UPDATE TO FIND BEST EXCITING MLM COMPANY
PEACE CORPS BACK AFTER PYRAMIDS?
27 Sept 2003 -- The American Peace Corps returned to Albania this week after a six year absence. The Peace Corps started Albania in 1992 after the fall of communism. They left in1997 because of violent riots breaking out when thousands of Albanians were left destitute by pyramid schemes.
26 Sept 2003 -- A rush of calls about this Meridian Spinoff with a modified compensation plan. Stay aware until we get an investigation done!
SEA SILVER COMPLIANCE STOMPS ALL!
22 Sep 2003 -- The FTC/Court appointed receiver for Sea Silver just put out Sea Silver nutritional claims compliance guidelines. They terrible! We have to go back to Congress! The guidelines are so stringent that they are silly. Read them closely! Included in them is the phrase, "this generally applies to all companies." When the court settlement is made those words will be included in the settlement. It then becomes "precedent law" to be used against all companies in Federal courts. Slick way to get around the DSHEA law passed by Congress! SEE http://compliance.seasilver.com/
MLM IS GOOD THIS ISN'T - MLM ARMY
22 Sep 2003 -- I have two things that I love. The United States Army that gave me such great toys to play with and MLM that made me money the Army didn't! Now comes a new great concept! An MLM Army just get people to sign up other people and make money. No basic training, no boring products to sell and no work. The founder evidently hasn't learned to spell "PYRAMID SCHEME." Go take a look! http://www.mlmarmy.com
20,000 DYNAMIC ESSENTIALS DISTRIBUTORS KILLED STUPIDLY
19 Sept 2003 -- Goldman Sachs, the investment bankers, have received several bids for Royal Numico's ownership of GNC nutritional stores. Bids from buyout firms are in the $700 million range. It will serve Natures Bounty right if they don't survive the bidding after they killed the hopes and dreams of Dynamic Essential distributors -- just to try to buy GNC. Do not ever buy anything off a store shelf with the name Natures Bounty on the label! SEE 18 JULY ARTICLE BELOW!
GOLD QUEST HIT IN INDIA AND NEPAL
15 Sep 2003 -- Gold Quest has started moving into the U.S. It also just got hit Indian and Nepal! In India police shut down the Company's HQ in Chennai. In Nepal they threw company reps in jail! Gold Quest is similar to Gold Unlimited that the U.S. government shut down in 1995. Woman jailed go to the pyramid scheme page!
WARNING GOLDEN WOMB NOT SO GOLDEN
15 Sep 2003 -- When 8 of you ask about a company I started investigating! Golden Womb/Pure Investor is going to save you from the evils of regular MLM companies with a multiple matrix feeder! Fat Chance! Off shore companies like this one in Malaysia are for suckers. Be warned! To have a good laugh over super hype go to: http://www.goldenwomb.com/
GLOBAL DAILY PAY AND WEB HOST WHACKED BY WISCONSIN
13 Sep 2003 We warned about GPD! The Department of Justice in Wisconsin has filed against a Las Vegas company to seize $900,000+ as part of a pyramid scheme. Global Daily Pay Inc. had their website hosted in Wisconsin and used it to suck people into the pyramid scheme. Richard Krawczyk, the owner lives in Irvine, California. So much for scam artists registering in Nevada to dodge the law. The action also named the site builder and host Work Digital out of Wisconsin. So cyber law is now going after the web builders and hosts! Very interesting to anyone building scam sites. Work Digital had their money seized.
GMT 101 FILES BANKRUPTCY
11 Sep 2003 -- We told you so! GMT took top earners on a cruise. They then find out a few days later that GMT had filed Chapter 11 (re-organization). The theory presented by CEO Bruce Bise is that bad checks and auto-drafts caused the crunch. Fat chance! The WatchDog bets that when people did not make the "Mega Bucks" promised they went to their banks and whacked the payments to GMT 101. The $$$ promises made where not delivered to the little guy with the what I call the "whirly gig Aussie x-up. CEO Bruce Bise makes a statement of "poor company" (Click Link Below) for bad payments. In the context of his excuses he gives a link in the second paragraph to bad payments! Talk about self indictment! The first bad payment on the page is for $29,000 or so! Unless you are running a scam why would you ever LET someone put in $29,000+ ????? That is 145 autoreponders (they charged about $200)! I thought 10 autoresponders were bad! With the million$ that GMT took amounts like this wrecked them? Doubt it! Greed got them they did not have good accounting checks and balances, but again what scams I have seen never do! Wonder where the money went - offshore? Ed. Note: I bet the Chapter 11 includes "back commissions" owed to Distributors. Not the big guys, they got their money, but the 1000's of little girls/guys that got suckered into this!
PAST WATCHDOG GMT WARNINGS
MERIDIAN PYRAMID SCHEME UPDATE
08 September 2003 -- 23 June 2003 -- Update! New legs from new countries being started direct to the company. This screws the Americans that jumped in and made it rock! Income to American scammers dropped like a rock! http://www.meridianart.net/
ASPARTAME NOT EPHEDRA KILLS?
08 September 2003 -- When pitcher, Steve Bechler died of heat stroke the Government and press blamed ephedra. Could there be other causes?
MASTER MIND CONFERENCE - SUPPORTS DISTRIBUTOR RIGHTS ASSOCIATION
4 Sept 2003 -- I am RECRUITING for the Master Mind Conference in Houston, Tx the 3rd, 4th and 5th of October.
MAILWASHER FREE SPAM STOPPER
E'OLA KILLS OFF ALL DISTRIBUTORS WHACK!
2 Sept 2003 -- E'ola International, based in St George Utah, put out the word on 30 Aug. that "network marketing was no longer a viable marketing strategy" for the company and that as of 9/3/03 the company would go to direct sales. After E'ola's had the FDA seize their products from warehouse, then the ephedra lawsuits it is a cash flow problem no doubt. Ed Note: Not nice to do to distributors depending on commissions for house payments.
4LIFE FORKS OVER $425K !
2 Sept 2002 -- 4Life pays $425,000 in defamation lawsuit. It is reported that the other litigant paid $1. We have not seen the final judges decision. Definately a different case! Here is website report from winner. http://www.4lifeguilty.com/
POSITIVE MLM ARTICLE WASHINGTON POST
28 August 2003 -- Women entrepreneurs moving into in MLM in growing numbers. MLM Party Plans are popular because of the socializing aspects of MLM in a busy society.
PROCTOR AND GAMBLE AMWAY LAWSUIT FLOPS
28 August 2003 -- P&G 8th lawsuit against Amway/distributors has flopped again. Some reports are that this is over 10 times that P&G sued the Amway people for "supposedly" spreading rumors about P&G promoting Satanism. The U.S. District Court for Utah dismissed this last claim by P&G. The Judge also sanctioned P&G for violation of court orders and destroying evidence! Wild! What a story, as it is going P&G has drawn more publicity to the Satanism rumor than if they had just let it die. Ed. Note: With all the traffic at the WatchDog we never heard this rumor until P&G started filing lawsuits.
GOLD QUEST HIT BY PHILIPPINES
25 August 2003 -- Last year we warned against the Gold Quest gold coin deal. Gold Quest backed out of the U.S. but kept operating in Asia. Now the Philippines are after them! Watch out for gold coin deals. Gold is a narrow margin hard commodity item. See Article >> http://www.inq7.net/nat/2003/aug/19/nat_10-1.htm
4Life BUYS NFLI KOREA IN BANKRUPTCY SETTLEMENT
25 August 2003 -- 4Life bought NFLI (Nutrition For Life Int'l) Korea from the bankruptcy court in Houston. Will any of the money paid get back to U.S. distributors owed commissions? Probably not, usually distributors are unsecured creditors.
MLM IS GOOD - NATION RETIREMENT PYRAMIDS ARE NOT!
22 August 2003 -- I never know why people run around crying that an MLM sales model is a pyramid when whole retirement systems in countries are! Here the economist gives us an article indicating profound impact.
FORTUNE MAGAZINE - GOOD MLM INFORMATION TO GET
20 August 2003 -- Just reported! Fortune Magazine "Power Issue" has a good 18 pages on the benefits of Direct Selling and MLM. This special section starts on about page 128 of the Issue. The special Power Issue is "supposed" to be on newsstands until 29 September. The special MLM section was put together by the DSA with ads from some major MLM companies. Thanks to all of them! Excellent support material for you to use in recruiting! The DSA has a new effort to get favorable information out to the public on Direct Sales. This is a great start!
SKYBIZ CONVICTION UPHELD IN CANADA
18 August 2003 -- A Canadian Sky Biz Distributor who was convicted by a lower court of participating in Skybiz has had her conviction upheld by a higher court. Speaking of SkyBiz where did that $20 million dollars go that the FTC got from the owner when they shut it down? Does it take this long to count $20 million! See Conviction details.
LAWYERS CAUSE NUTRITION FOR LIFE TO BANKRUPT?
PYRAMID SCHEMES GET DOCS
MLM IS GOOD INTERNET SCAMS AREN'T
11 August 2003 -- Internet Scams increasing. Remember the "WatchDog motto" no name on the website, no address, no phone number RUN! If you are scammed see the Internet fraud center link here on the MLMWatchdog. Also there are links to Attorney Generals. Remember you need to go to the AG for the state where the offending party is http://www.mlmwatchdog.com/Complaints.html Also see MSNBC story on latest scams at this link. Protect yourself on the Internet! Keep up on the latest, this is a good overall article!
NEW ZEALAND AFTER PYRAMID SCHEMES
IS THE FBI WATCHING YOU?
PREPAID LEGAL UNDER LEGAL ATTACK
6 August 2003 -- Prepaid legal under attack by ambulance chasers in Federal Court in Oklahoma. A class action lawsuit, filed 17 months ago Lieff Cabraser Heimann & Bernstein accused Pre-Prepaid of enticing the public into investing in a biz opp that doesn't deliver what is promised to participants. Story>> http://www.mlmwatchdog.com/Report_PrepaidLegal1.html
GLOBAL DAILY PAY BELOW
6 August 2003 -- Confirmed Global Daily Pay being investigated by Wisconsin for possible criminal actions. Money seized! See below! Contact if you lost money in this pyramid scheme firstname.lastname@example.org
GLOBAL DAILY PAY NO NAMES NO PICTURES NOW JAIL?
4 August 2003 -- On the 31st April of April we sounded the alarm about Global Daily Pay.com not paying. The state of Wisconson thought it it was alarming too! Here is the GDP website, "The GDP website is under a court order. This was a SCAM website -- no names, no addresses, no pictures automatic scam identifiers! Click on this link to file a complaint with the law! >>> http://www.globaldailypay.com/master/
NEWS BUCKS NAME COLLECTING?
4 August 2003 -- Is News Bucks a name game to collect your name? No listing on who is supposedly financing this big move in print media, no word on the "publishing street." This happened back in 1991 or so when a new super paper was to be launched. The producers collected a great list of names and disappeared. Complaints about getting the $5 bounty. One reporter reports he was offered a downline of 500 people for $750! Big money startup huh? http://www.newsbucks.com
MLM IS GOOD
2 August 2003 -- Yesterdays article (1 August) was not against MLM. The Normal (non MLM) independent business failure rate is around 80%. I was not -- the MLM failure rate is only a few points higher from all independent businesses. Most business attempts of all kinds (non-franchise & non-license) fail. It is part of the American freedom and culture.
THE REAL SUCKERS
1 August 2003 -- Last week I cruised the MLM message boards and saw post after post "these darn MLM scamsters." Ok, here are some estimated numbers. There were about 1200 real MLM companies "On The Street Last Year!. There were about with about 2000 new startups with a 98% failure rate. If you joined a new one? A sample! Let's look at suckers, namely "Weight Loss Suckers" the owners where too poor and inexperienced to be able to figure out what a pay plan should pay. Promoters got excited and jumped on because of cash flow. The Company pumped out 100% to 130% in pay -- to go broke! Then the company folded .DUH! There is a rule: To good to be true It is! This was no scam, it was a lack of experience! The owners weren't crooks, just virgins. The weight loss suckers tasted good Want a good MLM deal with long term residuals? Look for hard work! Ed. Note: Another 1000-1500 scams that weren't MLM floated by last year we'll address them separately this month.
PENN STATE AG HITS GASUP WITH 2 ACTIONS
31 July 2001 -- GasupUSA got hit by the Attorney General of Penn State filed contempt of court charges against Eric Dalius the GasupUSA owner (and his old company) for violating a 2000 court order. The AG also filed a lawsuit against GasupUSA for violating Pennsylvania's consumer protection laws. Interesting no pyramid scheme charges were brought ! Here are the full details from the Penn State AG!! Need money back? Send complaint form and full documentation. Pass the word along to friends that may have belonged!!!!!!!!! >>>> http://www.mlmwatchdog.com/Report_GasUpUSA.html
THE TAX PEOPLE OWNER NO LONGER A FUGITIVE
30 July 2003 -- A Kansas judge dropped the arrest warrant for Michael Cooper. Cooper was owner of The Tax People until the judge in 2001 ruled it a pyramid scheme. Cooper has been hiding in Mexico, Robert Baer, the court receiver for TTP said it appears that Cooper can return to the US. The Judge issued a judgement against the Tax People, for $13.6 million in consumer damages and $278,059 in investigative expenses, court costs and lawyer fees.
4 MLM COMPANIES OFFERRED MORE!
28 July 2003 -- Changes International starting leader in the compressed pay plan, Achievers Unlimited, Golden Pride and Raleigh are under one roof! All are under the umbrella of Gold Shield Pharmaceutical of England, with operating HQ for them in Palm Beach, Fl. NEW! They now maintain their own products (and pay plan) but can buy products and participate in the matrix comp plan under the centralized Gold Shield Elite Company. This is per Harry Hersey III CEO of Gold Shield, USA.
DIABETES IS AN EPIDEMIC IN US
24 July 2003 -- New Release: 1 in 3 kids born in 2000 will be diabetics the Centers for Disease Control (CDC) says. Some mindless scientist with the CDC say's "eat less exercise more." The CDC goes on to say that 45-50 million people could have diabetes in 2050. The CDC is dooming people with their silly advice that people aren't going to follow. The CDC, FTC and FDA are ignoring SUGAR that is in everything you eat today. Why? They don't want to take on the sugar lobby just like they ignored the tobacco lobby for years. Ed. Note: Time has proven the FDA and cohorts worry about the wrong things!
UNICITY FINDS OWNERS -- AT LAST !
19 July 2003 -- Unicity has been bought out by management. Last fall owner Royal Numico said they wanted to sell it and GNC. Since Unicity has been "in limbo." A group of Unicity management Executives, led by Paulo Bangerter and Aaron Webber (new CEO), formed a new company and are taking over. Richard Bizzaro former CEO since 1999 stepped down. Statement from the new managers: "They were pleased Unicity would now be held by people who love the business." R&D plus manufacturing will still be by Royal Numico. The new management said plans for improvement will be done in the next 60 days. Ed. Note: Unicity was supposed to be bought by Natures Bounty per a Feb 28th agreement, N.B. backed out. Then as reported here Unicity was "shopped" by another funding group (who may have provided some money for the new company). Either way -- Great for Unicity Distributors this is settled!
DYNAMIC ESSENTIALS DEAD -- ALL DISTRIBUTORS TERMINATED AT ONCE
18 July 2003 -- Posted where the DEI website was: Effective as of July 18, 2003 (the "Closing Date"), Dynamic Essentials (DE), Inc. ("DEI") is closing its business operations. No additional products are being sold and no additional distributors will be accepted by DEI. All Distributor Applications and Agreements are being terminated. Commissions on product sales made through the Closing Date will be paid within thirty (30) days. Current Update>> http://www.mlmwatchdog.com/RC_DEI.html
SEA SILVER TO REOPEN TOMORROW?
17 July 2003 -- Looks like the way is being paved for Sea Silver to re-open. There is some question about labeling but workforce coming back tommorrow - good. A local reporter has a different slant evidently after interviewing the FTC Trustee! Sea Silver statement and Reporters Story>>> http://www.mlmwatchdog.com/RC_Sea_Silver.html
THE FTC HALL OF SHAME
17 July 2003 -- In 1954 J.I. Rodale starting publishing books with "heresy" in them. His theory was that eating red meat and dairy products caused heart disease. He added insult to injury saying that physical exercise could prevent it. The FTC hounded him and ordered him to stop publishing his books. Rodale (now Rodale press) refused to back off and fought the FDA tooth and nail. He was headed to the Supreme Court! In 1971 he was on the "Dick Cavett Show" and dropped dead in front of millions -- on TV. Later the FTC wrote a policy that advertisers of information based (books/magazines) no longer had to prove exact science in their claims. Back then the FTC was following the government line to promote red meat and dairy products. Today the FTC stays silent on one of the biggest killers SUGAR in the American diet. Hidden SUGAR is in bread, mustard and anything food manufacturers want to sell SUGAR is a (or the) prime cause of making Americans fat. The FTC won't take on the powefull "sugar lobby." They pick on nutritionals with a fervor and the preponderance of scientific evidence for nutritionals has to be proven by taking the FTC to court (the recent selenium case).
Sad day in America when citizens have to take their own government to court to get the truth out!
Sea Silver Close????
14 July 2003 -- SEA SILVER CLOSE TO REOPENING???? Hopefully Sea Silver is back in business soon. Insider sources report that an agreement has almost been reached with the FTC. Let's see how much the ransom to the FTC was or is!
SLOW FTC HITS A DEAD DOG! DOLLAR LATE AS USUAL
09 July 2003 -- In a complaint filed in U.S. District Court Arizona, the FTC alleges that since 2000, Tucson, Arizona-based NexGen3000.com (NexGen) and its principals marketed Internet "shopping malls" that they claimed would enable investors to earn up to $60,000 a week income and commissions on products purchased through the malls. The malls contained a collection of links to retail Web sites maintained by merchants. http://www.ftc.gov/opa/2003/07/nexgen.htm
NUTRITION FOR LIFE LIQUIDATED
8 July 2003 -- Last Thursday the Bankruptcy Court liquidated NFLI. Sad. Three major bidders on the remaining assets are Melaleuca, 4-Life Research, and Xango.
ANTI ABORTION GROUPS ATTACKING PAMPERED CHEF
4 July 2003 - One Million Moms is attacking Pampered Chef party plan. They say it is because it belongs to Warren Buffet, the billionaire, who has donated to pro-choice organizations. The One MM's claim that Kitchen Consultants are leaving Pampered Chief in ??? numbers! Ed. Note: I called 3 good sized builders in Pampered Chief sales force and 2 said, "no impact here." The other one said, huh?, she had never heard about it! Ed. Note: I am pretty well neutral on the subject, but do think that rapists and child molesters should be castrated. Here is political stuff from One MM's ! http://www.onemillionmoms.com/email/pamperedchef070103.html
MLM IS GOOD -- NEW COMPANIES HAVE A HARD TIME
1 July 2003 -- Many times people file complaints with us that they got "hit" by a scam. Not necessarily so. It was probably a business failure. Over 90% of new MLM companies that start each year bite the dust. Most of the owners are good people. They did not have enough money to adequately start the company or enough business background. They did not have the proper legal advice. Also about 50% of the MLM Software vendors on the Internet are selling junk. I am convinced some MLM software companies are the biggest crooks in MLM. My investigation of Cash Evolution for instance points at technology issues and no MLM Lawyers in New Zealand. The New Zealand Liquidators are a different story!
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Sea Silver hit by FDA
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