________________________________________________________

The grinning instigators of the 'XANGO' racket
(left) Kent Wood, Gordon Morton, Gary Hollister, Joe Morton, Aaron Garrity, Bryan Davis

In response to several requests, the following is a brief deconstruction and analysis of the, absurd, but nonetheless pernicious,'Amway' copy-cat 'MLM' racket known as 'XANGO.'

According to the authors of the frighteningly-familiar 'XANGO'  fairytale:

'XANGO, LLC, was founded in 2002, and is a privately-owned international network marketing company based in Lehi, Utah. The company markets and distributes XANGO Juice, a blended juice product consisting of mangosteen and other juices, and skin care, personal care, energy supplement and nutritional supplement products formulated with botanical ingredients. Since 2008 XANGO been selling more than $1.5 billions annually of products via more than one million distributors in 27 countries'

 'Xango' pyramid of duplicating 'Ks' leading to 'FFF' 

In the adult world of quantifiable reality, 'XANGO' is the label hung over the entrance to a cultic, blame-the -victim, closed-market swindle and related advance fee fraud. Inside this progressively-incomprehensible and expensive- to-play game of Utopian make-believe, an endless chain of ill-informed victims have been told that they can achieve unlimited health, wealth, happiness, etc., simply through exactly duplicating the 'positive' example of 'Xango winners' and buying a regular quota of 'XANGO' products each month whilst recruiting their own social contacts to 'duplicate the same lawful MLM sales and marketing plan.' 

http://www.xango.com/recognition/distributor-recognition

In theory, profits automatically multiply as an individual 'Xango Distributor's' own network is built through geometric progression. In practise, other than the insignificant number of schills at the top of the recruitment-chain, the hidden overall rolling insolvency/churn rate for the so-called 'XANGO income opportunity,' has been 100%.

'XANGO' orgy of deluded self-gratification, Taiwan 2010

The 'XANGO' racketeers (who are adherents of the 'Mormon Church') are currently stealing money from the citizens of the USA, as well as those of Australia, Austria, Belgium, Bermuda, Canada, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Kazakhstan, Latvia, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Trinidad, United Kingdom and the Ukraine.  http://www.xango.co.uk/

http://www.scribd.com/doc/2525317/Xango-Presentation-English

Like the latter-day snake oil pedlars they are, deluded 'XANGO' adherents have recited a precisely-worded script which pretended more than 20 human health benefits for their unique star product, 'XANGO' juice, including 'anti-inflammatory, anti-microbial, anti-fungal, anti-viral, anti-cancer, anti-ulcer, anti-hepatotoxic, anti-rhinoviral and anti-allergic effects.'  Promotional material for the product merely states that 'research has been carried out' into XANGO's capacity to prevent all manner of illness, from leukemia, tumours and diabetes to Parkinson's disease, depression and fatigue, and that  'antioxidants from the inedible rind of fruit provide health benefits.' However, there is no independent research-based evidence to prove any of these vague, and/or essentially meaningless, anecdotal claims. Consequently, 'XANGO' has already attracted the attention of the Federal Drug Administration and widespread criticism from within the medical profession.

Reminiscent of 'Nutrilite Double X' (concocted by Carl F. Rehnborg in the 1940s),  'XANGO' juice is just an inert blend of mangosteen aril and pericarp purée with juice concentrates of eight other fruits: apple, pear (juice and purée), grape, blueberry, raspberry, strawberry, cranberry and cherry. Other ingredients include citric acid, natural flavour, pectin, xanthan gum, sodium benzoate and patassium sorbate. Unfortunately, since 'XANGO products have comprised cheaply-procured common substances, but offered at exorbitant fixed-prices (e.g. 750ml of 'XANGO' juice is almost $40), they have been effectively-unsaleable on the open-market. 'XANGO' juice is at best a harmless placebo, but due to its price, the liquid is the eqivalent of a valueless amalgam of shiny base-metals being offered at the cost of pure gold.

'XANGO' Internet propaganda

No matter what childish drivel they spout in defence of their egos, the overwhelming majority of people who have regularly handed over their cash in exchange for 'XANGO' wampum have clearly only done so under the delusion that they were duplicating a proven plan to achieve 'financial freedom forever;' for there is absolutely no quantifiable evidence that a significant quantity of 'XANGO' wampum has been retailed to the general public for a profit by 'XANGO' adherents. Indeed, the organization itself does not dispute this fact, but, like those of 'Amway,' 'Xango's' officers illogically claim that their company's products are bought solely due to value and demand.  Self-evidently, because the so-called 'XANGO MLM income opportunity,' has had no significant or sustainable source of revenue other than that deriving from its own constantly-churning, insolvent participants, its instigators have been operating a dissimulated closed-market swindle, in which losing-investments have simply been laundered as 'sales.' From all rational points of view, 'XANGO' wampum might as well not exist. 

Chart depicting Bernie Madoff's claimed '18 years of constantly-expanding profits' (in red)

'XANGO' boss Gary Hollister

Some strangely-familiar 'XANGO' propaganda

Exactly like Charles Ponzi, Bernie Madoff, Reed Slatkin, etc., the instigators of the 'XANGO' racket are narcissistic, economic alchemists who have bedazzled their victims with an avalanche of pseudo-scientific/financial hocus-pocus, in order to peddle them infinite shares of their own finite money. Amazingly, at the same time as Bernie Madoff was still steadfastly pretending to be running the 'World's Largest Hedge Fund,'  the bosses of 'XANGO' began boasting that they were running the 'World's Fastest Growing Business.' 

Ironically, in 1920, Charles Ponzi was also steadfastly pretending to be running the World's Fastest Growing Business, called the 'Securities Exchange Company.' By peddling worthless pieces of paper in denominations up to $50 000 (on which he personally signed a 'guarantee to refund bearers their initial investment + 50 % interest in 90 days'), within less than one year, Ponzi had collected more than $20 millions (the equivalent today of approximately quarter of a billion dollars). For months, people (including many police officers) were literally queueing to give Ponzi their cash, falsely-reasoning that nothing so large and visible could possibly be a fraud, and, anyway, if Ponzi was a crook, he would have been immediately arrested.

Doug Wead preaching
 the perverted 'MLM Prosperity Gospel'

Other than the fact that the two cultic rackets are essentially identical, the 'XANGO' bosses are directly linked to the 'Amway' bosses via Doug Wead and Jean or John Godzich. Classically, victims of the initial 'XANGO' fraud have been deceived into buying publications, recordings, tickets to meetings, etc., on the pretext that these 'materials/tools' contain exclusive secrets, vital to achieving success. At the same time, victims have been drawn into the universal, blame-the-victim, closed-logic, cultic trap, in which they have been conditioned to visualise their 'dreams and goals' as future reality and to believe that they can only achieve the redemption of 'financial freedom forever' through exactly duplicating the 100% positive (i.e. unquestioning) belief and behaviour of their redeemed, multi-millionaire leaders. Thus, few victims have complained, because they have falsely-believed that failure to succeed in 'XANGO' is solely the fault of the individual who didn't believe totally. Sadly, most core-victims have been deceived into joining 'XANGO' by their own friends and relatives and, in turn, they have tried to deceive their own social contacts, making the ego-destroying truth even more difficult to face.

In order to further shut down the critical and evaluative faculties of victims and casual observers, the instigators of the 'XANGO' racket have used a proportion of their ill-gotten gains to infiltrate traditional culture. e.g. In November 2006, 'XANGO, LLC,' became the main corporate sponsor of Real Salt Lake (one of N. America's most-successful professional soccer clubs) in a 4 year deal costing  between $500 000 and $1 million per year. In 2006, the company gave a 5-year, $1 million grant to Orem, Utah arts council, for naming-rights to what is currently called the 'XANGO Grand Theater.' 

Utah Senator Orrin Hatch (b. 1934)

Utah Attorney General, Mark Shurtleff (b. 1957)

'XANGO, LLC,' has been the main contributor to the political campaign of Utah Senator, Orrin Hatch, giving $47 200 in 2008 and $46 700 in 2006. However, Orrin Hatch and various members of his family (in the so-called 'lobbying' business) have been in receipt of huge quantities of cash deriving from 'XANGO' and other similar 'Mormon' owned corporate structures registered in Utah. Indeed, the de facto agents of 'MLM' racketeers have had a hand in writing an amendment to Utah State legislation, exempting 'MLM' schemes from common-sense statutes which previously banned all endless-chain, pyramid frauds. The Republican, 'Mormon' Attorney General of Utah, Mark Shurtleff, who supported this amendment (SB 182), has been heavily-backed by Utah-based 'MLM' racketeers. Furthermore, Shurtleff has been a speaker at 'MLM' orgies of deluded self-gratification.  http://www.sequenceinc.com/fraudfiles/2007/08/utah-attorney-general-improperly-endorsing-usana-health-sciences/  http://www.youtube.com/watch?v=Uv-H096uZHU

'MLM donations' to Mark Shurtleff, 2008

Orrin Hatch at 'XANGO' HQ
http://www.nytimes.com/2011/06/21/us/politics/21hatch.html?pagewanted=all

It almost goes without saying that Orrin Hatch is also a Republican and an adherent of the 'Mormon Church.' He is a qualified attorney who has served as Chairman of the Senate Committee on Judiciary and as a senior member of the Senate Select Committee on Intelligence. In the recent past, Orrin Hatch has had aspirations to become a member of the US Supreme Court. http://en.wikipedia.org/wiki/Orrin_Hatch

Yet again, when the wider-picture is examined, 'XANGO' is revealed as being one small part of a pattern of ongoing, major racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970, and clarified by subsequent US Supreme Court judgements); for without significant or sustainable external revenue, all so-called 'MLM income opportunities' have been variations of essentially the same cruel lie which has been repeated so often, that many people have come to accept it as the truth.

http://www.youtube.com/watch?v=PgYWIhkhpHI

http://romneyfacts.com/money.php?emp=XANGO

http://www.youtube.com/watch?v=r0H-NFeBco8

It almost goes without saying that Mitt Romney has been receiving stolen money from the 'XANGO,' latter-day snake oil pedlars who continue to pose as 'Latter Day Saints.'

	Name	Address	Date	Amount	Occupation/Employer	Notes	Recipient Committee
1	Jennifer Craven	278 N. 250 W. American Fork, UT	6/22/07		Executive Assistant Xango	Contribution	Romney for President
2	Dwayne Dyer	5031 Old Oak Lane Highland, UT	6/22/07		Distributor Xango	Contribution	Romney for President
3	Gordon Morton	Draper, UT	3/7/06		Co-founder Xango	[contribution]	Commonwealth PAC Federal
4	Gordon Morton	619 E. Fitz Lane Draper, UT	1/30/07		C.m.o. Xango	Reattribution To Spouse	Romney for President
5	Gordon Morton	619 E. Fitz Lane Draper, UT	1/8/07		C.m.o. Xango	See Reattribution	Romney for President
6	Gordon Morton	619 E. Fitz Lane Draper, UT	1/8/07		C.m.o. Xango	Refunded $4,200.00 On 02/08/2007	Romney for President
7	Joseph Morton	Orem, UT	6/13/06		Business Xango	[contribution]	Commonwealth PAC Federal
8	Joseph Morton	1308 S. 1100 E. Orem, UT	2/21/07		President Xango	Reattribution To Spouse	Romney for President
9	Joseph Morton	1308 S. 1100 E. Orem, UT	1/8/07		President Xango	See Reattribution	Romney for President
10	Joseph Morton	1308 S. 1100 E. Orem, UT	3/26/07		President Xango	Contribution	Romney for President
11	John FredericTempleman	4728 Mile High Drive Provo, UT	2/9/07		Executive Xango	Contribution	Romney for President

The above, official 'donations' to Mitt Romney, were declared in 2007. Obviously, if Mr. Romney is elected to the office of US President, the chances of the 'XANGO' mob being held fully to account for their financial and psychological crimes against humanity, will suddenly become even more remote than they are now.

David Brear (copyright 2012)