Pyramid Schemes

CRACKDOWNS

Crackdowns in England, Ireland, India, China

    After millions of victims have lost billions in dollars, after millions of poor people in Third World countries were misled and ruined by Amway's dream machine, and millions in ill-gotten Amway money were poured into the campaign coffers of politicians to prevent federal investigations, the full truth about the Amway/Quixtar scheme is being revealed. Regulators in India, China and England are taking action. Investigations by US regulators cannot be far away. See LINK 
    Amway has effectively been shut down in England and Ireland pending a government investigation. The charges in the UK concern Amway's recruitment tactics and the practice of selling new recruits bogus" tools for success" that are distributed through a related pyramid scheme.

HEADLINE DEC 07 in ENGLAND: AMWAY TO CEASE

Amway Accused: A Lottery & Inherently Objectionable 

   

"Amway, which had 39,000 selling agents in Britain during 2005-06, is inherently objectionable, operates as a lottery and is trading unlawfully, the Companies Court was told. See LINK

Mark Cunningham, QC, on behalf of John Hutton, the Secretary of State for Business, Enterprise and Regulatory Reform, told the court that the Government was seeking to wind up Amway in the public interest following an
investigation into its business practices.

The allegations are seriously damaging to the international group, which claims to have a worldwide salesforce of more than three million people and a turnover of $6.4 billion (£3.2 billion).

The Government investigation claims to have revealed that just 10 per cent of Amway’s agents in Britain make any profit, with less than one in ten selling a single item of the group’s products.

It claims that Amway’s main activity is encouraging other people to join its salesforce so that they pay the registration fee and buy marketing materials..."

"The British subsidiary of one of the worlds biggest marketing groups (Amway) was accused yesterday of breaking company law by selling a dream of unachievable wealth. Amway, which had 39,000 selling agents in Britain during 2005-06, is inherently objectionable, operates as a lottery and is trading unlawfully..."

INDIA
    Police officials in India raided offices of Amway in the largest state in the South of India. The police are charging that Amway is deceiving Indian citizens and causing large-scale financial losses by perpetrating a pyramid scheme.

CHINA
    Amway's scheme churns over 70% of all new recruits each year. (70% of the new recruits quit each year.) To continue Amway/Quixtar must relentlessly find new victims. This requires constant expansion to new countries. But, China, the largest market in the world, has effectively shut Amway out of that country. The government of China allowed Amway to gain a licence but strictly prohibited Amway from using its pyramid recruitment pay plan. No Amway distributor can earn money from purchases of others in a downline. Without the false lure of the endless chain, Amway's sales will wither in China. 

ORGANIZED CRIME ?
    Because it takes hundreds of Diamonds (top guys in the pyramid) working in concert, along with Amway Senior Management, this appears to be a text book perfect case for RICO enforcement. (RICO Law was introduced to combat criminal enterprises such as the MAFIA) The RICO laws were abused for a period but I have never seen a more perfect example of organized crime in all of history. This is far more coordinated than the Mafia ever had hoped to be and has profited in excess of twenty billion dollars to date. Like the Mafia, whistle blowers have been forced into silence. Amway and Kingpin Diamonds (TEAM is part of Kingpins) seem to have no qualms about taking action against the victims who dare speak out.

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