Archives: 3rd Quarter 2002
July, August, September
CALL FOR COMPLAINTS TEXAS D'LITES = BODY SOLUTIONS
29 Aug 2002 In 1998 a diet cookie company Texas D'lites created a rush of complaints about them hitting distributors credit cards > no products. The Latest News link is below on the owners. If you were ripped off file a complaint: COMPLAINT Here is the latest on the owners.
WOMEN HELPING WOMEN GIFTING SCAM
29 Aug 2002 Gifting dinner parties are hot across the country. Here is a report of what to stay away from. This upper middle class scam appeals to women. http://www.sacbee.com/content/news/story/4166435p-5189229c.html
VOTE! TELL THE 9TH FEDERAL COURT TO STUFF IT!
28 Aug 2002 The liberal Left Wing 9th Federal Court of Appeals (see prior WatchDog comments on these judges often blasted by the Supreme Court!) said God Had no place in the Pledge of Allegiance. YOUR TURN TO KICK THEIR TAIL! VOTE NOW!
A BIG HANDFULL OF MLM SCAMY AND ILLEGALS
28 Aug 2002 Our complaint form and spam brings a bevy of scamies and illegals to light! Here is a Consolidated collection of "scamies" to save space on this page. A SCAMY COLLECTION
BIGGEST PYRAMID EVER NOT MLM
27 Aug 2002 A New York Times Article says the biggest Pyramid Scheme ever may have been non-MLM telecom. Executives of big companies directed the buying of equipment from little emerging companies. In return the Execs got stock options and shares. MLM looks better and better! NY TIMES TELECOM PYRAMID
SCAMREPORT.ORG SEAL TARNISHED? INVESTIGATION!
August 26 2002 Three reporters plus complaints filed via the WatchDog website on 3 different companies - International Wealth Systems, Liberty Management (again), and Cash Evolution really set off a chain investigation all leading to Scamreport.org. I encourage young watchdogs that aren't MLM bashers to help watch the industry. But after seeing what ScamReport.org approved I had the same feeling as MLMSpy (see below). Plus that they had an offender with illegal earnings claims on a banner on the ScamReport front page. On top of that NO pictures, no names, no addresses, just how to send money! Innocent and undedicated? Or is it the MLM Spy scam guys reborn? HERE IS THE SHAKY SEAL OF APPROVAL INVESTIGATION
DUTCH TO DITCH REXALL?
Aug 23 2002 The Nutrition Business Journal (NBJ) reports that Royal Numico, one of the world's largest supplement companies, released anticipated earnings that were worse than expected. The drop in earnings was associated primarily with a drop in vitamin and supplement sales in the U.S. NBJ also reported industry "experts" were debating if Numico would sell their subsidiary Rexall Sundown. Sales went up in Europe and dropped in the U.S. The WatchDog will go head to head with these "experts" and say --- No they won't!
DIRECT SALES (WITH MLM ) DOMINATES WORLD!
Aug 20 2002 A brand new study by Thomas Register is sending shock waves through the marketing world. Direct Sales including MLM and Network Marketing dominated the entire U.S. business market for business growth models. With MLM plans sweeping insurance companies, real estate and mortgage this year we can expect a tremendous growth in the total sales volumes for MLM companies. FULL STORY AND GRAPH OF AMAZING NEW STUDY
MLM SPY ISN'T? WEBSITE NO NAMES NO PHONE = SCAM?
17 Aug 2002 MLM Spy started out as God's answer to MLM. They would investigate MLM companies and tell you which ones were winners (10 companies they would help you join). In the last 30 years I have seen a 100 of these come and go. I have been working to pick the best winners for years. My average is way above the norm, but that took a lot of learning and time. I never discourage people from being critical. But now complaints are rolling in about money in and no commissions out it appears that this is another scam. Why? DUH! No owners listed! No phone number to call! No Address! Normally these "we know best deals" are a vacuum sweeper to suck you into THEIR MLM COMPANY(S)! It appears that this one goes beyond that
MLM SPY SUCKS YOUR MONEY! (See: http://www.mlmwatchdog.com/Report_MLMSPY.html)
METABOLIFE TAKING MORE FEDERAL HEAT!
16 Aug 2002 - Metabolife killed off it's MLM Distributor force and went retail in 1998, is again getting heat from the US Government. The FDA has asked the Dept of Justice to pursue a criminal investigation of the report that Metabolife has 13,000 consumer reports about the use of it's products. We can assume that the reports turned up when IRS agents raided Metabolife 3 weeks ago. The FDA has been foaming at the mouth since they tangled with Metabolife 2 years ago. Prayer groups of Ex Metabolife Distributors that got screwed by Metabolife are no doubt responsible for generating the "higher heat" that causes lightening strikes on this nefarious company. IN THE NEWS
FCC HITS FAX.COM FOR $5.4 MIL
10 Aug 2002 The first time the FCC hits a fax blaster they do it hard! Wow! At $11,000 per violation with a total of $5.4 million this makes a real hit! This is the first time the Feds have gotten in on Fax Blasting complaints after all these years of them ignoring the TCPA (Telephone Consumer Protection Act). Typical of Feds -- they wait until the Fox has knocked down the hen house door then they move in with a bulldozer and knock down the hen house to get the fox. The TCPA is over 10 years old and the WatchDog has gotten 100,000 junk faxes. Where has the FCC been? MLM Company Execs and Owners you need to get a message out to your distributors not to fax blast unless it is to an opt-in list. If the feds pull more hits they will look for deep pockets YOUR COMPANY! DETAILS ON FAX.COM HIT
SHOCK WHERE DID YOUR RETIREMENT GO?
30 July 2002 Disaster for retirement time! For years I have urged people to learn sell things for a retirement income supplement . MLM is the only opportunity for the little guy. Now with stock market savings wiped out, big corporations going under and the U.S. in a financial upheaval I am proved right! MLM income can be a good supplement for you. Here are retirement facts! TIMES TIMES MAGAZINE - PAIN ------RETIREMENT SHOCK!
MLM IS GOOD - YOU HAVE TO SEE THIS!
29 July 2001 For all MLM Bashers! I want you to head to the Dallas Fort Worth (DFW) Airport this next Saturday/Sunday 3-4 Aug. 2002. About 50,000 reps will be leaving the Mary Kay convention. I hit the DFW airport several years ago as the Mary K reps were leaving with their pink sashes full or medals, insignia and ribbons! As a retired military guy I automatically (reflex) saluted about the first 100 I saw before my arm started getting tired. Amazing sight! Mary K. Ash died in Nov. 2001 but the convention numbers show well for the company. Mary K. is probably the largest MLM in the U.S. with 600,000 members, 350,000 outside the U.S. and annual sales of $2.8 billion at retail last year. FOR MLM BASHERS - WATCHOUT !
NON MLM PYRAMID - PONZI COMBO SCAM HITS HAITI
27 July 2002 Haiti the poorest nation in the western hemisphere is reeling from a $200 million (a lot of money for this country) scam that promised 10% returns a month. THIS IS IMPOSSIBLE. Homes have been lost and life savings wiped out. The only reason this is included is because it is a good learning lesson about Get Rich Quick scams. Not an MLM story. MLM is good and the only chance for the little guy. Details including the death of 27 people in Albania pyramid ponzi scam
SCAM LESSON 101 - DON'T JOIN A COMPANY ON THE WEB IF:
25 July 2002 - the people running the company don't have their pictures (with bio), phone numbers and a real address on the website! We might skip the picture, but not by much. Automatically mark the company a scam if you can't call them and talk to them. At least you need a phone number trace to where the scamsters were when they ripped you off. You should be able to mail a check to their real address not a front like "Mail Boxes Ur Us." Interesting trend in Japan, they won't join a company if they don't see an office building. In fact their networkers network and someone drops by the building to make sure the company exists! SMART! Fully 40% of the complaints we get here at the WatchDog are on company's without this info! They are not MLMs gone bad or in trouble, they are SCAMS disguised as MLMs! Other countries are going further. Today on Taiwan, legitimate MLM field leaders won't even consider the company unless (1) there is an in-country branch office (with people) of the MLM company; and/or 2) the company personally commits to establishing executive training centers/instant fulfillment centers in-country with a local liability/surety bond placed on the company should the MLM default, leave the country, or be scrutinized by government.
PRE PAID THUMPS FORTUNE MAGAZINE WITH RESULTS
24 July 2002 - PrePaid Legal just walloped critics with some very hefty income and earnings numbers. Very hefty net income up 81% cash flow up 71%. Active member increase, on and on. With all the scrutiny they have had we don't think they are "cooking the books." I can truthfully say the MLM WatchDog was caught off guard! Wow! SEE COMPLETE REPORT
(See: http://www.mlmwatchdog.com/Report_PrePaidLegal1.html), AND...
AMWAY GONE IN 7 DAYS! - COUNTDOWN!
23 July 2002 In seven more days you will never be able to renew in Amway. You can't join Amway! Except for Latin America, Asia and Europe it is done! Gone. You have to join Quixstar if you want anything close to the Amway experience! I got some good training in Amway back in "72 (before the "training tools" system really kicked in) so do feel a twinge of remorse! Sit Terra Levis Amway!
HERBALIFE > IN HOT SEAT VIA DOWNLINE BUILDERS
22 July 2002 New Ways to Wealth (NWTW) a downline builder program hatched by Herbalife distributors has the big H in a class action lawsuit in Federal Court in Los Angeles. To the north in San Francisco is the dreaded federal court the "Omnitrition" case started in and escalated to the 9th Court of Appeals. The opinion out of the "9th" (see other article this month) court of appeals changed the face of MLM. Now a downline building scammy deal ran by distributors has the big H in the hot seat (see Webster vs Omnitrition). NWTH was a little insidious in that newbies were pressured to be a Supervisor. Pop $2,000+ or or work your way up -- it cost money. Add monthly buying qualifications -- loss claims run between $13,000 and I have seen unconfirmed "pop" claims for $30,000. By The Way one of the core tools of the NWTW builder plan were those obnoxious roadside signs! Should be a wild case! Here is a report (doesn't really address the supervisor qualifying volumes) on the New Ways To Wealth Downline building scheme. COCKEYED REPORT WITH WITH WATCHDOG GOOD AND BAD N0TES ON THE WAY
VITA PRO - GLOBAL VILLAGE GRABS YPO -- AFTER MLM RIP JOB!
19 July 2002 Time warp back to 1997 --- about 7,000 MLMers got hit by Global Village "manned" by Yank Barry. Barry didn't stop 
there! To all of you that got taken, feel better! Global Village, using Muhammad Ali, even suckered and Hijacked the prestigious YPO (Young Presidents Organization) consisting of Fortune 500 million dollar a year+ CEO's and Executives. Global Village was a "feed hungry kids" charity deal that the WatchDog blew the whistle on back in 1997. CLICK FOR GLOBAL VILLAGE UPDATE!
there! To all of you that got taken, feel better! Global Village, using Muhammad Ali, even suckered and Hijacked the prestigious YPO (Young Presidents Organization) consisting of Fortune 500 million dollar a year+ CEO's and Executives. Global Village was a "feed hungry kids" charity deal that the WatchDog blew the whistle on back in 1997. CLICK FOR GLOBAL VILLAGE UPDATE! WORLD GAMES CASINO IS VG GLOBAL
16 July 2002 - VG Global is back! Didn't even change their graphics! The Swedes and Danes must have running slow during the VG Global run and missed it. Now they have jumped all over World Games! It is the hottest MLM ever seen in these two countries. World Games is smart and has their IP address blocked to the U.S. and Canada where there is no good humor about it. Smart!
MLMWATCHDOG NAME HIJACKED BY SPAMERS
13 July 2002 -- One of the techniques that Spamers have found to be effective is to hijack a trusted name and send out forged spam. It happened to Big Al about two months ago. If you get a spam from the WatchDog do one of the following. Easiest is send the email to me as an attachment - don't forward it... save and then send as an attachment.... OR the best is the following please:
1. Right click on mouse button2. Click on "Properties"3. Highlight the internet headers for the message4. Press "Control" and "C" at the same time to copy message5. Open up a text file or Word Document6. Press Control "V" to paste the internet headers into a word doc ....or new email message.7. Send the document back to me as an attached file.You are now an Internet Detective. I will use this information to get a track on these vile spamers and electronically nuke them out of the Internet world. This is why I think that anyone sending over 100 emails at a time should pay 5 cents per email. Let the Post Office control bulk email on the Internet! The profit from this would go to finance high speed Internet2 (actually 3 is available)!
SKYBIZ OWNER COULD GO TO JAIL!
12 July 2002 -- SkyBiz's owner Eli Masso is dangling. Let's get one thing straight with a law lesson. Most FTC hits (99.9%) on MLM companies are NOT criminal cases. They are civil cases. Those are the only two major types of court action in our legal system. So when the FTC hits an MLM company nobody goes to jail. The FTC hammer is that it can seize funds and stall until the company dies. Long history over this, but when Holiday Magic kicked the FTC's tail for 3 years back in the 70's -- the FTC found the Civil Lawsuit route the way to go (they also use it for Eron deals too, not just MLM). There are no criminal charges. However in a civil case there can be jail charges generated for "contempt of court." The CIA (see other stories on offshore money hiding) tracked down the $35 million dollars stashed in the Bahamas. The FTC and Federal courts can't freeze the money there. However what the court can do is order him to bring the $35 mil back to the U.S. so they can freeze it here. Eli Masso has refused to bring back the $35 mil, so is subject to contempt of court charges. This might put him in jail. His lawyers had better be good!
EXTREMELY BAD SCUMMY EX MLM COMPANY CEO/FELON RAIDED BY FEDS
11 July 2001 -- Yesterday was a Great Day for the MLM world!! Remember when Metabolife grew to $40 million a month or so on the shoulders of MLM Distributors who sold Metabolife 365 (the weight loss product) from mall carts and their homes? Remember the agonized Distributor pain when Metabolife cut off their Distributors and went directly into retail channels in 1999? Karma got the owner Michael Ellis (a previously convicted felon on drug charges). Ellis, you now know what happens when 1000's of ex-Distributors sit around and pray for your downfall?? FEDS SHOW UP WITH GUNS! Yesterday Forty (yes - 40 wow!) IRS Investigators came in and took over your office and hauled truckloads of documents out. They sent employees home. They dumped your filing cabinets and computers for evidence of your off shore tax evasion. Ed. Note: There is justice in the world! Thanks to all the prayer groups -- plus a snitch that is probably going to get a cut of Ellis's Billion$$ a year tax evaded income!!!
SPAM SCAM ALERT -- THE FREE LUNCH!
"Dear Fellow Marketer," (read that SUCKKER - with two k's)
"I happened across your site on the web, and I thought you may be interested in this."
"I received an email from a fellow named Tim M. telling me about a program with a new system of stacking free members in a group, and I would have a chance to upgrade ahead of the others. When one of those people upgraded, they would be in my residually paying downline!"
"I have had several negative experiences with network marketing in the past and had pretty much given up on them. I was intrigued by this new concept for getting people off to a quick start, and he said it was free to join with no obligation, so I signed up.
LINK TO FREE LUNCH SCAM
Suckkers fall for this Free Lunch Scam right and left! It is a famous ploy that never works. It is a trick that distributors and company's like Concord (see alert below) use to hustle up warm bodies. The next step in the hit is "Just Sign up on Autoship" or to buy a product! Duh the people on the bottom don't make any money, so the people on the bottom don't they quit, the next level quits and ..THE WINDOW SHADE EFFECT TAKES OVER! The whole downline rolls up empty ----- bbbrrrrtttttt !! --- like an old floppy window shade. Then a good company like Life Force is sitting there with $200,000 worth of credit card charge backs and returned merchandise because of dumb downline builder scams!"
MLM UPSWING TO CONTINUE
9 July 2002 -- Ameri-Debt (the debt consolidation company) did a survey last month and found that a few more people are taking vacations this year 52% -- compared to 48% last year. That tells us that recession fears are still hanging in there! A shocking 28% said they weren't going because their credit cards were maxed out and 17% said they were just too broke! Ok, the clincher is 17% said - they were recently out of work or worried about a layoff. This thousand person survey gives us a good indication of why MLM is growing well this year! A quick reinforcement to that is Blockbuster Video, Radio Shack and Target just reported a slow 4th of July. Normally the 4th is a hot income time for them. With accounting fraud in major corporations shaking the stock market fear creates a shaky economy. That fear keeps pushing worried people into the only avenue they can safely enter, MLM! We will see this continue for the rest of the year. Also see: Recession causes MLM to Boom
EXCELLENT!
28 Sept 02 Alternative Health Care Treatments Now Legal In CA. California Governor Gray Davis signed into law the most important Health Freedom bill in world history - California SB 577. Californian Naturopaths, Homeopaths, Nutritionists, etc., are now free to offer services, without harassment.
(c) The Legislature intends, by enactment of this act, to allow access by California residents to complementary and alternative health care practitioners who are not providing services that require medical training and credentials. The Legislature further finds that these nonmedical complementary and alternative services do not pose a known risk to the health and safety of California residents, and that restricting access to those services due to technical violations of the Medical Practice Act is not warranted.
To read the whole bill go to: http://www.californiahealthfreedom.org/documents/our_bill.asp
EUROPE TRYING TO BAN NUTRITIONALS!
22 Sept 2002 - European pharmacy companies get the upper hand! Nutritionals to be banned in the European Common Market?
Very Possible! See this very comprehensive and analytical article from the UK: Guardian Unlimited |
The Guardian | Health Supplements: R.I.P.
Do you have friends in the U.K.? Pass this link to help them send a protest to members of Parliament. Or have them come to the MLM WatchDog to click out of here.
No friends in the U.K.? Make some quick! Tell them to see U.K Consumer Action
Also all Americans get started now to protect your rights > see below MESSAGE TO THE FDA
PRE-PAID LEGAL PREPARING FOR SHOCK?
22 Sept 2002 - Very curious message from the top of Pre-Paid legal. Sometimes we have seen companies use this as ploy before something bad is released. Your Editor gives some weight to this.
The curious thing is that 12 million shares are a tremendous amount to short. Someone knows something we don't! This comes under the heading of unsolved mysteries! Here is statement:
Editors Note: I don't believe that MarketWave's recent negative article on Pre-paid Legal would have that much weight. No. I don't think that Len Clements was paid by the short sellers to do the negative article. Great conspiracy theory. Now if Len shows up with a new Rolls? Kidding.
However this massive short sell is indicative of someone with some heavy inside knowledge!
WOMEN HELPING WOMEN RAIDED!
21 Sept 2002 - Some people just can't stay away from "Gifting." Notice that police raid the homes pyramid scammers. Are you doing a pyramid scheme? Wait for the knock! More and more the law is going after participants not just the ringleaders or operators. Here are the links to this latest "California Dream." Click Here: Gifting Raids
JAY CONRAD LEVINSON GOES MLM
18 Sept 2002 - Here's the deal. Jay Conrad Levinson is working with Mark Joyner (Aesop Publishing)
to launch a "Guerrilla Network Marketing" MLMcompany. Jay has never been involved in any form of network marketing before.
MLM INSIDER ATTACKS BIG AL
17 Sept 2002 STOP THE EMAIL! I have no association with the MLM Insider any more! I did not attack "Big Al" Tom Schreiter! No way! Get off my back! For novices "Big Al" is a top MLM Trainer and considered by many to be the Mother Theresa of the industry. Critical report on Corey Augenstein's MLM Insider attack follows!
THE FDA NEEDS A MESSAGE FROM YOU!
15 Sept 2002 This is a Good petition to maintain our rights of free speech concerning nutritionals. Some subscribers remember my criticisim years ago over the FDA "book burning" the Stevia (natural sweetener) books. Your MLMWatchDog supports = Citizens For Health a group of ordinary people who believe good health is a right, not a benefit determined by government. The MLM WatchDog was active in getting DESHA passed through Congress to protect your right to nutritionals. PLEASE send people to the MLM Watchdog to sign this free easy to send petition! HELP! Petition to the FDA! Ignore the deadline!
GMT101 FANCY DANCE!
Sept 13 2002 - Great example of completing matrixes and cycling to new pyramid matrixes. Has enough bells and whistles they hope will fool regulators. Look for names, phone numbers and pictures, Not there? These missing ID indicators generally indicate it's a scam or ran by some techy flakes! Good Example: www.gmt101.com
MALONEY BONUS TO SIGN WITH MORINDA?
Sept 12 2002 - New record for an MLM signing bonus to a Network Marketer? No, says Dale Maloney finally! Sources reported that Dale Maloney signed with Morinda who promised to sell 1.5 million of his books for $5@. I believe Dale, he has never had propensity to lie. The interesting thing is the source (s) came from the Morinda side of the house! Lots of controversy over there too! Our regional grocery chain has Noni on the shelf for less than distributors pay.
CLICK: WATCHDOG ON TERRORISTS 9-11
11 Sept 2002 - Your retired Army Editor sends his <peaceful> regards to terrorists!
ACN WHACKED BY CANADA
Sept 5 2002 - Earnings claims again! Canada has no good sense of humor about earnings claims. Earnings claims in meetings or on the web by distributors get companies in trouble
Also news: Industry Canada gets award for their activity stopping scams. Other news: Joint U.S - Canada task force formed.
SEE MLM CRUISE TODAY!
Sept 3 2002 Time to sign up for the annual Thanksgiving MLM cruise. It is my favorite way of training new reporters and WatchDogs. We will have special closed sessions on the trip (while at sea). You get to meet industry legends, Network for the future and just generally have a great time!
AUSSIE TWO UP SCAMS HOT ON WEB
Sept 2 2002 - A lot of Aussie 2-ups are showing up on the web. These are a great way for the company to steal a lot of money from innocent people while they start up! Also 100% of the Aussie 2 ups I have seen have no names, no phone numbers, no addresses unles they were duped distributors for the hidden mother company. The law has arrested Aussie 2 up distributors. See the expose! Worst pay plan in existence and harms the MLM industry!
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