Sunday, July 14, 2013

FTC to be coaxed into Herbalife investigation?

Despite the Herbalife PR machine churning out news of sports sponsorships and the hiring of new executive staff, along with the theatrics that continue to be played out in Wall Street, a storm has been brewing between Herbalife and consumer groups in the US.
At the forefront of these groups are those who charge themselves with watching over the Hispanic population in America, a core market central to the ongoing expansion and success of Herbalife there.
Back in 2007 Herbalife revealed that the national Hispanic market contributed to 61% of their US business. What that percentage is today isn’t clear, however it’s clear that a vast majority of the company’s current operations and marketing targets Hispanics (the sponsoring famous soccer stars for example).
As of late this has caught the attention of Hispanic consumer groups and politicians who represent large proportions of Hispanic constituents. All of which express concern over Herbalife’s targeting of the Hispanic community. Back in May the Hispanic Federation write to the FTC and ‘requesting that the regulator investigate Herbalife, a multi-level marketing firm that sells nutrition products‘.
This was then followed up in June by a letter to the FTC from congresswoman Linda Sanchez, who noted concern over “allegations” that Herbalife ‘victimizes our country’s most vulnerable populations‘ and that ‘independent distributors are compensated more for recruiting new distributors than for sales‘.
Around the same time we also had New York City councilwoman Julissa Ferreras sent her own letter to the FTC expressing concerns.
Ferreras, ‘a Democrat who represents a heavily Hispanic district in Queens’, wrote     I am writing to urge the Federal Trade Commission (FTC) to take a look into Herbalife. Herbalife has been accused of operating an abusive pyramid scheme that targets minority groups, especially Latinos, and falsely promises large profits.
 As a Council Member in a heavily Hispanic district in Queens, I am especially concerned about the impact this company is having on my constituents and the Latino community in New York.  Latinos in my district, and across the country, are falling prey to Herbalife’s targeted recruitment.
 Recruitment begins when victims are asked to join alleged nutrition and wellness clubs. In my district alone, there are dozens of such clubs. Herbalife representatives use these clubs to take advantage of people with little or no business experience.  By making false promises of profit and ignoring all associated risk, Herbalife representatives “recruit” club members into becoming distributors of Herbalife products.
 Since Herbalife’s success depends on this aggressive recruitment, new distributors are then pressured into recruiting additional members.  Latinos and others in my district are being unnecessarily harmed by these aggressive recruitment techniques. By promising large profits and minimal work, Herbalife preys on vulnerable immigrant communities. Since the evidence of consumer harm is widespread in my district and across the country, I believe it is critical for the FTC to conduct a thorough investigation and protect consumers from these malicious recruitment tactics and false promises. If Herbalife is acting illegally by making false income claims to vulnerable Latinos in my community, then they need to be held responsible.
To date, Herbalife’s response to criticism (largely attributed to Bill Ackman’s efforts) has pretty much been “haha you don’t can’t prove anything, (insert carefully prepared PR dept spiel). Nyah nyah nyah!”.
In what appeared to be a genuine effort at transparency and addressing the issue of retail revenue, back in February Herbalife announced that they would more clearly identify the wholesale customers among its 3.2 million distributors from April.
April came and went however and to date, Herbalife has yet to release any data. Given the Herbalife compensation plan fails to make any differentiation between wholesale customers and distributors who don’t recruit, it was expected that the company would introduce a proper wholesale customer option for consumers.
This is important because Herbalife currently claim distributors who don’t recruit are wholesale customers, which they clearly aren’t if they have signed up as distributors and are able to earn commissions via the compensation plan.
For reasons only known to them, Herbalife has continued to stall and despite repeated promises, have failed to take any action on the wholesale customer issue. The company did tout a Nielsen poll in June which it claimed clarified the matter, however all it really did was misdirect attention away from it. Herbalife refused to make public the statistical data behind the survey results, only making public a select few concluding statements they issued.
These letters to the FTC from Hispanic consumer groups and politicians representing large Hispanic communities though? That’s an entirely different kettle of fish.
Pushing the panic button and no doubt terrified that more members of the Congressional Hispanic Caucus would pen letters to the FTC, Herbalife CEO Michael Johnson (right) personally flew into ‘Washington to stop them‘.
 After Johnson learned that Loretta Sanchez was planning to circulate a letter to be signed by other caucus members, the 58-year-old executive flew across the country to try to dissuade her.
Johnson told caucus members that Herbalife products help combat obesity among Hispanics and that selling Herbalife is a great business opportunity. Johnson also said if the company were shut down people would be stuck with product they could not sell.
Johnson’s House call appears to have been in vain, other caucus members are still planning to follow the lead of colleague Linda Sanchez (D-Calif.), who last month wrote a letter to the Federal Trade Commission asking it to investigate whether Johnson’s Los Angeles nutritional supplements company was a pyramid scheme — and one that hurt her Hispanic constituents, a source inside the caucus told The Post.
 Caucus Chairman Ruben Hinijosa (D-Texas) and Rep. Loretta Sanchez (D-Calif.), Linda’s sister, are two who have grown concerned about Herbalife, the source said.  The caucus insider said he was not impressed with Herbalife’s arguments. “They claim that Ackman is manipulating facts, but we are never shown facts that support what they are saying,” he said.
One would think that if Herbalife’s business practices were above board, the company would of course welcome scrutiny from the FTC, however that doesn’t appear to be the case.
Things will now no doubt get even more panicky over at Herbalife, after news broke yesterday that the FTC has agreed to meet with those that have written to them these past few months.
Consumer advocates are planning to ask regulators on Monday for their commitment to investigate allegations that Herbalife is a pyramid scheme.
The National Consumers League — the first group to call for an investigation in a March 12 letter — asked for the meeting with the Federal Trade Commission, according to sources. The Hispanic Federation, the League of United Latin American Citizens (LULAC) and Consumer Action are also expected to attend.
The activists are set to meet with Lois Greisman, the FTC’s head of consumer fraud. Jessica Rich, the new director of the Bureau of Consumer Protection, may also be there.
 At least six different letters have been sent to the FTC asking it to probe Herbalife’s practices.
Should Herbalife be worried?
 “I’m mad,” said LULAC’s National Executive Director Brent Wilkes. “I’ve seen Latinos ripped off by banks and others, but this scheme really takes the cake.”
 After talking with Herbalife “and not getting the answers I wanted to hear, I concluded they are defrauding upwards of 300,000 Latinos a year,” he said.
 Another consumer activist planning to attend the meeting said, “We think the problem is getting worse, and we think that the FTC is really important.”
If the above tone is anything to go by it would certainly seem so. But perhaps not…
 Several sources told The Post that they believe the FTC is reluctant to launch an investigation of Herbalife because of the company’s financial resources and legal firepower.
Herbalife – the MLM industry example of “too big to fail”?

Guess we’ll have to wait and see what goes down Monday. Perhaps Johnson can gatecrash the party and reveal those Herbalife wholesale customer figures he’s been keeping under guarded lock and key…

TelexFree injunction denied, BBOM denies Ponzi

As was reported on Wednesday July 10th, TelexFree latest attempt to circumvent a business crippling injunction handed down against them in June was to file an injunction appeal of their own.

Upon filing their injunction, which marks the third attempt by TelexFree to lift the Acre injunction against the business, the company advised that they expected ‘a preliminary decision later this week’. Last Friday TelexFree’s injunction request was heard by Chief Justice Eva Evangelista. The decision?

TelexFree’s injunction appeal was denied.

 According to a spokesperson of the TJ-AC, the federal judge’s decision was taken after the completion of a ‘detailed analysis, in which the entire case was considered, with consideration of previous decisions’.
The decision by Judge Evangelista was reached after TelexFree presented it’s case on Tuesday last week, with lawyer Djacir Falcão arguing in court that an injunction against the injunction needed to be granted because should TelexFree  spend a few more days being prohibited from signing up new investors, they would have no money to pay the old ones.
As it stands now three appeals filed by TelexFree against the initial Acre injunction against TelexFree have been denied, with the company having failed to convince a single Judge, all of whom have analysed the business model, that the company is not a Ponzi scheme.
Looking forward it’s unclear what TelexFree’s next course of action will be. Several regulatory agencies in Brazil are investigating the company with criminal charges expected to be filed against the company by either Public Prosecutors in Acre or the Federal Police by the end of the month.
Whether, as put forth by their lawyer, TelexFree goes bankrupt as a result of the Acre injunction prohibiting the recruitment of new affiliate investors or not, remains to be seen. In related news suspected Ponzi scheme BBOM has gone on the defensive after the company’s assets were frozen mid last week.
The decision to freeze BBOM’s assets was made after a Judge examined evidence collected by federal Prosecutors against the company, and ‘agreed there was robust evidence indicating that BBOM’s business model is actually just a Ponzi scheme‘.
Joao-Francisco-de-Paulo-founder-president-BBOM Speaking to TribunaHoje, BBOM Founder and President João Francisco de Paulo (right) claims that Prosecutors did no work in this investigation; they instead worked with information from malicious people. BBOM take payments of $300, $900 or $1500 from affiliates and in exchange pay out $80, $240 or $400 a month respectively.
The company claims this money is sourced from the sale of GPS tracker units to customers, which an affiliate “rents” when they hand over money.
The problem however is that BBOM pay out their monthly return to affiliates, on condition of affiliates investing in the scheme, as opposed to trackers being sold to customers.
Affiliates who invest money with the company do little more than hand over money, with BBOM, under the brand Unepxmil, selling the actual units.
Naturally the question arises as to why BBOM need to collect payments from affiliates if they themselves are doing all the selling to customers on behalf of the affiliates.
The obvious answer? BBOM take money from affiliates and just pay it out monthly to existing affiliate investors, using the GPS tracker business as a front.
Francisco de Paulo meanwhile strongly denies this claim.   We have acquired 1.5 million GPS trackers. Of these 1.5 million trackers we generate a turnover of U.S. $120 per month.

    Unepxmil via which the services are marketed through, including monitoring and tracking, is becoming the largest GPS tracking operator in the world.  Today we add between 5000 to 10 thousand GPS units per day. Far be it for me to point out the obvious, but wouldn’t clearing the legitimacy of BBOM be as simple as providing a Judge with detailed receipts of all GPS trackers rented out to actual retail customers?
Why this has not happened and Francisco de Paulo is instead harping on about “malicious people” I have no idea.
In the interview, Francisco de Paulo also states that he “does not know why” TelexFree has been targeted as a Ponzi scheme. I’m taking a punt here but perhaps if Francisco de Paulo took some time to understand why TelexFree continues to have every appeal they file denied based on analysis of their business model – he might start to understand why.
And not only that, come to see why BBOM is in the same boat.
You can very much claim to have 1.5 million GPS trackers, but in taking payments from affiliates and paying them out a monthly ROI, it all means dick if you’re not actually selling trackers to retail customers as you claim.

Time to pony up those receipts BBOM or come clean. Either make the choice or have the Brazilian courts make it for you, either works for us.

Friday, July 12, 2013

TVI Express kingpin arrested in South Africa


Taking a break from the current devastation being wrought by scammers in South America, today we return to what was a hotbed of pyramid scheme mayhem for much of 2011 and 2012.
Like a plague spreading from one country in the content to another, TVI Express engulfed a considerable portion of southern Africa before things came to a grinding halt once the authorities stepped in.
When we last checked in with the South African Reserve Bank’s investigation into the company mid last year, word of top TVI promoter’s assets being frozen and “imminent arrests”.
Perhaps a bit premature at the time, almost a year later what appears to be the first of the expected arrests has been made, with South African authorities nabbing local TVI Express kingpin Nonhlanhla Hadebe.

Hadabe (right) had already had her Aston Martin and Mercedes-Benz cars seized in mid 2012, and remained a core focus of the Reserve Bank’s ongoing investigation.
In a dawn operation by the Anti-Corruption Task Force on Tuesday, she, her husband, Jabulani Hadebe, 47, her daughter, Hlengiwe Ngidi, 29, and son-in-law, Sibusiso Ngidi, 34, were arrested and charged with more than 10 000 counts involving investments in three schemes between March 2009 and September last year.
They were not granted bail and spent Tuesday night in Westville Prison.
When questioned after her assets were seized last year, Hadebe claimed she had ‘left TVI back in 2010 after learning of the involvement of ‘unscrupulous individuals within TVI‘.
Caught out telling porky pies, Hadebe fronted the
Durban Commercial Crime Court on Tuesday charged with contravening the Banks Act by taking almost R86 million ($8.6M USD) from “investors” in what was alleged to be nothing more than a pyramid scheme.
The charge sheet before magistrate PM Govender was weighty, detailing every deposit taken over the years.
10,000 transactions and every single one of them presented to the judge? Hats off to the Reserve Bank of South Africa.
Meanwhile with Hadebe and her husband involved in the mass-recruiting of affiliates for TVI Express by way of religious marches, one can only begin to wonder exactly what she classifies as unscrupulous:
Siya Mhlongo, a presenter of a religious programme at Igagasi 99.5 FM, led the charge in a (TVI) event that often sounded like a church festival.
He was followed by celebrity pastors and motivational speakers Sithembiso Zondo and Thomas Hadebe, amid singing, chanting and clapping from the audience, attracted by the “how to become a millionaire banners”.
And keep in mind, this is a woman for whom one pyramid scheme was simply not enough. Following her involvement as a ringleader of TVI Express South Africa, she then went on to start two of her own scams.
There was Legend Venture which, for between R5 000 and R35 000, offered membership in “worthless companies to be listed on the stock exchange”.
The third was Club Wealth Wheels “marketed under the guise of an Indian-based discount club for motor vehicle enthusiasts” which, for an annual fee of R2 500, offered discounts of US$150 (R1 500) to $225 on new cars “none of which appear to be available in South Africa”.
Essentially all required the recruitment of new members to get money back.
The charge sheet alleges that while Nonhlanhla Hadebe was the sole member of the two entities, the other three were employed by her and also used their bank accounts for transactions.
It is alleged that forensic auditor Eckhard Volker found evidence they were conducting the business of a bank.
Given that Hadebe lost her legal fight to reclaim her seized assets earlier this year, it would appear the Reserve Bank have a strong case against her.
Unfortunately the outcome of Hadebe’s Tuesday hearing is not currently clear. For reasons unknown, Hadebe’s
defence team was not ready to proceed and the matter was rolled over until Wednesday morning.
At the time of publication, I haven’t seen any news indicating how Wednesday’s mornings hearing went.
Stay tuned…

MyCenterBid baffled by affiliate hesitation

At the heart of the MLM penny auction niche is the idea that retail customers buying bids and participating in auctions provides the bulk of revenue.
Take away this core concept and ultimately, regardless of what specific compensation plan a company deploys, all you’re left with is affiliate money being used to pay affiliates.
Unfortunately after mounting regulatory shutdowns, business closures and outright collapses, if the industry has learnt anything since Zeek Rewards emerged it’s that retail sales are virtually non-existent in an MLM penny auction business.
Revenue-sharing, profit-sharing, retail volume orientated compensation plans, sales, sample bid models, luxury auctions, bargain auctions… it doesn’t seem to matter what MLM penny auction companies throw at the niche, there just isn’t any retail in it.
No stranger to a lack of retail is MyCenterBid, formerly Bidify. After abandoning their (virtual) US operations Bidify fled to Europe where it has relaunched as MyCenterBid.
On the affiliate side of things back offices and what not went live last week, with the CenterBid penny auction projected to go live on Friday, July 19th.
Aware that acknowledging the majority of their revenue comes from affiliates, typically an MLM penny auction company goes to great lengths to perpetuate the retail bid sales myth.
Not MyCenterBid though, in a rather curious update sent out to affiliates the company is demanding to know why its affiliates are ‘waiting to take action when the auctions are live‘, practically ordering them to pump money into the company  and “take action” now.
In the MyCenterBid update, sent out July 10th, the “MyCenterBid Team” wrote
We hear people say that they will be waiting to take action when the auctions are live.
Why? We’ve said before – why not use this time to learn how everything works and start creating momentum? It’s almost like being in prelaunch where everybody has a huge advantage..
There is also over 400,000 FSC/Loyalty Credits in people’s accounts. The same rule applies here. Buy your monthly maintenance and PV immediately, and teach everybody else to do the same.
We recommend everyone to have a minimum of 100PV at all times. That will generate Sales Points and possible commission cycles in the Dual Team system. Remember all un-cycled Sale Points are banked for 6 months.
You can also purchase marketing bids which you can share with your customers.
Make sure you take action NOW regardless of fully understanding the compensation plan or not.
It all starts with your Dual Team; generate your momentum there and all other parts of the plan falls into place like a gigantic monetary puzzle. Focus on this part only, that’s what’s going to generate your payouts throughout the whole system.
There is a lot of new information to read and digest, DO IT NOW! Don’t wait.
NOW is the time you should take action.
With no auctions, any revenue MyCenterBid generate now is going to originate from its affiliates. Thus it’s not surprising that the company urges affiliates to “focus only” on the “Dual Team” (binary).
As noted in the MyCenterBid review,
The general idea seems to be sign up as an affiliate, self-qualify for commissions via a bid purchase, create a customer and bid on an auction and then earn on the bid pack purchases of affiliates you recruit.
MyCenterBid pay out a commission every time 300 volume points are generated by a down line in an affiliate’s binary.
One of the ways these volume points are generated is when an affiliate purchases a Center Bid bid pack, which is currently what the company is strongly encouraging affiliates to do.
If CenterBid were pioneering the penny auction niche and nobody in the industry had ever seen anything like it before, they might have reason to ponder why their affiliates are evidently hesitant to throw their money at them.
Given MyCenterBid’s long drawn out history as Bidify however, including no less than five compensation plan revisions and the complete flop that the Bidsson penny auctions were, do they really need to ask?
Even if you’re just taking money from affiliates and ultimately shuffling around to pay commissions, you still need to keep up the appearance of penny auction activity. Well, you do if you expect to have a hope in hell today of convincing people to put up their money.
Between the collapses, shutdowns and voluntary abandoning of companies altogether, the MLM penny auction niche landscape is vastly different to the investor honeypot Bidify pre-launched into back in early 2012.
A point that seems entirely lost on the MyCenterBid management team.
If I might be so bold as to make a prediction, given the tone of the notice MyCenterBid have put out and the inability for the MLM penny auction niche to produce any viable retail activity, all they’re gearing up for is yet another affiliate-funded outing that is going to end in tears.

Monday, July 8, 2013

QBULE is promoting themselves using Speak Asia's Name & Fame

A company named QBULE is trying to use Speakasia’s name for promoting their business they are promoting it by the name of Speakasia Part – 2 …Friends let me clear something that Speakasia matter is already in Judiciary and is under ipc 420 which is a criminal Act mounted on the company…In such difficult scenario it is impossible for a company to launch either by a different name or any PART 2…PART 3…

In order to Launch a new company or a new business module or a new concept…PART 1 NEEDS TO BE JUSTIFIED OR CLEARED FROM THE INDIAN JUDICIARY only then PART 2 …PART 3….PART 4 can be launched by the company…

Writ 1127 which has been filed by the company’s legal team which is for claiming the admin rights and server for which a scheduled date is kept in this month…Indian Judiciary will decide as to whom the server will be given between the two entity – SPEAKASIAONLINE or HAREN VENTURE PTE LTD whomsoever is the authorized person to claim the server…

Another most important thing that will be decided between the company and the Indian Judiciary that whether the entire payments will be cleared or just Exit payments will be cleared…for this Writ 1127 is important…

It has also been observed on 25th June hearing was taken place in which there were some sealed envelopes which was submitted in High Court…now what was inside that sealed envelope it has not been revealed yet…and the envelope shall be witnessed by the Hon judge who shall justify many thing on the basis of sealed envelope submitted

It has also been observed that all those big leaders or panelists who have earned Huge money from Speakasia have avoided the TAXATION and have been underground for long time which is also a major concern for DELAY for all of us …company …Indian judiciary and the investigation agency EOW in filing the Chargesheet…

However it is said and expected EOW to file its Chargesheet soon – ONLY EXPECTED not confirmed yet unless they gather all informations and catch those who have avoided the TAXATION part earned in Speakasia business

So Friends keep your spirit high…be positive as we did not do anything wrong…why to fear anyone…lets stay united and wait for the outcome from the Indian judiciary and we await the Justification for further proceedings in favor of all panelist and the company

Take care of yourself and stay united as many things are yet to be revealed and will update all


Update with the help of Speak Asia Support Group.

Why SAOL matter is being delayed by more than 2 years?

Panelists are confused,
Why SAOL matter is being delayed by more than 2 years?
Some believe the reason is business model which might be considered as money circulation by govt.agencies.
But after carefully studying all the court orders, now it is clear that any of govt. agencies never raised its finger against the business model. Its a different matter that few panelists had treated it as a MONEY CIRCULATION, as mentioned in final order of ABA 1083, over which company had got the clarification over it through its WP 222 in BHC.
A-Few believe that as CS is not being submitted thats why server data can not be availed from EoW.
B-Few believe that, panelist data is not available as the admin rights of SAOL server with EoW.
Above both points A & B are half the truth. but not for those reasons which are being told by leaders of a organisation.
Reasons behind above two point is
A huge amount was being deposited in the account/accounts other than the company account. and this is the fact. and it is not here say for sure. Due to this theft, company just can not proceed for payment, and there after for restart.
So this is the main hurdle, and this is also a answer to that all jokers who are jumping and dancing with all around with a HOARDING of
only to create pressure over the company to make the payment, and there by their deeds can be hided !
The fraudsters who theft the money of panelists, there by of company ,are HANDS IN GLOVE with a organisation.
Investigations is going on over these MONEY which has been stolen very smartly, and these fraudsters are now wishing, since 1st day of SAOL matter, that investigation should not be go on by any investigation agency, and this organisation is doing this job on behalf of these fraudsters. They are shouting for submision of CS.
Why these people are shouting for submission of CS ?
No, they are not after the submission of CS for the interest of we all panelists.
Then for what is the real reason?
Reason is, once the CS submitted, related cases go to trial court , where , as per their one of leaders sayings, proceeding takes time, and cases under trial run for years without end. For adding new accused in the FIR and further investigation becomes difficuilt after submission of CS.In that process, secrecy of investigation can not be mantained, and also can not do any further investuigation freely for new accused to be added.
So these fraudster, through this organisation exploring their ill wishes to stop the investigation and submission of CS , so that the MEN STANDING BEHIND can be hided and can escape.
So, this organisation, in the name of panelists interest, playing with the future of we all panelists on behalf of all these fraudster. But company, law and all the govt. agencies know their game, and they will treat all these fraudster and their all HANDS IN GLOVE on merit basis.
MAIN AGENDA OF THIS ORGANISATION IS EYE OPENER, but now forget it, company and court themself explore their main agenda during the course !
This organisation’s next agenda is to stop the Investigation anyhow
other wise delay the matter as more as possible in the name of panelists interest.
For this, in the name of defreezing their freezed accounts, they availed the support of many frenchisee. But, they should know,this organisation had never capability to get their account defreezed.
Frenchisee , after missguided by this organisation, and impressed by BIG MEN STANDING BEHIND this organisation, in the anticipation of their accounts get defreezed, they have helped this organisation and its men in all possible way, and these frenchisee had got a lot respect from organisation men for the FULL HELP in all respect.
They should understand that, for a solution to a matter, one should contact FATHER instead of his SON.
Yes, few men, who joined hand with this organisation afterwards, and promoted this organisation with all their effort, may or may not be aware of this facts. Because they seems working only on trust, forgetting that in a business , where money is involved, TRUST has a little role to play than to work on figure and facts.
I know, still many are there who will not accept this bitter truth, but for them, only the time is the solution which will reveal all above said facts.
No matter, who accept this BITTER TRUTH or not , but if U think, after realising the truth that there is no FINGER RAISED BY ANY OF GOVT. AGENCY, then why we are not getting our money and why SAOL business is not getting RESTART?, then definately U will smell something odds in the matter for which these fraudster have no true
they are these people who stand only to tell lies
here are we people being cheated by all these fraudster since 1st day of MESS UP !
One thing should know
Honesty and GENUINITY can not be measured only on sayings, when MONEY is also involved along with many other things !
Emotions can not work for a longwhile
there is a money matter !

Source -Harsh Vora shared in Speakasian support group