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International Association to Expose, Study and Prevent Pyramid Schemes
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Pyramid Scheme Alert
Pyramid Scheme Alert is a non-partisan, non-profit, all-volunteer consumer education group.
Contact Robert L. FitzPatrick, Pres. at
info@pyramidschemealert.org
Website Update - February 2009
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PSA Helps Canadian News Show Expose MLM Scam, "Business in Motion (BIM)"
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PSA LogoThe award-winning Canadian Broadcasting Corporation (CBC) television news show, Marketplace, dedicated its February 6, 2009 show to a devastating exposé of the Canada-based multi-level marketing scheme, called "Business in Motion."

PSA President Robert L. FitzPatrick was invited on the show to attend a BIM meeting in Toronto (undercover, with hidden cameras and microphones) and then to offer an expert analysis.


FitzPatrick with Marketplace Anchor, Wendy Mesley
Robert L. FitzPatrick with CBC "Marketplace" Anchor, Wendy Mesley

FitzPatrick's conclusion: BIM is a blatant pyramid scam which - by its design - will inflict losses on 90+% of all consumers who are ensnared. As the show noted, pyramid schemes are illegal in Canada, yet the founder of the scheme, Alan Kippax, defended his scheme mostly on the grounds that the Canadian authorities had not prosecuted him.

Anti-fraud law enforcement has become so lax and incompetent in recent years in both Canada and the United States that this is now the regular defense of fraudsters, including Bernard Madoff who ran a $50 billion Ponzi scam on Wall Street. Madoff mirrored Kippax when he had defended his scam for years on the  grounds that "I can't possibly be doing anything illegal because the government has never prosecuted me."

BIM, like all multi-level marketing schemes (MLMs), also offers a "product" and claims that the "sale" of a product automatically makes BIM legal. Camouflaging the pyramid money through a "product purchase" and then calling the pyramid payments "commissions" is the preferred disguise for money-laundering in MLM pyramid scams. Usually the products are absurdly over-priced, not retailed, and are only purchased by the "salespeople." These purchases actually serve as "tickets" to participate in the pay-to-play scam.

BIM fits this model perfectly. Marketplace showed that the product was actually worthless. It claimed to be a $3,200 "membership" in a travel club that offered low cost travel packages. However, Marketplace revealed that the same travel packages offered by BIM were available for far less cost through free travel services on the Internet.

Marketplace also shockingly revealed that the Canadian Competition Bureau (equivalent to the FTC in the United States) and the Canadian national police, which are supposed to protect the pubic from pyramid frauds, not only had done nothing to stop the scheme but, as filmed on the show, actually arrested the Canadian consumer activist Dave Thornton for protesting the scam. Thornton's Crime Busters Now website had previously exposed the Canadian Ponzi scam, Pigeon King, which collapsed after ruining more than 1,000 family farmers. Canadian authorities did nothing about that scam either.

The founder of BIM became angry and loud when confronted by Marketplace anchor Wendy Mesley, claiming that he had "100 experts" that would defend BIM's legitimacy against PSA President Robert FitzPatrick whom Marketplace had cited as the expert that concluded BIM is an illegal pyramid scheme.

The show also noted that Kippax had operated a nearly identical scam, called Treasure Traders International, which sold overpriced (nearly worthless) emeralds, rather than travel packages. The government of England had shut it down as an illegal pyramid scheme. Kippax then closed that scheme in Canada, costing Canadian investors thousands. Now, he runs the same scam with only superficial changes and under a new name, and it operates openly in Canada. BIM is holding recruitment meetings in hotels all over Canada. It claims to have over 8,000 "members" and travels in a bus with a large sign on the front, reading "I Can't Believe Its True!"
No More Silence: Take Action
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PSA Logo Over the last eight years, Pyramid and Ponzi schemes have grown and spread. The Internet is now choked with "cash gifting" scams and "matrix selling" frauds. Pyramid selling scams have multiplied and now boast that the Recession will bring them more desperate "recruits." The false promise of income from an "endless chain" recruitment scheme is the lure of these multi-level marketing scams. Many of the "job" and "business opportunity" solicitations on the internet are nothing more than pyramid schemes, flim-flam frauds.

Consumers now have a way to fight back. A petition for stronger regulation is being gathered on the Pyramid Scheme Alert Website.
To Read and Sign the Petition, Click Here
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Contact Information
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Pyramid Scheme Alert
Tel: 704-334-2047
Fax: 704-334-0220,
Email: info@pyramidschemealert.org
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