STOP PRESS

Saturday, 24 October 2015

The tragicomic (failed) prosecution of 'Lyoness Australia'.

In August of 2014, a media release from the 'Australian Competition Consumer Commission,' proudly declared that 'Lyoness' had been under investigation, and would be prosecuted, as a suspected illegal pyramid / referral marketing scheme cleverly dissimulated behind a 'legal cash back' scheme.

However, the same document revealed that agents of the 'ACCC' had not yet looked beyond the ends of their noses. Consequently, they failed to acknowledge that the mystifying labyrinth of 'Lyoness' companies has merely been the corporate front for the latest version of an evolving, historically-significant, criminogenic phenomenon which can be accurately described as, blame-the-victim 'Multi-Level Marketing Income Opportunity' cultic racketeering.

In reality, what has become popularly known as 'Multi-Level Marketing' is nothing more than an absurd, cultic, economic pseudo-science. 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 (including regulators), 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, programs, leads,' etc.).

http://www.accc.gov.au/media-release/accc-takes-action-against-alleged-pyramid-scheme-operator

ACCC takes action against alleged pyramid scheme operator

28 August 2014

The Australian Competition and Consumer Commission has instituted proceedings against Lyoness International AG, Lyoness Asia Limited, Lyoness UK Limited and Lyoness Australia Pty Limited (together ‘Lyoness’) for operating a pyramid selling scheme and engaging in referral selling.

Although Lyoness has been investigated by regulators for conduct in other countries, this is the first court action taken against Lyoness alleging that the Lyoness Loyalty Program constitutes a pyramid scheme.

Pyramid schemes involve new participants providing a financial or other benefit to other existing participants in the scheme. New participants are induced to join substantially by the prospect that they will be entitled to benefits relating to the recruitment of further new participants. Pyramid schemes may also offer products or services, but making money out of recruitment is their main aim, and often the only way for a member to recover any money is to convince other people to join up. In contrast, people in legitimate multi-level marketing schemes earn money by selling genuine products to consumers, not from the recruiting process.

The ACCC alleges that Lyoness has operated the scheme in Australia from mid-2011 and that it continues to operate the scheme. The scheme offers ‘cash back’ rebates to members who shop through a Lyoness portal, use Lyoness vouchers or present their Lyoness card at certain retailers.

Whilst cash back offers themselves are not prohibited by the Australian Consumer Law (ACL), the ACCC alleges that the Lyoness scheme also offers commissions to members who recruit new members who make a down payment on future shopping.

“Pyramid schemes are often sophisticated and may be operated under the guise of a legitimate business. Although these schemes can appear to be legitimate, the most significant inducement for new members to get involved is to earn ‘residual’ or ‘passive’ income from new members signing up,” ACCC Chairman Rod Sims said.

“The concern with pyramid schemes is that the financial benefits held out to induce potential members to join up rely substantially on the recruitment of further new members into the scheme. For these schemes to work so that everyone can make a profit, there would need to be an endless supply of new members."

“Under the Australian Consumer Law, it is illegal not only to establish or promote a pyramid scheme, but also to participate in one in any capacity," Mr Sims said.

The ACCC also alleges that the conduct by Lyoness breached the ACL prohibition on ‘referral selling’, where a consumer is induced to buy goods or services by the promise of a commission or rebate contingent on a later event.

The ACCC is seeking declarations, pecuniary penalties, injunctions, an order requiring the Lyoness website to link to the case report and costs.

As Lyoness International AG, Lyoness Asia Limited and Lyoness UK Limited are located overseas, the ACCC will be making arrangements for service on those entities.

The first Directions Hearing in these proceedings will be at 9.30am on 16 September, 2014 before Justice Flick in Sydney.

Release number:

MR 217/14

Media enquiries:

Media team - 1300 138 917

________________________________________________________________________________

October 2015, it has now been announced that 'he ACCC's prosecution of 'Lyoness' has failed, but (to date) no announcement has been made as to whether an appeal will be lodged.

www.news.com.au/finance/business/lyoness-pyramid-scheme-case-thrown-out/story-fnu2q2e9-1227580170737

This latest tragicomic news from Australia perhaps explains why law enforcement agencies have been so reluctant to tackle 'Income Opportunity' cultic racketeers; for a mountain of evidence proves that 'Lyoness' is an extremely dangerous Austrian-based blame the victim cult, which has been churning victims all around the globe, but classically, the persons who prosecuted this Australian case, only presented a tiny part of what they have started to uncover.

In effect, the judge in this Australian case (Justice Flick), has thrown up his hands and lamely admitted that even he can't understand the mystifying capitalist fairy story offered by the bosses of the 'Lyoness' racket in the guise of an 'income opportunity'. All the same, Judge Flick decided that the 'Lyoness' has exhibited the characteristics of a pyramid scheme, but he has then decided to allow the company to continue without penalty, because (according to the company's own literature) although some rewards were unlawfully dependent on recruiting more and more participants, other rewards were lawfully dependent on the participants buying products.

So if this Judge can't look beyond all the familiar thought-stopping bullshit and recognise what 'Lyoness' actually has been hiding (by only examining the quantifiable results), what chance have victims?

The one common-sense question which no one (least of all himself) seems to have asked Judge Flick, was:

Given its hidden, effectively 100% loss/churn rate, what would be your personal reaction if a member of you own family came to you and said that he/she had signed up for the so-called 'Lyoness income opportunity?'

vimeo.com/66318039

Blog readers should watch 25 minutes into this Canadian 'Dragons Den' linked-video to see the extraordinary effects of the criminal enterprise which Judge Flick has evidently failed to recognise, let alone stop. However, agents of the ACCC did not seek specialist advice before their tragicomic (failed) prosecution of 'Lyoness'.Consequently, ACCC prosecutors did not clearly explain to the judge how 'Lyoness' is an unoriginal cultic racket set up to prevent and divert investigation, and isolate its bosses from liability.

To demonstrate how little the ACCC boys and girls understood about what they were really faced with, one of thehonest and brave whistle-blowing witnesses in the 'Lyoness' case, was Craig Wotton - a former pro-golfer and long-time 'MLM' shill. Mr. Wotton, who once promoted (the now-defunct) 'Vemma' racket, was briefly employed by the'Lyoness' racketeers as 'Managing Director of Lyoness Australia,' but when they cheated him, he pretended affinitywith the regulators and the media, and began playing the role of an honest man trying to protect his fellow citizens from criminals. In reality, Wotton is another narcissistic little 'MLM' parasite who immediately began promoting yet another 'MLM' racket, 'Modere,' and he was doing so throughout the recent failed-'Lyoness' prosecution, but ACCC prosecutors completely failed to look further than the ends of their noses.

Meanwhile the 'Lyoness' Ministry of Truth is broadcasting the latest tragicomic news from Australia as absolute proof that 'Lyoness' is an entirely lawful enterprise which has been unjustly attacked as an unlawful pyramid scheme by commercial 'competitors.'

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VIENNA, October 23, 2015 /PRNewswire/ --

Australian Court unmistakably declares: Lyoness is not a pyramid scheme.

In 2014 the Australian Competition and Consumer Commission ACCC began to investigate the business activities of Lyoness inAustralia on the recommendation of competitors.

The investigation results of the ACCC were submitted to the Australian Federal Court whose decision is now clear: Lyoness is not a pyramid scheme and does not engage in unlawful sales activities.

"We were able to refute all accusations and clearly documented that Lyoness naturally respects the laws of the country," James O'Sullivan, Managing Director Lyoness Australia, is pleased to say about this court decision.

About Lyoness

The Lyoness group divides its three business areas into two brands: The Lyoness brand encompasses the shopping community and the loyalty program. Their target groups are consumers who want to save money by shopping with Lyoness (Cashback) and loyalty merchants who want to use an international multi-sector loyalty program. The Lyconet brand encompasses all network marketing activities of the Lyoness Group. Its target groups are self-employed people and companies. The Lyoness group is currently active in 46 countries on all continents. Over 5 million members enjoy the Lyoness benefits at over 50,000 loyalty merchants around the world. More at http://www.lyoness.com.

Contact:

James O' Sullivan

Managing Director Lyoness Australia Pty LTD

E-Mail: office@lyoness.com.au

Tel: +61-2-9007-1000

SOURCE Lyoness Europe AG

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August 2015

http://mlmtheamericandreammadenightmare.blogspot.fr/2015/08/the-lyoness-cult-secte-in-depth-analysis.html

The 'Lyoness' cult (secte) - an in-depth analysis.

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 fiction in an insightful 'fairy story' 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 '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.

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'Lyoness' ('Lyconet') has been presented externally as a traditional association. This was arbitrarily defined by its ostensible instigator, 'Hubert Freidl, as a banal 'commercial' group. Internally, 'Lyoness' has been totalitarian (i.e. it is centrally-controlled and has required of its core-adherents an absolute subservience to the group and its leadership above all other persons). By its very nature, 'Lyoness' has never presented itself in its true colours. Consequently, no one has ever become involved with the organization as a result of his/her fully-informed consent.

'Lyoness' was instigated, and has been ruled, by psychologically dominant individuals and bodies of psychologically dominant individuals (with impressive, made-up ranks and titles), who have held themselves accountable to no one. These individuals have severe and inflexible Narcissistic Personalities (i.e. they suffer from a chronic psychological disorder, especially when resulting in a grandiose sense of self-importance/ righteousness and the compulsion to take advantage of others and to control others’ views of, and behaviour towards, them).* The leadership of 'Lyoness' has steadfastly pretended moral and intellectual authority whilst pursuing various, hidden, criminal objectives (mainly fraudulent). The admiration of 'Lyoness' adherents has only served to confirm, and magnify, the leaders’ strong sense of self-entitlement and fantasies of unlimited success, power, brilliance, beauty, etc.

_________________________________________________________________________

* ‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.

Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):

has a grandiose sense of self-importance.

is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.

believes that he/she is special and unique and can only be understood by other special people.

requires excessive admiration.

strong sense of self-entitlement.

takes advantage of others to achieve his/her own ends.

lacks empathy.

is often envious or believes that others are envious of him/her.

arrogant disposition.

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'Lyoness' has employed co-ordinated, devious techniques of social and psychological persuasion (variously described as: ‘covert hypnosis’, 'visualisation', 'duplication', ‘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 'Lyoness' 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. 'Lyoness' has manipulated its adherents’ existing beliefs and instinctual desires, creating the illusion that they are exercising free will. In this way, 'Lyoness' adherents have also been surreptitiously coerced into following potentially harmful, physical procedures (sleep deprivation, repetitive chanting/ moving, etc.) which were similarly designed to facilitate the shutting down of an individual’s critical and evaluative faculties without his/ her fully-informed consent.

'Lyoness' has comprised groups, and sub-groups, of previously diverse individuals bonded by their unconscious acceptance of the self-gratifying, but wholly imaginary, scenario that they alone represent a positive or protective force of purity and absolute righteousness derived from their leadership’s exclusive access to a superior knowledge, and that they alone oppose a negative or adversarial force of impurity and evil. Whilst this two-dimensional, or dualistic, narrative remains the 'Lyoness' adherents’ model of reality, they are, in effect, constrained to modify their individual personalities and behaviour accordingly.

The leaders of 'Lyoness' have sought to overwhelm their adherents emotionally and intellectually by pretending that progressive initiation into their own superior knowledge (coupled with total belief in its authenticity and unconditional deference to the authority of its higher initiates) will defeat a negative, adversarial force of impurity and evil, and automatically lead to future, exclusive redemption in a secure Utopian existence. By making total belief a prerequisite of redemption,'Lyoness' adherents have been 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, traumatized, poor, 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, wealth, etc.) can need to believe in a non-rational, cultic pseudo-science. Typically, obedient 'Lyoness' adherents have been granted ego-inflating ranks and titles, whilst non-initiates have been referred to using derogatory, dehumanizing terms.

Although initiation can at first appear to be reasonable and benefits achievable, the 'Lyoness' economic 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 'Lyoness' proselytizers can be highly infectious and deeply misleading. They are convinced that their own salvation also depends on saving others.

The leaders of 'Lyoness' have sought to control all information entering not only their adherents’ minds, but also that entering the minds of casual observers. This has been achieved by constantly denigrating all external sources of information whilst constantly repeating the group’s reality-inverting key words and images, and/or by the physical isolation of adherents. 'Lyoness' leaders have systematically categorized, condemned and excluded as unenlightened, negative, impure, evil, etc. all free-thinking individuals and any quantifiable evidence challenging the authenticity of their imaginary scenario of control. In this way, the minds of 'Lyoness' adherents have become converted to accept only what their leadership arbitrarily sanctions as enlightened, positive, pure, absolutely righteous, etc. Consequently, 'Lyoness' adherents habitually communicate amongst themselves using their group’s thought-stopping ritual 'Income Opportunity' jargon, and they find it difficult, if not impossible, to communicate with negative persons outside of their group whom they falsely believe to be not only doomed, but also to be a suppressive threat to redemption.

In 'Lyoness,' a core-group of adherents has been gradually dissociated from external reality and reformed into deployable agents and de facto slaves, furthering the hidden criminal objectives of their leaders, completely dependent on a collective paranoid delusion of absolute moral and intellectual supremacy fundamental to the maintenance of their individual self-esteem/identity and related psychological function. It has become impossible for such unquestioning 'Lyoness' fanatics to see humour in their situation or to feel pity for, or to empathise with, non-adherents. Their minds have been programmed to interpret the manipulation, and/or cheating, and/or dispossession, and/or destruction, of inferior outsiders (particularly, those who challenge their group’s controlling scenario) as perfectly justifiable.

The leaders of 'Lyoness' have continued to use stolen funds to infiltrate traditional culture and to organize the creation, and/or dissolution, and/or subversion, of further (apparently independent) corporate structures pursuing lawful, and/or unlawful, activities in order to prevent, and/or divert, investigation and isolate themselves from liability. In this way, the 'Lyoness' racket has been hiding in plain sight and has survived all ill-informed, isolated low-level challenges spreading like a cancer enslaving the minds, and destroying the lives, of countless individuals in the process. At the same time, its leaders have acquired absolute control over capital sums which place them alongside the most notorious racketeers in history. They have operated behind an ever-expanding, and changing, front of ‘limited-liability, commercial companies,’ and/or ‘non-profit-making associations,’ etc.

Although they can appear to be euphorically happy, will insist that no one is controlling them and that they are excercizing free will, the inflexible long-term core-adherents of 'Lyoness' are demonstrably-psychotic (i.e. suffering from psychosis, a severe mental derangement, especially when resulting in delusions and loss of contact with external reality); for anyone implying that they have generated an overall net-income lawfully by regularly retailing 'Lyoness' services to the general public (based on value and demand), is not telling the truth.

'Lyoness' itself can be accurately described as being only one part of a largely-unrecognized, ongoing, criminogenic / cultic phenomenon of historic significance. The quantifiable evidence demonstrates that, for decades, right under the noses of ill-informed, and/or naive, and /or corrupt, regulators, legislators, journalists, etc., hundreds of copy-cat 'Network Marketing / income opportunity' rackets have been organized so that effectively 100% of all contributing participants were compelled to lose their money, whilst the insignificant percentage of bosses have shared billions of dollars of unlawful revenue which they have laundered as lawful 'sales.'

'Lyoness' adherents who have managed to break with their group and confront the ego-destroying reality that they’ve been systematically deceived, exploited and blamed, have been invariably destitute and dissociated from their previous social contacts.

Classically, the overwhelming majority of 'Lyoness' victims have remained silent. For many years afterwards, recovering former cult adherents can suffer from psychological problems (which are also generally indicative of the victims of abuse): depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness; fear of forming intimate relationships; inability to trust; etc.

Confused ex-'Lyoness' core- adherent, Andrew Plimmer, still unconciously recites thought-stopping 'commercial'jargon.

To give readers a revealing glimpse of the lasting-damage 'income opportunity' cults can inflict on the minds of ordinary ill-informed everyday people - a middle-aged Australian man, Andrew Plimmer, has had dozens of tragicomic propaganda videos posted on Youtube in which he recites the '100% positive Network Marketing' fairy story and attacks the traditional world.

www.youtube.com/watchv=BBVsGCn_Ltw&index=6&list=PLcCYDF4az2QhJcCJMRdD2WAesKzyvFZuX

Since January 2012, Mr Plimmer has been an unquestioning core-adherent of the unoriginal 'Lyoness' fairy story. However, 'Lyoness' is currently facing prosecution as a pyramid scheme in Australia and this fact seems finally to have stimulated Mr. Plimmer's dormant critical and evaluative faculties

www.accc.gov.au/media-release/accc-takes-action-against-alleged-pyramid-scheme-operator.

Just over a month ago, Mr. Plimmer suddenly posted a new video on Youtube in which he tells a very different story, i.e. the truth (or rather a significant part of the truth); for Mr. Plimmer still cannot face the reality that, in 'Lyoness,'he, and countless persons around the globe, have been subjected to co-ordinated devious techniques of social, psychological and physical persuasion designed to enslave and defraud vulnerable individuals, and prevent them fromcomplaining

www.youtube.com/watch?v=aV01xNflmOk

Illogically, even though he now confesses to being 'treated like shit,' losing tens of thousands of Au$ and never fully-understanding how 'Lyoness' functions, Mr. Plimmer still insists that 'Networking Marketing' is a 'great concept.'Whilst all his other reality-inverting videos remain posted.

www.youtube.com/channel/UC_DMiR-A3k-066YiVViAmnQ

Readers of this in-depth analysis (particularly, law enforcement agents) are warned that the leaders of the most-destructive cults have ultimately become megalomaniacal psychopaths (i.e. suffering from a chronic mental disorder, especially when resulting in paranoid delusions of grandeur and self-righteousness, and the compulsion to pursue grandiose objectives). The unconditional deference of their deluded adherents only served to confirm, and magnify, the leaders’ own paranoid delusions. This type of cult leader will seek to maintain an absolute monopoly of information whilst perpetrating, and/or directing, evermore heinous crimes. They will sustain their activities by the imposition of arbitrary contracts and codes (secrecy, denunciation, confession,justice, punishment, etc.) within their groups, and by the use of humiliation, and/or intimidation, and/or calumny, and/or malicious prosecution (where they pose as victims), and/or sophism, and/or the infiltration of traditional culture, and/or corruption, and/or intelligence gathering and blackmail, and/or extortion, and/or physical isolation, and/or violence, and/or assassination, etc., to repress any internal or external dissent.

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Questionnaire for Past,

and Present,

'Lyoness' Adherents.

(short version)

(Respondents are advised first to read all the questions before making any answer).

____________________________________________________________________________________________

1. Was the person who first approached you to participate in 'Lyoness' a friend or relative, i.e. a person with whom you enjoyed a relationship based on love and trust? (if yes, give brief details).

2. Did the 'Lyoness' recruiter(s) present a bleak picture of the world of traditional employment, in which most people are forced to go out to work for 45 years with only retirement and a limited pension to look forward to?

3. Did the recruiter(s) present the 'Lyoness Income Opportunity' as a viable alternative to the world of traditional employment, in which it is possible for anyone to retire and enjoy total financial freedom, after a just a few years of concentrated effort?

4. At the time you were recruited, would you say that you were entirely satisfied with life; particularly, your achievements, education, career/employment status/prospects, home, relationships, social standing, salary, health, weight, physical appearance, etc.?

5. How would you describe your level of satisfaction with your life at the time you were recruited?

6. When, and how, were you first approached to participate in 'Lyoness' and when was the name 'Lyoness' first mentioned?'

Was 'Lyoness' first presented to you individually or as part of a group?

Did the presentation comprise drawing circles containing numbers and percentages on a board or sheet of paper?

Did you fully-understand the presentation?

Was the presentation given by a man with a woman nodding in agreement next to him?

Were you given to believe that anyone could understand 'Lyoness?'

Did the recruiters seem generally happy and excited as though they had wonderful news to share?

7. What prior knowledge did you have of 'income opportunities?'

8. What was your initial reaction when you were approached?

9. At the time you signed up, what did you believe to be the success-rate of persons participating in 'Lyoness' (i.e. about what percentage of participants did you think made an overall net-income out of 'Lyoness')?

10. Were you ever shown any independent quantifiable evidence (e.g. income tax payment receipts) proving that anyone has ever made an overall net-income out of participating in 'Lyoness?'

11. Did you ever ask to see such evidence?

12. Could you give a brief explanation of what you understand by the term pyramid scheme or scam?

13. What would you say was the essential identifying characteristic of pyramid scams, Ponzi schemes, money circulation games, chain letter scams, etc.?

14. Were you given to believe that 'Lyoness' cannot possibly be a fraud, because it had obtained certification from companies like Quality Austria and TÜV Rheinland?

15. Were you given to believe that 'Lyoness' cannot possibly be a fraud, because it has existed for decades and has been investigated and approved by governments around the world?

16. Were you given to believe that 'Lyoness' cannot possibly be a fraud, because celebrities have endorsed it?

17. Were you given to believe that 'Lyoness' cannot possibly be a fraud, because of its involvement with charity?

18. Were you given to believe that 'Lyoness' cannot possibly be a fraud, because it has sponsored professional sport?

19. What was your main motivation for joining 'Lyoness' :

to earn income?

to buy products and/or services at a discount price?

20. Before you signed up for 'Lyoness,' were your encouraged by the recruiter to seek independent legal/financial advice?

21. Did you ever seek independent legal/financial advice? (if yes, give brief details).

22. What factor would you say initially convinced you that 'Lyoness' was an authentic opportunity to earn income?

23. At the time you signed up for 'Lyoness,' did you have any knowledge of pernicious groups that employ co-ordinated devious techniques of social, psychological and physical persuasion - designed to shut down the critical and evaluative faculties of ill-informed individuals in order to exploit them and prevent them from complaining?

24. Could you give a brief explanation of what you understand by the terms:

Neuro-Linguistic Programming?

brainwashing?

coercive behaviour modification?

group pressure?

covert hypnosis?

ego-destruction?

thought reform?

mental manipulation?

love bombing?

25. Were you given to believe that it is possible for anyone to replace their income by participating in 'Lyoness?'

26. Were you given to believe that after achieving a certain level of income in 'Lyoness' you could cease all activity and receive the same residual income for the rest of your life?

27. Were you given to believe that this residual income could be passed on to your descendants after your death?

28. During your time in 'Lyoness', were you taught that the 'exact duplication of a proven step-by-step plan' could automatically bring anyone 'total financial freedom?'

29. As part of this 'proven plan,' were you taught:

to alter you habitual way of speaking? (if yes, give a brief explanation)
to alter your habitual way of dressing? (if yes, give a brief explanation)
to alter you habitual way of eating? (if yes, give a brief explanation)
to alter your habitual sleep pattern? (if yes, give a brief explanation)
to alter you habitual social contacts? (if yes, give a brief explanation)
that everyone above you in your 'Network' was your 'Upline' and everyone beneath you was your 'Downline?'
that your 'Upline' was there to help you and was to be 'admired and respected?'
that your 'Upline's success depended on helping his/her 'Downline' to succeed?'
to divide everyone, and everything, in your life into 'negative' vs 'positive?'
that you should draw up a list of prospective 'Lyoness' recruits comprising everyone you had ever encountered in your life?
that you should progressively contact all these 'prospects' and attempt to recruit them using a precisely-worded 'positive' script?
that when trying to recruit 'prospects' you should exhibit excitement and enthusiasm, and recite your own personal 'story' describing how your life had been been transformed for the better by 'Lyoness?'
that you should never say anything 'negative' about 'Lyoness?'
that you should never listen to, or look at, anything 'negative' about 'Lyoness?'
that all persons who refused to join you (particularly, those who said 'Lyoness' is a scam) were to be deemed 'negative' and a threat to your own success?
that all 'negative' persons were to be deemed 'losers, whiners, dream stealers,' etc., and should be excluded from your life?
that all persons with regular jobs were to be labelled losers?
that you should only have contact with 'positive winners?'
that you should regularly buy, and listen to, recordings of 'positive winners?'
that you should regularly buy tickets to, and attend, extended meetings conducted by 'positive winners' at which you took part in group, rythmic chanting and moving?

that you should regularly buy, and read, publications, written by 'positive winners?'
that you should exactly duplicate the 100% positive mental attitude and behaviour of the 'positive winners' in your 'Upline?'
that you should regularly visualize your 'dreams an goals' in life (luxury cars, expensive houses, exotic holiday destinations, etc.)?
that you should fix images of your 'dreams and goals' in strategic places in your home?
that all persons who develop a '100% positive mental attitude and never quit, ultimately achieve their dreams and goals in Lyoness?'
that all persons who 'fail to achieve their dreams and goals in Lyoness, are negative losers, whiners, quitters etc., who always try to blame others, when they only have themselves to blame?'
that you should disclose personal information about yourself, and about your friends and family, to your 'Upline?'
that you should gather personal information about your 'prospects' (i.e. the persons whom you wanted to recruit) in order to find their 'hot button' (i.e. a specific means of approach tailored to an individual's personal situation and which could get him/her excited about 'Lyoness').

30. As a result of duplicating the 'proven Lyoness plan,' approximately how much money did you lose overall?

31. As a result of duplicating the 'proven Lyoness plan,' approximately how many days per week were you active and approximately how much of your own time did you commit each day?

32. How long did you remain under contract to 'Lyoness?'

33. Did you ever manage to recruit anyone into 'Lyoness?' (if yes, give brief details).

34. What level(s), if any, did you rise to in the 'Lyoness' hierarchy? (give brief details).35. Exactly how were you described on your 'Lyoness' contract(s)?

36. As a result of your involvement with 'Lyoness,' did you lose contact with any family members, and/or with anyone with whom you had previously been close? (if yes, give brief details).

37. Have you filed, or attempted to file, a complaint about 'Lyoness' with any law enforcement agency? (if yes, give brief details).

_________________________________________________________________________

A COMMON SENSE APPROACH TO CULTISM

________________________________________________________________________

Who hasn’t heard about cults? The word, ‘cult,’ has been thrown around so often that most of us now take it for granted that we must know exactly what it means. To be honest, very few people have sought out sufficient background material to be able to form a lucid picture of cultism which requires the formulation of the essential identifying characteristics of the phenomenon. Even the most-diligent news reports have tended to examine individual cultic groups in close-up, leaving the wider phenomenon either out of shot or out of focus. However, in recent years, it has become a matter of public record that, as a result of unprotected exposure to one of an ever-growing and evolving catalogue of apparently diverse and innocent groups, almost anyone can begin to exhibit remarkably uniform symptoms. In everyday terms, it is as though they’ve fallen head over heels in love. Although this initial euphoria is often short-lived, a significant minority will subsequently undergo a nightmarish transformation and recklessly dissipate all their mental, and/or physical, and/or financial, resources to the benefit of some hitherto unknown person(s), whom they continue to trust and follow no matter what suffering this entails. Only when enough victims of one of these latter-day ‘Pied-Pipers’ wind up in psychiatric hospitals or on mortuary slabs is the word, ‘cult,’ liberally applied by the popular press. It is then always revealed that there had been some timely attempt(s) to warn the authorities, but they couldn’t intervene, because, legalistically, cultism does not exist. That said, all cosmopolitan people readily accept that cults most-certainly do exist, but, due to the prevalent style of media coverage, we habitually think of them only as remote, and grotesque, freak-shows.

In my experience, if it is suggested that ‘we should all be on our guard against cultism, because it is actually much closer to us than we like to think,’ the average person is immediately convinced that such an idea is absurd. This instinctual reaction is usually accompanied by one, or more, of the following comments:

· ‘Don’t worry, I wasn’t born yesterday, a cult couldn’t fool me or anyone in my family… only idiots and weaklings join cults.’

· ‘In a free society everyone has the right to believe in what they want… if adults decide to hand over their time and money to some charismatic guru, it’s their own business.’

· ‘One man’s cult is another man’s religion.’

· ‘I suppose you’re including all the people who believe Elvis is still alive.’

· ‘Unless they are being physically held as prisoners, adults always have a free-choice to walk away if they don’t like what’s happening to them.’

· ‘Perhaps some cult members get harmed, but that’s their problem not mine.’

· ‘Cults have been around for centuries, there’s nothing new to learn about them.’ etc.

Whilst these opinions can all seem valid to the ill-informed, the underlying facts prove them to be nothing more than ego-protecting self-deceptions, which completely miss the point. It’s easy to understand that ‘knowledge itself is power,’ but it’s altogether harder to accept that (by the same token) ignorance is vulnerability. Obviously, cults never announce themselves, but their many disguises continue to adapt to mirror the changing spirit of the times. Throughout the ages, a dangerous minority of mythomaniacs, charlatans and would-be demagogues have always been able to get their human prey to sail blindly into positions of subjection, by first bedazzling them with all manner of false beacons which seemed so welcoming and authentic that the majority of people could not have been expected to determine exactly what was lurking behind them. Even though most of us want to deny it, at a moment of weakness all of us can need to listen to the latest cultic voice of insanity; especially when it appeals to our existing beliefs and instinctual desires, and originates from the apparent face of reason. To casual observers, the phenomenon might seem to be a ridiculous anachronism, but cultism or occultism has survived the tide of history and continues to wreck countless lives, simply because its instigators keep updating the lyrics of their siren song. Totalitarianism itself is enduring, its camouflage is ephemeral.

Young children’s unconscious acceptance of ‘Santa Claus’ as total reality, stems from a fictitious scenario reflected as fact by the traditional culture in which they live. Up to a certain age, children are not equipped to challenge the model of reality offered to them by authoritarian figures within their family groups; particularly, their parents. Therefore, once children have been converted to a self-gratifying, non-rational belief in ‘Santa,' the truth (that they are actually being deceived by the people whom they instinctively trust and follow) is unthinkable. The scenario can then be expanded to modify children’s behaviour — ‘Santa’ has magical powers… he can see and hear everything they do at all times… he will reward them for unquestioning belief and punish them for dissent. Only when they attain the necessary level of intellectual/psychological development, can children begin to use their critical and evaluative faculties and come to realise that ‘Santa’ is merely a game of make believe. If you think about it, what I’ve just described is the most elementary form of self-perpetuating, non-rational/esoteric, ritual belief system - perfectly tailored to fit infantile minds, and reliant on the maintenance of an absolute monopoly of information presented using a constant repetition of reality-inverting key words and images combined with pseudo-scientific mystification and closed-logic.

When analysed with the same level of intellectual rigour, many of the basic procedures and conditions required to establish cultic groups turn out not to be a mystery at all. They are revealed as only more-sophisticated versions of those which also propagate the benign ‘Santa’ deception. As such, they are frighteningly easy to replicate. However, the instigators of cults are anything but benign and, interestingly, many of their most-deluded subjects and convincing apologists turn out to be well-educated adults who have simply become incapable of facing the ego-destroying reality that they’ve been fooled by what is merely a game of make believe. No sane person would ever suggest trying to ban ‘Santa,’ and everyone lies to their children at some time to modify their behaviour, but consider the variety of destructive behaviour that an authoritarian adult (with hidden criminal objectives) could get dependent children to follow by exploiting their unconscious acceptance of the same imaginary, but nonetheless emotionally and intellectually overwhelming, narrative as total reality. The unpalatable truth is that, just by perverting the closed-logic rules of the game, anything - from theft by proxy to sexual, and/or violent, abuse - becomes possible.

Prior to publication, a number of people were given unfinished copies of my overall analysis to appraise. Although no reader could refute its content, the reactions of a minority were split into two groups; these were as different as chalk and cheese. Those who had already survived a direct personal experience of cultism devoured it. Others, who had never knowingly encountered the phenomenon, found the analysis less easy to digest; they generally described its tone as ‘alarmist’ or like a 'conspiracy theory.' One man (a middle-aged, American academic) was sure that it had been written by a naïve soul who had suddenly discovered the world to be a cruel place, and who now wanted to shout about it. Several years ago, when I was naïve, I might have agreed with him. In fact, I now blush when I remember a conversation I once had with a senior citizen of the Czech republic (a survivor of rule by the ‘Nazi’ and ‘Soviet’ myths), in which I coolly dismissed his passionate contention that any country whose own citizens mistakenly believed themselves to be immune to totalitarianism, faced the greatest risk of from it. Today, in the light of a traumatic personal encounter in Europe with the large, American-based cultic group known as 'Amway,' I have come to understand that I could not have been more wrong. However, many of the crass opinions which cultism continues to attract are completely predictable, because, even as adults, we all instinctively want to shut out of our minds any information that disturbs our habitual model of the world. Sadly, anyone who searches for the truth about cultism, and who then speaks plainly, is forced to ask a lot of people to think the unthinkable; so I make no apologies for this.

Another man started to read my analysis and decided that it contained ‘intemperate language.’ He felt sure that it was ‘going to be a sermon’ in which I would ‘attempt to impose ideas of morality’ on him. That opinion made me go back to my original text and remove any suggestion of preaching, because that’s the last thing I want to do. I don’t pretend to be perfect, and I fully recognise that morality is only what is generally regarded as an acceptable standard of behaviour by whatever culture we live in. I tried to base my investigation of cultism on quantifiable evidence, and my analysis on rules made by democratic institutions defining what is criminal, and/or unethical. I didn’t invent this evidence or write these rules, but I couldn’t escape the fact that cultism involves the subversion of traditional codes of morality. Like my wise Czech acquaintance, I have had the dubious privilege of witnessing for myself how unsuspecting individuals can be tricked into entering a counterfeit culture in which their existing perceptions of right and wrong are overturned and then made absolute. As a result, I now accept that apparently rational persons can suddenly abandon all reason and allow themselves to be systematically abused, exploited and even slaughtered whilst participating in the systematic abuse, exploitation and slaughter of others. In short, I am describing how it is possible to enslave any human being, but without the use of chains. This, in itself, is an ego-destroying reality which, self-evidently, many onlookers will wish to deny. However, when this reality is faced, at first it can become impossible to find appropriate words (other than expletives) to describe the results of cultism. Even presiding judges, in related cases, have felt it necessary to deliver verdicts using emotive terms such as ‘evil,’ ‘sinister,’ ‘depraved,’ ‘obnoxious,’ etc., to express publicly their own private outrage. Unfortunately, many other well-intentioned people have been, and continue to be, completely fooled by the seductive words and images shielding the instigators of cultism. The great paradox of the phenomenon is that persons under cultic influence will steadfastly claim to be absolutely righteous, even when all the quantifiable evidence proves their behaviour to be (at best) misguided, or (at worst) downright evil. Although they are demonstrably dissociated from external reality, cult adherents are always certain that they alone represent the ‘truth’ and they act accordingly.

In my overall analysis, I have tried to demystify cultism by using an accurate, deconstructed vocabulary to describe the phenomenon. As a result of my own extensive investigation, I am entirely satisfied that all groups exhibiting certain essential characteristics, are manifestations of the same problem. The historical evidence has led me to the inescapable conclusion that the only real differences between cults are the exact motives and mental state of their leaders, and the length of time they survive before they face a well-informed and determined challenge.

Cultism is a trap. Obviously, anyone who only examines the bait in a trap and who remains unaware of its true purpose, risks getting caught themselves. Just like a mousetrap, the basic design for the cultic trap has remained the same down the centuries even if the presentation of the bait has become evermore sophisticated. Sadly, many commentators have found it impossible - when faced with the apparently illogical results of cultism - to abandon their existing academic, and professional, disciplines, which are anchored in the logic of the traditional world. Consequently, their understanding has often been made impossible by misplaced objectivity. However, it must be remembered that a counterfeit banknote might be 99.9 % perfect, but the bit that is not makes all of it a fake. Similarly, in order to have any chance of understanding cultism, it must be approached from the apparently subjective point of view that its results are always the product of a contagious deception, the victims of which unconsciously accept fiction as fact. Only then, can the phenomenon be examined with genuine objectivity. Once this vital principle has been learned, the apparently authentic words and images reflected by persons under the influence of cultism - like those printed on counterfeit banknotes - are revealed as dangerous distractions. They should never be taken at face value and, therefore, I try to remind the reader of this at all times. Any commentator who repeats the reality-inverting shielding-terminology of any cultic group, but without detailed qualification (or heavy irony), demonstrates that he/she remains at a pitifully low-level of understanding.

In truth, if it wasn’t for its tragic consequences, then cultism would be nothing more than a sick joke. However, until an individual is confronted by a nightmarish change in the personality and behaviour of a loved-one, then they can never really appreciate the full horror of the phenomenon. I realised a long time ago that there are always some people who will never be able to accept what I describe, because, for them to do so, they would have to abandon too many self-deceptions supporting their own view of themselves. Like many others before me, a soul-destroying experience with members of my own family forced me to abandon most of mine. Then, through close contact with the survivors of various cults and my research into the deeper origins of ‘Nazism’ and the ‘New Global Terrorism,’ I came to the further, inescapable conclusion that it is actually impossible to exaggerate the potential menace ultimately posed by the creators of these counterfeit cultures, or their significance to the history and future of civilization. I then found great comfort in the opinions of some of my critics, because the people who first tried to warn the world of the horror lurking behind an apparently absurd, little gang of sanctimonious charlatans - calling themselves the ‘National Socialist German Workers Party’ and led by a hitherto unknown, German Army veteran playing the comic-book role of ordinary man turned superman - were also dismissed as ‘alarmists.’

Whilst it remains generally misunderstood, cultism will continue to be an unnecessary threat to the lives, liberty and happiness of all communities, families and individuals all over the world.

----------------------------------------------------------

JANUARY 14TH 2015

http://www.lyoness-geschaedigte-plattform.at/viewtopic.php?f=2&t=3525&sid=ff42a7e10fac95947afdbcf0d75e743e

14St17/12m

CENTRAL STATE ATTORNEY FOR THE PROSECUTION OF ECONOMIC CRIMINAL CASES AND CORRUPTION [WKStA]

Michael SCHÖN, LLC, MBA, STATE PROSECUTOR

In line with the arguments of the Higher Regional Court of Vienna, the [WKStA] demands the expiration of the assets (following §20.3, Penal Code) of Hubert Freidl, who is a suspect charged with violations of §168a, Penal Code.

To avoid repetition, the content of the freezing order (ON 324) and the legal opinion of the [WKStA] are referred to.

Suspected is that Hubert Freidl began seeking investors for the establishment of LYONESS in the spring of 2003. The first LYONESS corporation (LYONESS Europe AG) was founded in Switzerland in July 2003.

From 2003-2010, Hubert Freidl owned 10%, in 2010 25%, and from 2011 on, 100% of the shares of LYONESS Europe AG.

95% of the Business Partners and Customers of GALVAGIN changed to LYONESS in 2003. Customers of HANSEATICA were also transferred to LYONESS. Between 2003 and 2007, more LYONESS corporations were found, and in 2008 the LYONESS concern experienced remarkable growth (including Austrian, Swiss, and Luxembourgian corporations).

The business idea of the LYONESS tribe – that is indeed under suspicion – stems from Hubert Freidl. He has implemented the business idea and has driven its development (increased the number of accounting categories from 3 to 5; increased the amount of products for daily use). He describes himself as a director, and since 2004 as the CEO of LYONESS. Hubert Freidl has had the following functions in the LYONESS Group:

LYONESS Holding Europe AG (LYONESS EUROPE AG since 12/10);

Switzerland (founding 07/03)

• Director with single signature (10/04 - 02/10)

• Chairman of the Board with single signature (02/10 -12/10)

• Director with single signature (since 01/12)

LYONESS DATA SERVICE GmbH; Austria (founding 04/08)

• Managing Director (08/04 to 08/10)

LYONESS Child and Famlly Foundation; Switzerland (founding 04/08)

• Member of the Board of Trustees (02 / 09-09 / 11)

• Vice-Chairman of the Board (since 09/11)

LYONESS MANAGEMENT GmbH; Austria (founding 04/08)

• Managing Director (08/04 to 09/05)

LYONESS HOLDING AMERICA AG (LYONESS INTERNATIONAL AG since 06/10); Switzerland (founding 06/09) 159

• Director (07 / 09-02 / 10)

• Chairman of the Board (02 / 10-12 / 11)

• Member of the Board of Directors (11 / 09-03 / 12)

• Chairman of the Board of Directors (since 03/12)

• Majority Owner (100%) since 2011

LYONESS Cashback S.A; Luxembourg (founding 09/10) 163

• Managing Director (Order 09/10 - until the AGM 2013)

• Director / CEO (order 11 / 10- until the AGM 2012)

LYONESS IMEA SA; Switzerland (founding 05/11) 164

• Director (since 05/11)

LYONESS Greenfinity Foundation; Switzerland (founding 10/11) 165

• Chairman of the Board (10 / 11-02 / 12)

• Vice-Chairman of the Board (since 02/12)

LYONESS Cashback AG (since April 2014 LYONESS Group AG); Austria (founding 11/12) 168

• Sole Shareholder since Incorporation

• Supervisory Board Member (12/2012 to 04/14)

• Board of Directors (since 04/14)

The suspect Hubert FREIDL can be considered the (Founding) Developer, Developer of the Binary Compensation Plan, and the founder and (beneficiary) owner of the LYONESS Group.

These results of the investigation correspond with the statements made by Hubert FREIDL, as well as those made by the questioned witnesses and other suspects.

A chain and pyramid scheme is put in motion by the one who allows the first participant to join. A chain and pyramid scheme is organised by the one who takes the measures to make sure that it can be put in motion. When the organisation of the scheme is completed, that is, when it is put in motion, the scheme is considered for trial. In accordance with was described above, the conditions for starting and organising a pyramid scheme as understood in §168a, article 1, paragraph 1 of the Penal Code, have been met by the suspect Hubert FREIDL.

A chain and pyramid scheme as meant in §168a, paragraph 1 and 2 of the Penal Code was established and expanded through meetings, brochures, and any other methods used to attract many participants. It is not about the power of persuasion, it is enough when the expansion behaviour directly or indirectly affects many people that are offered participation in the system. In accordance with was described above, the conditions for starting and organising a pyramid scheme as understood in §168a, article 1, paragraph 1 of the Penal Code, have been met by the suspect Hubert FREIDL.

In the fiscal years 2008-2011 LYONESS Europe AG obtained a revenue (“Revenue from Downpayments and Commissions from the Sale of Gift Cards”) of CHF 739,280,887.48 [725 million US dollars]. In 2012, this was CHF 320,596,796.55 [315 million US dollars].

Of UTM Holding Limited, it is known that on the basis of its use of the names and logos of LYONESS, as well as the LYONESS Internet Domain, it is in a consistent business relationship with Lyoness. Hubert FREIDL is 100% owner of UTM Holding Limited. In 2012, UTM Holding Limited transferred €250,000 [300,000 US dollars] to the personal bank account of FREIDL. In 2013, an additional €150,000 [175,000 US dollars] was transferred. No reason for the payments has been stated. The payments cannot be reconciled with the self-reported income data of the accused Hubert FREIDL.

According to the information available until now:

1. Hubert FREIDL did not receive any compensation (in the form of salary) for his work for LYONESS over the period 2007-2013.

2. Hubert FREIDL himself stated to have a monthly gross income of €20,000 [24,000 US dollars], plus bonuses and a total of €400,000 [480,000 US dollars] in liquid assets.

3. His own downline consists of 179 people. The size of the commissions received over these people is not known.

4. Revenues, dividends, and profit withdrawals can be reasonably suspected to be considerably higher than what was found in Austria, and what the suspect has admitted to.

Therefore, the suspicion is that assets have been hidden and are kept secret. This makes recovering the assets considerably more complicated. A further seizure of assets is thus unlikely at the moment.

A suspicion is more than a mere presumption. It is the knowledge of facts, from which, considering common sense, can be concluded that someone has committed an offense or crime (RISJustiz, RS0107304). Since the principle “in dubio pro reo” only applies at trial, it cannot be assumed that the suspicions for freezing or (long-term) seizing assets should be based on an imminent conviction of the accused.

The currently available suspicions justify in any case the freezing of assets by the State Prosecutor and makes pecuniary arrangements likely, so that also the for seizure necessary level of suspicion is sufficiently present at this time.

Since the legally required level of suspicion in this case, as well as the proportionality of the taken coercive measures, is given, and the level of risk seems evident, the [WKStA] upholds its request.

-------------

http://www.lyoness-geschaedigte-plattform.at/viewtopic.php?f=2&t=3524&sid=ff42a7e10fac95947afdbcf0d75e743e

Extract from the decision of the National Criminal Court of Vienna, Department 31.

Judge Christian Waizi, LLC.

317 HR 124/14 h

REPUBLIC OF AUSTRIA

NATIONAL CRIMINAL COURT OF VIENNA

The National Criminal Court of Vienna summarised in the criminal case against Hubert FREIDL and others, on the ground of §146 of the Penal Code:

DECISION:

In the above mentioned criminal case, following §115 paragraph 1-3 of the Penal Code, the judicial seizure of the capital available at the bank account of Hubert FREIDL is arranged:

1. Hubert FREIDL and anyone else with access to that account are forbidden from using any of the funds currently available on the account. In particular, they are forbidden from cancelling any of the incoming capital to the account, from utilising any restitution claims, and from granting any remittance or payment orders.

STOP PRESS

20th September 2014

______________________________________________________

Norwegian regulators fail to identify the 'Lyoness' racket.

'Lyoness' is the name over the entrance to a classic blame-the-victim 'income opportunity' cultic racket, comprising a dissimulated closed-market swindle, or pyramid scheme, and related advance fee frauds. In the simplest terms, the overwhelming majority of all the money which has been flowing into the 'Lyoness' racket, has come from its deluded adherents based on their false expectation of future reward.

Monica Alisøy Kjelsnes

Over the past few months, Norwegian lottery regulators, led by Monica Alisøy Kjelsnes, have supposedly beeninvestigating the activities of the organization known as 'Lyoness.' The result of these supposed investigations can only be described as astonishing; particularly, when you consider that the corporate front for the 'Lyoness' racket has been set up in Norway in such a devious way that Norwegian regulators could not access any audited accounts. Instead, they relied on unverifiable figures supplied by the 'Lyoness' Ministry of Truth.

Thus, the Norwegian lottery regulators, led by Monica Alisøy Kjelsnes, have finally concluded that although'Lyoness' has been the front for an illegal pyramid scheme in Norway, based on the organization's own figures,'Lyoness' is no longer hiding such criminal activity and, consequently, will not be prosecuted.

'In the report the Norwegian Gaming Authority have concluded that Lyoness is not engaged in an illegal pyramid scheme in Norway today. The reason for our conclusion is that we have received information showing that more than 50% of revenue from Lyoness business in Norway today comes from sales of goods and services and not from recruiting members and their participant payment. We see that Lyoness in an establishment period in Norway has had more than 50 percent of its revenue from recruiting members and not the sale of goods and services.

However, the Authority considers that the Lyoness in the years 2012 and 2013 ran an illegal pyramid scheme in Norway where more than 50 percent of revenue in this period came from recruiting members.

Since Lyoness currently operates legally we will not react to the violation.

We have posted information about the case on our website - https://lottstift.no/blog/2014/09/18/lyoness-ingen-ulovlig-pyramide-dag/

Yours sincerely'

Monica Alisøy Kjelsnes
seniorrådgjevar
Lotteritilsynet

Readers might be interested to learn that during the past months I have written to Monica Alisøy Kjelsnes on two occasions, and asked her what would be her own personal reaction if a member of her own family suddenly announced that he/she had signed up with 'Lyoness?'

Predictably, I have yet to receive a reply to my common-sense question.

David Brear (copyright 2014)

STOP PRESS!

August 28th, 2014.

______________________________

'Lyoness' lie finally under investigation in Australia.

Today's media release (posted below) from the 'Australian Competition Consumer Commission,' proudly declares that 'Lyoness' has been under investigation, and will be prosecuted, as a suspected pyramid scheme dissimulated behind a 'cash back'scheme.

Laughably, but tragically, the same document reveals that agents of the 'ACCC' have not yet looked beyond the ends of their noses. Consequently, they still fail to understand that the mystifying labyrinth of 'Lyoness' companies has merely been the corporate front for the latest version of an evolving, historically-significant, criminogenic phenomenon which can be accurately described as, blame-the-victim 'Multi-Level Marketing Income Opportunity' cultic racketeering.

In reality, what has become popularly known as 'Multi-Level Marketing' is nothing more than an absurd, cultic, economic pseudo-science. 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 (including regulators), 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, programs, leads,' etc.).

http://www.accc.gov.au/media-release/accc-takes-action-against-alleged-pyramid-scheme-operator

ACCC takes action against alleged

pyramid scheme operator

28 August 2014

The Australian Competition and Consumer Commission has instituted proceedings against Lyoness International AG, Lyoness Asia Limited, Lyoness UK Limited and Lyoness Australia Pty Limited (together‘Lyoness’) for operating a pyramid selling scheme and engaging in referral selling.

“Under the Australian Consumer Law, it is illegal not only to establish or promote a pyramid scheme, but also to participate in one in any capacity," Mr Sims said.

The ACCC is seeking declarations, pecuniary penalties, injunctions, an order requiring the Lyoness website to link to the case report and costs.

As Lyoness International AG, Lyoness Asia Limited and Lyoness UK Limited are located overseas, the ACCC will be making arrangements for service on those entities.

The first Directions Hearing in these proceedings will be at 9.30am on 16 September, 2014 before Justice Flick in Sydney.

Release number:

MR 217/14

Media enquiries:

Media team - 1300 138 917

____________________________________________________

WARNING

THE 'Lyoness' RACKET IS IN THE PROCESS OF COLLAPSE!

__________________________________

November 13th 2013

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/11/lyoness-is-only-one-chapter-of-big.html

The 'Lyoness Ministry of Truth'
insists that:

It's 'absurd' and 'offensive" to 'call' Führer Freidl a 'Nazi'

and 'Lyoness' a 'cult!'

However, in respect of herr Freidl, and his unoriginal fairy story entitled 'Lyoness,' these words are an accurate use of the English language

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/11/lyoness-is-only-one-chapter-of-big.html

___________________________

Oct 29th 2013

This morning, a 'Lyoness' adherent, Charles Costello, has left a comment in which he says:

'No substantial entry on this site for over two months. It would appear that the anti-Lyoness chorus has run out of music!'

Charles Costello is sadly-deluded fellow. Since the self-perpetuating, blame-the victim 'Income Opportunity' racket commonly-known as 'Lyoness,' is only a small part of an ongoing criminogenic phenomenon, I suggest that he takes a long hard look at the rest of this Blog.

Mr. Costello will find that contrary to what he steadfastly pretends, numerous articles have, in fact, been posted in the last few months by me; including this, October 25th.:

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/10/global-mlm-petition_3448.html

If Mr. Costello then takes the trouble to investigate further, he will discover that the 'Lyoness' racket is actually mentioned in documents submitted last week (along with a petition drafted by an attorney, Douglas Brooks, and signed by over 1000 concerned persons) to the US Government.

Mr. Costello could also benefit from reading this recent article about another self-perpetuating, blame-the-victim racket commonly known as 'Scientology:'

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/10/the-french-republic-successfully.html

I invite Mr. Costello to confront the ego-destroying fact that organizations exist (known as cults), the self-appointed leaders of which, seek to control the reality of their followers by cutting them off from all external sources of information, in order to exploit them.

To core-'Scientologists,' exactly as in the case of core-'Lyoness' adherents, no matter what evidence is produced proving that they are the victims of a cruel deception, their minds are programmed to reject the truth as 'a pack of lies.'

If at any time in the future Charles Costello, manages to re-enter reality and his critical, and evaluative, faculties begin functioning again, I have invited him to contact me.

There is no shame in having the courage to admit to being the victim of a fraud: the shame lies in refusing to face up to reality.

CNBC Africa

http://www.abndigital.com/news/southern-africa/2013/08/20/is-lyoness-a-pyramid-scheme/

By Wilhelmina Maboja

Last Updated: 20 August 2013 12:02

International shopping program Lyoness is in the spotlight as claims stream in that it is a pyramid scheme in disguise.

"Based on my understanding of Lyoness and what has been put out there in terms of transparency and its contract in plain language, it seems to me that there is a secondary purpose to the company," Megan Power, consumer rights journalist for the Sunday Times newspaper told CNBC Africa on Monday.

Lyoness is a free loyalty programme based on shopping and cash back benefits through a variety of channels such as cash back cards, mobile vouchers, gift cards or online shopping from selected merchants who have partnered up with the company. The company was started in Austria and was launched in South Africa in 2011.

According to the Lyoness, there are already 30,000 members registered in South Africa.

“I have no idea what the true figures are, Lyoness says that’s the number and growing and they believe there’s a large market here in South Africa and there will be further uptake,” said Power.

She explained that Lyoness offers a cash back benefit where you get up to 2 per cent cash back for every purchase you make with selected loyalty merchants. Once you reach 250 rand in your lioness account, the funds are transferred into your private bank account.

The suspicions however stem from the friendship bonus scheme where you receive a discount of 0.5 per cent off purchases made by members that you referred to Lyoness.

According to reports, the company could be categorised as a pyramid or Ponzi scheme as the system is based on the fact that profits are derived from recruiting new members and not a sale. As long as new members are available, the system works, once the resources are exhausted, everything collapses. This will leave those at the top of the pyramid with the most money.

Other areas causing controversy, Power pointed out, is Lyoness’ claim to be partnered with four of the biggest retailers in South Africa- Woolworths, Pick ‘n Pay, Dischem and Foschini.

“The retailers have been pushed to the forefront as they have lent this program credibility so in Lyoness’ selling pitch, it has referred over the last two years to those four companies yet the only involvement they actually had was in selling bulk gift cards,” explained Power.

She added that Lyoness sells the idea to its members that they can purchase a gift card at a discount through them.

“I have since spoken to Woolworths, Pick ‘n Pay, Foschini and Dischem and they claim they were unaware of this. They were aware of the bulk purchase, as it ran into millions and these purchases came through their gift card departments,” said Power.

She stated that the four big companies may not have been aware of Lyoness’ business model before and now that they do understand it better, they are unhappy that their consumer gift cards are being resold to consumers at a discounted rate.

Lyoness has also sparked widespread controversy from around the globe. Power pointed out that the Austrian Economic and Corruption prosecutor is in the process of an investigation into allegations that Lyoness is a pyramid scheme, following complaints laid by two former Lyoness members.

Also, Eric Breitenede, an Austrian lawyer, representing over 300 complainants against Lyoness, mainly comprising of premium members that are demanding the return of the large deposits that they had made into the Lyoness scheme. Breitende has had several victories thus far.

August 7th 2013

As if to demonstrate the accuracy of my analysis that 'Lyoness' has exhibited the universal identifying characteristics of a cult, today, 'The American Dream Made Nightmare' has received some particularly abusive (but anonymous) comments from fanatical members of the 'Lyoness' faithful - who have evidently been brainwashed into believing that all persons challenging the authenticity of their group's Utopian fairy story, must be morally and intellectually inferior.

One of these sadly-deluded characters refuses to accept my detailed explanation of why the so-called 'Lyoness income opportunity' is actually a reality-inverting plan to commit financial suicide, and instead says:

'fuck you - idiote'

I should like to take this opportunity to thank the authors of these abusive comments for supplying this Blog with more evidence that 'Lyoness' is a cult. ____________________________________

August 1st 2013

Introducing the 'Lyoness' copy-cat 'income opportunity' cult,

'FlexKom.'

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/08/lyoness-and-flexkom-have-exhibited.html
_________

___________________________

July 6th 2013

Austrian Ministers block parliamentary questions about the 'Lyoness' racket

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/07/austrian-ministers-refuse-to-identify.html

June 10th 2013

**The big 'Lyoness' People's Business lie, turns out to be an adaptation of the big 'Nazi People's Car' lie.**

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/06/the-lyoness-peoples-business-is.html

Would you have bought a 'car' from this kindly little Austrian man?

So why would anyone want buy a 'business' from this other kindly little Austrian man?

____________________________________

June 9th 2013

The 'Lyoness' racket is still hiding in plain view.

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/06/the-lyoness-racket-is-still-hiding-in.html

____________________________________

JUNE 5th 2013

An anonymous American describes the essentially 'Nazi' belief that only a chosen minority who 'use and embrace the Lyoness system,' will become the winning members of Hubert Freidl's Master Race.

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/06/lyoness-core-adherents-believe-they-are.html

____________________________________

JUNE 4th 2013

The continued use of 'quality certification' by the 'Lyoness' racketeers, to commit fraud and obstruct justice around the globe, is brought to the attention of the certification companies, Quality Austria and TÜV Rheinland.

The management of 'Leitbetriebe Austria' refuse to face reality.

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/06/the-lyoness-income-opportunity-lie-has.html

Another scoop from:

'The Lyoness Complaints Centre'

'Dr.' Julian Hosp

http://cc-lyoness.blogspot.fr/2013/06/lyoleaks-1-lyoness-corporate_3.html

Kitsch 'Lyoness' racketeer, 'Dr.' Julian Hosp, has been caught teaching the American 'Lyoness' faithful how to lie.

______________________________

May 28th 2013

William S. Pinckney Anshu Budhraja Sanjay Malhotra

The 'Lyoness' Ministry of Truth remains silent as the shocking news is broadcast that the Managing Director of 'Amway India Enterprises,' William S. Pinckney and two other senior corporate officers, Sanjay Malhotra and Anshu Budhraja, have been arrested for fraud by the Kerala state Police.

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/05/william-s-pinckney-boss-of-amway-india.html

_____________________________________

May 26th 2013

http://cclyoness.blogspot.fr/2013/05/panic-strikes-lyoness.html

In another scoop, the 'Lyoness Complaints Centre' reports that, as part of his desperate attempt to maintain his group's crumbling monopoly of information, the self-appointed 'Lyoness' Führer, Hubert Freidl, has summoned what remains of his once- proud global command-structure to Austria for a '10-day training programme.'

(i.e. session of intensive brainwashing)

Götterdämmerung appears to be at hand for what remains of this latest absurd little gang of fake 'income opportunity' Gods.

I wonder if führer Freidl will be venturing forth from his secret 'Lyoness' command-bunker to preside over the final rituals personally?

Although the strains of Wagner will no doubt be playing, hopefully Freidl won't be peddling cyanide capsules (at a discount) to any tearful 'Lyoness' suborbinates who don't want to be held to account for their führer's financial, and psychological, crimes against humanity?

____________________________________
May 24th 2013

Lyoness exposed on Austrian Television:

(English subtitles)

http://vimeo.com/66851496

Another group of 'Lyoness' victims who have ploughed their money into Hubert Freidl's pyramid fraud, have filed suit against the front-company, this time, in Sydney Australia.

Meanwhile, the 'Lyoness' Ministry of Truth steadfastly pretends that 'Lyoness' is booming in Australia when, in reality the organization has effectively fallen to pieces.

http://blog.viviannie.com/lyoness-tv-01-01-2013/

Another insightful article is published by:

'The Lyoness Complaints Centre.'

http://cclyoness.blogspot.fr/2013/05/lyoness-financial-freedom-is-fraudulous.html

All core-adherents of the Utopian 'Lyoness' fairy story, have been programmed to believe that they are going to make lots of money by first giving their own money to 'Lyoness,' and then finding others to do the same, etc. ad infinitum, but according to 'Lyoness' own documentation, other than an insignificant minority of schills at the top of the pyramid, effectively 100% of all participants in the so-called 'Lyoness Income Opportunity,' have lost money!

Readers of this Blog are reminded that:

It is universally accepted that lying to, or withholding key-information from, people in order to take their money, is fraud which is a form of theft!

___________________________________

May 19th 2013

Deluded Giulia is certain that

Warren Buffet believes in 'Lyoness.'

Here's some much needed comic-relief for readers of this Blog.

____________________________________

Today, a deeply-deluded adherent of the pernicious 'Lyoness' fairy story, signing herself Giulia Fidilio, attempted to post the following repetitive bullshit on 'MLM The American Dream Made Nightmare:'

People...come on! Who is David Brear anyway?

I have never heard of him...is he some sort of expert in direct marketing or MLM?

I have a BA Hons (London Metropolitan University) in Marketing and I don't recall this David Brear as a marketing expert of some sort.

I'm Italian and I have been in Lyoness for over a year.

But, since you want facts, here's a few facts for you:

- I am Italian, and I have been in Lyoness for just over a year

- I started earning money after a month and a half

- I also have a company (MG sas) that is obviously in the lyoness network (we accept the cashback card)

- purchase daily from huge worldwide companies such as Apple, Dell and Expedia...and I have never had a problem (I always receive my cashback)

- in Italy Tamoil is national partner as far as petrol is concerned...well: the vouchers we get also carry the Lyoness logo, and the CEO of Tamoil also comes to meetings

DIRECT SALES AND NETWORK MARKETING ARE NOT A SCHEME: THEY'RE JUST NOT FOR EVERYONE!!

NOBODY CAN PROMISE ANYTHING: IT'S ALL UP TO YOU, AND THE TIME AND EFFORT YOU PUT INTO IT

Also, Mr Brear dutifully forgot to mention that some great financial experts, business minds and great investors (such as Donald Trump and Warren Buffett) believe that network marketing is THE PERFECT BUSINESS.

Anyways: I have proof of everything I said. What I want to find out now is...will you have the guts to publish my post Mr Brear? Or do you only accept negative propaganda???!!

And please note that my post is signed!

Readers might be interested to learn that the apparent author of this provocative cocktail of fact and fiction, is Giulia Fidilio, who (as she states) does run an Italian-registered business which appears in 'Lyoness' documentation on the Web:

http://www.lyoness.net/internal/it/stores/it-IT/802579-MG-sas-di-Giulia-Fidilio-C?partnerLocationid=f84f7cb8-8116-4054-87aa-a00c00caa4d2&dealerLanguageID=it-IT&returnUrl=JTJmaW50ZXJuYWwlMmZpdCUyZmNhc2hiYWNrdHlwZSUyZmNvdXBvbnN0b3JlJTNmcnAlM2QzNiUyMzgwMjU3OQ==

________________________________________________________________________

MG & C. sas di Giulia Fidilio

Partner Company ID: 802579

Short description

PRINTING AND DIGITAL PRINTING, WORK WEAR PROTECTIVE CLOTHING and (FOR ALL SECTORS), PROMOTIONAL CLOTHING.Wholesale and retail trade materials for electronics.

Contacts

tel: 00390373390052

Fax: 00390373387604

info@mggroup-it.com »

Address

Via Dorina Mosconi, 18
26010 Castel Gabbiano

_____________________________________________________

Readers mght also be interested to learn that I have sent Giulia's unsubstantiated claims about the exact nature of Warren Buffet's declared opinion of network marketing, to Warren Buffet himself. For it is yet more proof that, due to Warren Buffet's ill-judged (and evidently ill-informed) involvement with the kitsch 'MLM income opportunity' known as 'The Pampered Chef,' his name and iconic reputation have been habitually used by racketeers, like Hubert Freidl, to commit fraud and obstruct justice all around the globe.

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/05/warren-buffet-denies-all-knowledge-of.html

Obviously, there is a world of difference between investing in a corporate structure which has been making money from peddling a so-called 'MLM income opportunity,' and actually paying to participate in one of these economically-suicidal games of make-believe.

Personally, I'm fascinated to know what this intellectually-castrated person, Giulia, Fidilio, who self-evidently still believes Hubert Freidl's Utopian fairy story to be reality (and who has boasted of being educated only to use marketing terminology) imagines are the appropriate academic qualifications which anyone would require to be able to recognise, and to describe (in accurate deconstructed terminology), a pernicious cult operating a dissimulated, blame-the-victim closed-market swindle and related advance fee frauds?, because that is what the name'Lyoness' has been hiding, and this unoriginal group (of which Giulia Fidilio is currently a classic reality-denying follower), forms part of an evolving criminogenic phenomenon which I have been researching, and writing about, for many years.

'Income Opportunity' racketeer, Hubert Freidl, posing as the great business führer.

In the adult world of quantifiable reality, the pernicious 'Lyoness' fairy story and its narcissistic author, Hubert Freidl, have had precious little to do with 'marketing' (in the traditional sense of the word).

May 18th 2013

Panic Stations at 'Lyoness' in the UK

The führer and deputy führer of 'Lyoness,' peddling places in their (non-existent) future Utopia.

'Lyoness' deputy führer, Werner Kaiser

In another futile attempt to deny reality and prevent the inevitable collapse of his self-appointed führer's unoriginal Utopian lie, the 'Lyoness' deputy führer, Werner Kaiser, has flown to London to address doubting (and increasingly-angry) believers.

Personally, I'm quite surprised Herr Kaiser hasn't gone the whole hog and flown to Scotland, just like his reality- denying predecessor, in 1941.

__________________________________________________

Another scoop from
The 'Lyoness Complaints Centre.'

The Austrian authorities knew all about the 'Lyoness' racket years ago, but did nothing to stop it.

http://cc-lyoness.blogspot.fr/

_______________________________

An appeal is launched for all 'Lyoness' victims around the globe to contact 'Quality Austria!'

http://mlmtheamericandreammadenightmare.blogspot.fr/2013/05/victims-of-lyoness-lie-contact-quality.html

___________________________________________________________________________________

Hubert Freidl (in an increasingly-desperate attempt to maintain his collapsing monopoly of Information), has temporarily succeeded in persuading Youtube to take down the 'Dragon's Den Canada' and 'ORF Austria' Videos (which expose him as a greedy little parasite and and a liar), on the specious grounds that these public broadcasts infringed 'Lyoness' copyrights.

http://cc-lyoness.blogspot.fr/2013/05/the-austrian-mafia-3-orf-report-down-too.html

http://cc-lyoness.blogspot.fr/2013/05/the-austrian-mafia-4-heres-andy.html

http://www.youtube.com/watch?v=QPDygpim2_o

'Income Opportunity' cultic racketeer, Hubert Freidl

Another Scoop
From
The Lyoness Complaints Centre!
http://cc-lyoness.blogspot.fr/

On a live television show ('Dragon's Den'), when confronted with a deluded adherent in search of 'investors,' an independent team of multi-millionaire business experts, ridicule 'Lyoness' as a pyramid scam.

(The 'Lyoness' segment appears after around 24 minutes)

http://cc-lyoness.blogspot.fr/2013/05/the-lyoness-myths-2-pyramid-rebuttal.html#comment-form

Sadly, the scripted-reactions of 'income opportunity' adherents, are all essentially the same, but, in the above case, the adherent couldn't begin reciting his group's usual script, because, quite obviously, it's absurd bullshit that flies in the face of reality.

On the popular Canadian television show, 'Dragon's Den,' you can actually see an 'income opportunity' adherent's brain short-circuiting, and the sweat pouring off his brow, as he begins to ask himself:

'How can a poor, inarticulate fool like me, tell this team of cool, multi-millionaire businessmen/women that they don't know what the hell they are talking about?'

This absurd, but tragic, truck driver from Ontario, Andy, who features on 'Dragon's Den,' happened to have fallen for the Utopian lie entitled 'Lyoness,' but, in truth, he could have been presenting any one of thousands of 'Amway' copy-cat 'income opportunity' rackets.

As soon as the wealthy business experts heard the familiar key-words: 'Business Opportunity', 'Network' and 'Recruiting,' loud alarm bells began to ring. They were largely-disinterested in the word, 'Lyoness,' for they realised immediately that they were being confronted with a pathetic little pyramid scam victim, and I'm sure their scathing reaction would have been the same for 'Amway', 'Herbalife', 'Nu Skin', Forever Living Products', 'Xango', etc.; for all of these rackets (and thousands more) employ the identical key words and images.

The above video from Canada is a significant piece of evidence proving how investigation of 'income opportunity' rackets has been obstructed by essentially the same system of reality-inverting propaganda.

Given access to evidence like this, absolutely no one with fully-functioning critical, and evaluative, faculties would ever dream of signing up for any so-called 'income opportunity.'

The 'Lyoness Complaints Centre' can now be contacted at:

http://cc-lyoness.blogspot.fr/
http://www.cc-lyoness.blogspot.com

Austrian television has broadcast a video of Hubert Freidl confessing that the 'Lyoness Cash Back Card' is a smokescreen

Faced with imminent indictment for fraud, Hubert Freidl has quit Austria.

Many more victims of the 'Lyoness' lie have begun to face reality and organize.

The former Managing Director of 'Lyoness Austria' has blown the whistle.

www.tvthek.orf.at/programs/1310-Report/episodes/5803869-Report/5803879-Der-Mann-hinter-Lyoness

http://kurier.at/wirtschaft/unternehmen/neukunden-fang-mit-millionen-aufwand/10.094.987

http://wirtschaftsblatt.at/home/nachrichten/recht_steuern/1393118/Verbandsklage-zielt-auf-das-Rueckgrat-von-Lyoness-ab

http://wirtschaftsblatt.at/home/nachrichten/recht_steuern/1393121/Lyoness_Verfahren-Gutachten-und-heftige-Entgegnungen

http://www.youtube.com/watch?v=jNW6rLLkpIs&feature=player_embedded#!

________________________________________________________________________________

Readers please note that, as a result of well-informed complaints to Carrefour in France and Lego in Denmark, both these reputable European companies now no longer do business with the 'Lyoness' racketeers ( Jan 7th, 2013).

____________________________________

It has been reported to this Blog that 'Lyoness Australia' held an emergency meeting, Friday 12th April 2013 (in Sydney) to discuss how the company is going to tackle the deluge of demands for refunds. More than 300 adherents have already woken up to reality and obtained their money back following the departure of Woolworths Australia (a trusted-brand which has been slapped all over 'Lyoness' propaganda in Australia). Apparently, when contacted by phone, Woolworths in Australia now says quite openly that 'Lyoness' is a scam and that Woolworths is not connected to it in anyway.

It has also been reported to this Blog that the Australian Competition and Consumer Commission has received sufficient complaints to open an investigation of 'Lyoness.'

http://en.wikipedia.org/wiki/Australian_Competition_and_Consumer_Commission
http://transition.accc.gov.au/content/item.phtml?itemId=816453&nodeId=ef518e04976145ffed4b13dd0ecda1a6&fn=Little%20Black%20Book%20of%20Scams.pdf

___________________________________________________________________________________

WARNING - In March 2013, it was reported in the Austrian press that 'Lyoness' is the subject of an ongoing criminal inquiry conducted by WKStA (a specialist Dept. of the Austrian Federal Ministry of Justice), and that several class-action civil lawsuits have recently been filed in Austria on behalf of several hundreds individuals who have been persuaded to invest their cash with Hubert Freidl, and his associates, in the false-expectation of future reward.

If you have begun to swallow the innocent-looking 'cash-back' bait, you have actually entered the first stage of the 'Lyoness Income Opportunity' racket. Unfortunately, this means that you have already given the beneficiaries of the racket free-access to a significant quantity of personal information about yourself. This personal information can be used to try to induce you to advance further into the self-perpetuating 'Lyoness' labyrinth of lies. This will involve you being given the illusion that you are making a free choice to hand over your cash, along with personal information about your own friends and relatives, so that they too can be scammed, and used to scam others, but without them realising.

The next stage of the 'Lyoness' racket, involves persuading you to make a 'once-only' payment of around $3000 on the pretext that this will produce a future reward of $25000. You will also be offered the ego-building title of 'Lyoness Premium Member' - provided you can recruit the required number of additional $3000 'Lyoness Premium Members' yourself.

In order to achieve this admired and respected rank of 'Lyoness Premium Member' you will be advised to draw up a list of everyone you know, and everyone you have ever met in the course of your life. You will be told to contact all of these people and offer them a chance to benefit from the 'Lyoness Income Opportunity.' This first involves persuading your friends and relatives to sign up for the 'cash back' scheme.

This is just the beginning of the scam, because there are many more tiers of the 'Lyoness' pyramid of lies, on offer. The ego-building titles attached to these tiers are all similarly dependent on recruiting more and more $3000 so-called 'Lyoness Premium Members.'

In order to make this fraud appear lawful, 'Lyoness' victims are given blocks of gift vouchers in exchange for what are, in fact, unlawful investment payments (made on the false-expectation of future reward). __________________________________________________

About 15 years ago, I coined the common-sense phrase: 'premeditated, or dissimulated, closed-market swindle,' in order to deconstruct all Ponzi schemes, pyramid frauds, money circulation games, chain-letter scams, etc. However, although a few commentators have used my term (sometimes without attribution), a 'closed-market swindle' is not yet defined in law. That said, it is universally accepted that lying to, or withholding key-information from, people in order to take their money, is fraud which is a form of theft. Common-sense also reveals that, by 'passing any law, but failing to enforce it, has the effect of authorizing the very crime which you are trying to prohibit.'

The lie which is fundamental to all 'closed-market swindles' is that people can earn income by contributing their own money to participate in any alleged 'profitable commercial opportunity' which is secretly an economically-unviable fake, due to the fact that the alleged 'profitable commercial opportunity' has been rigged so that it generates no significant, or sustainable, revenue other than that deriving from its own participants. For more than 50 years, 'Multi-Level Marketing' racketeers have been allowed to dissimulate closed-market swindles by offering endless-chains of victims various banal, but grossly-over-priced, products, and/or services, in exchange for unlawful payments, on the pretext that 'MLM' products and/or services, can then be regularly re-sold for a profit in significant quantities. However, since no gang of 'MLM' racketeers has ever proved that 'MLM' wampum has actually been regularly re-sold to the general public for profit in significant quantities,'MLM' participants have, in fact, been peddled infinite shares of their own finite money.

In the final analysis, other than their ephemeral external presentations, internally there is no real difference between all closed-market swindles; for any alleged 'opportunity to make money,' wherein (when challenged, and/or rigorously investigated) the promoters are unable to provide independent quantifiable evidence to prove that their alleged 'viable commercial activity' has had any significant, and sustainable, source of revenue other than its own losing participants, is self-evidently a dissimulated closed-market swindle.

Earlier this year, Shyam Sundar's Corporate Frauds Watch Blog was contacted by a person signing himself/herself, 'Carmel Muggeridge from Australia,' who attempted to post typical Utopian propaganda (in the form of a comment) for a blame-the-victim 'income opportunity' racket/cult known as 'Lyoness.'

Yesterday, someone signing himself/herself, 'Sandy,' posted more thought-stopping 'Lyoness' bullshit (in the form of a comment) on CFW.

'Income Opportunity' cultic racketeer, Hubert Freidl

The author of the unoriginal 'Lyoness' lie, is a grinning Austrian, Hubert Freidl (b. 1972), self-styled business/self-betterment guru and mathematician. Exactly like the authors of the 'Amway' lie, Hubert Freidl steadfastly pretends to have succeeded in life (becoming an admired and respected multi-millionaire at the age of 40), through determination, totally-positive thinking and by helping others to succeed.

Meanwhile, in the adult world of quantifiable reality, Hubert Freidl would appear to be a serial failure when it comes to operating traditional businesses. These are just some of the European-based corporate structures which he has previously instigated:

'Freidl & Wagner' - registered June 3th 1994 (when Hubert Freidl was just 23 years old), but closed November 5th 1996.
'Quick - Shape Freidl' - registered December 2nd 1995, but closed October 31st 2002.
'FEELGOOD Freidl' - registered May 3rd 1996, but closed October 10th 2002.
'Erin Trade' - registered April 29th 1998, but placed in liquidation May 2000 and closed July 1st 2002.

A pay-through-the-nose-to-enter, 'Lyoness' orgy of deluded self-gratification.

http://www.youtube.com/watch?v=AlkIdyr74PI&feature=related

Here is a disturbing'Lyoness' propaganda video designed to shut-down the critical, and evaluative, faculties of not just the organization's adherents, but also those of all casual observers (including regulators and journalists).

Notice how the bosses of the 'Lyoness' racket have used part of their ill-gotten gains to create a children's charity, sponsor professional sport and pretend direct association with traditional retailing companies, particularly the French supermarket giant, 'Carrefour.'

Interestingly, Hubert Freidl has openly acknowledged that he took the name 'Lyoness' from 'Lyonesse' - the name of a (Celtic) mythical land which, like 'Atlantis,' is supposed to lie beneath the sea. http://en.wikipedia.org/wiki/Lyonesse

Perhaps it's all just a coincidence, but Hubert Freidl (who claims to be passionately interested in myths and legends) has not acknowledged that the 'Thule Society' was named after another mythical land, 'Ultima Thule,' and was one of the cultic groups from which the 'Nazi Party' emerged after WWI.

http://en.wikipedia.org/wiki/Thule

http://mlmtheamericandreammadenightmare.blogspot.fr/2012/08/the-phenomenon-of-group-delusion-or.html

All this makes me wonder:

What other narcissistic fiction (presented as fact) might be lurking behind the corporate façade of 'Lyoness ?'

(In the 1920s, the US-based cultic racket known as the '2nd. Ku Klux Klan' operated an essentially-identical, dissimulated pyramid fraud, in which victims were initially induced to make losing-investment payments in exchange for life insurance. Again, 'KKK' victims were offered future rewards and ego-building titles. These were dependent on the number of further victims they recruited. At the height of the self-perpetuating scam, the '2nd KKK' claimed 6 millions members in the USA (including many respectable members of the traditional establishment: police officers, WWI veterans, politicians, businessmen, professionals, etc.) and the organization was generating a fortune annually for its bosses).

_______________________________________________________________________

Simply by instigating a front-group 'charity' with some of his stolen money, Hubert Freidl (pictured left) has recently been able to pretend direct association with 94 year old Nelson Mandela.

Narcissistic racketeer, Hubert Freidl, playing

the comic-book role of ordinary man turned superman.

It is no exaggeration to say that, due to the amount of money it has already unlawfully generated, the 'Lyoness' lie represents an ongoing threat to democracy and the rule of law. Hubert Freidl, an otherwise mediocre little parasite, should have long-since been recognised as yet another narcissistic racketeer peddling an illusion of Utopia (built from its victims' money), and all of his stolen wealth confiscated. History teaches us that the more capital deluded charlatans, like Hubert Freidl, unlawfully acquire: the more dissociated from external reality they (and their deluded core-adherents) can become, whilst the more difficult it becomes to hold them fully to account for their crimes.

________________________________________________________________________

The following, is an English translation of an article (published in Switzerland) which begins to expose 'Lyoness' as an 'Amway' copy-cat, i.e. an ongoing, major organized crime group/pernicious cult peddling a step-by-step plan to achieve 'Utopia,' but actually stealing its victims' money and tearing their families, and friendships, apart. (For legal reasons, some of the names of the dangerously-deluded 'Lyoness' recruiters, described in this article, have been changed):

L'Hebdo / Switzerland, 16 feb. 2012, by Clement Bürge http://questions-lyoness.weebly.com/hebdoen.html

' "Are you interested in earning thousands of francs? Join Lyoness." announces *Angelo, with an assured voice and a charming smile. The handful of onlookers, gathered at a hotel in La Chaux-de-Fonds, listens to this modern-day prophet open-mouthed. Armed with a polished PowerPoint, this thirty-something presenter gives the recipe for his miracle solution: join the Lyoness community of buyers. Native to Austria, the company claims to have attracted two million people in twenty-three countries, including 12,000 in Switzerland. It promises its members to get discounts, to recover money on their purchases, or to even earn tens of thousands of francs in cash.

Members can choose: to make money slowly, quickly hit a jackpot, or both. The first method is to acquire a membership card that Lyoness says is free. In reality, it is obtained against the purchase of CHF 450 of gift vouchers in partner companies and offers 1% to 6% discounts from these brands. In this network, which is poorly developed in Western Switzerland, there are small traders, such as service stations Jubin in Jura or Boky, a Chinese restaurant in Lausanne.

A robust approach is applied to converting people into business partners. By investing 3,000 francs in the company, members can withdraw 25,000, provided in turn they recruit a number of investors. That February night in La Chaux-de-Fonds, we will not know exactly how many, such is the apparent complexity of setting up the system. Presented in diagrams, Angelo is excited about the system’s miraculous formula. "It's very complicated," says Josiane*, a lady in her sixties. "No need to understand, it works by itself," interjects an associate of Angelo. "It's fantastic", she says finally. Too fantastic.

Complaints of fraud are springing up everywhere, including in France, Austria and Switzerland. "Very often, people get a few hundred francs, but never more, said Eric Breiteneder, an Austrian lawyer in charge of more than 50 cases related to Lyoness. To our knowledge, nobody has got the famous 25,000 francs."

The problems go back to the heart of the system. "The return of money from the entry of new investors reflects the principle of the Airplane Game," said Fabien Rouiller, a lawyer in the The Commission on Lotteries (Comlot). Also called a Ponzi scheme or pyramid selling, the system is based on the fact that profits are derived from recruiting new members, and not a sale. As long as new members are available, it works. Once the resources are exhausted, everything collapses, leaving those at the top of the pyramid with the most money.

How has the company survived until today? "The law explicitly prohibits this system”, explains Yannick Buttet from the commercial enforcement authority in Valais. “But in addition to the Airplane Game, Lyoness can get discounts. The combination of the two confuses the issue. We are in the grey area. It's very clever." The Austrian Eric Breiteneder agrees: "To launch a trial is often more expensive than the amount invested, hence the longevity of Lyoness (founded in 2003, ed.)"

The damage being caused by Lyoness exceeds the monetary losses, tearing apart families and friendships. "The group works on sponsorship”, attests Anne-Valérie Pinet, a French lawyer who represents the first complainant. “Members are trained by relatives, who are not wary of anything. But once the scam is revealed, the links break." From the outset of the proceedings, the lawyer and his client were subject to threats from the victim's relatives.

Emotion is intensified because of the close relationships that are integral to Lyoness. "These people are fanatics or religious," says Eric Breiteneder. Rituals, a dress code to follow – wearing badges is obligatory - Lyoness regularly organises international meetings. "It sounds like a great mass," said the lawyer. Dance, song, it is a moment for worship. The founder and CEO of Lyoness, the Austrian Hubert Freidl, also engages in the show. Always present in the company's communications, the balding orator is the subject of boundless admiration. "This is our benefactor," said Angelo. Little information is known about the guru. His two partners, Tzvetan Streif and Hubert Wagner, come across as experts in casino games and chance. The three chair the mysterious Lyoness Child and Family Foundation. "This foundation is used to move money from one country to another. But nobody really knows where his money comes from and where it goes," said Eric Breiteneder.

The international headquarters of the company is based in Buchs (SG) "for tax reasons," according to Angelo. But Eric Breiteneder emphasizes its other function: "All contracts of overseas members are signed with the Swiss entity. Swiss members sign a contract with the Austrian group. The reason: they seek to complicate legislative procedures in the event of a trial. "A Swiss firm has received a complaint from former employees of the firm who would have had access to documents proving the fraudulent activities of Lyoness." Today, the law does not allow the Swiss authorities to actively fight against the company. But the State Secretariat for Economic Affairs [SECO] will soon be able to get involved," says Fabien Rouiller of Comlot. From 1st April, the change in competition law will provide SECO with new legal powers, which will finally allow it to seize the files. When contacted by L'Hebdo, SECO said it could not rule before the new law comes into force. But the lawyer in charge of the Swiss case revealed: "Lyoness is frightened, and is seeking to move its headquarters to Luxembourg before the deadline." Lyoness was contacted several times at its bases in Switzerland and Austria, but refused to respond to our questions.'

Thursday, 20 September 2012

'Lyoness' is a lie and Hubert Freidl is its author.

STOP PRESS

Saturday, 24 October 2015

The tragicomic (failed) prosecution of 'Lyoness Australia'.

In August of 2014, a media release from the 'Australian Competition Consumer Commission,' proudly declared that 'Lyoness' had been under investigation, and would be prosecuted, as a suspected illegal pyramid / referral marketing scheme cleverly dissimulated behind a 'legal cash back' scheme.

http://www.accc.gov.au/media-release/accc-takes-action-against-alleged-pyramid-scheme-operator

ACCC takes action against alleged pyramid scheme operator

The 'Lyoness' cult (secte) - an in-depth analysis.

http://www.lyoness-geschaedigte-plattform.at/viewtopic.php?f=2&t=3525&sid=ff42a7e10fac95947afdbcf0d75e743e

14St17/12m

CENTRAL STATE ATTORNEY FOR THE PROSECUTION OF ECONOMIC CRIMINAL CASES AND CORRUPTION [WKStA]

Michael SCHÖN, LLC, MBA, STATE PROSECUTOR

In line with the arguments of the Higher Regional Court of Vienna, the [WKStA] demands the expiration of the assets (following §20.3, Penal Code) of Hubert Freidl, who is a suspect charged with violations of §168a, Penal Code.

To avoid repetition, the content of the freezing order (ON 324) and the legal opinion of the [WKStA] are referred to.

Suspected is that Hubert Freidl began seeking investors for the establishment of LYONESS in the spring of 2003. The first LYONESS corporation (LYONESS Europe AG) was founded in Switzerland in July 2003.

From 2003-2010, Hubert Freidl owned 10%, in 2010 25%, and from 2011 on, 100% of the shares of LYONESS Europe AG.

LYONESS Holding Europe AG (LYONESS EUROPE AG since 12/10);

Switzerland (founding 07/03)

• Director with single signature (10/04 - 02/10)

• Chairman of the Board with single signature (02/10 -12/10)

• Director with single signature (since 01/12)

LYONESS DATA SERVICE GmbH; Austria (founding 04/08)

• Managing Director (08/04 to 08/10)

LYONESS Child and Famlly Foundation; Switzerland (founding 04/08)

• Member of the Board of Trustees (02 / 09-09 / 11)

• Vice-Chairman of the Board (since 09/11)

LYONESS MANAGEMENT GmbH; Austria (founding 04/08)

• Managing Director (08/04 to 09/05)

LYONESS HOLDING AMERICA AG (LYONESS INTERNATIONAL AG since 06/10); Switzerland (founding 06/09) 159

• Director (07 / 09-02 / 10)

• Chairman of the Board (02 / 10-12 / 11)

• Member of the Board of Directors (11 / 09-03 / 12)

• Chairman of the Board of Directors (since 03/12)

• Majority Owner (100%) since 2011

LYONESS Cashback S.A; Luxembourg (founding 09/10) 163

• Managing Director (Order 09/10 - until the AGM 2013)

• Director / CEO (order 11 / 10- until the AGM 2012)

LYONESS IMEA SA; Switzerland (founding 05/11) 164

• Director (since 05/11)

LYONESS Greenfinity Foundation; Switzerland (founding 10/11) 165

• Chairman of the Board (10 / 11-02 / 12)

• Vice-Chairman of the Board (since 02/12)

LYONESS Cashback AG (since April 2014 LYONESS Group AG); Austria (founding 11/12) 168

• Sole Shareholder since Incorporation

• Supervisory Board Member (12/2012 to 04/14)

• Board of Directors (since 04/14)

The suspect Hubert FREIDL can be considered the (Founding) Developer, Developer of the Binary Compensation Plan, and the founder and (beneficiary) owner of the LYONESS Group.

These results of the investigation correspond with the statements made by Hubert FREIDL, as well as those made by the questioned witnesses and other suspects.

In the fiscal years 2008-2011 LYONESS Europe AG obtained a revenue (“Revenue from Downpayments and Commissions from the Sale of Gift Cards”) of CHF 739,280,887.48 [725 million US dollars]. In 2012, this was CHF 320,596,796.55 [315 million US dollars].

According to the information available until now:

1. Hubert FREIDL did not receive any compensation (in the form of salary) for his work for LYONESS over the period 2007-2013.

2. Hubert FREIDL himself stated to have a monthly gross income of €20,000 [24,000 US dollars], plus bonuses and a total of €400,000 [480,000 US dollars] in liquid assets.

3. His own downline consists of 179 people. The size of the commissions received over these people is not known.

4. Revenues, dividends, and profit withdrawals can be reasonably suspected to be considerably higher than what was found in Austria, and what the suspect has admitted to.

Therefore, the suspicion is that assets have been hidden and are kept secret. This makes recovering the assets considerably more complicated. A further seizure of assets is thus unlikely at the moment.

The currently available suspicions justify in any case the freezing of assets by the State Prosecutor and makes pecuniary arrangements likely, so that also the for seizure necessary level of suspicion is sufficiently present at this time.

Since the legally required level of suspicion in this case, as well as the proportionality of the taken coercive measures, is given, and the level of risk seems evident, the [WKStA] upholds its request.

-------------

http://www.lyoness-geschaedigte-plattform.at/viewtopic.php?f=2&t=3524&sid=ff42a7e10fac95947afdbcf0d75e743e

Extract from the decision of the National Criminal Court of Vienna, Department 31.

Judge Christian Waizi, LLC.

317 HR 124/14 h

REPUBLIC OF AUSTRIA

NATIONAL CRIMINAL COURT OF VIENNA

The National Criminal Court of Vienna summarised in the criminal case against Hubert FREIDL and others, on the ground of §146 of the Penal Code:

DECISION:

In the above mentioned criminal case, following §115 paragraph 1-3 of the Penal Code, the judicial seizure of the capital available at the bank account of Hubert FREIDL is arranged:

STOP PRESS

20th September 2014

______________________________________________________

Norwegian regulators fail to identify the 'Lyoness' racket.

'Lyoness' lie finally under investigation in Australia.

Today's media release (posted below) from the 'Australian Competition Consumer Commission,' proudly declares that 'Lyoness' has been under investigation, and will be prosecuted, as a suspected pyramid scheme dissimulated behind a 'cash back'scheme.

http://www.accc.gov.au/media-release/accc-takes-action-against-alleged-pyramid-scheme-operator

ACCC takes action against alleged

pyramid scheme operator