The Australian Broadcasting Corporation (ABC) begins to challenge the Big 'MLM' Lie.

 How MLMs like Enagic suck you in | ABC NEWS

It's quite revealing  how this well-intentioned Australian journalist is unable to find accurate words to describe the 'MLM' phenomenon.

The Big 'Multi-Level Marketing' Lie.

Introduction

How can a pile of money be made from a financially suicidal ‘business model’ that has been deliberately rigged to fail?

In 1967, an American satirical movie offered a memorable answer to this conundrum. I am of course referring to ‘The Producers,’ written and directed by Mel Brooks.

Whilst this movie went over the heads of certain humourless critics who described it as ‘controversial,’ in 1968 it won its author an Academy Award for best original screenplay. Indeed by 1996, ‘The Producers’ had long-since achieved a cult status and was deemed to be of such ‘cultural, historic and aesthetic significance,’ that it was selected by the Library of Congress to be preserved in the United States National Film Registry. For Mel Brooks’ had presented the world with a classic comedy double act - Max Bialystock, an outrageous caricature of a once successful, but now failing, New York Jewish theatrical producer (evidently suffering from Narcissistic Personality Disorder) played by Zero Mostel, and Leo Bloom, a deeply insecure Jewish accountant (evidently suffering from Social Anxiety Disorder) played by Gene Wilder. In the movie, this pair of physically and psychologically opposite characters come together and perpetrate an absurd swindle - identified by the accountant and peddled by the producer. By first building a bedazzling utopian fantasy of endless future prosperity, happiness and freedom in his mind, Bialystock overwhelms an initially reluctant Bloom, and persuades him to become his partner in crime. He then sets to work stalking and seducing a flock of wealthy, but lonely and vulnerable, old ladies. One by one, Bialystock persuades them to buy a staggering total of 25 000% of the projected profits from, what he assures them will be, a sure-fire hit stage musical which he and Bloom are producing on Broadway. However, he doesn’t tell them that the show has been written by a deranged devotee of Adolf Hitler, Franz Liebkind, or that it will venerate the ‘führer’ and the ‘Nazis.’ For the show, ‘Springtime for Hitler,’ has been carefully selected by its producers with the hidden criminal motive of offending a sophisticated New York theatre audience to such an extent, that it will be doomed to close after only one disastrous performance. Just to make certain that it will immediately bomb, Bialystock and Bloom recruit an aggressively kitsch transvestite, Roger DeBris, to direct the show, and they find a drug-fuelled pacifist-hippie, Lorenzo Saint DuBois (LSD), to play Hitler. On opening night, Bialystock even makes an enemy of the New York Times theatre critic, by offering him a bribe.

The devious plan being that, seeing as ‘Springtime for Hitler’ has cost Bialystock and Bloom only a mere fraction of their available financing to stage, when inevitably it sinks without a trace, the Internal Revenue Service will have no reason to investigate Bloom’s fraudulent declaration that no profit was made. Moreover, the old ladies who collectively have vastly over-financed the show, will believe that they simply made a bad investment. As ill-informed and isolated individuals, they too will have no reason to suspect fraud. Thus, Bialystock and Bloom will be able quietly to keep the large pile of excess finance. However, when despite all their sabotage efforts, ‘Springtime for Hitler’ turns out to be a smash hit predicted to ‘run and run,’ the producers along with the show’s author wind up behind bars. Ultimately, they are seen duplicating the same fraud on their fellow inmates and the prison warden, with Bialystock and Liebkind directing rehearsals and Bloom over-selling shares in their latest sure-fire hit production, ‘Prisoners of Love.’

Now most people would automatically assume that, in the real world, it wouldn’t be quite so easy to perpetrate essentially the same absurd, blame-the-victim swindle, albeit hidden behind an a far more impenetrable and confusing ‘sure fire business model,’ but again one deliberately rigged to fail. A swindle not just based on the same, one-off, financially suicidal modus operandi as described above, but now expanded and duplicated on an industrial scale and baited to keep ensnaring a much wider range of unwitting victims. Indeed, to the average person, the idea that numerous gangs of copycat charlatans have been allowed to keep peddling the same insidious game of commercial make-believe as reality, steadily exploiting, isolating and silencing many millions of losing investors around the world over a period spanning several decades, and thereby get away with stealing a veritable mountain of money, would seem to be beyond the bounds of possibility. However, it should be remembered that the best way of hiding something, is to place it in plain sight and make as big as you possibly can. 

Thus, I managed to live more than three decades without ever hearing the made-up technical-sounding phrase, 'Multi-Level Marketing,’ or its catchy abbreviation, ‘MLM.’ Today, I wish this contagious nonsense had never entered my life, but unfortunately, I had no choice in the matter. Whilst reading the history of my own nightmare encounter with the original 'MLM commercial' cult known as 'Amway' (corruption of 'The American Way'), bear in mind that, when these disturbing events first started to unfold, I had no idea of the extraordinary level of danger my family was in, or of the true nature, extent and power of the phenomenon I was confronted with. As yet, there was no plain language explanation of 'MLM commercial' cultism readily available. That's why I began the thankless task of compiling one as long ago the late 1990s. However, at that time, I was still trying to find the right words to identify it accurately. Even when I did find the right words, I discovered that the ugly, but ultimately absurd, truth about the 'MLM commercial' cult phenomenon was still unthinkable to most people. The truth being that what has become commonly referred to as, 'the MLM business model,’ has been nothing more than a classic example of the notorious, reality-controlling, totalitarian propaganda tactic known as the 'Big Lie.' That is to say, the spreading of a falsehood which is so colossal and outrageous that the average person cannot even begin to conceive that anyone would have the audacity to invent it. Indeed, when I first began to challenge the Big 'MLM' Lie, I was faced with the daunting situation where it had been repeated, largely unchallenged, so often and for so many years, that a remarkable number of apparently sophisticated and rational people had come to accept it as the truth.

The situation is still daunting, but lately it has begun to change in that, mainly due to the Internet, an increasing number of courageous 'MLM commercial' cult survivors have found accurate information, as well as mutual support, enabling them to come forward and describe their essentially identical experiences. Also, whereas in the past many 'MLM' converts were men, who naturally found it hard to admit to the world that they'd been duped, lately the majority of persons being lured into, and exploited by, these pernicious groups, have been women. Furthermore, in 2019, my American associate, Robert FitzPatrick, published 'Ponzinomics.' In this book, Robert not only goes a long way towards identifying the true nature of the 'MLM commercial' cult phenomenon, but he also traces the history and origins of the Big 'MLM' Lie and explains how a pair of its earliest creators managed to obtain the highest-level of protection in the USA. As a result, politically appointed senior Federal Trade Commission officials effectively raised the white flag of surrender to predatory criminals, albeit dressed up as respectable businessmen, when, starting in the 1970s and despite significant levels of complaint, they set aside an established, common-sense legal precedent which had automatically identified and banned all endless-chain recruitment frauds, previously labelled as, 'pyramid selling schemes.' For, even though it had been under investigation for years and was facing civil prosecution, these senior officials eventually latched onto a convenient pretext not to go ahead and shut-down the corporate-front for the original 'MLM commercial' cult upon which all subsequent versions have been, and continue to be, modelled. This dubious decision was evidently made (in part) because the bosses of 'Amway,' Messrs. Richard DeVos and Jay Van Andel, with a Bible in one hand and the Stars and Stripes in the other, had purchased association with their local congressman (fifth Michigan district) with significant quantities of stolen money. The beneficiary of these ill-gotten gains was none other than Gerald Rudolph Ford Jnr. - a politician not exactly noted for his intellectual capacity, but nonetheless someone of great influence. For those readers who are perhaps too young to remember him, Gerald Ford was leader of the Republican party in the House of Representatives 1965-1973, becoming US vice-president under Richard Nixon when, in 1973, Spiro Agnew (who was under investigation for corruption), pled guilty to a minor felony charge and was obliged to resign. Ford went on to become US president 1974-1976 after Nixon himself was obliged to resign rather than face certain impeachment over the Watergate scandal. Thus, Ford remains the only person to have held both the office of US vice-president and US president, without being elected to either. He is also the president who granted a pardon to Nixon for the crimes he'd committed whilst in office.

However, the coopting of Gerald Ford to play the role of ‘Amway’s’ useful idiot was only one step in DeVos and Van Andel’s well-financed infiltration, and subversion, of the US legislative process and justice system. Indeed, there can be absolutely no doubt that, culminating in 1979, the chiefs of an important civil regulatory agency of the US federal government played politics, and in so doing, completely failed in their appointed task of protecting the American public. As a direct consequence, the FTC brought about the birth of the essentially meaningless phrase, 'Multi-Level Marketing is legal.' In this way, a ridiculous, but nonetheless insidious, endless-chain recruitment fraud was effectively authorized in the USA. Furthermore, this major American regulatory lapse enabled the profitable racket of 'MLM commercial' cultism not only to be extensively reproduced in the USA, but also to be exported around the world, now hidden behind the pretence that ‘the MLM business model (as developed by the founders of the Amway Corporation)’ had been ‘thoroughly examined and approved by the US government… So, anyone imagining it’s a fraud must be some sort of hate-filled anti-capitalist or a crazy conspiracy theorist.' Not surprisingly, subsequent generations of politically appointed senior FTC officials have all refused to admit publicly to their predecessors' catastrophic failure and their own chronic negligence - for which, one day, a sitting American government might find itself liable. In this way, the Big ‘MLM’ Lie was permitted to transform and expand into a well-oiled machine for stealing and laundering money on a global scale - each year bringing billions of dollars into the USA, and all right under the noses of officials who have continued to allow this plunder to be falsely declared, with the paid-compliance of some of the world's largest accountancy firms, as 'retail sales revenue.' However, plenty of senior FTC types, as well as high-ranking US politicians, including a certain Donald John Trump, have all had their snouts planted in this almost bottomless trough of foreign and domestic loot, set before them by the bosses of a multiplication of 'Amway' copy-cat 'MLM' cultic rackets whose essentially identical camouflaged criminal activities they have conveniently refused to identify. Indeed, the number of senior FTC officials who have accepted, and continue to accept, tempting offers of well-paid employment from 'MLM' front-companies, or law and accountancy firms, co-opted to hear no evil, see no evil and speak no evil whilst playing along with the Big 'MLM' Lie, is truly astonishing.

All this begs the not unreasonable question: other than enabling a growing number of unoriginal gangs of devious con artists to get away with thieving from the entire planet for the best part of half a century, what exactly has been the point of having such a spineless, easily-corrupted and, therefore useless government agency as the FTC?, when in 'Ponzinomics' one independent American does far-more to protect his fellow citizens from the Big 'MLM' Lie, than the entire one thousand five hundred+ FTC staff (including more than five hundred attorneys and seventy economists, with an annual budget of hundreds of millions of dollars) have ever done. In fact, Robert explains in great detail why, completely contrary to the ambiguous official message broadcast by the FTC for more than forty years, it has not just been ‘a few bad apples,’ but all 'Amway' copy-cat so-called 'MLM Income Opportunities' that have been centrally controlled rigged-market swindles, hiding their inevitable, effectively 100%, overall net-loss/churn rates of endless-chains of transient contractors. For the crack-pot pseudo-economic theory which has been falsely-labelled the 'MLM business model,' was maliciously designed to be flawed-financially, to the point where it would be impossible for any so-called 'MLM' company to derive the majority of its revenue lawfully from persons who are not its own ill-informed investors motivated by the false expectation of a future reward. In even more accurate terms, 'MLM/commercial' cults have all comprised groups, and sub-groups, of susceptible individuals who have been subjected to identifiable, co-ordinated devious techniques of social, psychological and physical persuasion designed to shut down their critical and evaluative faculties, and thereby convert them, without their fully informed consent, to the self-perpetuating and self-gratifying, but ultimately self-destructive, delusional belief that: endless recruitment + endless purchases by the recruits = endless profits for the recruits. For this reason, Robert FitzPatrick coined the word, 'Ponzinomics,' in an attempt to place an appropriate label on the financially suicidal activity that, to their eternal shame, generations of senior FTC officials, their advisers and political masters, have permitted to be passed off and normalized around the world as, ‘a viable and legal part of the direct selling industry.'

Thus, 'Ponzinomics' can be briefly defined as the dark art of peddling unwitting persons infinite shares of their own finite money, because what the FTC has consistently refused to acknowledge publicly, is the undeniable fact that any claim, or implication, that one penny of extra net-income, let alone life-changing sums of money, can be generated lawfully by participating in an 'MLM business opportunity,' is dangerous comic-book nonsense designed to entice and deceive. Indeed, it should be glaringly obvious that the Big 'MLM' Lie is far-too-good to be true, whilst it's no secret that what used to be the traditional direct selling industry (once known as ‘door-to-door peddling’), has long-since died out. Its demise being due to many evolving social and economic factors; not least the arrival of supermarkets, hard-discount stores and online shopping. Furthermore, 'MLM' products/services have been offered at fixed, often exorbitant, prices, rendering them effectively unsaleable on the open market to persons with fully functioning critical and evaluative faculties; whilst no so-called 'MLM' company has ever set common-sense limits on the number of contractors being recruited, or on the areas of population where these so-called 'distributors/direct sellers' are supposed to find customers. Just imagine what would happen if the bosses of McDonalds fixed the price of their company’s hamburgers at twice that of their competitors and set no limits on the number of franchises they sold, or any restrictions on the locations where all these demonstrably unviable catering establishments were supposed to operate shoulder to shoulder?

Once the utter absurdity of the so-called 'MLM business model' is fully understood, anyone with a modicum of common-sense, and/or the most-rudimentary hands-on experience of commerce, ought to be immediately able to deduce that no ‘Amway’ copy-cat company can ever have been, or will ever be, found by the FTC voluntarily disclosing the true results of its economically incestuous activities and operating lawfully. Indeed, this ongoing situation is beyond farcical, because when asked the most obvious of questions, it goes without saying that American regulators and their academic advisers, have never been able to come up with one solitary example of a so-called 'MLM' company that would be able pass independent rigorous inspection. Yet despite the lengthy list of common-sense reasons proving that there can be no such thing as ‘a viable and legal MLM income opportunity,' FTC officials, guided by a cabal of smug dunces with diplomas, came up with a truly pointless and stupid ‘test.’ This boils down to them throwing common-sense out of the window whilst laboriously trying, on rare occasions and on a case-by-case basis, to determine that a so-called 'MLM' company, suspected of being a pyramid scheme, has not been deriving the majority of its income lawfully from authentic retail sales (i.e. based entirely on value and demand) to members of the general public (i.e. persons who have not been contractors of the so-called 'MLM' company motivated by the false expectation of a future reward). Thus, since 1979, less than forty ‘Amway’ copycats have been investigated and shut down by the FTC as dissimulated pyramid schemes, whilst hundreds more have continued to appear, but without the slightest attempt to stop them. Laughably, FTC officials have listed other ‘pyramid scheme red flags' for the public to look out for, and the agency has even posted stern warnings that 'MLM companies have caused, and are still causing, extensive damage to consumers, because some MLM income opportunities are actually pyramid schemes in disguise.' At the same time, American regulators, without the slightest concern for the extensive damage they themselves have caused and are still causing, have continued bleating the Big 'MLM' Lie, by insisting that 'MLM is a viable and legal branch of the direct selling industry.' Yet no one at the FTC has ever seen a shred of quantifiable evidence proving that this ridiculous adult fairy story can be true. In fact, when asked in the most specific of terms, if they have ever seen such evidence, like income-tax payment receipts, it has been impossible to get any meaningful, let alone the only truthful, response to this simple ‘yes/no’ question. Another highly revealing question that FTC types have obviously shied away from answering, is: what would be your own reaction if a vulnerable individual you care about suddenly underwent a radical personality transformation, and declared that he/she had signed up for a so-called 'MLM income opportunity?' Thus, in respect of their Orwellian refusal to tell the truth publicly, and identify the Big 'MLM' Lie, Robert FitzPatrick has compared the inflexible attitude of FTC officials, and their advisers, to a body of humourless scientists who have been paid to investigate the manifestly preposterous claim that 'pigs might fly,' but after decades of examining an assortment of wingless swine, they still insist on continuing their futile, but financially profitable, quest whilst systematically refusing to consider even the suggestion that there can be no such mythical creature.

At this point, I should perhaps declare that, although I am an 'MLM commercial' cult survivor, I was never an adherent of one of these pernicious groups. Unfortunately, I found myself shackled financially to a person, my only brother, who at a time of vulnerability, had fallen under the spell of the Big 'MLM' Lie. Again, when these disturbing events started to unfold, I did not fully understand that my brother was ideal prey to be lured and defrauded, then used as bedazzled-bait to lure and defraud others; all for the benefit of a little gang of sanctimonious American billionaire-charlatans posing as 'Compassionate Capitalists,' and whom he had never met. Yet classically, my brother was an ideal subject to be deceived, for the simple reason that he was completely convinced that he was far too smart to be deceived. Thus, once enslaved inside the ‘MLM’ trap, the most powerful weapon in the hands of the criminals exploiting him, was my brother’s own mind. However, initially I failed to grasp just how dangerously deluded and devious 'MLM commercial' cult adherents can be. That said, like many people whom they approach, I immediately realised that they are living in a parallel reality, completely obsessed with trying to recruit you into what is quite clearly a dumb pyramid scheme, but which they insist is 'part of the legal MLM direct selling industry and definitely not a pyramid scheme.' What took me much longer to fathom, is that core-'MLM commercial' cult adherents are also living by a parallel, and perverted, code of morality. Their destructive behaviour is controlled by the self-righteous guided-delusion that, by recruiting you, and even by lying to you, they are ultimately helping both themselves and you to achieve future redemption in a secure Utopian existence - a form of Capitalist Paradise on Earth - where no one has a job, but everyone is his/her ‘own boss’ - a happy, healthy, prosperous and free 'MLM business owner.'

Thus, it should always be remembered that chronic 'MLM' adherents' belief can be quite genuine, but what they believe in, and have bought into body and soul, is a colossal and bedazzling fake. The irony of all this being, that the Big 'MLM' Lie has continued to thrive, because its most-fanatical adherents have been tricked into wasting their own time and money spreading it and hiding the truth about it, combined with law enforcement agents' and legislators' chronic, and catastrophic, failure to identify it accurately. Although they have no idea what they are really involved in, active 'MLM' adherents are, in fact, proselytising-evangelists for a camouflaged, non-rational, ritual belief system (call it a 'perverted religion' if you like) which has been maliciously designed not only to spread like a contagion - enticing, deceiving, robbing, exploiting and abusing susceptible individuals and their friends and families - but also to load its victims with shame and guilt for their inevitable failure to succeed, and thus, prevent them from facing reality and complaining. Consequently, whilst they remain under the control of the Big 'MLM' Lie, its most-dangerous adherents should be seen for what they really are - the deluded deployable agents of a de facto syndicate comprising the bosses of some the most widespread, socially, psychologically and financially destructive organized cultic crime groups to have emerged in recent history.