Litigation

Pyramid Scheme Alert reflects on 2007

By Tracy Coenen

Multi-level marketing will go down in history as one of the great frauds of our times. It deceptively wraps its harmful scam with the real needs and desires of people today - additional income, stay home with the family, independence, entrepreneurship, high income without high investment or training, and a group that will help you succeed. MLM is an Enron story, glossy and exciting to those who invest. But in the end, it causes massive harm, employs sophisticated deception, and it is corrupting our government.

MLM is an American-based “sales ” scam, and has spread to more than 70 other countries, just as Nigeria has spread its famous “bank account” scam worldwide.

Yet, 2007 marked a turning point.

• Amway/Quixtar, the largest and oldest of all MLMs, was put on trial for fraud in EnglandAmway’s top insiders blew the whistle and sued the Amway/Quixtar scheme for fraud
• The well respected fraud investigative firm, Fraud Discovery Institute, founded by Barry Minkow, has turned its professional skills of investigation on MLM. Devastating reports have been released on Usana and Herbalife, tracking their recruitment behavior all the way to China with undercover video tapes.
• Deception by the MLM, Usana, against both consumers and shareholders has been uncovered and numerous lawsuits have been filed against the scheme.
• More websites to expose MLM are appearing now in Europe and in Mexico and in USA.
• When fraud is protected by government and flaunts its ill-gotten wealth in the marketplace, real courage is required to stand up to it and declare the truth.

Congratulations to all who had the courage in 2007 to recognize MLM for what it is and to tell the truth about it.

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Full post as published by The FRAUDfiles Blog on January 14, 2008 (boomark / email).