The Obama Election and the Future of Multi-level Marketing
11/21/2008 10:29 PM Filed in: Pyramid Scheme Politics
One Key Figure Sheds Light on MLM’s Future
Many have asked if the extraordinary shift in power in America – with the election of Barack Obama and a large Democratic majority in Congress and in many states – will affect regulation and law enforcement of pyramid schemes and multi-level marketing (MLM).
Frankly, whether “change” in this area comes about is unknown. However, the extraordinary career of one key figure may offer insight into the fate of “multi-level marketing” and “endless chain” schemes in the new political climate.
That national figure is the noted economist, Dr. Lasdwun N. Luzes. He is a popular speaker at Amway meetings, a lobbyist for the Direct Selling Association, a fierce critic of consumer protection and a fervent anti-regulation spokesman. The influence of this national figure has been largely overlooked in the mainstream media. Pyramid Scheme Alert, however, has carefully tracked his work and observed the powerful effects of his often secretive dealings, which rival those of Vice-President Dick Cheney. Dr. Luzes is, in fact, a personal friend of Vice-President Cheney and one of the few people ever to visit the Vice-President’s “undisclosed location.” Read More...
Many have asked if the extraordinary shift in power in America – with the election of Barack Obama and a large Democratic majority in Congress and in many states – will affect regulation and law enforcement of pyramid schemes and multi-level marketing (MLM).
Frankly, whether “change” in this area comes about is unknown. However, the extraordinary career of one key figure may offer insight into the fate of “multi-level marketing” and “endless chain” schemes in the new political climate.
That national figure is the noted economist, Dr. Lasdwun N. Luzes. He is a popular speaker at Amway meetings, a lobbyist for the Direct Selling Association, a fierce critic of consumer protection and a fervent anti-regulation spokesman. The influence of this national figure has been largely overlooked in the mainstream media. Pyramid Scheme Alert, however, has carefully tracked his work and observed the powerful effects of his often secretive dealings, which rival those of Vice-President Dick Cheney. Dr. Luzes is, in fact, a personal friend of Vice-President Cheney and one of the few people ever to visit the Vice-President’s “undisclosed location.” Read More...
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Making Fraud Legal
10/30/2008 05:04 PM Filed in: Economics/Financial
The big bad word that is normally reserved for illegal pyramid schemes – COLLAPSE – is now referenced daily in discussions about our stock and credit markets. How could legitimate and regulated markets that are watched over by the Securities & Exchange Commission (SEC) “collapse”? Isn’t the whole idea of federal regulation to prevent such a disaster? Isn’t the SEC supposed to stop irresponsible or fraudulent activities that cause collapse?
If these markets really were on the brink of collapse before the federal bailout, does it mean that there are fundamental similarities between our securities markets on Wall Street that sell credit, stocks, bonds and insurance and the pyramid schemes running rampant in neighborhoods and churches that sell fruit juice, soap, and the “opportunity of a lifetime”?
There are more similarities than most people realize. Pyramid selling schemes are Main Street’s own version of “Wall Street Greed.” One major similarity is the effort of promoters in both fields to get fraudulent business practices legalized.
Read More...
If these markets really were on the brink of collapse before the federal bailout, does it mean that there are fundamental similarities between our securities markets on Wall Street that sell credit, stocks, bonds and insurance and the pyramid schemes running rampant in neighborhoods and churches that sell fruit juice, soap, and the “opportunity of a lifetime”?
There are more similarities than most people realize. Pyramid selling schemes are Main Street’s own version of “Wall Street Greed.” One major similarity is the effort of promoters in both fields to get fraudulent business practices legalized.
Read More...
Burned Again and Again and Again
10/23/2008 04:57 PM Filed in: Economics/Financial
There is a counter-intuitive rule in the world of scams. It is that the easiest person to fleece is someone who has recently been fleeced.
Wouldn’t the loss suffered previously cause the consumer to be more vigilant, plus experienced now? Sadly, for many, no. To the contrary, stronger motives and forces drive consumers, once burned, to fall again, often harder. Those forces – anger, disappointment, shame and confusion – instill in many consumers a burning desire to rectify their plight, to redeem themselves in their own eyes and perhaps to their friends and families. They must prove themselves right.
One other factor is at work. This one is even more disturbing. It is that many consumers, once burned, do not understand that they were in fact the victims of a scam, a calculated money trap. Rather, they believe – as they were told by the promoters – that they “personally” failed in a viable, even excellent income opportunity; hence, their shame and the need for redemption. Read More...
Wouldn’t the loss suffered previously cause the consumer to be more vigilant, plus experienced now? Sadly, for many, no. To the contrary, stronger motives and forces drive consumers, once burned, to fall again, often harder. Those forces – anger, disappointment, shame and confusion – instill in many consumers a burning desire to rectify their plight, to redeem themselves in their own eyes and perhaps to their friends and families. They must prove themselves right.
One other factor is at work. This one is even more disturbing. It is that many consumers, once burned, do not understand that they were in fact the victims of a scam, a calculated money trap. Rather, they believe – as they were told by the promoters – that they “personally” failed in a viable, even excellent income opportunity; hence, their shame and the need for redemption. Read More...
Financial Crisis: A Mirror Image of MLM
09/29/2008 09:36 PM Filed in: Economics/Financial
For those who are asking how our national economy fell into the current financial crisis or how the nation’s business leaders could not have seen it coming or how the federal government could have allowed it to happen, a study of multi-level marketing (MLM) – which attracts more than five million Americans each year with its “income opportunity” – can offer answers. MLM serves as a mirror image of the real estate/banking/Wall Street catastrophe. The basics are all the same. To understand Wall Street’s motives and tactics, therefore, we need only look into the MLM mirror. Read More...