AMWAY ON TRIAL IN ENGLAND
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 Imagine one of America's leading companies, the largest in its field, being put on trial in Europe for fraud. The fraud is not about some special situation or a corrupt official but for what the company does all the time and everywhere it operates.
This is what is happening right now with Amway in England. Government Fraud investigators in England determined that Amway's (also known as Quixtar) every day business in that country is a scam and is defrauding thousands of UK consumers every year. The government has brought charges and the trial is underway now. Meanwhile, Amway is effectively shut down in the UK.
The UK government case against Amway is essentially the same as the class action suit currently brought against Amway/Quixtar by its "top gun" insiders in the USA - deception, fraud, and selling a bogus business opportunity. Both show that virtually no one is earning any money at all from Amway's "opportunity" other than a small handful of promoters at the top. All recruitment activity is fraudulent.
What about in the USA?
Which leads us to the question raised in a previous Update. If Amway is operating deceptively, with its business model banned in China, offices raided in India and now is on trial in England, how can it operate openly in the USA?
The answer is shocking and raises unsettling questions about the role of political influence- buying in government. Amway is perhaps the most politically connected company in America, since Enron. It is closely tied to the Bush administration and the Republican Party. It recently gained huge tax breaks through special laws designed only to benefit Amway. An attorney from one of its law firms was appointed to head the FTC by Pres. Bush. Under that Amway-connected chairmanship, the FTC abruptly stopped virtually all investigations of MLMs. The controversial military "contractor" firm, Blackwater, also considered one of the most politically connected companies - with millions in government contracts - is connected to the Amway family! The founder of that company is Richard Devos's brother-in-law. Devos is the son of a founder of Amway. The Amway/Blackwater family enjoys exraordinary insider connections, Blackwater with government contracts, Amway with FTC immunity from investigation.
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| CHEATING IN CHINA
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China may seem far away from the USA where most MLMs are based, but in the pyramid scheme world, it is the most important spot on the planet. Amway, Herbalife and Usana, among other large US-based MLMs, must get into the China in order to find new recruits. The supply of victims in other countries is drying up. China is the last place for the MLM pyramids to exploit.
But China banned the MLM recruitment model in 2005. It allowed legitimate, conventional door to door selling. Amway's revenue from China immediately dropped and Nuskin closed down offices and laid off employees there.
Now evidence has been uncovered of Herbalife and Usana trying to operate their USA-style recruitment schemes in China, despite the China law against MLM. The evidence was gathered by the acclaimed fraud investigative firm, Fraud Discovery Institute, co-founded by Barry Minkow.
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WHEN PYRAMID AND PONZI SCHEMES
WEAR BUSINESS SUITS
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Hundreds of farmers in Canada and the USA have staked their futures on an income scheme that involves breeding pigeons. The scheme is called "Pigeon King International." The promoter claims pigeons will replace poultry as a major protein source. He has offered farmers a lucrative offer in which he sells them breeder pigeons and he also buys back the offspring.
After consumer advocates in Canada and a farming trade magazine raised question and published information about the scheme, the Iowa Attorney General is now investigating. The Iowa AG stated that the operation's president, Arlan Galbraith, may be "misleading consumers regarding the true viability of establishing several large pigeon processing plants" and "providing inventory for new growers in furtherance of a Ponzi type of investment scheme."
To date, government regulators in Canada, where the scheme is based, have done nothing.
The report of this scheme reminds us once again that when scams are disguised as "businesses", many people assume they are legal. Sadly, when government regulators close their eyes to the scams, the illusion of legitimacy is strengthened.
A special consumer report addresses the "disguised pyramid scheme" and how to spot the one factor in most "direct selling" schemes, such as multi-level marketing, that causes them to wreak terrible harm on consumers. As we have reported previously, virtually all multi-level marketing companies are disguised pyramid schemes. They produce 99% loss rates among the "distributors" and they use deception to recruit new "losers."
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| LOOKING BACK AT 2007
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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 England
- Amway'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.
Congratulation 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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