Thursday 25 June 2009

Amway, Scientology both are criminogenic cults

Despite their different external presentations, internally, 'Amway' and 'Scientology' are both examples of pernicious or criminogenic cults. Both groups are, self-evidently, composed of vast, mystifying labyrinths of (apparently independent) corporate structures pursuing lawful, and/or unlawful, activities.These have been maliciously created to prevent, and/or divert, investigation and isolate the leaders of 'Amway' and 'Scientology' from liability.
A veritable mountain of witness evidence (stretching back decades), proves that the instigators/leaders of 'Amway' and 'Scientology' make most of their money from the operation of advanced fee frauds. They seek to overwhelm their victims emotionally and intellectually by pretending that progressive initiation into their own superior knowledge (coupled with total belief in its authenticity and unconditional deference to its higher initiates) will defeat a negative or adversarial force of impurity and absolute evil, and lead to future, exclusive redemption in a form of secure Utopian existence.
By making total belief a prerequisite of redemption, the victims of 'Amway' and 'Scientology' are drawn into a closed-logic trap (i.e. failure to achieve redemption is solely the fault of the individual who didn't believe totally). Behind impressive, made up, technical-sounding names ('Multilevel Marketing' and 'Dianetics') 'Amway', and 'Scientology' , 'Self-Betterment' pseudo-science is essentially the same hypnotic hocus-pocus. 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. Typically, obedient 'Amway' and 'Scientology' adherents are granted ego-inflating ranks and titles, whilst non-initiates are referred to using derogatory, dehumanizing terms. Although initiation into 'Amway' and 'Scientology' can at first appear to be reasonable and benefits achievable, the 'Self-Betterment' pseudo-science gradually becomes evermore costly and mystifying. Ultimately, it is completely incomprehensible and its claimed benefits cannot be quantified. The self-righteous euphoria and relentless enthusiasm of 'Amway' and 'Scientology' proselytizers can be highly infectious and deeply misleading. They are convinced that their own salvation depends on saving others.
When challenged, the core-adherents of 'Amway' and 'Scientology' absolutely deny that any of the above is true. However, six 'Scientology' under-bosses were recently convicted of organized fraud in France. Predictably (ignoring all the evidence and the suffering of their victims), these deluded individuals seadfastly pretend to be 'completely innocent' and have filed an appeal.
Both 'Amway' and 'Scientology' apologists often use provocation techniques designed to prevent critics from thinking clearly and to make persistent critics appear to be wild and emotional to casual observers.


Creating coincidents the Amway India style
The debatable point is, whether it is East or West, can a criminal commit the crime again and again when a criminal case is pending against him. That is what is happening in India. A criminal case was filed against Amway India for indulging in illegal money circulation scheme and cheating a large number of people. Still, the criminal company is still doing the same cheating again and again in the same business model which was held illegal by the highest court in the State of Andhra Pradesh.
Who is responsible for this state of affairs - the corrupt bureaucracy or the corrupt police officers or the snail-paced judicial process?
For instance, the Amway India has preferred to file an appeal by way of a writ petition in the Andhra Pradesh High Court when the Principal Secretary (Home) issued Government Order No. 178 dated 15-09-2008 restraining Amway India from advertising its business model in any media. The Principal Secretary submitted a hard-hitting affidavit in the High Court. Then the Amway India developed cold-feet and bribed wherever necessary to bury its own writ petition preventing it from appearing on the Bench.
Later, in 2009, the Corporate Frauds Watch filed a writ of Mandamus in the Andhra Pradesh High Court to direct the police officials to act upon the Government Order No. 178. Amway India could not help when it received the show-cause notice from the High Court of Andhra Pradesh in the same writ of Mandamus. It started its own gameplan to bury the writ preventing it from appearing on the Bench. The number of the writ petition went down to 140 from the earlier 20s or 30s.
Suddenly, the earlier writ petition of 2008 started appearing on the Bench. Apparently, the Amway India's gameplan was to get the Government Order quashed. Not to be outwitted, the Corporate Frauds Watch filed an implead petition in the writ petition of 2008. Then the Bench which is hearing the writ petition, preferred to transfer it to a larger Bench without hearing the version of the Corporate Frauds Watch.
It may look coincidental. But any rational person would not believe in coincidents.


Network marketing is 'Mathematical Impossibility'
Some call it multi-level marketing, while some others call it network marketing, or referral marketing. Whatever it is called it is nothing but a money circulation scheme which eventually would benefit a chosen few leaving a sizable number of people in lurch.
The Supreme Court of India in its judgment on July 10, 2008 (2008 8 SCC) Kuriachan Chacko versus State of Kerala stated that "I take note of the fact that inherently there is merit in the allegation of the prosecution that the Scheme is so grossly unworkable that the persons who made representations to that effect and induced persons to part with money did entertain contumacious intention. They knew fully well that unworkable false representations were being made. The obvious attempt, it can be presumed at this stage, was to induce persons by such false, unworkable representations to part with money. Initially, some subscribers can be kept satisfied to induce them and others similarly placed to join the long queue. But inevitably and inescapably later subscribers are bound to suffer unjust loss when they swallow the false promises and make payments."
People in the network marketing try to induce as many people as possible to join such scheme preferably from their friends and relatives. At times, they also advertise in Classifieds to attract the attention of more people. They organise seminars, meetings, workshops in the name of 'good business opportunity' of course, with an entrance fee. They show a rosy picture of foreign tours, early retirement and 'total financial freedom in 2-5 years'.
Network marketing means one has to rope in as many people as possible into the NET. Where do they find so many people on earth. Sooner or later, the chain is going to break and that is why it is called 'Mathematical Impossibility'.
This is exactly what Amway India is doing in India and Amway's other subsidiaries in other countries, lining its pockets.
Recently there was an e-mail with an attachment of an article by Donald Trump and Robert Kiyosaki. Like all network propagandists it also highlighted the greatness of network marketing. But it never mentiioned how the network grows without breaking at some point. That is why it is called cheating attracting the provisions of Section 420 of the Indian Penal Code.
People are understanding the pitfalls of such schemes and avoiding them. Still, these crooks solicit their friends and relatives who could not resist their overtures.
Be Brave and say NO to these crooks whenever you are approached with such network marketing or referral marketing schemes. Just tell them in their face that they are not cut for the job.


Fraudulent Amway survives with its ingenious cunning methods
How Amway India is surviving in India for the last nearly a decade is a million dollar question. A number of answers may be given in this context.
A number of companies indulged in money circulation schemes openly have been closed after they reached a point. Criminal cases were filed against several such fraudulent companies resulting in their close down.
But Amway India has adopted an ingenious method of indulging in money circulation schemes in the guise of sale of products. It sells all its products at exorbitant prices and divides the extra money among its members. Several other companies are just following in the footsteps of Amway.
That is why the Andhra Pradesh High Court commented in its judgment, "It is thus evident that the whole scheme is so ingeniously conceived that the inducement for aggressive enrollment of new members to earn more and more commission is inherent in the scheme."
Another prominent feature in the modus operandi of Amway is that it encourages its members to enrol only their friends and relatives. Even if they suspect that the scheme is a fraud which resulted in their loss, they never prefer to file a criminal complaint against their own friend or relative who introduced them into the scheme. Moreover, The members would be told that it was their fault that they could not succeed because there was not enough motivation in them. That is how the Amway India make the failed members feel guilty even to think that the scheme is a fraudulent one.
That is why there have been no criminal complaints against Amway India though there are several millions of people who lost money in the scheme of Amway through out the country.
The only exception is Mr A V Satyanarayana. He suffered a lot at the hands of Amway India members who tried to break his marriage. He was thrown in prison on the pretext of demanding dowry from his wife. Theirs was a love marriage. There was no question of exchange of any money. He is the personification of patience and waited for his wife to come to terms and understand his love. Now they are united and recently the wife delivered a beautiful baby boy.
I appeal to the millions of Indians who lost their hard-earned money in the fraudulent business model of Amway India to come out openly and say what their experience was.


Amway swindle no different to Ponzi scheme
Shyam
'Amway's' own figures reveal that virtually no one persists in the organization's so-called 'Multilevel Marketing Scheme' . Indeed, more than half of all 'Amway' recruits never renew their first annual contracts. The percentage of would-be 'millionaires' who remain faithful to the 'Amway' myth after 5 years, is laughable.
Classic Ponzi schemes are mathematically impossible and economically unviable, because thay have no real external source of revenue. Victims are merely buying infinite shares of what can only be their own finite money. Yet, despite their absurdity, classic Ponzi schemes remain hidden so long as they continue to attract fresh believers. A proportion of the victims' money can be used to maintain the illusion of authenticity. In this way, Bernie Madoff survived without any real investigation for 20 years. The majority of victims assumed that his activities were perfectly lawful, simply because financially-illiterate, law enforcement agents refused to challenge them.
Essentially, the 'Amway' swindle is no different to a classic Ponzi scheme, in that it has virtually no real customers and, therefore, insufficient external revenue to pay most of its participants a net-profit. However, the 'Amway' swindle' was initially designed as a much-more-sustainable form of Ponzi scheme. The perpetrators systematically blame their victims (by falsely defining them as 'Independent Business Owners' rather than 'Investors') when inevitably they lose money.
The so-called 'Amway Business Opportunity' appears to be functioning only because more and more individuals continue to be churned through it. Tellingly, due to the fact that most people in N. America and W. Europe already know that 'Amway' is an absurd swindle, the organization has been obliged to move its main activities eastwards in search of fresh victims.
Currently, around one million Indians are being churned through the 'Amway' swindle every four years. Like their American and European predecessors, virtually none complain.
Exactly as in the case of Bernie Madoff, the majority of 'Amway' victims have assumed that 'MLM' must be perfectly legal, because financially-illiterate, law enforcement agents have refused to investigate.

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