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Moneylife » Life » Public Interest » 87 MLM companies under government scanner, SFIO probing seven

87 MLM companies under government scanner, SFIO probing seven

MDT/PTI | 01/12/2012 12:26 PM | 

SFIO has also been ordered scrutiny of balance-sheets of around 80 companies to ascertain whether these MLM operators have violated the provisions of the Companies Act

New Delhi: A total of 87 companies have come under the government scanner for allegedly running illegal multi-level marketing (MLM), investment schemes and seven of them are being probed for possibly serious frauds, reports PTI.
The government has ordered inspection of accounts of remaining 80 companies for any violation of company regulations, Corporate Affairs Minister Sachin Pilot informed Lok Sabha in a written reply.
Most of these companies are located in West Bengal and Tamil Nadu and one company registered outside the country doing business online in association with some Indian companies, he said.
Pilot further said that Ministry has ordered Serious Fraud Investigation Office (SFIO) to probe into the affairs of seven companies.
Besides, SFIO has also been ordered scrutiny of balance-sheets of the remaining 80 companies to ascertain whether the firms have violated the provisions of the Companies Act.
Raising of funds through money circulation scheme is an offence under the Prize Chits and Money Circulation Schemes (Banning) Act 1978. The Act is administered by the Department of Financial Services through the state governments.
Recently, Finance Ministry in consultant with RBI have circulated model rules to be notified by the states.
In order to protect the interest of small investors, various awareness programmes are being conducted regularly by the ministry in coordination with the trade and industry association and professional institute such as Institute of Chartered Accountants of India (ICAI), Institute of Cost Accountants of India.

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gurupreet 1 year ago

Today QNET advocates scored a second self goal in court :)

Ever Since my fight started against QNET SCAM I have faced the following lawyers in court by appearing in person:

1. Nitin Pradhan
2. Mahesh Jhetmalani
3. Abad Ponda
4. Haresh Mohan Jagtiani
5. Divya Bahl
6. Rajendra Mokashi
7. Kuldip Patil
8. Sandeep Karnik
9. Sudatta Patil etc…

All these are senior advocates with teams of juniors below them but till date QNET did not get any single favorable order from any court.

The FIGHT enters a “new phase” now….Ganpati Bappa Morya :)

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gurupreet 2 years ago


This Morning QNET team Leaders had organised a Seminar/System at the following address and invited innocent people to induce them into this illegal money circulation scheme..the system was held at the following address:

Youthapreneurs Training Center, 605, Alpana Bldg, Opp Sarvoday Hospital, LBS Marg, Ghatkopar (W), Mumbai - 86

During the raid Mr.Bijoy Mathews was caught red handed promoting the illegal money circulation scheme in presence of 45 Odd people.

Ironically this Mr.Bijoy Mathews is the same person who has had cooled his heels in the jail for more then 20 days in the past for the same offence.

The officers of EOW detained and questioned several people and names and contact details of 47 people were noted down :)

I am sure the records of the activity today will lead to the cancellation of the bail of several team leaders of QNET.

Let me mention here that a similar activity was done by the EOW several months back when QNET leaders were holding a system meeting in Dadar, Mumbai and details were noted down. These details led to the arrest of Nine qnet leaders earlier.

So guys any guess who all will be arrested now after today's raid/activity?

Best guesses will win prizes ;)

Keep posting/replying...


P.S Tomorrow is the Hindi New Year so my msg to QNET "Happy New Year" in advance...

After the ABA of your people are cancelled we will get the bails also cancelled wait and see...

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jitu moni

jitu moni 2 years ago

Pyramid scheme victims win $6.5M in B.C. lawsuit
Search begins for missing money taken by Alan Kippax in vacation package investment scam

CBC News Posted: Feb 05, 2014 11:22 PM PT Last Updated: Feb 06, 2014 8:43 AM PT

A Federal Court judge has awarded $6.5 million to an estimated 2,000 investors who put money into the UltraLife Club through a Mississauga, Ont. corporation called Business In Motion International.

The company was run by Alan Kippax, who was first exposed in a CBC Marketplace investigation of a pyramid scheme that defrauded investors across Canada, including hundreds from B.C.

People attending meetings held by Kippax were asked to pay a $3,200 entrance fee to buy vacation packages worth $9,000 they could then sell to others.
Mark Cuzzeto

Burnaby resident Mark Cuzzeto launched a class action lawsuit after he lost $3,200 in a pyramid scheme run by Alan Kippax, winning $6.5M for all of Kippax's victims. (CBC)

Burnaby, B.C. resident Mark Cuzzetto says he just wanted access to cheap travel. Instead he was taken for a ride, losing thousands of dollars in the pyramid scheme. Cuzzetto was so upset he launched a class action lawsuit.

"We were all duped. I just wanted to see everybody get back what they put in," he told the CBC.

In fact, Kippax's vacation packages weren't even good deals. There were cheaper travel packages on the Internet and his business continually needed more recruits to keep profits flowing to those at the top — a scheme the court described as a classic pyramid scheme.
Alan Kippax

Toronto businessman Alan Kippax has been ordered to pay more than $6.5M to thousands of investors after a Federal Court judge ruled his business was a pyramid scheme. (CBC)

Yet when first approached by the CBC's Marketplace, Kippax maintained he'd done nothing illegal.

"Never once, ever, have I been charged for anything to do with any of what you're talking about," he told CBC reporters.

But in 2011, Kippax was charged with running a pyramid scheme — counts that are still outstanding.

The Toronto businessman has also had several other run-ins with the law.

In 2012, Kippax was charged with operating a grow-op. In 2010, he was found guilty of taking part in a fatal Toronto street race, a crime for which he served a year in jail.
Kippax recruiting

A CBC marketplace investigation looked at meetings hosted by Alan Kippax where investors were encouraged to purchase vacation packages they were told to re-sell for up to triple the price paid. ( CBC Marketplace)

Now, the U.K. citizen is facing deportation to Britain.

And the victory against him in court could be a hollow one. No one knows where the missing money went. Cuzzeto's lawyer says the hunt is on to find the the missing money before Kippax is deported.
"Someone must know where the money went. And I want people to tell me about that. Where is it? He couldn't have spent it all, so it's somewhere."

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gurupreet 2 years ago


A rebuttal of the false claims made by Team Faith's "Lead Bird".

“I’m abroad taking medical treatment for a longstanding problem that I have.”
“As soon as I am cleared to travel, I will appear before the EOW.”

• What is this longstanding problem that requires medical treatment?
• Where are you getting yourself this treatment from?
• Couldn’t you get medical treatment for it in India?
• Does that mean that neither the Bio Disc nor Chi Pendant could keep you healthy or treat your ailment?

More Lies of him EXPOSED..

Read the complete story here...

Vande Matram

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gurupreet 2 years ago

I did not want to post this but since these QNETERS prompted and instigated me so BE IT...

The esplanade court today heard the remand application of the state i.e EOW.

Mr. Abad Ponda appeared on behalf of all the eight arrested top leaders of QNET in mumbai.

After hearing the arguments of both the sides...the judge has had remanded all the eight arrested top leaders of QNET in mumbai in police custody till the 29th...

And more and more people from QNET are now coming forward and giving statements to the EOW mumbai and joining my case as a "witness"...QNET days are numbered now...the deck of cards is collapsing..

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