Monday, 1 July 2013

'Herbalife (HLF)' racketeer, Michael Johnson, attempts to obstruct justice in Washington.






For a long time, I've been almost alone in explaining that the global labyrinth of legally-registered companies known as, 'Herbalife,' has actually been the reality-inverting corporate-front for an unoriginal, blame-the-victim, closed-market swindle, or pyramid scam, and related advance fee frauds (a.k.a. tool scams).






I've also been almost alone in explaining that the apparently absurd, reality-inverting reactions of persons like Michael Johnson to anyone challenging the authenticity of the pernicious 'Herbalife/ Multi-Level Marketing/  income opportunity' fairy story, have been a clear attempt to continue to commit fraud, and to obstruct justice, which forms part of an overall pattern of ongoing, major, racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970). 

http://www.forbes.com/sites/paulhodgson/2013/01/09/pyramid-ceo-compensation-at-herbalife/





Readers should remember that Mr. Johnson's inflexible behaviour is entirely-predictable, because it is based on the fact that, whilst a never-ending chain comprising millions of ill-informed people have lost their cash by falling for the 'Herbalife Income opportunity' lie, he's been making fortunes by peddling it and hiding its catastrophic results. In a 12 month period, Mr. Johnson personally took more than 80 millions stolen dollars out of the 'Herbalife' racket. Indeed, the idea that any inflexible 'MLM' bullshit (like that contained in the above propaganda videos) has ever had any connection with quantifiable reality, is laughable.  

http://www.nypost.com/p/news/business/balm_blows_up_68kAXRa8cZ1WpVKmg8NPgN

Recently, Michael Johnson has been in Washington DC, in an increasingly-desperate attempt to prevent investigation of the pyramid scam aspect of the 'Herbalife' racket by the Federal Trade Commission . 





Mr. Johnson's recent trip to Washington and his employing of 'Olgivy Government Relations' (all of which has been paid for with stolen money) also forms part of an overall pattern of ongoing, major, racketeering activity. 




http://articles.latimes.com/2013/jun/14/business/la-fi-herbalife-ftc-20130614

These classic cultic manoeuvres came in the wake of the news that sisters, Linda and Loretta Sanchez (both of whom currently sit in the US Congress where they represent California constituencies with a large proportion of Hispanic voters),  have recently become involved in petitioning the FTC to launch an investigation of 'Herbalife.'





Michael Johnson and his criminal associates have already admitted that a staggering 61% of 'Herbalife's' constantly-churning following in the USA, has lately comprised Hispanics. 







The targeting of ill-informed Hispanics in the USA also explains why the bosses of the 'Herbalife' racket have been so keen to co-opt Hispanic soccer clubs and soccer stars. 

David Brear (copyright 2013) 

Sunday, 30 June 2013

Is Sachin Pilot fit to hold office in the world's largest democracy?


'Income Opportunity' racketeer, William Pinckney, arrested for fraud.


As a result of his thoughtless, and dangerous,  statements in defence of the 'Amway' racket, Corporate Frauds Watch has served a legal notice on the Indian Corporate Affairs Minister, Sachin Pilot.

http://corporatefraudswatch.blogspot.fr/2013/06/union-minister-sachin-pilot-served.html



Sachin Pilot



If these proceedings ever come to court, there are several questions which I personally want to put to Sachin Pilot:
  • Why have you not called for the establishment a common-sense definition of:

1). an authentic direct selling company -

i.e. a corporate structure which can produce quantifiable evidence that the bulk of its declared 'annual sales revenue' has always derived lawfully via sales agents having regularly retailed goods, and/or services, to the general public for a profit, based on value and demand?

2). a fake direct selling company -

i.e. a corporate structure which has deliberately hidden the quantifiable evidence that the bulk of its declared 'annual sales revenue' has always derived unlawfully via a never-ending chain of losing de facto slave recruiters regularly handing over their money in return for effectively-unsaleable goods, and/or services, based on the false-expectation of future reward?

  • Are you seriously recommending that Indian citizens should hand over their money each month to demonstrably fake direct sales companies like 'Amway,' and to try to recruit everyone whom they know to do the same, as a viable means of generating extra income? 
  • What would be your reaction if you witnessed that a member of your own family, or a close friend, had begun to hand over his/her money to 'Amway' each month, and was trying to recruit everyone whom he/she knows to do the same, under the dangerous self-perpetuating delusion that this is 'a proven plan to achieve total financial freedom?'

Sachin Pilot's reactions to the above questions, will determine if he is fit to hold office in the world's largest democracy; for what is actually at stake here, is whether American-based billionaire racketeers will be effectively placed above the criminal law and, thus, permitted to thieve from the people of the Indian republic for decades to come. That said, I strongly suspect that Sachin Pilot is just another pretty little pawn in a reality-inverting cultic game of make-believe - a fact which, for obvious reasons, he can't even begin to understand, 

David Brear (copyright 2013)




Tuesday, 25 June 2013

The 'Enron (ENE)' fraud versus the 'Herbalife (HLF)' fairy story.

After the recent news that 'Enron's' former boss, Jeff Skilling, has had his 24 year prison sentence reduced to 14 year,  I've been asked (presumably by a researcher working for Wall St. short-sellers) :

What lessons can be drawn from the 'Enron' fraud about 'Herbalife?'

https://en.wikipedia.org/wiki/Enron




If you disregard what finally happened to 'Enron,'  then this multi-billion dollar fraud, and the multi-billion dollar version of the 'MLM Income opportunity' fairy story entitled, 'Herbalife', are remarkably similar, in that they both survived for many years by hiding in plain view; for right under the noses of a flock of dunces with diplomas (i.e. legally-qualified US regulators, financial journalists, politicians, economists, US law enforcement agents, etc.), the market price of shares in both these effectively-valueless corporate structures was maliciously inflated, and maintained, by the constant repetition of mystifying lies, and half-truths, and the withholding of key-information.





In both cases, the narcissistic racketeers behind 'Enron' and 'Herbalife' were assisted by echelons of amoral attorneys (some of whom were former US regulators), accountants, stockbrokers, bankers, economists, academics, financial journalists, politicians, etc., and it became against the interests of almost everyone concerned (particularly, major investors) even to consider the truth in private, let alone face reality and blow the whistle in public.




A far more appropriate sub-title for this book would have been:
'The Scandalous Rise and Amazing Fall of  Enron.'


We all now know that, in reality, 'Enron's' massive, and chronic, hidden trading losses were merely being off-loaded onto an expanding labyrinth comprising hundreds of legally-registered corporate structures, which (to casual observers) gave 'Enron' itself the appearance of perpetual expansion and prosperity.






Similarly, some of us have already worked out that massive, and chronic, hidden losses have been off-loaded onto an endless-chain comprising millions of ill-informed persons whose unlawful investment payments have been laundered as 'sales,' and who have been arbitrarily defined in their take-it-or-leave-it contracts as 'Independent Distributors.'  Yet again (to casual observers), these crimes have given 'Herbalife' itself the appearance of perpetual expansion and prosperity.


Interestingly, just as in the case of 'Enron', there are far too many intellectually-rigorous observers who now know exactly how the 'Herbalife' racket has functioned. Thus, making it an inevitability that it too will eventually collapse.







http://www.michiganliberal.com/diary/4763/

Readers of this Blog should also be aware that, in the late 1990s, the bosses of the 'Enron' racket  hatched a deal with the bosses of the 'Amway' racket, and the two gangs then used numerous deluded adherents of the 'MLM Income Opportunity' fairy story, to commit related-frauds in California. Although briefly-reported by the media, these particular crimes have never been fully-investigated, let alone prosecuted.


David Brear (copyright 2013).

Monday, 24 June 2013

Warning - 'Multi-Level Marketing' Cults Kill !

From: 'The Universal Identifying Characteristics of a Cult.' 

Pseudo-scientific mystification. The instigators of pernicious cults seek to overwhelm their adherents emotionally and intellectually by pretending that progressive initiation into their own superior or superhuman knowledge (coupled with total belief in its authenticity and unconditional deference to the authority of its higher initiates) will defeat a negative or adversarial force of impurity and absolute evil, and lead to future, exclusive redemption in some form of secure Utopian existence. By making total belief a prerequisite of redemption,adherents are drawn into a closed-logic trap (i.e. failure to achieve redemption is solely the fault of the individual who didn’t believe totally). Cultic pseudo-science is always essentially the same hypnotic hocus-pocus, but it can be peddled in an infinite variety of forms and combinations (‘spiritual’, ‘medical’, ‘philosophical’, ‘cosmological,’‘extraterrestrial’, ‘political’, ‘racial’, ‘mathematical’, ‘economic’, ‘New-Age’, 'magical', etc.), often with impressive, made-up, technical-sounding names. It is tailored to fit the spirit of the times and to attract a broad range of persons, but especially those open to an exclusive offer of salvation (i.e. the: sick, dissatisfied, bereaved, vanquished, disillusioned, oppressed, lonely, insecure, aimless, etc.). However, at a moment of vulnerability, anyone (no matter what their: age, sex, nationality, state of mental/ physical health, level of education, etc.) can need to believe in a non-rational, cultic pseudo-science. Typically, obedient adherents are granted ego-inflating names, and/or ranks, and/or titles, whilst non-initiates are referred to using derogatory, dehumanizing terms. Although initiation can at first appear to be reasonable and benefits achievable, cultic pseudo-science gradually becomes evermore costly and mystifying. Ultimately, it is completely incomprehensible and its claimed benefits are never quantifiable. The self-righteous euphoria and relentless enthusiasm of cult proselytizers can be highly infectious and deeply misleading. They are invariably convinced that their own salvation also depends on saving others.

(David Brear, Axiom Books, Copyright 2005)

_____________________________________________________________________________________________________


Once upon a time in the wonderland of 'Xango,' when modern western medical science didn't have a clue what to do and the Angel of Death was hovering, behold there was a miracle.



Some casual observers have believed that all the absurd 'MLM' propaganda (like that contained in the above 'Xango' video) is not particularly dangerous; that is, until they have compared it with quantifiable reality:

The following testimony was sent to me by Mark Davidson who, along with his brother, Harley, witnessed just how lethal total belief in an absurd Utopian 'MLM Income Opportunity' fairy story can be.

David Brear (copyright 2013)

________________________________________________________________________

'Harley and I have been warning people about Xango for years. Much like you, our experience with Xango and the whole MLM cult mentality comes from our own personal experience via a family member, our mother. Unfortunately the con job perpetrated by Xango and more specifically Dr. Templeman cost my mother her life. I can honestly say that Xango and Dr. Templeman killed my mother.



Sharon Davidson Unkefer (1940-2008) died as a result of the twin guided-delusions that modern western medical science is a scam controlled by big drug companies, and that massive doses of ($40 per bottle) 'Xango/Mangosteen Juice' can cure cancer.



In June of 2008, a CT scan revealed a growth on my mother's spine. The doctor reviewing the scan indicated that it was more than likely cancer and advised her to seek immediate professional help from a qualified Oncologist. I know, I was in the room.

'MLM' racketeer and chief  'Xango' quack, Dr. Templeman
http://xangoconfidential.wordpress.com/

What my mother did instead was contact Dr. Templeman, the self proclaimed mangosteen expert and medical researcher who was a personal friend and a paid pitch man for Xango.

Dr. Templeman is a retired MD (Family Practitioner) from Utah and also the father in law of the brother of one of the Xango founders. It is Dr. Templeman's literature claiming the amazing cancer curing Zanthones found in Xango that prompted the FDA warning letter in 2006. http://www.fda.gov/ICECI/EnforcementActions/WarningLetters/2005/ucm076067.htm


Dr. Templeman's forte is to essential blur the lines between junk science and dubious personal anecdotal stories with very small published scientific data. Being neither a published researcher nor ever having spoken at any credible institutions of health or science, the wannabe Jonas Salk routinely claims that Xango cures cancer. The crowds he claims he has spoken to are merely attendees at Xango corporate functions. Considering the average income for MDs in the US is around $60,000* a year he's got a pretty good gig as a paid Xango executive flying the globe and being treated like a rock star at luxury hotels, exotic vacation destinations and tropical cruises.


(* At the beginning of 2014, the official average income for a General Practice family MD in the USA, was approximately $101 736 - $141 431 http://www.healthcare-salaries.com/physicians/medical-doctor-salary-md). 




What Dr. Templeman did upon learning of my mother's illness was to immediately fly out to her home, again I was there, and proceed to sell her on the notion of using an alternative health clinic and treating her cancer with massive doses of Xango. The alternative clinic is currently under criminal investigation. Needless to say, my mother was dead by mid August (two short months). What I witnessed during those two months was nothing short of criminal behaviour by a pack of greedy egomaniacs with absolutely no medical experience in treating cancer or any serious disease.

Even if you disregard the fact that Dr. Templeman is not a trained Oncologist or even licensed by the state of Arizona to practice medicine, the treatment she received was abominable! The basic minimal protocols of dealing with a deadly disease like cancer (pathology, staging diagnosis, treatment and pain management options) were never followed! The egomaniac Dr. Templeman acted as the primary physician and specialist and cut off all contacts with any of the doctors she was seeing. This, in and of itself, violates the most basic of all protocols in which the primary physician, especially Family Practitioner's, refers patients to specialists trained in specific diseases once that disease is diagnosed.

I can speak with some authority on this subject because in September of 2012 I was diagnosed with stage 3 colon cancer. I by no means claim to be an expert, but I can tell you through personal experience and dealing with numerous experts from Oncologists, Radiation Oncologists, Surgeons, Technical and support staff who deal with this daily is that my mother was cheated out of her fighting chance to beat cancer.

I was constantly asking questions and doing my own research and the bottom line is, unfortunately, the vast majority of people "suckered" into the alternative health cures are stone cold dead. I chose the traditional route and after both chemo, radiation and major surgery, I am in remission. Thank God for modern medicine and shame on those that advocate the hocus-pocus ancient Chinese secret cure for every thing that ails you.
The false hope and phony health claims of companies like Xango is an incredibly dangerous public health issue and is often overshadowed by the financial woes of it's victims. MLMs like Xango are a two sided coin that either leave you broke, dead or both.

Sharon Davidson Unkefer was married to convicted conman, turned exemplary 'Xango' millionaire shill, Sherman Unkefer. http://blogs.phoenixnewtimes.com/valleyfever/2010/08/sherman_unkefers_71_million_re.php

My mother was not only the top distributor for this company, she was one of the true believers and bought into the whole "Cancer Conspiracy" that big drug companies and the American Cancer Society are suppressing natural cures that companies like Xango preach at every opportunity meeting. It's all bullshit by a gang of the most egotistical criminals, con men and liars the world has ever seen. But then again, you know this story all too well.

My brother and I, along with some other associates, have done a massive amount of research on this company and their product. The facts we have obtained would make your head spin. The amount of lies and deceit from giving themselves phony charity awards, criminal records, sick personal behaviour, constantly cheating the system they themselves have created and false medical claims abound. You hit the nail on the head when you called them cults!

A lot of the information I have not only comes from personal experience (witnessing my mother's involvement and 20 year roller-coaster ride of a whole slew of MLMs) but from legal documents uncovered through personal research and a personal lawsuit I am currently involved in. 

I hope at some point there might be enough of an outcry from the public to pass some real legislation that shut these companies down and ban all forms of MLMs. Unfortunately, the brainwashed masses who prop up these criminals continue to grind their way to a slow financial death with a big phony smile plastered on their faces and a "dynamic" opportunity to share with the world. Keep up the good work!'

Mark Davidson (copyright 2013)



Sunday, 23 June 2013

Sachin Pilot still believes the 'MLM Income Opportunity' fairy story.





The American-educated, pretty-boy, politician, Sachin Pilot, is currently on an official tour of the USA where he's been playing the unconvincing role of India's intellectually, and morally, authoritative Minister for Corporate Affairs.


I don't what it is about Sachin Pilot, but he's now beginning to remind me of Tom Cruise.



 'The Economic Times of India' has recently published the following report of young Sachin's latest, absurd, but nonetheless dangerous, pronouncements on the subject of  'MLM Income Opportunity' racketeering:
With an aim to segregate the genuine multi level marketing companies from those operating fraudulent ponzi schemes, the (Indian) corporate affairs and consumer affairs ministries are working on a clearer set of rules for such businesses.
"While we must take strong action against the companies that are misusing the laws and duping investors, reputed companies that are doing good work and did not violate any Indian laws should be allowed to operate without any fear. They must be given confidence," Corporate Affairs Minister Sachin Pilot told PTI in an interview here.
The Indian minister is on an official visit here. The minister's comments come against the backdrop of the recent arrest of global direct selling major Amway's India Chairman William S. Pinckney and two company directors by the Kerala Police over allegations of fraud.
While they were released later on bail, the incident has generated a debate on need for a clear set of rules for differentiating between registered companies doing genuine businesses and those duping the investors through fraudulent schemes structured like multi-level marketing operations.
"My Ministry (Corporate Affairs) and Ministry of Corporate Affairs are now working on clarifying these guidelines (for multi-level companies)," Pilot said.
Stressing on the need for protecting investors against fraudulent entities, the Minister said the newspapers also have a larger role to play as watchdogs and should not entertain paid advertisements from illegal companies.
"Sometimes newspapers publish advertisements placed by companies running illegal schemes to dupe the investors.
"The newspapers have a larger role to play in being watchdogs of investors and refuse such paid advertisements in the best interest of readers. Companies must deliver what they promise," Pilot said.
________________________________________________________________________

Sachin Pilot is evidently still mistaking the 'MLM' Utopian fairy story for fact, and, as I have previously pointed out, if this well-connected young fellow sincerely believes 'Amway India Enterprises' to be 'doing good work,' then he is not fit to be making the tea at the Indian Corporate Affairs Ministry, let alone running it. There are, of course various other, possible, logical explanations for Sachin Pilot's morally, and intellectually, feeble stance - most of which (if rigorously investigated and found to have been present) would land him in prison.

The mere fact that the Indian Minister for Corporate Affairs has been passing any comments on this dissimulated form of ongoing, major, organized crime (as though it is a lawful commercial enterprise), is a victory in itself for 'MLM Income Opportunity' racketeers.

Despite what Sachin Pilot claims to be reality, the republic of India already has common-sense criminal legislation which seeks to protect the Indian public and punish the guilty, by identifying, and banning, all forms of closed-market swindles, or pyramid scams, no matter how cleverly these are dissimulated. Furthermore, the Indian police is tasked with independently enforcing this criminal legislation, and independent Indian courts are also there to see that that the Indian public is protected and that justice is done. 

According to his latest scandalous pronouncements (made in the USA), Sachin Pilot is still attempting to remove the Independent Indian police and courts from the equation, and introduce essentially-meaningly rules and toothless civil regulators, thus, placing foreign-based billionaire racketeers, like those behind 'Amway India Enterprises,' above the criminal law in the Indian republic.

David Brear (copyright 2013)

Saturday, 22 June 2013

Sentence for former Enron boss reduced on appeal from 24 to 14 years.



Jeffrey Skilling
Jeffrey Skilling worked for 'Enron' for 20 years, but he was CEO for just six months, quitting 4 months before the company's collapse in 2001 when thousands of workers lost their jobs and retirement savings.
There is absolutely no doubt that Jeffrey Skilling was one of the greediest bosses of a gang of narcissistic thieves who ran one of the biggest and, most damaging, rackets in US history, but, mysteriously neither he, nor any of his criminal associates, was charged under the US federal Racketeer Influenced and Corrupt Organizations Act, 1970. This legislation provides prosecutors with the power to seize all stolen assets prior to a racketeering case coming to trial, and to send those convicted under RICO to prison for 20 years per racketeering count.


The fact that the bosses of the 'Enron' racket had also sought to obstruct justice by using some their ill-gotten gains to infiltrate US politics, explains why federal prosecutors were reluctant to invoke RICO.


Classically, the 'Enron' racket was operated behind a mystifying labyrinth of legally-registered corporate structures engaged in lawful, and/or unlawful, enterprises. This labyrinth was maliciously constructed (with the assistance of an echelon of attorneys and accountants) as the result of a conspiracy to perpetrate fraud and obstruct justice. In simple terms, the value of shares in the 'Enron' company was inflated, and maintained, by off-loading chronic, and massive, trading losses onto hundreds of other insolvent companies, which gave 'Enron' the appearance of being a thriving and valuable enterprise, when it was, in fact, insolvent and effectively-worthless.

 

When faced with exposure and collapse, insiders like Jeffrey Skilling and his predecessor, Kenneth Lay, dumped their own 'Enron' shares at the inflated price. Thus Skilling and Lay were charged with securities fraud, conspiracy, insider trading, lying to auditors, etc. 


The pair were convicted in May 2006 by a  jury in Houston, Texas and sentenced to long prison terms, but Lay died in July 2006 of a heart attack (after claiming that he'd become a 'Born-Again Christian').



Jeffrey Skilling
Skilling, who has been in prison since 2006, has now agreed to stop appealing against his conviction and, in return, he has had his 24 year sentence reduced to 14 years. He is now due to be set free in December 2020.

The agreement between Skilling and federal prosecutors also allows more than $40m (£26m) seized from him to be finally distributed to the victims of the 'Enron' racket.

Andrew Fastow
'Enron's' former chief financial officer, Andrew Fastow, testified against both Skilling and Lay and was sentenced to just 6 years in prison. He was released in December 2011. 

David Brear (copyright 2013)