TOP MLM FRAUD IN THE U.S.

PYRAMID SCHEME ALERT. ORG

President, Robert FitzPatrick

also John Taylor Phd (pud for short)

 

THESE FRAUDS WOULD NOT KNOW A PYRAMID SCHEME IF IT RAN OVER THE TOP OF THEM.   THEY LUMP LEGIT MLM’S IN WITH PYRAMID SCHEMES.

President Robert FitzPatrick listed above,  thrived in a pure pyramid scheme with splitting panels.... and hustled poor suckers into it.  In short he was a scamster!  After what he admitted in his book he should be in prison.  No Robert FitzPatrick has turned to scam people by hustling his BOOK!  In a throe of woe and reform he says all MLM’s are like the Pyramid Scam he helped run to scam people.  DO NOT read his book I just gave you all there is in it.  It’s name is “False Prophets” or some junk like that.  If you wade though the B.s. you will ask? “ Why did I buy this undocumented, un-footnoted piece loaded with rambling words?  Anybody that ever quotes Robert FitzPatrick has never read his book!   

Right now Robert FitzPatrick on Pyramid Scheme Alert dog org latest fraud is he is insisting that only 1 out of 1000 people that join a legit MLM company make money.  You can download his pdf outlining this undocumented fraud at the Pyramid Scheme Alert  dot org website and have these outright lies in your hands.  Supposedly they got some CPA to disclose to them (but the name is a super secret) this information.  I don’t know of any CPA that has ever had 1000 MLM – Network Marketing Distributors as clients to be able to establish a comparison base.   In fact the fraud in this is evident to me and if you think about one CPA doing the tax returns of MLM – Network Marketers?  Impossible = Fraud by Robert Fitzpatrick again.

His sidekick Robert Taylor Phd (pud) has disappeared from the Pyramid Scheme Alert dot org website except for little excerpts.  Taylor committed academic Fraud with his comparison of MLM – Network Marketing to Gambling.  In circles of statistical analysis this is known as DISPARATE UNIVERSES.  Two things you can’t compare so by presenting them Robert Taylor Phd (pud) committed academic fraud.

Now how can I made these claims of fraud about Pyramid Scheme Alert dot fraud?

Because I have genealogies of people in MLM Companies.  1000’s more than these Pyramid Scheme Fraudsters have ever even seen.  I know where the numbers run and who makes what in good MLM Companies.  I have built downlines of 1000’s of people and have my own genealogies plus those of other Networkers.  I would love to have them sue me....    I would counter sue in a heartbeat and own everything they have.

Their latest Fraud is that they “extrapolated” from Public Records 10k’s and 10Q’s the fact that 99% of all Distributors that ever sign up in MLM Companies never make money.   They are lying that they could do this.   I have spent years going through these record.   Yes, they did Extrapolate the FOLLOWING FRAUD.

An extensive statistical study by PSA has revealed that 99% of all sales representatives each year in a sample of major MLM companies suffered a significant financial loss. Additionally, the report shows that on average no net income is earned by MLM distributors from door to door "retail" sales.

They are lying....  here go through the public records of the following.  By the way the Pyramid Scheme Alert dot fraud is caught.  We are reproducing this to keep them from changing their lies like they usually do in their fraud presentations.

Pyramid Scheme Alert compiled an analysis of the actual average incomes of a sample of 10,000 sales representatives for Nuskin, Nikken, Melaleuca, Reliv, Arbonne, Free Life International and Cyberwize.com. These seven multi-level marketing companies, six of which are large, well-known members of the Direct Selling Association (DSA) and the seventh a newer and fast-growing MLM, are regarded in the multi-level marketing business as representative examples .

The figures used in the analysis are from public documents of the companies themselves. The percentages and actual dollar figures have been extrapolated to a "per 10,000 sales representatives" in order to provide a more understandable picture and to match data of the companies analyzed. A larger sample is applied to the Amway/Quixtar data.

I repeat... They are lying....  I have all the public records from the above companies and I have an MBA from Baylor University and had two masters level CPA’s review 10Q’s -= 10k’s and Income studies that where released.

The Distributor Rights Association (the DRA is made up of Distributors) is collecting funds to fight MLM Fraud.  This fraud website – pyramid scheme alert dot org - may be one of our first targets in fighting fraud about the MLM – Network Marketing Industry.

Rod Cook – www.MLMWatchDog.com

MLM FRAUD WRITER

NO DUE DILIGENCE OR EDUCATION

THIS STORY IS SO BAD IT SHOULD BE LABELED A RESEARCH SCAM!  CAROLE MOORE MLM FRAUD QUEEN WRITER!

 YOU WANT SOME REAL DUE DILIGENCE ON MLM AND NOT SOME BS?

IF CAROLE MOORE HAD USED THIS SHE WOULD BE CLEAN!

http://www.mlmwatchdog.com/INTERNET_DUE_DILIGENCE.html

 

Discerning network marketing businesses from scams

By Carole Moore • Bankrate.com  - one experience?

Incentive is a mighty motivator in the world of network, matrix or multilevel marketing, often known as "MLM." You need cash to pay off bills, or perhaps you want to taste the good life. Television ads showcase killer incomes from at-home businesses....NO MLM COMPANY LISTED OR WERE THESE AFFILIATE SCAM THAT ARE SO PREVALENT ON TV.....  ACCURACY IN MEDIA IS NOT CAROLE’S FORTE OBVIOUSLY  and you think, "Why not me?"

The truth is the vast majority of those who sign on the dotted line don't end up with a huge bottom line. In fact, some who answer the siren's call of quick money find they've landed in a scam. What’s new Carole?

Network marketing can be complicated in structure, but the basic concept is simple: Greater numbers mean more money. By bringing people into the sales force or investment plan, profits or investments increase and, since money flows upward in networking, the higher a person is in the network, the more money he or she will theoretically make.

Er here is where Carol Moore earns the title of “Fraud Queen”  The major critical element in legit successful MLM companies is ...THE PRODUCTS...

But the real question is: "Can you make money with an MLM?" Yes -- but that's a qualified answer, since not all network marketing is created equal. Before you start pricing that Porsche or South Beach mansion, be sure to bone up on what people inside and outside of the industry say.

Illegal pyramid schemes
Network marketing has its own unique language and the terms sometimes read like Swahili. To make a profit, the network must continually expand.  Products are the hot way to expand but note this Fraud Writer Carole Moore was too stupid to do any research about that....

Networks can be both legal and illegal. The most famous illegal network marketing comes in the form of pyramid or "Ponzi" schemes (so named after an Italian immigrant who operated U.S.-based scams in the early 1900s). Pyramids evolve like they sound -- in the shape of a pharaoh's tomb. And they don't sell an actual product. Here's how a typical pyramid works:

John hypes a sure-fire investment he says will go through the roof. He predicts profits as high as 40 percent and starts collecting money from people eager to get in on the action. John then urges those who've already invested to spread the word and bring in their friends, family and business associates. Products are the hot way to expand but note this Fraud Writer Carole Moore was too stupid to do any research about that....

In some cases, the guy at the top (in this example, John) keeps the scheme alive by using money from new "investors" to pay returns to older investors. Pyramid schemes need continuous infusions of new money, courtesy of constant recruiting. As more enter the fold, the base of the pyramid expands. Products are the hot way to expand but note this Fraud Writer Carole Moore was too stupid to do any research about that....

Since there's no real investment to begin with, the pyramid eventually collapses and those running the scam boogie with the money -- or, if they're caught, end up in court. Products are the hot way to expand but note this Fraud Writer Carole Moore was too stupid to do any research about that....

A recent Ponzi scheme
James Lewis appeared to be a successful money manager. He lived well, traveled frequently and bought expensive cars. But the 60-year-old Orange County, Calif., man wasn't the visionary investor his many victims perceived him to be. Instead, he was a cheat and a fraud.

Lewis, who was sentenced in May to 30 years in prison on charges of money laundering and mail fraud, is believed to have swindled $311 million from private retirement savings in one of the country's longest-running pyramid schemes. Although the government hopes to recover a small percentage of the stolen funds, it is far more likely that most of the victims will simply be out luck, as well as cash.  This Case was not even remotely related to honest MLM.... this was a pure ponzi....  Fraud Writer Carole Moore was too stupid to do any research about that....

Inside an MLM sting operation
Katherine Lewis, a public relations executive who lives in San Diego, has seen the seamier side of multilevel marketing from the inside.  Was it a legite MLM or a SCAM?

Before entering the PR field, Lewis was hired as an administrative assistant for a Web-based network marketer. She says part of her job was to handle irate callers.  What company... this secret allusion at bashing good MLM companies is getting sick at this time with Fraud Writer Carole Moore pulling in Katherine Lewis of San Diego that was involved as an Executive with a Scam!   We ask why isn’t Katherine Lewis in Jail.....????  Sound like the plea of most criminals... I didn’t know!

MLM Scams  - PER KATHERINE LEWIS OF SAN DIEGO WHO MADE MONEY OFF THE SCAM!

The company licensed  (NOT AN MLM NO LICENSE GIVEN  -- LEGAL MLM)  independent contractors. In theory these contractors would drive online businesses to retailers with which the company had partnered and be compensated for those referrals. Lewis says the only people in the business who made any real money were the guys at the top. "The reality was ... the income that was supposed to be made from the ... program was virtually nonexistent," she says.  And there was a catch. To get into the business, the company charged a "license fee" of about $350. An additional program that supposedly enhanced earnings involved an extra monthly fee that Lewis says was in "fine print when they entered their (credit card) info." Most of the victims didn't even realize they were being charged until they received their credit card statements. 

"From the mouth of the guy who created the MLM company for which I worked, 'Only (1 percent) of those who work in MLM will actually make any money,'" she says.  PER KATHERINE LEWIS A SCAM ARTIST HERSELF OF SAN DIEGO WHO MADE MONEY OFF THE SCAM TAKES THIS WORD FOR GOSPEL TRUTH!  AS A PAID CO-CONSPIRATOR SHE GIVES THIS AS A DEFENSE?

Distinguishing legitimate MLMs
Network marketers -- even the ones operating legally -- are complex organizations and each company has a different remuneration plan. Some sell services, such as prepaid legal or training courses, while others offer products, most times from the platform of a home-based business. Some hawk products and also pay extra if you bring in new recruits. Many states have outlawed the practice of paying bonuses for recruitment.  No, all states and the Feds have if you had done your research!

But within the spider's web complexity of multilevel marketing, one thing's indisputable: The lower you are on the distribution ladder, the less the potential for big bucks.  Carole Moore the Fraud Writer..... doesn’t not the same thing happens at IBM, General Motors?  OR  better yet the Army where the guys on the bottom rung die first...

The Direct Selling Association promotes the interests of multilevel marketers. Amy Robinson serves as the organization's communications and media director.

DSA tries to offset some of the bad press network marketing has garnered over the years. It's a tough job because for every Pampered Chef in the business, there are dozens of get-rich-quick schemes intent on taking enrollees for a ride.

Robinson says the DSA has developed ethical guidelines by which the organization's members and prospective members must adhere or they're booted. She says the DSA reviews the applicant's business methods and runs background checks via state attorneys general and Better Business Bureaus.

"Multilevel marketing is really a compensation structure -- not a sales strategy," Robinson says. "In a legitimate multilevel structure, one need not recruit a single person to make money." Instead, Robinson says, the individual would make his money only by selling the product.

What, then, about front-loading -- when the participant buys lots of the product the MLM sells in order to get commissions or boost himself in the organizational structure? DSA calls it "inventory loading" and says it's not allowed. Plus, she says, the DSA has a buy-back policy that requires member companies to repurchase inventory under most circumstances.

"Most companies don't require inventory purchases at all," she says.

The Distributor Rights Association (www.mlm-dra.org or www.mlm-dra.com)  says,  “If a company does not have good products (of Value) and promote them over signing up new recruits we really don’t want them to be in existence”....  The DRA is dedicated to stomping out scams (such as this article) and the crooks that run pyramid schemes.

Will Green agrees. The owner of an MLM -- IMA Group -- Green says MLM is "very much misunderstood."

Green urges those interested in network marketing to check out the company's product before they get involved. "If you don't think the product's an excellent caliber, it's not going to make it anyway."

Green defends multilevel marketing, saying it enables many stay-at-home and single moms to earn an income. He points to companies such as Mary Kay, Avon and Tupperware as examples of business networking that succeed. And one that won't? Green gives the classic example of a venture that everyone pays into, but eventually -- as in the case of James Lewis -- there won't be enough to pay out. The name of this program?

"Social Security," Green says. "It's an absolute Ponzi scheme."

The company licensed independent contractors. In theory these contractors would drive online businesses to retailers with which the company had partnered and be compensated for those referrals. Lewis says the only people in the business who made any real money were the guys at the top. "The reality was ... the income that was supposed to be made from the ... program was virtually nonexistent," she says.  PER KATHERINE LEWIS A SCAM ARTIST HERSELF OF SAN DIEGO WHO MADE MONEY OFF THE SCAM TAKES THIS WORD FOR GOSPEL TRUTH!  Or because of the confused transitions in this story -- NO MLM COMPANY LISTED OR WERE THESE AFFILIATE SCAM THAT ARE SO PREVALENT ON TV.....  ACCURACY IN MEDIA IS OT CAROLE MOORE’S FORTE OBVIOUSLY

And there was a catch. To get into the business, the company charged a "license fee" of about $350. An additional program that supposedly enhanced earnings involved an extra monthly fee that Lewis says was in "fine print when they entered their (credit card) info." Most of the victims didn't even realize they were being charged until they received their credit card statements.  AH LEWIS THE SCAM ADMINISTRATOR

"From the mouth of the guy who created the MLM company for which I worked, 'Only (1 percent) of those who work in MLM will actually make any money,'" she says. PER KATHERINE LEWIS A SCAM ARTIST HERSELF OF SAN DIEGO WHO MADE MONEY OFF THE SCAM TAKES THIS WORD FOR GOSPEL TRUTH!  Or because of the confused transitions in this story -- NO MLM COMPANY LISTED OR WERE THESE AFFILIATE SCAM THAT ARE SO PREVALENT ON TV.....  ACCURACY IN MEDIA IS OT CAROLE MOORE’S FORTE OBVIOUSLY

Distinguishing legitimate MLMs
Network marketers -- even the ones operating legally -- are complex organizations and each company has a different remuneration plan. Some sell services, such as prepaid legal or training courses, while others offer products, most times from the platform of a home-based business. Some hawk products and also pay extra if you bring in new recruits. Many states have outlawed the practice of paying bonuses for recruitment.

But within the spider's web complexity of multilevel marketing, one thing's indisputable: The lower you are on the distribution ladder, the less the potential for big bucks. Carole Moore the Fraud Writer..  does a redundent MLM slam and we do a redundant answer... doesn’t the same thing happens at IBM, General Motors?  OR  better yet the Army where the guys on the bottom rung die first...   YES!  CAROLE MOORE’S DAD IS AN ARMY RECRUITER!!!    HER HIDDEN AGENDA.....

The Direct Selling Association promotes the interests of multilevel marketers. Amy Robinson serves as the organization's communications and media director.

DSA tries to offset some of the bad press network marketing has garnered over the years. It's a tough job because for every Pampered Chef in the business, there are dozens of get-rich-quick schemes intent on taking enrollees for a ride.

Robinson says the DSA has developed ethical guidelines by which the organization's members and prospective members must adhere or they're booted. She says the DSA reviews the applicant's business methods and runs background checks via state attorneys general and Better Business Bureaus.

"Multilevel marketing is really a compensation structure -- not a sales strategy," Robinson says. "In a legitimate multilevel structure, one need not recruit a single person to make money." Instead, Robinson says, the individual would make his money only by selling the product.

What, then, about front-loading -- when the participant buys lots of the product the MLM sells in order to get commissions or boost himself in the organizational structure? DSA calls it "inventory loading" and says it's not allowed. Plus, she says, the DSA has a buy-back policy that requires member companies to repurchase inventory under most circumstances.

"Most companies don't require inventory purchases at all," she says.

Will Green agrees. The owner of an MLM -- IMA Group -- Green says MLM is "very much misunderstood."

Green urges those interested in network marketing to check out the company's product before they get involved. "If you don't think the product's an excellent caliber, it's not going to make it anyway."

Green defends multilevel marketing, saying it enables many stay-at-home and single moms to earn an income. He points to companies such as Mary Kay, Avon and Tupperware as examples of business networking that succeed. And one that won't? Green gives the classic example of a venture that everyone pays into, but eventually -- as in the case of James Lewis -- there won't be enough to pay out. The name of this program?

"Social Security," Green says. "It's an absolute Ponzi scheme."