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Wake Up Now goes after its former head: Sues ex-CEO Kirby Cochran, et al for $70M

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Only a few days ago did I report that Wake Up Now (WUN) may be heading for eternal slumber. Turns out, it's got some last gasp yet, but only to drag down somebody with it.

You heard it here, folks (thanks to BehindMLM for breaking the news)  Wake Up Now wanted to take down someone with them, and that would be their former CEO Kirby Cochran (resigned October 16, 2014), as well as Elaine Cochrane (wife of Kirby, ex-legal counsel), Nathan Cochrane (son of Kirby, also ex-WUN staff) and some guy called Juan Carlos Lozano (Mexico area WUN leader).

However, by the various titles / headings used in the complaint, this was clearly written as a PR piece, not a legal complaint, as it contains such gems as:

  • Kirby Cochran Gets His Nose into The WUN Tent
  • Kirby Cochran Infiltrates WUN 
  • Kirby Gets "Loving Brother" Gary C. In On The Action
  • and so on 
Still, looking past the titles, it's clear that WUN painted an interesting story... they claimed that Kirby Cochran basically allowed WUN to go public by merging with one of his existing companies, and in doing so, basically took it over from the inside, and proceed to give his wife and son cushy positions doing little to nothing, contracted his brother as a consultant to eat up all the profit, then spent more money scrapping the old system for a new one, which didn't work. Upon resignation, Kirby Cochran allegedly solicited many top people in and around the company to launch a new one, ignoring the non-compete agreement and went after all the foreign IBOs, mostly by allegedly spreading lies and defaming WUN. 

But how true is this? 


The best lies are hidden by truth, and while there's no doubt a good possibility that Kirby Cochran may be a douchebag, we only have WUN's side of things. Furthermore, the responsibility ultimately lies with WUN for allowing a douchebag to lead them without doing proper due diligence on the guy, and allowed him to "rob the piggybank" for so long. This lawsuit reads like "closing the barn door after all the cows left" and cover-your-rearend. After all, the company gotta blame somebody for its failures, and if it can find someone else to blame, it will. 

Ultimately, it doesn't matter. This only proves that WUN is done, over and out. Whether you believe that WUN really was a sustainable business (there's no sign of that) or it was robbed from within (there's some allegations) it's still a crappy business. 


Basically, everybody needs to do their due diligence. If you as an affiliate don't do so, you risk joining a bad company and lose time AND money. If a company failed its due diligence, it goes out of business, and in a network marketing company, screws over thousands, tens of thousands, or more people over several years.


BREAKING NEWS: SEC halts "Achieve Community" ponzi scheme

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English: The U.S. Securities and Exchange Comm...
English: The U.S. Securities and Exchange Commission headquarters located at 100 F Street, NE in the Near Northeast neighborhood of Washington, D.C. (Photo credit: Wikipedia)
The shoe have dropped, folks. And it's actually a sledgehammer.
Washington D.C., Feb. 18, 2015 — 
The Securities and Exchange Commission today announced fraud charges and an emergency asset freeze against two operators of a Colorado-based pyramid and Ponzi scheme that promises investors extraordinary returns of 700 percent through a purported “triple algorithm” and “3-D matrix.”

In a complaint unsealed yesterday afternoon in federal court in Denver, the SEC alleges that Kristine L. Johnson of Aurora, Colo., and Troy A. Barnes of Riverview, Mich., have raised more than $3.8 million since April 2014 from investors they enticed into buying positions in their company Work With Troy Barnes Inc., which is doing business as “The Achieve Community.”  


Full press release available here:  http://www.sec.gov/news/pressrelease/2015-35.html#.VOTcBPnF-Sr

BREAKING NEWS: PlanB4You Admin "Johny Schabregs" arrested by Netherland Authorities

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PlanB4You, a suspected low-level ponzi scheme had been shut down in December 2014 by Netherland's FIOD (Fiscal Information and Investigation Service). Instead of keeping his nose clean and await trial, Schabregs, operator of PlanB4You apparently hoping for a fresh start, offered "two for one positions", i.e. buy one position, get one free. This resulted in his arrest on 20-FEB-2015 by FIOD. 

Prosecutors alleged that victims of Schabregs are spread among multiple countries in the Eurozone, including Netherlands, Germany, Belgium, Slovenia, and Italy

Even now defenders of scheme still claimed that the money will be used to start 25 companies and everybody will profit. 

Can You Forgive Your Pastor Defrauding You Because He Said it's "Not Intentional"?

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Imagine this scenario:

Your pastor is a man you trusted because you trusted people who are men of God. You've seen him save people from alcoholism. You know him to be a moral man that came from humble origins.

So when your pastor claimed that he's started a business where he needed money to make money, and promised a hefty return, you did not hesitate. Your pastor claimed the money will be invested in foreign currency, or perhaps commodities...

But after a few months, perhaps a year or so of paying out... There is no more payment. That's when the pastor admitted he wasted all of your money. And money of hundreds of other churchgoers and his other associates.

But he didn't mean it. It was "not intentional". He lost money too.

Can you forgive him? When your life savings are gone? When you will probably lose your house and declare bankruptcy?

For hundreds of people around the country, this is not imagination. It is absolutely real.

Welcome to the world of religious fraud.  We got two sob stories for you.




Julius Blackwelder was a former Mormon bishop in Connecticut who claimed he can trade commodities and make big profits in a scheme that lasted 10 years. He took in money and gave out promissory notes with various memoranda and account updates, promising guaranteed returns of 20-25 percent per year. And we're talking about millions. However, he was actually quite bad in trading. He lost money in 50 of the 59 months he actually traded. And he actually used almost a million to buy a nice house... demolish it, and built a mansion in its place. And then he opened a loan through the TARP program... and the Feds got involved. Connecticut issued him a "cease and desist" in 2011, the Feds indicted him in 2012 for running a Ponzi scheme.

So he moved to Texas and took menial jobs, then became a long-haul trucker in North Dakota. He live in a trailer on an abandoned school. And in 2013, he was convicted of running a Ponzi scheme.

At the sentencing, Blackwelder stated to the judge, ""that have led to the loss of trust of my friends. This was not intentional."

Apparently some of his former flock forgave him, believed that he did intend to pay them all back... but not all are so charitable.

http://www.sfgate.com/local/article/Mormon-bishop-gets-prison-for-Ponzi-scheme-4629284.php


On the opposite coast, a nearly identical story played out in the San Fernando Valley of Southern California.

Pastor Luis Serna, native of Mexico, came from humble origins, never graduated high school,  but became a pastor, and was serving in Zion Living World Christian Center in San Fernando when he was busted in 2014. He had apparently solicited $7 million from his flock in "Architects of the Future Investment" where he said any money will be used for foreign currency investments. Most of his followers were some of the poorest immigrants and was entranced by the promises of up to 20% annual returns. Over 82 victims were reported.

One victim family reported that they lost their house held for 20 years, with ruined credit and forced to declare bankruptcy.

In November 2014 Serna was sentenced to 10 years in prison and $4.6 million in restitution.

http://www.latimes.com/local/lanow/la-me-ln-san-fernando-pastor-prison-20141111-story.html

These stories are hardly unique, as there are more and more of them every day. But what is there to learn from them?

The person who you believe will NEVER cheat you... is probably the person that WILL cheat you. 



MLM History: DSA Killed a Bill in 2010 That Would Have Saved MLM

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Network Marketing is in an identity crisis, and it had been for decades.

At the beginning MLM was really about selling stuff. It is in the past 3 decades that MLM had morphed into an industry no longer cares about retail. And their industry organization, Direct Selling Association (DSA) does not even bear the MLM or NM name.

(Frankly, DSA had existed LONG before existence of MLM, and was basically "taken over" by MLM companies. But that's a different story for another time. )

Previously I've addressed how DSA managed to condemn FHTM in 2012, a pyramid scheme, mainly by dissociating itself far from FHTM and claimed FHTM was denied membership 3 years in a row. My conclusion then is DSA is not making any efforts to clarify the differences between its members and a pyramid scheme, and it may not like how FTC will shape the industry in the future.

I've also addressed that DSA has basically ignored the existence of product-based pyramid scheme, and this action is clearly deliberate, because it needed to defend Herbalife in 2013 amidst Bill Ackman's long and epic short. DSA should instead lead the effort to stamp out product-based pyramid schemes and lead its members to strive for retail volume. But it won't.

Later, I discovered a DSA position paper where it basically denied the existence of legal precedents (i.e. just ignore it) and everybody can self-consume to their own riches. That, I predicted, will lead to the eventual destruction of MLM itself, if not by Ackman, then by the government.

But what surprised even me was the DSA's reluctance to even nail down the definition of "customer"... and how they killed a legislative bill in Tennessee back in 2009/2010 that attempted to separate a legitimate MLM from a product-based pyramid scheme. It wasn't launched by a "crusader" who's out to kill MLM. It was launched by a MLM insider.

And it went down in flames, killed by DSA lobbyists.



In 2010, Kevin Thompson, better known online as "The MLM Attorney", asked Rep. Sargent of the Tennessee State House of Representatives and Sen. Johnson of the Tennessee State Senate to introduce the "Tennessee Multilevel and Pyramid Distributorship Act", which were known as SB2929 / HB2843. 

The bill introduced NO new ground. Instead, it only sought to codify into law rules that were already in play, such as the FTC-accepted "Amway Safeguard Rules". You can read the summary here:

http://wapp.capitol.tn.gov/apps/BillInfo/Default.aspx?BillNumber=%20SB2929&GA=106

Full bill will be linked at the end. But here are the main provisions:

R) Requires MLM company to

  1. Distributors can cancel at any time, return resellable inventory and get at least 90% refund
  2. Require distributors to make X amount of retail sales before qualifying for commission
  3. Enforce #2 above, and provide documentation of audit should it be asked
  4. Clear income disclosure statement to accompany any income claims, along with percentage of distributors that quit after 1st year
  5. Notify State AG that there are participants in TN
P) Prohibits MLM company from
  1. Requiring distributors to buy products / services, or pay fees to participate, except for required sales 
  2. Operating a program where participant's income are dependent on consumption of downlines or sales to customers is NOT a requirement to compensation
  3. Offering to pay specifically outlawed bonuses (read the bill details)
  4. Offering to pay commision on sales aids
Really, that's it. 

Of the Requirements, R1 is already in DSA's "code of ethics". R2 is part of Amway safeguard rules, and R3 was a part of Amway's agreement with state of California. R4 is part of DSA requirement except the "churn" stats. R5 is just paperwork. 

Of the prohibitions, P4 was already industry practice when Amway killed all the Amway Support Organizations (ASOs) even offered refund on the materials paid for. P3 is mostly paperwork as it deals with stuff already outlawed like "referral sales". 

DSA fought this bill tooth and nail, and it never made its way out of committee. Apparently implementing P1 and P2 will add undue burden to its members, it argued, because apparently some of its members would have a difficult time with prerequisite of selling. 

WTF? Direct SELLING Association don't want members to prove their distributors are selling their stuff? 


That should prove to you DSA has lost its soul. It no longer cares about selling, much less direct selling.

This basically means MLM is doomed, and DSA will be the boy plugging fingers into the dike hoping to contain the leaks. But it can't stop all the leaks. And it will likely be swept away... eventually.

You can read the full bill here: Tennessee House Bill 2843 / 2009-2010 session

MLM Basics: The Truth Behind "MLM Confidence"... When Being Confident Is Actually Stupid, not Smart

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It seems that MLM / NM placed a LOT of emphasis on "confidence". If you search for "mlm confidence" you will get 441000 results (as of post date)


But what does this really mean? The first link, from which I quote:
If you lack confidence it doesn't matter how much studying you do you won't be able to grow your business... The key to creating rock solid confidence is to develop your beliefs. 
So what are the "beliefs" that this author advocates?
  • Trust MLM industry (by reading Robert "Rich Dad" Kiyosaki)
  • Trust Your Company (by looking for the upside)
  • Trust Your Products (by consuming them yourself)
  • Trust Yourself (by telling yourself "I am the best")
While I'm reasonably certain the author meant well, and these tips may have helped him, none of the nuances in his advice were discussed. And there are indeed a LOT of info that the author had not presented about how to develop this positivity.

Basically, all this confidence build tips means throwing "due diligence" out the window.

And that's very stupid.

Let's find out why.


Let us discuss the nuances in following the four Trusts to build your confidence.

Should You Trust the MLM Industry (by reading Kiyosaki)?

Okay, so you are a MLM marketer. So you should trust the industry. Right?

What has the MLM industry done to inspire your trust? When it no longer wants to prove it is selling anything? When its veteran lies about having created the most millionaires (and some veterans have been trying to bust this myth ever since)? When it had lied about it being "next big thing" for 25 years? When it lies about Harvard Business School taught MLM (and leaving other veterans to clean up this lie)? When it had to create new names for itself when the old names started to smell?

Also, About "Rich Dad"... Did you know Kiyosaki compared Rich Dad to Harry Potter, i.e. a myth that does not exist? Did you know Kiyosaki was in Amway, and thanked Amway distributors for his success, because he was making "teaching tapes" and teaching at Amway seminars before he was famous?  Did you know Kiyosaki screwed over at least two of his business partners, including co-author of "Rich Dad Poor Dad"? Did you even realize by being a MLMer, you're really E or S, instead of B?

Perhaps you shouldn't trust the MLM industry as much as you did... at least, not by reading Kiyosaki. His success was from selling his advice to you, not by being a good salesperson for Amway.


Should you Trust Your Company (by looking for the upside)? 

Okay, so you joined company X. You should trust it, right?

Should you trust company by its age? Probably not. Madoff ran his Ponzi schemes for almost two decades. FHTM lasted for over a decade too, as FHTM was founded in 2001 and died in 2013.

Should you trust company by its management? Probably not. They could have had a name change, or hiding behind "management team", "investment group", or other anonymous entities. In any case, did you Google the people first? Maybe they are fake? With fake signatures? When an entire school can be faked with stock photos, are you *sure* your company's real?  Or is it just a Regus virtual office? Maybe a mailbox?

Should you trust review of the company by others? May not as they can be fake shill reviews, or reviewed by people already in it, and thus is subject to IKEA effect and other cognitive biases.

Should you trust the company because it throws such media extravaganzas? Maybe you need to listen to what happened to "Wake Up Now" as investigated by "This American Life" podcast/radio, with the caveat that Wake Up Now may be about to go under.



Perhaps you shouldn't trust the company as much as you did... at least, not without some real investigations.


Should you Trust Your Product (by consuming it)?

Okay, so you joined company X which is famous for its product Y.

Should you believe in the product by consuming it? No, because if you consumed it, you can't get a refund.  And bad coaches will tell you you haven't lost money because you "enjoyed" the product.

Should you trust the product is pure and true? Maybe not, when MLM company itself didn't put enough of the "magic ingredient" in the product. And it'd likely would never been discovered until someone sent it to independent testing. Furthermore, New York AG's office recently found that even herbal supplements sold in Walgreens, GNC, Target, Walmart, and so on are often "faked"... 4 out of 5 products tested contains NO HERB as advertised. And that's out of dozens, perhaps HUNDREDS or THOUSANDS of products retailed.  If nationally distributed and regular retail products are that bad, how good do you think the no-name stuff from unheard-of companies claiming almost-magical ingredients are doing with their own products? Ingredients such as pond scum (in the ocean) and new age rose oil?

Should you trust the experts or celebrities endorsing the products? Maybe not, esp. when they are well known for pushing woo using bad science.  Or when they are promoting something they apparently have NO expertise in, like a dermatologist promoting stem cell "enhancement" pills. Or even worse, a doctor who violated so many rules, he got sued by the company he endorsed because he became too much of a liability.

Perhaps you shouldn't trust the product as much as you did, and you certainly shouldn't take it just because you want to trust it.


Should you trust yourself (by affirmations) and your fellow workers? 

Are you aware of the Ikea effect, in that once you are in, you are likely to love it no matter what? Once you are committed, loss aversion takes over, because you rationalize that you have to go on because you already put in this much effort.

Furthermore, some network marketing companies are known to "motivate" you through cult-like tactics (described as team-building), mainly by having a senior mentor shadowing you until you fall in line.  In fact, you may be in a sales cult, and not know it. They will condition you to accept what they said without question.

If you don't assess yourself periodically, you may not even realized you've been conditioned into sacrificing yourself for the company with little to no return for your efforts, that you're not even TRYING to make money.

Perhaps you shouldn't be so sure of yourself, as it may make you reckless. And scammers know how to tease you just enough so you'd want to join, rather than they recruiting you.


Conclusion

Building confidence often was misused to dampen or eliminate voice of reasonable doubt, which is the only thing to save you from recklessness.

I leave you with this quote.
The fundamental cause of the trouble is that in the modern world the stupid are cocksure while the intelligent are full of doubt.  -- Bertrand Russell, 1932
Don't be stupid.



Scam Basics: When you're beyond "not right", but into "not even wrong"

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Why do victims of a scam never seem to listen to reason, before, during, and even AFTER the scam?The problem is, at least partly, due to lack of skeptical mindset.
"It is impossible for a man to learn what he thinks he already knows."
-- Epictetus, Greek Philosopher (55-135 AD)
If a victim already believes he knows all that he needed to know about a company or the product (usually by listening to some PR copy, and/or attended some cheerleading meetings), he will not do any further investigations, and will discount or ignore what other people tell him about the company or the product, esp if he already put money in or worked on promoting it ( also see IKEA effect)

Unfortunately, the demand for "MLM confidence" has produced a TON of so-called "internet marketers" that refused to understand they don't know ANYTHING about what they claimed to be doing. As a result, they believe blindly the bad info they have learned (or been taught), and attempt to deny reality with it. That, is dangerous behavior.

Here's one example... A gentleman by the name of "David Cant", who claimed to be internet marketer out of Australia.

First a little background info.  Mr. Cant created that website of his because he had a scheme that sells virtual units to alleged estores and you get paid if other people also buy into these virtual estores. It was reviewed as a pyramid / ponzi scheme. Mr. Cant was not pleased with the review and created the "counter" website (from which the above screenshot was taken).

This was what he wrote on his counter website about what was his definition of pyramid and ponzi scheme. Yes, I emphasize, this was *his* definition. Any red markups are mine.


Which has absolutely NO correlation to the actual laws of Australia on "pyramid selling schemes". Cant's definition basically picked and chose bits and pieces of Wikipedia along with a lot of wishful thinking ("there isn't any get rick quick schemes", yeah right) and some outright denial ("I don't agree with the definition"). As a result, the claims on his website bears NO resemblance to reality, such as actual laws and legal definitions.

In other words, Mr. Can't thinks he knows what pyramid schemes and ponzi schemes are, but he actually has absolutely NO IDEA. It's basically an incoherent rant by someone denying reality. Which is quite amusing since he claimed he used to work sysadmin at the Aussie Supreme Court Library in his LinkedIn Profile.  Yes, I checked. It's the SAME GUY. He's right next to tome of legal information that had he bothered to look up he'd have FOUND the actual definitions. Instead, he created this website to deny reality.

As the saying goes... "your position is not only not right, it's not even wrong."


Mr. Cant is hardly the only person denying reality out there. There are plenty of these "Internet Marketers", pushing various suspect or proven Ponzi schemes or pyramid schemes, trying to convince others (and maybe themselves) that they are earning money through "hard work" instead of fraud.

Meet Rodney Blackburn, serial ponzi pimp. In a video that's no longer online, he was documented pushing three separate HYIPs, while claiming SEC can't shut companies down... while picking and choosing bits of SEC website and claimed it means what HE said it means. Within a month, one of the suspect Ponzi schemes mentioned was shut down by the SEC.

But is Mr. Blackburn learning from his reality denial? Nope. He's off pushing something else, something that "mitigates HIV", yep, reality denial again.  In fact, he seem to be pushing some new scheme every few weeks.

And apparently he'll never learn because he believes he knows what he's doing (or exercising "willful blindness", which means he knows he's defrauding people)



Remember, folks, you have TWO ears, vs. ONE mouth. Maybe you should listen twice as often as you speak? (Which is actually ANOTHER Epictetus saying!)

I will leave you with a Steve Jobs quote instead:
"Stay hungry, stay foolish."
-- Steve Jobs, at Stanford Commencement speech, June 12th, 2005
Stay hungry to knowledge, stay foolish so you don't ever stop trying to be smarter.

THOSE are words to live by.

MLM Basics: Critical Thinking for MLMers -- Errors in Perspective

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Previously MLMSkeptic have pointed out various reasoning problems of many participants in MLM, but someone pointed out why don't I have a guide on what *should* be done instead?

So here's the effort, called it "How not to argue for MLM" series. You can also think of it as "Critical Thinking for MLMers".

Many of these have been covered previously as "Bad Arguments".

There are many kinds of errors in your thinking process. As the old saying goes, "To err is human." However, one must learn from the errors to improve oneself. Today, we will discuss "Errors In Perspective".


What is Errors in Perspective?

Errors in perspective basically means you have a biased perspective of the world; you don't see the world as it really is, but only as you saw it. It's as if you've been wearing a bad set of tinted glasses all your life that you didn't even know it was there. And that's why they are very dangerous for you to think critically... You may *think* you are doing so, but you're doing it from the wrong perspective / viewpoint.

If you are not in MLM, keep in mind that many MLMers will accuse you of having the wrong perspective, with bad argument such as "unless you're in it you don't have the right perspective" (i.e. "you have to try it to know it / criticize it")

There are many different types of errors in perspectives.


Unwarranted Assumptions

One of the hardest errors in perspective to detect are unwarranted assumptions, because they are usually implied, rather than stated outright, and thus, you almost have to read between the lines to see them. A lot of "folks wisdom" or "commonly held facts" are actually unwarranted assumptions.

Not all assumptions are unwarranted, as you can't live a life without some assumptions, like the guy you pass on the sidewalk is not going to jump up and stab you, or your car will start in the morning, and so on. You may be wrong sometimes, but most assumptions you made every day are based on your knowledge or experiences. It is when you assume too much, more than justifiable by the circumstances or experiences, that you get unwarranted assumptions.

One of the most frequent unwarranted assumption held by victims of scams is "because Scheme X paid someone, therefore Scheme X will pay me (in the future)." When you think about it, this is basically "the sun will come up tomorrow" assumption. It makes sense for the sun, but it makes no sense for Scheme X, no matter how good / honest / rich Scheme X appears to be.  Furthermore, pyramid schemes and Ponzi schemes always pay a few people and make them "judas goats" to draw other people in. Some people (even you) getting paid does not prove everybody will continue to get paid indefinitely.

So how do you stop making unwarranted assumptions? First you have to FIND the unstated assumptions, THEN you have to logic check them to determine if they are warranted or not.




Black and White Thinking 

Also known as "Either-Or Outlook", "all-or-nothing thinking", "polarized thinking", or "Splitting", it's best summarized by the old cliche: "either you're with me or you're against me". It is a total refusal to consider the nuances, the gray areas, the exceptions, and so on. Everything is either all good, or all bad, with no inbetweens.

A common "bad argument" of black and white thinking is believing that the scheme is either "all good" (or all bad), and there are no inbetweens. One example of such would be arguing that a scheme is either a Ponzi scheme or a pyramid scheme, when it can easily have aspects of both, being a ponzi/pyramid hybrid scheme.

Most schemes have multiple aspects to consider: Is it legal? Is it profitable? How much do you have to work? When can a profit be realized? And so on. A scheme can be legal but unprofitable unless you invest several years full time, for example, or a scheme can be illegal but profitable within days, or anywhere in between. Furthermore, are there any social costs or other costs to the scheme? Thus, arguing a scheme is "profitable therefore good" can be black and white thinking.

Psychologists pointed out that both borderline personality disorder and narcissistic personality disorder use black and white thinking as a defense mechanism. Any one who is found to be "acceptable" are adored as idol, and any one who was not acceptable must therefore be the devil incarnate. There are no inbetweens.

So how do you stop black and white thinking? Consider the gray areas between the two extremes. The "best" answer may lie between the two positions or unexplored third alternative, and so o on, and the only way to know is to test the various possibilities in between.


Mindless Conformity / Mob Effect

Mindless conformity is best characterized as "being sheeple", or "everybody else is doing it", or perhaps, fear-of-missing-out, aka FOMO, and sometimes, "Semmelweis Reflex". Basically, you "conformed" even when there's no reasonable explanation to do so. Remember the very very old commercial: "Why ask why? Try Bud Dry." Yep, you're being asked to mindlessly conform.

Ignaz Semmelweis had discovered germs back in the 1800's. You never heard much about him because he called them 'cadaverous particles" and his knowledge was rejected outright by the contemporary community. The Semmelweis Reflex was named after him for "reflex-like tendency to reject new evidence or new knowledge because it contradicts established norms, beliefs, or paradigms".

Network Marketing often use this conforming effect to devastating effect, mainly by going after friends and family, and once friends and family adopted, it spreads throughout the community until the few holdouts feel the peer pressure to conform.

Scams also do the same. Ponzi schemes often spread within a particular community. TelexFree ponzi scheme, for example, is primarily spread through the Brazilian-American community around the Massachusetts area, and from there it spread back to Brazil, then to Portuguese speaking communities around the world.

If your "leaders" or peers don't want to answer "why", or their reasons make no sense, you may have been asked to mindlessly conform.

The way to avoid mindless conformity is to make sure you are being reasonable, no matter "which side" your opinion is on. Only accept ideas that you personally judged to be reasonable, not because your peers or leaders dictated them to you.


Absolutism / Universalism

Absolutists believe there are no exceptions. Everything is clear-cut, certain, and simple. The real world is nothing like that, so absolutists often sound like obstinate fools who refuse to accept reality, and often simply UNWILLING to accept evidence that goes against them.

Many believers of a scheme adopt absolutism, with "Scheme X = Good" being the absolute truth (and leader if the scheme is an idol and can do no wrong), and any facts you present that cast doubt upon that "truth" is discarded as unimportant or irrelevant. This is very close to black and white thinking, but the difference is any other arguments, exceptions, and so on, are dismissed as "irrelevant", rather than "wrong".

To overcome absolutism, you have to avoid "preconceptions", even if it's something you have considered before, and you will accept facts as they are found, and not demand they fit into your existing worldview that are simple and clear-cut. The world is full of shades of gray.


Relativism

Relativism is the opposite of absolutism, in that everything is 'relative'. There is no pure evil, just as there is no pure good. There is no pure truth, just as there are no pure lies. Morality is subjective to a relativist. Like absolutism, this is pure... manure. There is evil in the world, just as there is good in the world.

However, there will be scammers, or sheeple (brainwashed by scammers) in arguing bogus positions like "Everything is a pyramid scheme", trying to compare their scheme either to legitimate companies.  (Companies are pyramid-shaped, which is NOT the same as pyramid scheme)

Another frequent "relativist" argument is "why don't you go after Social Security or the Stock Market or Federal Reserve", with the clear implication that those are "bigger frauds" than whatever alleged fraud that was being denounced, but it's clearly irrelevant.

A test for relativism is see if that attitude can be applied consistently throughout everyday life. If it can't, it's probably a relativist argument.

To avoid falling for relativism yourself, accept that in your exploration of ideas, some are clearly better than others, and it is through comprehensive, fair, yet critical thinking that we will arrive at the the better idea, just be open that there *is* a better idea out there.


Bias for or against Change

The only reasonable answer to "Are you for or against change" is "it depends". Some changes improve things, while other changes makes things worse. Yet many people seem to lack the perspective on what constitutes a "good" change. Some people want change "just to freshen things up", yet others are opposed to change just because "why change when it works".

Many of network marketing's arguments had been in the "bias for change", that person-to-person marketing will change the nature of retail... except they've been saying that for more than 20 years and it still haven't happened.

On the other hand, "bias against change" can also be used to justify keep investing in a scheme that is not (or no longer) profitable in the hopes of a "breakthrough", but that's better known as "loss aversion" (i.e. "but I'd lose all the effort I already spent for nothing")

Evaluate the change for its effect on you and others, not merely its possible effects, but also how likely are the effects to occur. Keep in mind that many illegal schemes that fraudulently represent themselves as legal will appear to be "easy money" that appears to be a "sure thing", but such things are likely to be mirages.


Conclusion

I hope you have enjoyed somewhat a minor lecture on errors in perspective. It is by making sure we are observing facts from a truly neutral perspective that we can gain proper insights to evidence, and perform proper evaluations of an opportunity. Any information you receive from an opportunity is likely to be biased if you failed to examine them from a neutral perspective you will likely fail to arrive as a proper judgement.

I hope to cover more critical thinking issues soon on this blog, so there will be more on this topic.


Is a Scam Targeting Veterans "to end poverty" citing a FAKE JAG lawyer?

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A potential scam called SVM Global is soliciting participants that promises "100K to 1M in 90 days"
SVM Global promises 100K to 1 Million in 90 days, WTF?!
So what the heck is this thing? It's ran by a "Sheila V. Tabarsi". SVM, of course.

This is from her Pinterest Profile:

Sheila Tabarsi, via Pinterest profile

And this is from her Google+ profile:

Sheila Tabarsi, via Google+ profile
Let us be absolutely clear... There are NO LEGITIMATE PROGRAMS that can turn 100K into 1M in a year, much less 90 days. This can't be legal, period. Money doesn't grow on trees, or multiply like bread and fish in the hands of Jesus.

BehindMLM came to the same conclusion: it is a ponzi scheme. And apparently grandmas are pawning jewelry, and single parent with 3 kids and trouble making rent are still fronting up $900 to join. WTF?!?!

But that's not the really WTF part... that would be that she may be referring to a FAKE lawyer.




In a conference call tonight, 14-APR-2015, Tabarsi apparently read the BehindMLM review and made fun of it, as well as claiming that her "Federal Attorney" will sue detractors.

Several commentators have claimed that in prior calls Tabarsi claimed that her lawyer was a former JAG (i.e. military lawyer), and another supplied the name of "Ken Goldstein".

Checking Tabarsi's Google + followers did yield a Ken Goldstein


As it happens, Sheila used to live in Douglaston, NY, according to her own profile, same as "Ken Goldstein" here.


Searching for "Ken Goldstein JAG" on Google did not bring up a legitimate lawyer... but a FAKE one.   He claimed to be a lawyer in ALL jurisdictions in the US.

Examiner.com: Ex-petty officer allegedly posed as JAG lawyer in Nassau court

His Facebook Profile apparently claimed that he was a Captain, and his posts were sometimes signed LCDR (lieutenant Commander).

Ken Goldstein's Facebook name is "CaptainKenGold", delusions of grandeur? 

Ken Goldstein signing Facebook posts as LCDR back in 2014
He got called out for it by real veterans. 

But as you can see from news report, he was merely a petty officer, retired.

(NOTE: See Ken Goldstein's comment about why he used "Captain" in his FB profileName at the end)


Now, how do we know this is the SAME Ken Goldstein that Tabarsi alluded to? Okay, remember the Google+ profile we found earlier for Ken Goldstein? If you explore his photos, you'll see this:




Note the photo in the middle. Compare it against the photo in this article in NYPOST

NYPost: Ex-Coastguard officer allegedly posed as former military lawyer 28-AUG-2014
There is no doubt we are talking about the SAME Ken Goldstein, the fake lawyer.

If this is really Tabarsi's "Federal lawyer", she'll be in a HEAP of legal trouble, even MORE than normal for allegedly running a ponzi scheme. Not to mention Mr. Goldstein too.



ADDENDUM 24-APR-2015  The Ken Goldstein wrote a comment below. In a different comment on PatrickPretty, he claimed that because he's also USCG licensed merchant marine master, he is entitled to the term "captain".

What he didn't tell you is "master", i.e. "vessel master", is basically in command of the vessel, whether it's a tiny skiff to a supertanker. Yes, USCG does issue licenses to merchant / commercial mariners. However, what Mr. Goldstein didn't mention is he's only entitled to be called "captain" while he's in command of a vessel.
While commercial vessels are not military vessels, there are some similarities.  The head of the engineering department, for example, is called the Chief Engineer.  Likewise, vessel masters – the Master is the person in command -- are formally addressed as “Captain”. There are special laws and regulations governing merchant seamen; these laws and regulations are enforced by the U. S. Coast Guard.  -- http://www.marad.dot.gov/mariners_landing_page/veterans/Veterans-Military-to-Mariners.htm 
Any one calling him a captain when he's not in command of a vessel is doing so inaccurately, but obviously it can be done as a courtesy... or fluffing.

More on "SVM Global" possible scam warning signs, and how people "whitewash" their reputation with fancy titles

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Previously we've covered a potential scam called "SVM Global" where the operator, "Sheila V. Tabarsi" claimed to be able to turn 100K into 1M in 90 days, with minimum buy-in at $990, and may be targeting veterans, the poor, and so on.

But who is "Sheila V. Tabarsi"? That answer turned out to be much more difficult to answer, as it turned out she may have used at least 8 different names, includes:

  • Sheila V. Tabarsi (current)
  • Sheila V'Eleos Tabarsi (variant)
  • Sheila Tabarsi (variant)
  • Sheila Hibbitts (former)
  • Sheila A. Hibbitts (former)
  • Sheila V'Eleos (ordained name)
  • Sheila V (psychic)
  • Sheila Tucker (mom's maiden name? married name?)
Sheila apparently served in the US Air Force before and part of SVM Global's hook was "we will turn closed US Air Force Bases into economic zones (and end poverty)". How interesting that she's moving from New York to Costa Rica to do so, hmmm?

from Sheila V. Tabarsi's Google Plus profile

But how did she get so many names? She currently calls herself:

Sheila V'Eleos Tabarsi is a 4th Generation Native Cherokee / African American Spiritual Life Coach, Universal Life Church Minister, Business and medical Intuitive, with 17 active years of practice performing Clair-emphatic healing and various forms of intuitive readings....
excerpted from sheilavmission.org

But what is "intuitive healing"? Or Clair-emphatic? Turns out, that's a fancy term for "psychic", yes, crystal ball and tarot cards and all that. This kind:

Psychic sign: Psychic, Tarot Cards, Crystal Readers, Reader, Advisor
"Clair-empathic" is attempting to appropriate the "clair" in clairvoyance to mean telempathy.



In fact, Sheila is even listed on Yelp, see for yourself:


So what's that Desert Storm plaque? It gave her real name as Shiela A. Hibbitts.

No unit name and number? No DOD insignia? No name of commanding officer?
Did she award this to herself?  At least we got her real name: Sheila A. Hibbitts
Note: This design is NOT FOUND ANYWHERE ELSE on Google. 
So Sheila changed her middle initial from A to V. It's also interesting her name was spelled "Shiela" on the plaque, but she spelled it later as "Sheila".

Apparently Sheila / Shiela 's psychic business doesn't pay that well, since she has an Elance profile too... $2500 a week or $44 per hour.  And she can't hold a steady job, since she worked as "business manager" for various companies for 10 years after leaving USAF.

So what the heck is V'Eleos? As far as I can tell, Eleos is the Greek spirit of compassion.   It's most likely that Sheila picked Eleos to match her "psychic name" Sheila V" and put an apostrophe in the middle to make it sound more exotic.

Now what is this about Universal Life Church Minister? Turns out they will ordain any one with a pulse... online. Yes, you simply need to ask. It's even free. In fact, her ULC minister certificate was made out to "Sheila V'Eleos"

Universal Life Church certifies  Sheila V'Eleos as a minister (for free!)

Frankly, someone with that many different names should not be trustworthy already. Besides, a psychic is trained to pry money from you to trying to cold read your fears and hopes. She simply upgraded her title to "life coach".

She apparently operated out of California too, as there's an unverifiable complaint about Sheila Tabarsi (et al) in the LA area:
This woman is a professional scam artist! She claims to be a "Self Help Life Coach" She pays the first months rent to get into your home then refuses to pay after that. During her stay she threatens, taunts, harasses, damages your property, steals, goes around to your neighbors and slanders your name, files false police reports against you amongst other things! I learned the hard way that this lowlife once in your home has more rights as a tenant....Yes a tenant, then me the person who is actually on the lease agreement and pays her rent. I became the person who did not have any say what goes on in my own home! The steps required to get this piece of garbage out legally are unbelievable! What I mean by "legally" is the eviction process that is not only time consuming but an out of pocket excellence on top of what its already costing you to live with that nightmare! I'm sorry I did not post this back in April when I finally got this piece of garbage out because now Sheila Tabarsi has moved onto her next victim! I know this because the poor unexpected soul reached out to me for advice on how to deal with Sheila Tabarsi. Trying tocut this story short I didn't put all the details of my experience with this fraud. One of the details not mentioned above is that I had to file a restraining order with the Burbank Court House on Sheila Tabarsi which become public records and is how Sheila's newest victim was able to contact me. Every ounce of this story is true and can easily be proven. The case number for the civil harassment restraining order I filed is ES016445. The case number for the eviction is 13R01985. You can also look into other numerous cases filed against ST. For example case #LS018121 or case #09CB3859 The list goes on and on. Sheila uses the following names Sheila V'Eleos, Sheila V. Tabarsi, Sheila Hibbitts, Sheila Tucker and Sheila V.Location: EVERYWHERE
If you're asking wasn't Sheila in New York, there are a LOT of reports that she was in California under her original name, Hibbitts.


All indications indicates that's where she grew up, and she even admits so on her Yelp profile:
Sheila V. : Born in Fresno and raised in Selma, CA

I haven't been able to verify these alleged case numbers, but those may be the cause she fled California for New York.

And now she's ready to leave New York for Costa Rica.

And Sheila... I know about your "opera singing sister" J, your "model" daughter L, your grandson bearing daughter M, and your other sister J. You really shouldn't post so many pictures online for the public to see. Tsk tsk tsk.

When the Lies Don't Even Make Sense: "Bluechip Business Bonds" HYIP

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Another HYIP (read: small online Ponzi scheme) that hit the scenes recently is "Bluechip Business Bonds", which obviously has nothing to do with business or bonds. Instead, it's promising up to 4% DAILY interest. Yes, daily. It can't be real, obviously.


But when it writes fiction... well...

Let's take an example, under people: it showed a "Peter Boskin", who allegedly received a MBA from Bowdoin College.


First of all, that is a photo of Pyotr Volkov, head of Department of Stock Exchange Operations of Gazprom, the Russian energy company. The faker trimmed the photo and mirrored it to throw off the image search. Here's the original photo for comparison.





Furthermore, Bowdoin College doesn't offer MBA program. It's a liberal arts college.


And why does it say "Reed served in the Peace Corps"? Who's Reed? That turns out to be "Reed Hastings, co-founder of Netflix. Here's Crunchbase data on Mr. Hastings:


Exact same wording, except the perp added a "M" in front of BA to embellish it. Tsk tsk tsk. Naughty, naughty, naughty.

Ah, wait, there's more.




Another suspicious profile here is "Kelly Henrietta"


Except this is really a photo of "Cat Fawcett", Gazprom, London office:


Note that again, the image had been mirrored to throw off image search engine.

As for the wording, this happens to be copied from another Netflix employee, Tawni Cranz:


Man, looks like this perp just likes copying stuff from the same companies over and over, eh?

If you fake something, at least make it not so obvious fake... Sheesh.

I have no doubt that the other two "profiles" of officers are similarly faked, probably with photos from Gazprom and bio from Netflix as well.

P.S. The "third" photo is Igor Lipskii, of Gazprom, and "fourth" photo is Julia Elmgren, also of Gazprom.

What to take away: Just because the image didn't come up in Google Image Search doesn't necessarily mean it's "clean". Mirror it and try again. 

OLD NEWS: World Ventures busted in China, Taiwan, and Malaysia back in 2014

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According to Chinese news (Hunan TV) World Ventures, i.e. "WV", was investigated by Changsa Public Security back in October 2014. Other sources indicate that World Ventures was also met with legal challenges in Taiwan, and Malaysia, where it was accused of operating illegally.

Ministry of Labor and Commerce Enforcement Agents along with Public Security raided a facility that had a huge sign with the WV Logo and slogan outside, and asked the two present, a male and female, to show the business registration papers for WV. The two refused, claiming they had nothing to do with WV, but is instead a university career training workshop, and thus is not licensed and not for profit.

When confronted with the sign outside, the male "supervisor" deny any and all knowledge about the banner, claimed they had nothing to do with the banner. During the search, a business card was discovered with the supervisor's name on it, and even had the WV logo, but the man still refused to admit he runs a local WV branch, but instead tried to explain "I merely suggested some trip ideas to my friends and relatives." PS personnel then found the documents saved on the company computer and printed them out, which contains WV promotional material and comp plan. When confronted, the man continue to deny, claiming it was left by visitors. He was then confronted that his own printer printed those off his own computer. Then he had nothing else to say.

Labor and Commerce enforcement bureau spokesperson explained that WV is suspected of illegal pyramid selling, but most of the websites used to promote such are located outside of China, and thus making investigation and enforcement difficult.





In China, WV members have to pay in 3500 RMB, then refer 4 to 6 more members, and through a "double rail pyramid selling" the members can supposedly ear money through travel, and supposedly get 5-star accommodations for 2-star price. Furthermore, if the members recruit a lot of people, WV will compensate efforts with a lot of referral fees and even a car.

(cited link in Chinese from http://ch.therakyatpost.com/%E5%9B%BD%E5%86%85%E7%84%A6%E7%82%B9/2014/12/13/%E4%B8%AD%E5%9B%BDwv%E6%B6%89%E9%9D%9E%E6%B3%95%E4%BC%A0%E9%94%80%E9%81%AD%E8%B0%83%E6%9F%A5/ )

It is understood that earlier Taiwan had also declared WV to be illegal pyramid selling and is forbidden from operating there. However, WorldVentures claims to have no office in Taiwan. Yet searching local news revealed that there are at least 2000 WV members in Taiwan, and they were holding 2 recruitment seminars a week, and had been operating in Taiwan since early 2014. As far as the new reports show, WorldVenture had applied for neither tourism permit nor registered with Fair Trading Office as required by law of all direct sales companies as of October 2014.

(cited link in Chinese from http://ch.therakyatpost.com/%E5%9B%BD%E5%86%85%E7%84%A6%E7%82%B9/2014/10/04/%E5%8F%B0%E5%AA%92%E4%BD%93%E6%8F%ADworldventures%E8%BF%9D%E6%B3%95%E5%90%B8%E9%87%91/ )



According to Malaysian Travel and Culture Ministry, WV does NOT have a tourism permit in Malaysia. It however, has a direct sales permit. Thus, if they are selling travel, they are doing so illegally. Furthermore, even travel agencies are forbidden to sell travel agent status or membership.

(see http://ch.therakyatpost.com/%E5%9B%BD%E5%86%85%E7%84%A6%E7%82%B9/2014/10/01/%E6%97%85%E6%B8%B8%E9%83%A8%EF%BC%9Aworld-ventures%E8%BF%9D%E6%B3%95%EF%BC%81/ )

When confronted with this declaration, the Malaysian leader of WV claimed they do not sell travel package at all, but only peripheral items like sunscreen and t-shirts. Any purchases are between the consumer and WorldVenture in the US. This is in direct contrast at one of their seminars attended by an undercover reporter, where less than 5 minutes were spent talking about the alleged products, while 2 hours were spent on the travel packages.

World Ventures have since sent out a press release where it basically claimed that we're not illegal because any Malaysian who buy packages from WV had the transaction done in the US and thus is not within jurisdiction of Malaysia.  It is mostly in Chinese, and you can read it here:

http://ch.therakyatpost.com/%E5%9B%BD%E5%86%85%E7%84%A6%E7%82%B9/2014/10/08/%E5%8F%91%E6%96%87%E5%91%8A%E6%BE%84%E6%B8%85-%E7%BE%8E%E5%9B%BDwv%E8%B6%8A%E6%8F%8F%E8%B6%8A%E9%BB%91/


This is how many scammers react to questions...

Fiverr is the Goto Place for Shill Testimonials

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Fiverr is a site where people put themselves out to do small jobs for $5.00 USD (thus the name) and recently, a LOT of scams needing "testimonials" from people decided to employ amateurs off Fiverr in hopes that people won't recognize them as shills.

Too bad, here's MyFlexJob getting caught using Fiverr folks for "realistic" testimonials.

Here's a "Mr. Alexander Herring" (Does he go by "Red"?) claiming to have realistic testimonials:



It's realistic, but not real, since she'll do it for anybody for $5!



But wait, there's more!




Okay, perhaps white chick ain't everybody's cup of tea. How about a black bro? No problem, plenty of those on Fiverr too.

Same "Alexander Herring", different video, different testimonial


But he's a Fiverr too.., man!


There ought to be a law prohibiting the creation or use of these bogus videos to sell stuff without marking them as ads with actors portraying non-existing crap.

But there isn't one now. Until then, due diligence is up to you.

NOTE: Thanks fo Paul S. for the screen caps. You can find the original topic on Realscam.com


More Idiots Who Don't Check the Information They Pass On: UFUN Edition

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UFUN is a multi-national alleged ponzi scheme that has ties in Thailand, Malaysia, China, and other countries. In the past three weeks Royal Thai Police have swept up a lot of the heads of the company, but the company's real headquarters is in Malaysia, and at least three of the heads escape through Malaysia. One's remaining in the limelight, supposedly celebrating some signing documents with some developement project, while the other other two have fled Malaysia as well. A retired Thai General that's involved has escaped to the US.

Its primary American cheerleader appears to be a guy by the name of Rodney Burton, who gave himself the title "Global Ambassador", and recently posted something like this on Facebook:



The problem is the link was in Thai, and he clearly does not read Thai, as a different link describing the same announcement reads VERY VERY differently. As you can see, same three guys, just a very different angle. Follow me so far? Here's the link:  

http://www.nationmultimedia.com/national/UFUN-case-a-transnational-crime-police-30259107.html



And a quote from the article:
Suwira quoted prosecutors as saying that the UFUN case would be regarded as a transnational crime if police were able to present to the OAG clear evidence that the company had been involved in similar criminal offences outside the country as well.  
If the attorney-general deems it a transnational crime, the punishment will be harsher than under normal law. The attorney-general will be the person setting the interrogation method and there will be more complicated steps in the probe, he explained. 
For now, police will gather more documents and interview those claiming damages to confirm whether there were criminal offences outside Thailand, Suwira said, urging affected persons to file complaints with police during the May 1-5 holiday period.
So basically, this Mr. "GlobalAmbassador"Burton got it completely wrong. There is plenty of evidence of UFUN's guilt in Thailand. There's not quite enough evidence of victims OUTSIDE Thailand for Thai Office of Attorney General (OAG) to elevate the case to "Transnational Crime" and invoke ASEAN and Interpol international assistance to end this scheme once and for all.

BIG SOLID CASE AGAINST UFUN
PLENTY OF EVIDENCE IN THAILAND

Which proves that if you don't read or understand Thai, you should not pretend to understand what the video actually said. Liar, liar, hair on fire...

Right now there's no mention of how will Thai Police gather victim reports from outside of Thailand.

I personally would suggest that if you are a victim of UFUN outside of Thailand, and have a local Thai Embassy, you should write up your report and ask your local Thai Embassy to turn it over to Thai Police. I can't think of any other way at the moment. If there is an address or such where you can send such reports published, I will update the method here. 



The Worst Kind of Scammer: False Claim of Government License by Options Rider

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Ever heard of "Options Rider"? No? Me Neither, that is, until they started announcing absolutely bull****. But let's start from the beginning.

Back on April 16th, a review of Options Rider appeared on BehindMLM. The company purports to be offering option trading out of New Zealand, but the address is that of a Regus virtual office. And no owners were identified on their website. Shady enough? Searching the interwebs revealed two names: Bob Roberts and Thomas Carter.

Bob Roberts appears to be associated with another virtual entity called BancdeOptions, supposedly HQ'ed in Hong Kong, but it's another virtual office.

Here's the really hilarious part though... At the time of BehindMLM's review (early April 2015) Options Rider showed a license number:  FSP license number 207/13

Sometime after that review, they changed it to FSP license number FSP109805.

But I was able to locate a version of the Options Rider contract, on "WV Trading" that PREDATES the both of them that says: "CIF License number 207/13"


The Company is authorized and regulated by the New Zealand Securities and Exchange Commission to offer certain Investment and Ancillary Services and Activities under the Provision of Investment Services, the Exercise of Investment Activities, the Operation of Regulated Markets and Other Related Matters Law of 2007, Law 144(I)/2007, as subsequently amended or replaced from time to time (“the Law”), with CIF license number 207/13.
The problem is New Zealand does NOT have a Securities and Exchange Commission. New Zealand investments is regulated by Financial Markets Authority. And the cited laws do NOT exist in New Zealand. And obviously, "CIF" number is meaningless in New Zealand. In NZ financial entities are licensed as FSP (Financial Service Providers), but its relevance will become clearer. There is no "Options - anything" licensed as FSP in New Zealand. Search the database yourself.

In fact, you should notice that by typing in a few test cases that NONE of the FSP number goes above 5 digits. Thus, the 6-digit number given by Options Rider is BOGUS.

By now it should be clear that this company is a scam, citing license by a nonexistent government agency for legitimacy. But wait, there's even more hilarity in the lies of Options Rider!



It's even more hilarious when I was able find the actual laws and regulations cited... in an REAL options trading company based in Cyprus (that's in Europe!). Feel free to compare that aforementioned paragraph, against this real company's information:
1.1. Rodeler Limited (“the Company”) is authorised and regulated by the Cyprus Securities and Exchange Commission (“CySEC”) as a Cyprus Investment Firm (“CIF”) to offer the services and activities enlisted herein in this document, under the Provision of Investment Services, the Exercise of Investment Activities, the Operation of Regulated Markets and Other Related Matters Law 144(I)/2007, as subsequently amended from time to time (“the Law”). 
1.2. The Company’s CIF license number is 207/13.
These scammers didn't even bother changing the number. That's why there's a CIF number in a previous incarnation of the contract. Tsk tsk tsk. They try to tack on the FSP prefix, then realized it's in the wrong format, so they made up a number that's ROUGHLY in the right format.

It gets even more hilarious when these scammers claimed to have found BehindMLM's owner and paid him off to remove the negative review. Hahahahahaha.


How Much Is a Scam Like a Cult: 2015 Edition

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Previously MLMSkeptic have discussed the similarities between a cult of believers (about a common theme) and a large scale scam such as a pyramid or a Ponzi scheme (and in certain cases, multi-level marketing).

The Outcast (1954 film)
The Outcast (1954 film) (Photo credit: Wikipedia)
A new article on ScienceBasedMedicine.org brought an alternative viewpoint... on how believers of a scam act much like believers of  various alternative medicine modalities. And it is a report on an WIRED article called "An Alternative-medicine Believer's Journey Back to Science", where a doctor (MD and PhD) and wife and two autistic boys fell for the "autism biomed" industry where members tell each other about treatments that nobody had proven to work, but "try it any way", many even promoted by other doctors. After years of such, and a lapse while in Disneyland, they found that none of what they did actually had ANY effect, and the boys actually IMPROVED when they were removed from the supplement regimen, or at least did no worse. After further tests over months and years, he publicly renounced his involvement in the autism biomed movement and denounced unproven treatments and such. As a result, he'd been branded an apostate and had received death threats.

An apostate is someone who had examined the beliefs in detail, even followed those beliefs for a time, then had an epiphany and chose to REJECT the belief instead. As a result, he's now considered an outcast.

There are many apostates among network marketing. Indeed, due to the amount of churn rate, it can be argued that there are many more apostates than believes in Network marketing. According to Robert L. FitzPatrick of PyramidSchemeAlert.org, of the 10 million people that had estimated to have joined Amway since its founding, 9.3 million had been "churned" through and quit. Thus, the alleged apostates should vastly outnumber the believers. (9.3 million vs. 700K)

However, the similarity between network marketing a cult (or religion) is how they treat the apostates: very badly.



Apostates in religion are dealt much more harshly than unbelievers. In Islam, apostates are given a chance to recant, or they will be executed or imprisoned. Christianity is somewhat more lenient on that aspect.

Network marketing's version of apostasy is basically "sour grapes", i.e. they'll accuse you of badly failing at network marketing, i.e. you were bad at NM, therefore you betrayed it, and now you're working for the "other side" as some sort of conspiracy to "bring down a good thing". It doesn't matter if you're not actually an apostate... merely the accusation will make them feel better about themselves.

Same thing as what happened to the doctor couple decided what's best for their two autistic boys... after realizing they had been living a lie for several years.

Yet the sense of "belonging" to a community often kept someone in the company, continue to spend money month after month for products, as well as attending seminars, workshops, conventions, even in other cities and so on hoping to pick up tips and techniques and/or network with others. all in hopes of "making it big", while the pocket empties at an alarming rate.

Same thing with alternative medicine. The couple tried everything, from gluten-free diet to heavy B12 supplements to chelation therapy, and many other experimental treatments with only word-of-mouth recommendations and rumored miracle effects. And these are NOT CHEAP. But they can co-commiserate with other parents who are in a similar situation. This couple is special because he's a doctor and he can offset expenses by making speaking engagements about the therapies he tried on his two sons. But others may not be able to.

And all the meanwhile the victim was told to "have faith", "you will turn the corner", "ignore the negativity", and continue until there is nothing left to put food on the table.

This is not theoretical. This had actually happened to many families. Weaker-willed individuals who are susceptible to this sort of indoctrination, who was more in it to feel like they belong in a group who think alike, doesn't realize the group only wants him or her for purchases every month so they can meet their own quotas for the commissions. When s/he ran out of money, his/her usefulness ends, and it will be his/her fault because the system "obviously" worked for their upline, and s/he is "obviously" bad student and should stay away lest s/he contaminate the rest of the "good" people. 

In the case of the couple, their epiphany came when one of their sons was munching on a waffle in a Disneyland buffet line. He was supposed to be on a gluten free diet and supposedly any gluten will send him crashing to incoherence... but the kid was fine even days later. Clearly, this gluten-free diet is... a joke. And if that is, what else did they believe to be good for their two boys were also complete jokes? After verifying their various "treatments" have had no effect, they announced their apostacy... they no longer believe in the autism biomed cult. And obviously, they are now outcasts.

It is NOT uncommon for such outcasts to turn apostate... or if they can't accept that they've been cast out as they no longer have anything to give, commit suicide. A father of two daughters, trying to juggle real estate, motivational speaker AND up to 3 MLMs, found he couldn't keep up and the family annual income had shrunk to $3000 after taxes... for the YEAR. His wife filed for divorce, and he, one night, stabbed her to death and tried to commit suicide, but didn't succeed, and got life in prison. And he's hardly alone. There are many stories of suicide, financial ruins, and broken families about network marketing / MLM for as long as MLM existed.

The power of "reality denial" for some of these scams also rival religious cults. Zeek Rewards ponzi scheme was infamous for having members starting petitions and such attempting to "clear the name" of the scheme... AFTER it was closed by SEC / USSS / FBI as a ponzi scheme, AND after the owner signed a plea deal with the USSS and SEC. .

screenshot of a lame "Change.org" petition of a few desperate Zeek affiliates, after Zeek was shut
in August 2012, and they are trying to enforce the "positivity only" attitude on each other. 
Sad, isn't it? The largest Ponzi scheme (in number of victims) is viewed by its victims as "nothing wrong with our company" and "this is an ethical company". Cultish denial runs deep in many scams.

Just as many autistic children's parents insisting that THEIR therapy had somehow helped their child.

Beware of the cult.

Scam Absurdities: Stupid Meme passed on by MAPS idiots

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Recently I came across this really really really stupid meme posted by a "Lloyd Dotson"




There are (at least) 3 things that were VERY VERY wrong with this meme. Did you spot them yet?

When you think you did, continue.




Problem 1) MAPS = My Advertising Pays... which is a suspect ponzi scheme.  It's little more than the old autosurf scam "Ad Surf Daily" redone with a modern polish.

Problem 2) For those of you who knows history, or even seen the 300 (from which the image was taken), this is how King Leonidas ended up:

End of 300, King Leonidas and his men are full of arrows and dead, very dead. 
Yes, he ended up an arrow cushion. Not exactly "glorious", is it?

Problem 3) #millionairementalist?   Does the guy even know what a mentalist is?

men·tal·ist (ˈmen(t)ələst/ )noun
1.
a magician who performs feats that apparently demonstrate extraordinary mental powers, such as mind-reading.
2.
BRITISH informal
an eccentric or mad person.

In other words, a mentalist tricks people for entertainment. So what does this guy mean by "millionaire mentalist"?

a) a millionaire who tricks people for entertainment... that's a double douchebag. Still not Lloyd Dotson.

b) a magician who tricks millionaires for entertainment... a douchebag playing douchebag for LOLs. Still not Lloyd Dotson

c) a crazy millionaire... still a douchebag. Clearly, NOT Lloyd Dotson, or he wouldn't be pushing a suspect scheme.

Since the tag makes absolutely no sense, nor the picture's context, nor what he's pushing, it's clear that Lloyd Dotson is a complete nonsense.

The More Things Change, the More They Stay The Same: Scammer Joined More Scams

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Apparently once you joined the seedier side of MLM (i.e. the pyramid and Ponzi scheme side), you get addicted to the easy money and you can't get out.

Kevin Trudeau apparently started cheating his way through life right after he finished high school, and quickly got into bank and credit card fraud.

Paul "ZeekRewards" Burks apparently operated multiple MLM businesses before shifting over to Ponzi scheme business model.

And this is hardly a Western practice, as apparently scammers are the same world over: it apparently is the only thing they know, once they had a taste of easy money.

Meet Yoshio Matsuura (松浦良夫), of Japan, and his link to at least two scams: Skybiz... and Interush.



Book in Japanese edited by
Yoshio Matsuura supposedly teaching
people how to succeed in Skybiz (scam)
First, a little historical perspective. Skybiz was supposed to be a "business" where individual operators buy a piece of "e-Commerce Web Pak" to join the Internet Commerce Revolution, own a piece of internet store, blah blah blah. However, what really happened is this is a pyramid scheme... it pays participants for introducing more paying members. It spread to multiple countries, until it was halted by FTC in 2001, and it finally reached a settlement in 2003 and died with a whimper.

Yoshio Matsuura was one of the high-flyers in Skybiz Japan. He was so good, he edited a book on "Complete Solutions of How to Succeed In Skybiz" (rough translation). See his name there in the lower left corner.

When Skybiz went away, he disappeared for a while, only to come back as rep of a different company called Interush... also a US based company. However, according to some netizens, this time Yoshio Matsuura is a part of Interush itself... being named officer of the Panama shell holding corporations that controls Interush.

MLMSkeptic had previously covered Interush several times before, as it had been chased out of China (2011), Taiwan (2012), AND Hong Kong (2013).

So why mention him now? Apparently Interush is back... as some... minions claimed that Interush had recently established an office in Singapore. And apparently my previous warnings about Interush had an effect, as netizens are linking to my old coverage and sharing the warning.

Which is a warning... check your upline's history... See if he's REALLY a success as he claimed. He could have been a successful scammer instead.

5 Reasons Pyramid Schemes Are Worse Than You Thought (Cracked.com)

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Cracked can be relied on for controversial and irreverent take on some topics, and their supposed "5 Reasons Pyramid Schemes Are Even Worse than You Thought" was no exception.

Let's just say they gloss over a lot of the details, like calling MLM Pyramid Schemes without noting the legal distinctions, then backpedal and claim everything is just shy of illegal. However, the other points are quite salient and worth a read, if just for the style.


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