On this thought-provoking Blog, Englishman, David Brear, guides us to the dark heart of a modern-day, totalitarian labyrinth and shines a piercing light on its manipulative rulers and manipulated inhabitants. First, he provides a spool of unbreakable thread so that we can all find our way safely home. Blog readers may contact David Brear via: axiombooks@wanadoo.fr
'Kurnool Superintendent of Police Raghurami Reddy said Pinckney was apprehended in Gurgoan on Monday and was brought to Kurnool on a warrant. The arrest was based on a complaint alleging unethical circulation of money through Amway's operations.
"He will be produced in the court shortly. The CEO has been booked under the Prize Chits and Money Circulation. Schemes (Banning) Act," Reddy said.
This is the second time that the Amway India CEO has been taken into custody. A year ago Kerala Police arrested Pinckney and two company Directors on charges of financial irregularities.'
Amway India Enterprises Chief Executive Officer William S Pinckney is arrested by Kurnool police headed by Superintendent of Police Dr Kolli Raghuram Reddy following a complaint lodged by an advocate Jagannadh Reddy.
It may be recalled that William Pinckney was arrested by Kerala police last year on the same charges of cheating and indulging in illegal money circulation schemes popularly known as Ponzi schemes. During that time also, not surprisingly, the Amway India Enterprises did not approach the judiciary for redressal of their grievance, if any, since it knew well that all the avenues of judiciary were already exhausted by the fraudulent company.
The Division Bench of Andhra Pradesh High Court has categorically stated in a landmark judgement that the business model of Amway India attracted the provisions of Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Later, the Supreme Court upheld the judgement of AP High Court.
In essence, all the roads are closed on Amway and it is high time it closed all its illegal operations in the country.
It is hoped that the police would act soon on the other complaints pending against the Amway and curb the illegal activities and put an end to the international fraud
Sub: Cognizable Offences of Promoting illegal Money Circulation Scheme, cheating and looting the gullible public with the promise of get quick rich scheme by the Amway India Enterprises and its promoters, members in Hyderabad City in the guise of sale of health and dietary supplement products – Request to inquire and take action against Amway India Enterprises, its promoters, members for indulging in cheating, promotion of illegal Money circulation scheme – Regarding.
*************
1. I, M V Syam Sundar, Secretary, Corporate Frauds Watch Society, Hyderabad, humbly submit that Amway India Enterprises set up office near Yasoda Hospital, Somajiguda, Hyderabad (which lies in the jurisdiction of the officer) and has been promoting illegal Money Circulation Scheme in the guise of sale of goods by enrolment of members in chain system with the inducement of get quick rich. The details of the Amway India Enterprises are as follows.
2. The Enrolment scheme of the Amway:
Amway is a company registered under the Companies Act. The scheme of Amway is 6-4-3 scheme. The first person has to sponsor 6 persons and these 6 persons have to sponsor 4 persons each totalling 24 persons and in turn these 24 persons have to sponsor/enrol 3 persons each totalling 72 persons. Thus these 103 (1+6+24+72) persons are called as one leg for income calculation purpose and this chain keeps on goes unchecked. The person should be enrolled by an already enrolled member so as to maintain chain. Initially, the entrance fee of the Amway is Rs.4,500/-. Now waived this entrance fee, but the new entrants have to purchase products worth Rs.4,500/- otherwise their membership will expire. After payment of some amount, an identity card and some products will be delivered by the company at the time of joining in the name of business kit. Joining a member into the scheme is treated as sale of products. The new person who joined in the scheme is called Amway Business Owner or ADA or ABO or downliner. The person who made the new member to join in the scheme under him is called upline member. Commissions are given not only on the event of personal efforts of their direct enrolment/sponsoring but also on the contingency relative or applicable to sponsoring of new members by their downline members. The promise of commission on the enrolment of new members will be as follows:
Sl. No.
No. of persons to be joined by self or downline members
Promise of commission in percentage
Business turn over credited in the members account based on his sponsoring activity of new members
1.
3 Persons
6%
Rs.13,500/- (3 persons xRs.4500/-)
2.
10 persons
9%
Rs.45,000/-
3.
20 persons
12%
Rs.90,000/-
4.
40 persons
15%
Rs.1,80,000/-
5.
70 persons
18%
Rs.3,35,000/-
6.
100 persons
21%
Rs.4,50,000/-
Apart from this Amway induces that it will give Rs.50,925/- per month if any person sponsor or enroll 102 persons under his downline. The commissions are said to be distributed to all the members in the chain/network from last person to Amway in U.S.A. as commissions on group turnover.
3. Amway company further has been awarding titles to its members based on their enrollment of new members into its scheme. There are 22 levels in the scheme of Amway namely 1) Silver, 2) Gold, 3) Platinum, 4) Ruby, 5) Founders Platinum, 6) Founders Ruby, 7) Sapphire, 8) Founders Sapphire, 9) Emerald, 10) Founder Emerald, 11) Diamond, 12) Founders Diamond, 13) Executive Diamond, 14) Founders Executive Diamond, 15) Double Diamond, 16) Founder’s Double diamond, 17) Triple Diamond, 18) Founder’s Triple Diamond, 19) Crown Diamond, 20) Founder’s Crown, 21) Crown Ambassador and 22) Founder’s Crown Ambassador. The title holders will get huge and fabulous easy money in the form of group income which purely depend on the enrolment of new members into the scheme but not depend on the sale of products.
4. During seminar, the members of Amway/speakers have brainwashed to target wives of Govt. officials, middle class, retired persons, unemployed youth to get them into the scheme so as to spread network.
5. The Hon’ble High Court of A.P. also held vide WP 20470/2006 that the scheme of Amway is nothing but illegal Money Circulation Scheme and the Hon’ble Supreme Court of India also upheld the same vide SLP No.13414/2007. Moreover the Government of A.P. has also issued a G.O. Vide G.O.Ms.No.178 dated 15/9/2008 restraining the Amway from issuing advertisements, still Amway has been issuing advertisements in contravention of The Prize Chits and Money Circulation Schemes (Banning) Act, 1978.
6. The Hon’ble High Court of AP in Speakasia case (CRLP 5626/2011) held that there is no need of any loss or misappropriation of funds to attract an offence under Prize Chits and Money Circulation Schemes (Banning) Act 1978. Mere informing a scheme, which covered under the money circulation scheme and enrolling members as subscribers, itself is an offence. Further Hon’ble Supreme Court of India in Kuriachan Chacko case (2008(8) SCC 710) held that the scheme of enrolment of members leads to mathematical impossibility that amounts to cheating, as such the Amway has been cheating and promoting the illegal money circulation scheme in the guise of sale of products.
7. I submit that so far Amway India Enterprises has cheated lakhs of people in Hyderabad and looted crores of rupees from the members of the Hyderabad by promoting illegal Money Circulation Scheme.
8. Hence, I pray that the Dy. Commissioner of Police, CCS, Hyderabad may be pleased to initiate criminal action against Amway India Enterprises, its promoters and members for cheating, looting by extortion the hard earned money of gullible public by making false promise of get quick rich, by putting mental torture in the name of seminars and for promoting illegal money circulation scheme in the guise of sale of products by enrolment of members into its scheme.
Yours faithfully,
(M. V. Shyam Sundar)
Copy to Addl. Commissioner of Police (Crimes), Hyderabad City.
The operators of a Kentucky-based pyramid scheme, which enrolled more than 350,000 consumers throughout the United States, Puerto Rico and Canada in the last four years, have been banned from multi-level marketing under a settlement with the Federal Trade Commission and the states of Illinois, Kentucky and North Carolina. The settlement also requires the operators to surrender assets totaling at least $7.75 million, which will be returned to consumers.
In January 2013, the FTC and the states charged the Fortune Hi-Tech Marketing (FHTM) defendants with deceiving consumers by claiming they would earn significant income through selling various products and services if they signed up as FHTM representatives. In recent years, the scheme targeted Spanish-speaking and immigrant communities. Participants were required to pay substantial start-up costs and monthly fees to retain their positions with the company. The court subsequently halted the deceptive practices, froze the defendants’ assets, and appointed a receiver over the corporations pending a trial.
After conducting its own investigation, the court-appointed receiver determined that FHTM’s main business was recruiting new members and not selling products and services as it claimed, and confirmed the allegations made by the FTC and the states. The overwhelming majority of participants – more than 98 percent – lost more money than they ever made. At least 88 percent of consumers did not even recoup their enrollment fees. To the extent that consumers could make any income, it was mainly for recruiting other consumers into FHTM’s scheme. More than 81 percent of the payments to participants were based on recruiting new members and not for the sale of products or services. Not surprisingly, at least 94 percent of consumers did not renew their membership after their initial year.
In addition to the multi-level marketing ban, the settlement order permanently prohibits Thomas A. Mills, Fortune Hi-Tech Marketing Inc., FHTM Inc., Alan Clark Holdings LLC, FHTM Canada Inc., and Fortune Network Marketing (UK) Limited from misrepresenting material facts about any product or service, including claims concerning how much money consumers can earn. The order also bars the defendants from selling or otherwise benefitting from customers’ personal information, failing to properly dispose of customer information, and collecting any additional money from customers.
The order imposes a judgment of more than $169 million, which will be partially suspended when the defendants have surrendered certain assets with an estimated value of at least $7.75 million, including assets of the deceased defendant Paul C. Orberson’s estate. The full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.
The settlement resolves all of the FTC’s claims against the defendants, as well as the claims brought by Illinois, Kentucky and North Carolina.
The Commission vote approving the proposed stipulated order was 4-0. The order was entered by the U.S. District Court for the Eastern District of Kentucky, Central Division at Lexington, on May 9, 2014.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
In 1945, whilst most, contemporary mainstream commentators were unable to look beyond the ends of their noses, with a perfect sense of irony, Eric Arthur Blair a.k.a. George Orwell (1903-1950) presented fact as fictionin an insightful 'fairy story' entitled, 'Animal Farm.' Herevealed that totalitarianism is merely the oppressors' Utopianfiction mistaken forfact by the oppressed.
In the same universal allegory, Orwelldescribed how, at a time of vulnerability, almost any people's dream of a future, secure, Utopian existencecan 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 'Capitalist' label, most contemporary, mainstream commentators have again been unable to look further than the ends of their noses. However, if they followedOrwell'sexample, and did some serious thinking, this is the reality-inverting nightmare they would find.
More than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as'Multi-Level Marketing'is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term'MLM,'is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'),and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, lead generation, programs,'etc.).
The overwhelming majority of all the countless millions of ill-informed victims who have been consumed by individual 'Income Opportunity/Prosperity Gospel' cults, have remained silent and passive, and continued (unconsciously) to form part of the overall lie: whilst, as a direct result of the silence and passivity of the overwhelming majority of the ill-informed victims, all casual observers of individual 'Income Opportunity/Prosperity Gospel' cults(including, law enforcement agents, regulators, academics, legislators, judges, journalists, etc.) have also remained silent and passive, and have continued (unconsciously) to form part of the overall lie.
Today, it is very difficult to determine exactly how many people in total around the world have already been churned through the pay-through-the-nose-to-play'MLM Income Opportunity/Prosperity Gospel' cultic game of make-believe, since it was first peddled as reality under the name of 'Nutrilite Inc. /Mytinger and Casselberry Inc.' back in the late 1940s. It is also important to distinguish between short-term and chronic, losing-players. In general, the overwhelming majority of fraud victims never complain, but, right from the outset, theself-perpetuating 'MLM ' lie was maliciously designed to implicate its ill-informed victims - loading them with shame and guilt, and, thus, prevent them from ever facing reality. Classically, the quantifiable evidence proves that, without exception, chronic, losing-players have been subjected to co-ordinated devious techniques of social, and psychological, persuasion designed to shut down their critical, and evaluative, faculties. In this way, they have been conditioned (unconsciously) to think of themselves, not as the victims of a cruel deception or as brainwashed cult adherents, but as 'Independent Business Owners' exercising free-will. What has made external reality even more unacceptable, is the ego-destroying fact that a large proportion of ill-informedvictims were deceived by a close friend or relative and, in turn, these new ill-informed victims then deceived, or tried to deceive, their own ill-informed close friends and relatives. The few, destitute, chronic, former losing-players who have managed to recover fully their critical, and evaluative faculties, and who have filed well-informed civil lawsuits against the corporate fronts of 'Income Opportunity' cultic racketeers, have invariably been obliged to settle out of court. Although a number of isolated civil investigations, and successful prosecutions, have been pursued by the Federal Trade Commission against some smaller 'Income Opportunity' front-companies in the USA, no co-ordinated official effort has ever been made to face wider-reality and identify, let alone tackle, the overall criminogenic/cultic phenomenon that has lurked behind all the shielding layers of structural, and pseudo-economic/scientific, mystification, reality-inverting 'commercial' jargon and kitschcapitalist/Utopian/American Dreamimagery.
Until the 1970s, the original 'MLM Income Opportunity/Prosperity Gospel' cultic racket 'Nutrilite' a.k.a.'Amway,' remained confined to the USA. In the face of a prolonged (but far-from morally, or intellectually, rigorous) FTC investigation, the 'Amway/MLM' lie first spread to Canada, then to W. Europe and Australia. However, in 1979, when a corrupt, and/or naive, US federal judge failed to identify 'Amway' as the corporate-front for an ongoing, major, organized crime group, this classic regulatory-failure was widely-seen as a license to steal. Since that time, countless US-based copy-cat rackets have been instigated behind labyrinths of legally-registered corporate structures pursuing lawful, and/or unlawful, enterprises - a significant number of which ('Forever Living Products', 'Herbalife', 'USANA', 'Nu Skin', 'Xango'etc.), have been allowed to grow out of control and to infiltrate traditional culture all around the globe, accompanied by a distracting flock of co-opted political, academic and celebrity useful idiots, and shielded by a parallel labyrinth of legally-registered corporate structures known as, 'Direct Selling Associations.'
In the past, various casual observers have thrown up their hands in horror when I have dared to say that, given its duration, scale and devastating impact on huge numbers of vulnerable persons, blame-the-victim'Income Opportunity/Prosperity Gospel' culticracketeering is an ongoing financial, and psychological, holocaust (with a small 'h') of which many people have been in denial. Sadly, the essentially-absurd fairy story entitled 'MLM Income Opportunity' has been allowed to expand to such titanic proportions, that the truth has long-since become almost unthinkable. However, since the concept of the big propaganda lie, is widely-understood, it seems almost inconceivable that the directors of law enforcement, and intelligence, agencies around the world have also remained unable to look beyond the ends of their noses and identify what the bosses of'MLM/Prosperity Gospel'cults have actually been doing.
Fortunately, the great weakness of all totalitarian groups is that, once you know how they function (by deceiving their adherents into accepting aUtopian fiction as fact),the inflexible reality-inverting reactions of these groups to any challenge to their authenticity, can be predicted with almost 100% accuracy, because they are all compelled to continue to follow essentially the same scenario of control.
David Beckham’s spokesman, Simon Oliveira, distanced the former England soccer captain from 'Herbalife.' Oliveira insisted that Beckham had nothing to do with 'Herbalife' personally. 'Herbalife is the LA Galaxy sponsor and David has no direct relationship with them,' he said.
'MLM Income Opportunity/ Prosperity Gospel' cults like 'Herbalife'have been deliberately designed to shut-down the critical and evaluative faculties of not only their victims, but also those of all casual observers. To the average person, celebrity opinion makers, like Madeleine Albright and David Beckham, cannot possibly be associated with a criminal racket, but when you have billions of dollars, it is possible to buy association with just about anyone (particularly, in the USA). Mr. Beckham is a man who, although extremely wealthy and internationally famous, is not exactly noted for his intellectual capacities, but even he has had the gumption to try to distance himself from the'Herbalife' racket.
'Herbalife' useful idiot, Madeleine Jana Korbel Albright (b. 1937)
However, in the case of Ms. Albright, it beggars belief that someone with her background and achievements can have fallen for a kitsch 'capitalist'adaptation of the age-oldtotalitarianUtopian fairy story. Surely, she must have read George Orwell's 'Animal Farm.'Consequently, I am publicly asking Madeleine Albright the following, common-sense question :
Before you became associated with'Herbalife,'exactly what quantifiable evidence did you see which proved that a significant number of people have actually earned an overall net-income lawfully from regularly retailing'Herbalife'products to the general public for a profit (based on value and demand).
Some more, obvious questions which apparently have never entered Madeleine Albright's head, are:
How much profit have 'Herbalife's' pay-through-the-nose-to enter mass-meetings generated over the years?
Who has controlled this hidden mountain of cash?
Why do unquestioning core-'Herbalife' adherents feel the need to keep paying through-the-nose-to attend, and participate in, what are essentially the same, totally-'positive' Utopianperformances, time after time?
Do the critical, and evaluative, faculties of persons attending, and participating in, 'Herbalife' mass-meetings, appear to be fully-functioning?
What would happen if anyone attending, and participating in, a 'Herbalife' mass-meeting attempted to show dissent from the group's totally 'positive' Utopian controlling scenario?
In recent history, what other centrally-controlled, non-democratic mass-movements (occulted by labyrinths of legally-registered corporate structures) have secretly raised mountains of tax-free cash for their self-appointed sovereign leaders, by obliging their unquestioning adherents to keep buying publications, recordings, tickets to meetings, esoteric accessories, uniforms, badges, etc., on the pretext that, by doing so, they can eventually build, and enter, a future, exclusive, secure Utopian existence?
Could the 'Herbalife' racketeers use their paid-association with me (Madeleine Albright) to try to give the appearance of association with other (even-more influential) persons?
As a former high-ranking member of the US government and public servant (particularly, one who has represented the people of the USA internationally), shouldn't I always exercise the utmost caution before entering into any commercial arrangement in which not only my name and reputation, but also the name and reputation of the US government, might possibly be used to facilitate the committing of criminal acts?
During the last 6 years, Madeleine Albright's company , 'Albright Stonebridge Group,' has received approximately ten millions dollars from a gang of blame the victim 'MLM income opportunity' cultic racketeers. In return for this pile of stolen cash, Ms. Albright has betrayed every single value that she (and her late father) ever claimed to have stood for, by enthusiastically participating in committing fraud and obstructing justice.
'Herbalife's' most-useful idiot, Madeleine Albright, and her associates, can have absolutely no moral or intellectual justification for holding onto the ten millions pieces of silver they have received from the bosses of the 'Herbalife' racket.
Ms. Albright's only possible ecape from this shameful situation, will be silence or a limp claim of ignorance. However, if, after being confronted with reality, Ms. Albright still insists that 'Herbalife/MLM'has been an entirely lawful enterprise and that she has done no wrong, then she too should be personally held to account.
With an irony that is close to exquisite, Madeleine Albright currently chairs the Advisory Council of 'The Hague Institute for Global Justice.'
According to its own Website:
'The Hague Institute for Global Justice is an independent, nonpartisan organization established to conduct interdisciplinary policy-relevant research, develop practitioner tools, and convene experts, practitioners and policymakers to facilitate knowledge sharing. Through this work the Institute aims to contribute to, and further strengthen, the global framework for preventing and resolving conflict and promoting international peace.
The Hague Institute for Global Justice, or simply The Hague Institute, was established in 2011 by the city of The Hague, key Hague-based organizations and with support from the Dutch government. Located in the city that has been a symbol of peace and justice for over a century, The Hague Institute is positioned uniquely to address issues at the intersection of peace, security and justice.'
Madeleine K. Albright is Chair of Albright Stonebridge Group, a global strategy firm, and Chair of Albright Capital Management LLC, an investment advisory firm focused on emerging markets. Dr Albright was the 64th Secretary of State of the United States. In 1997, she was named the first female Secretary of State and became, at that time, the highest ranking woman in the history of the U.S. government. From 1993 to 1997, Dr Albright served as the U.S. Permanent Representative to the United Nations and was a member of the President’s Cabinet. She is a Professor in the Practice of Diplomacy at the Georgetown University School of Foreign Service. Dr Albright chairs both the National Democratic Institute for International Affairs and the Pew Global Attitudes Project and serves as President of the Harry S. Truman Scholarship Foundation. She also serves on the Boards of the Council on Foreign Relations, the Aspen Institute and the Center for a New American Security.
'Herbalife is a global nutrition company publicly traded on the New York Stock Exchange. We have more than 7,400 employees, millions of customers and for more than 30 years we have been committed to bettering the lives of those we touch with products that support and encourage a healthy, active lifestyle.' http://iamherbalife.com/
The latest, predictable move by the 'Herbalife' Ministry of Truth, is the creation of a kitsch, new Website which serves up a veritable feast of reality-inverting Utopian'MLM' propaganda; all of which has been designed to obstruct justice in order to continue to commit fraud. Despite what they now steadfastly pretendto be reality, for decades, the propagandists at the 'Herbalife' Ministry of Truth have been constantly repeating the absurd lie that 'Herbalife' has'helped millions' of people to 'realize' their 'financial dreams.' Here are the actual testimonies of just some of these financial dreamers.
'The purpose of Newspeak was not only to provide a medium of expression for the world-view and mental habits proper to the devotees of Ingsoc, but to make all other modes of thought impossible. It was intended that when Newspeak had been adopted once and for all and Oldspeak forgotten, a heretical thought — that is, a thought diverging from the principles of Ingsoc — should be literally unthinkable, at least so far as thought is dependent on words. Its vocabulary was so constructed as to give exact and often very subtle expression to every meaning that a Party member could properly wish to express, while excluding all other meanings and also the possibility of arriving at them by indirect methods. This was done partly by the invention of new words, but chiefly by eliminating undesirable words and by stripping such words as remained of unorthodox meanings, and so far as possible of all secondary meanings whatever.'
Georges Orwell (Appendix to 'Nineteen Eighty-Four')
The purpose of 'MLM Income Opportunity' jargon is not only to provide a medium of expression for the unquestioningworld-view and mental habits proper to the core-adherents of 'Herbalife,' but to make all othercritical and evaluative modes of thought impossible. It is intended that when 'MLM Income Opportunity' jargon has been adopted once and for all and traditional language forgotten, a heretical thought — that is, a thought diverging from the 'positive' principles of 'Herbalife' - should be literally unthinkable, at least so far as thought is dependent on words. Its vocabulary is so constructed as to give exact and often very subtle expression to every 'positive' meaning that an 'MLM Distributor' can properly wish to express, while excluding all other 'negative' meanings and also the possibility of arriving at them by indirect methods. This is done partly by the invention of new 'positive' words and phrases ('Herbalife','Multi-Level Marketing', 'Distributor' , Independent Business Owner,'), but chiefly by eliminating undesirable 'negative' words and phrases ('cult', 'totalitarian', 'fraud', 'deception', 'brainwashing', 'victims', 'exploitation' , 'de facto slaves') and by stripping such words and phrases as remain of unorthodox meanings, and so far as possible of all secondary meanings whatever.
