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Moneylife » Life » Public Interest » Forbes magazine's strange activism on behalf of the shady MLM QNet

Forbes magazine's strange activism on behalf of the shady MLM QNet

Moneylife Digital Team | 20/12/2012 06:07 AM | 

A blog published by the international magazine Forbes on the founder of QNet, a notorious multi-level marketing (MLM) scheme, has been touted by agents of the company as a blue-chip endorsement. Now the same writer goes a step further to defend them by attacking Moneylife’s stance on the dodgy scheme. Not surprisingly, QNet, which refused to answer direct questions posed by Moneylife, appears to have provided detailed answers to this writer

Donald Frazier, a writer at Forbes, has done it again. This time, he endorses QNet, a typical MLM scheme, which has been luring hundreds of thousands Indians the same way Speak Asia did, while attacking Moneylife. The endorsement contains answers to specific queries raised by us. What is astonishing is that Frazier claims not to have met any detractors of QNet. Here is the latest on Forbes’ endorsement of a dubious operation that our Ministry of Corporate Affairs and its Serious Frauds Investigation Office (SFIO) are claiming to investigate.

The blog by Frazier on the website of Forbes Asia has repeatedly found mention in the comments section of Moneylife’s many articles on QNet as a credible endorsement of the scheme and its Malaysian-born promoter, Vijay Eswaran. The comments, ostensibly from independent representatives (IRs) of QNet, seek to allay the fears of potential victims of the scheme. When Moneylife tweeted the India editor of Forbes magazine to find out if it really was endorsing QNet, our articles were apparently brought to Frazier’s attention.

Since then, Frazier has tried to draw Moneylife into a dialogue and attempted to get us to supply him with a list of QNet detractors—something no self-respecting journalist ought to do. Now he has published a bigger endorsement of QNet, which, strangely enough, has Moneylife and its managing editor as its centrepiece. Does this mean that Moneylife’s investigation into the Singapore-registered QNet’s obviously shady business is hitting home? Read on for details.

Frazier’s latest blog starts with the strange premise that he invited Sucheta Dalal, managing editor of Moneylife and founder-trustee of Moneylife Foundation, to use his blog as a “neutral site” for providing information on QNet. This is strange because Moneylife is an e-paper, in competition with Forbes, and we have posted several articles about QNet, which detail our standpoint. Frazier, however, seems confused about the difference between media entities and a shady corporate entity that would need his blog—either as a friendly or hostile site—to post views.

Mr Frazier also claimed that “She (Ms Dalal) also opted to not identify self-professed ‘victims’ of QNet who, she says, came out in one of her for-pay seminars in Mumbai a few weeks ago." This is interesting because Moneylife Foundation’s seminar was attended by two senior officers from the government’s SFIO who not only heard the victims but also participated in the discussion. There was an audience of over 50 persons that day.

He then goes on to pick up some direct and specific questions that Moneylife had posed to Zaheer Merchant, QNet’s director for corporate communications. Mr Merchant has yet to respond to us directly, but apparently made time to give Frazier a point-by-point reply.   Ironically, the answers only prove our point that QNet’s reaction to our writings—way back in 2009—were to immediately offer an all-expenses paid trip to Hong Kong to Ms Dalal to “check out their operations”. It is not clear why an MLM selling holiday packages, watches and trinkets globally needs to fly journalists to Hong Kong. Mr Merchant says that many journalists accepted QNet’s invitation—it would be interesting to get a list of names, because analysing their writings on QNet, before and after visiting Hong Kong, would establish the impact of the trip.

The emails between Mr Frazier and Ms Dalal that are self explanatory...

On 3 December 2012, Mr Frazier wrote...

Dear Ms. Dalal -
 
Greetings, and I hope you are well.
 
You've apparently been much more successful than I have in finding detractors of QNet.  Last week I sent you a message with a greater idea: what if you were to summarize all of the allegations of unsavory and illegal behavior by the company?  I would run it in my column in Forbes, and demand that QNet answers them publicly.
 
I should post a column on reactions to the story anyway.  I can get answers to all of your questions, helping your readers and mine.
 
Here's the link:  http://www.forbes.com/sites/donaldfrazier/2012/10/24/selling-a-better-life/ (Originally in Forbes Asia's print edition for November.)
 
I hope to do this is a few days; please reply so that I know you received this,


On the same day, Ms Dalal replied, saying...

Dear Mr Frazier

Greetings and many thanks for your email. I guess you have written to me because everybody lured by QNet is quoting the "positive" coverage that QNet received from Forbes.
 
I am not sure you know, but we run a magazine (smaller than Forbes, certainly, but we are in the publication business). Our website www.moneylife.in has a big reach and our e-magazine goes out to over 75,000 people every day.  

I am not sure why WE should summarise anything for YOU to publish in your BLOG. Completely flummoxed by the suggestion. Wouldn't it be far better if you were to visit our website, search for QNet and find everything we have to say on the matter for yourself?

If you are truly saying that you have not found anyone with anything negative to say about QNet, I can only say that you have not looked hard enough. We had several people at our seminar in Mumbai who would have happily provided details. Maybe a visit to the Serious Frauds Investigation Office in Mumbai or the police in Hyderabad will also help you get information.

I trust this is useful.


On 4 December 2012 Mr Frazier replied...

Hi Ms Dalal, and many thanks for your prompt, substantive note.
 
Yes, I was quite surprised to find my story commonly described as an ‘endorsement,’ as if coverage of any company confers a quasi-official ‘seal of approval’ on its activities.  Mainly, given our focus on individual entrepreneurs at Forbes, it’s a story about the ascent of QNet’s founder who, you gotta admit, has indeed become rich and famous this way.
 
I’ve just discovered Moneylife.  Your creation?  I think its mixture of news coverage, commentary, blogging, tweeting and events could very well point the way for the future of journalism—at least in India, where the Jain brothers et al seem to be far in advance of the West in breaking down old conventions.  I love its energetic tone of righteous indignation!
 
To answer your question, I thought you might prefer to assemble these various charges because that would give you a more cohesive, harder-hitting document. (Must confess: I also thought you might have fun with the confronting Qnet directly in my space.)
 
But no worries:  I’ll take your advice, by gathering the disparaging references from Moneylife, your blog, your twitter feed etc, and running them in one document, and asking QNet to reply.  I’ll be sure to attribute them to you. But some of these are more like allusions.  For example, consider a twitter reply of 19 November, by a Ritesh Anand?@Rites40: @suchetadalal “Mam I am a direct victim of QuestNet/Goldquest, really want to kill those bastards, All these MLM are pure fraud.” Great copy, but it doesn’t give us as lot of information to go on.
 
(BTW I’m not a blogger—all of my stories for Forbes and Forbes Asia are for the paid print operation and subject to the same fact-checking, editing and so on. Forbes corporate uses the blogging platform to post everything they publish—no wonder you got the wrong impression.)
 
I’d be delighted to feature the people from your seminar in Mumbai.  Bring them on!
 
I’ll do this over the next few days; please feel free to forward anything you’d like me to add to the mix.
 
Cheers – and thanks again for inspiring what will be a spirited dialogue.



On the same day, Ms Dalal replied, saying...

Greetings Mr Frazier...
 
Moneylife—our website also collates authentic information and cross checks it with the police, serious frauds office and government ministries.

Just for your information, we will not collate uninformed comments on Twitter or Facebook and use them in our reports or stories. Also, just by way of background, Debashis Basu (editor & founder of Moneylife) and I have over 27 years of journalistic experience, mainly in India's mainline press. So it’s not a little fun blog—and the “righteous indignation” you speak of is borne out of close observation of the Indian business scenario.

So no, we won’t “bring it on" .. We think each of us ought to do our own research and our own writing. Many thanks for your offer.


There are other things that the Forbes columnist apparently failed to notice when he was trawling the internet for Twitter feeds and comments. QNet and its IRs or sales agents specialise in creating duplicate domain names to manipulate search engines like Google. Moneylife had a firsthand experience of this. Maybe Mr Frazier should check this link: http://forbesmagazineqnet.1672098.free-press-release.com/.

Another result that appears on Google bears the title "Forbes Asia - Official QNet Blog – Qnet” (yes, the QNet people have used Forbes Asia as their page title!) The entry on this blog page says, "Vijay Eswaran in Forbes Philanthropy Heroes List!" Do we, or Mr Frazier, need more proof that shows how his article in Forbes is being misused by QNet to endorse its ‘business’?

QNet has done this to Moneylife as well. Check out moneylife.qnetlife.in and moneylife.qnetlife.net, which is clearly the handiwork of the QNet team and designed to mislead. Finally, here is a first-person account from a well-known television journalist, Ashu Dutt, on how he and his family became a victim of QNet. He sent this to Mr Frazier with a copy to us…

Donald:

I got your reference from Sucheta Dalal. As a backgrounder I was the Chief Consulting Editor of Bloomberg TV and ET Now, Editor and Senior Anchor at CNBC-TV18 and Senior Anchor at NDTV/Star News. I am also a bestselling author of over a dozen books. So I hope this provides you with credibility in terms of a "detractor".

QI/QNet/QuestNet/GoldQuest/Faith Network is not just a fraud, but they lure women to break away from their families and then go after the family money. My own wife fell into this trap. I have 3 little children and she has put their future in jeopardy. They first lured her into their web using hypnotists (their Mumbai kingpin, Manjunath Hegde, is a hypnotist and they proudly declare him to be a "master of the mind". The network in Mumbai is run through another cult-like organization called "Faith Network".

Once this was done, they got her to put money from our house and relatives. Then they told her to kidnap our children and run away to Thailand (my kids are US and Thai citizens). Fortunately, Indian immigration stopped her from going to Thailand.

This is my story. I can tell you that there are hundreds of Indian families that have been ruined by these people. In Mumbai, they use hypnotism and cult-like practices (wearing white clothes with blue pendants).

Once they trap the women, they go after their wealth. My wife has now gone on to take over our assets by changing directors and doing all kinds of illegal corporate stuff guided by QI kingpins.

This is my personal experience and I come from your fraternity. I must say I was very dismayed to see a magazine of your standing put out an article about people who use hypnosis and destroy families.

QNet openly uses your article to mislead people. While it may just be an article for you, hundreds of homes have been destroyed. People are being sold Ponzi schemes in a country where the level of financial literacy and understanding of legal rights is very poor.

Hope you will do something to correct this distorted picture

Regards
Ashu Dutt

 


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228 Comments
gurupreet

gurupreet 1 week ago

The EOW had arrested Susan Chatterjee, former daughter-in-law of Michael Ferreira in the Rs425 crore QNet scam. While Ferreira owns 80% stake in QNet's official franchisee in India, his son, wife and close relatives are also reportedly under the scanner

With the arrest of Susan Nikhil Chatterjee, former wife of Mark Ferreira, the focus of the investigators is now back again on the family of former world billion champion Michael Ferreira. The Economic Offences Wing (EOW) of Mumbai police last week arrested Susan in the Rs425 crore QNet scam.

Read the full story here...and please add your comments...

http://www.moneylife.in/article/qnet-mic...

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SCAMI BUSTER

SCAMI BUSTER 1 week ago

Michael Ferreira ex daughter in law arrested for qnet fraud .this is theFaith Solutions they run

http://www.dnaindia.com/mumbai/report-mi...

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jitu moni

jitu moni 2 weeks ago

MUI Riau: QNET Business Indicated Haram
June 18, 2014 by the Indo Howmoney

QNET_logo_indonesia Of Riau, Chairman of the Fatwa Commission of the Indonesian Ulema Council (MUI) in Riau Province Ustadz Abdurrahman present the results of studies related institutions will report QNET business community on Tuesday (06.17.14). MUI Riau concluded, that QNET MLM business founded by Malaysian businessman Vijay Eswaran, there MLM qualified as defined MUI halal center.

"We received complaints from the public related QNET MLM and after assessment, we conclude that QNET MLM strongly indicated forbidden," he told riauterkinicom.

Presented Ustadz Abdurrahman, from contract documents or statements QNET MLM participants were studied and the products are used as evidence, developed QNET MLM system containing elements of fraud, is potentially causing loss of one of the parties and obscurity.

For example, each participant must purchase a product in the form of Chakra, a round clear glass plates by hand or Chi Pendant, a round slab logal for long Rp100 coins shaped pendant, worth Rp 8 million. Goods that, according to the QNET, expensive as it is a matter of health therapy.

During this QNET promotes itself as an online business. But in fact the ministry of the QNET greetings and the bucket is very slow, far from being a good online business. "The payment must be in cash, but the new goods are handed over to the buyer many months later. In fact, there are up to five months to get the new, "he said.

See also: What is QNET it?

In addition to pay in cash, but did not immediately get the items purchased, the price Chakra or Chi Pendant is believed to be very expensive compared to the actual value.

"We (masyarakat.red) may be asked to purchase the item (Chakra or Chi Pendant. Red) fifty thousand also may not want to," he said.

Ustadz Abdurrahman Furthermore, in addition to having to pay 8 million for goods that are considered not worth the QNET MLM participants are required to invite six new members to transact with each value of 8 million, the new bonus Rp3.5 million. Departing from non-halalan conclusion QNET MLM system, Ustadz Wahid appealed to the people of Riau, especially Muslims to avoid the business.

Meanwhile, Fery Wibowo, one of the leaders of PT Amoeba international, licensees QNET Indonesia, Riau riauterkini.com when found in one of the alleys in Jalan Bukitbarisan Pekanbaru, mentions that the legal and lawful business.

"We have an official license and also had a halal certificate from NU South Jakarta," he said.

Although not representative of the management company QNET, Fery Wibowo threatened to penalize parties who accused QNET business activities based in Hong Kong, an element of fraud.

"If anyone dared mention QNET is a fraud, I guarantee within a few hours in question would be the status of a suspect," he threatened as it.

Then one year in Banyuwangi

Even so, exactly one year ago, in June 2013, about 200 members of QNET came to the police station and reported the fraud Banyuwangi by PT QNET Indonesia with an indication of the loss of the member reaches 1.6 billion. Rudi is Suprapto, 50, Blokagung villagers, village Karangdoro representing several residents reported the case.

"I can only once a commission of 726 thousand," said Rudi Suprapto KabarBanyuwangi.info quoted as saying. While he argues, the QNET promising a salary of Rp 2.5 million per week. "The amount (bonus) depending on the product to be purchased," he said. Obtaining explanations that every member QNET should purchase products with prices starting at Rp 7 million, USD 9.6 million to $ 10.8 million. He felt cheated because after a year to join in the QNET he did not get any bonus as promised by its leader.

In the promotion, he explained, all of the products that are considered to have the power. "Bio Disc is drenched with water, he was able to cure all diseases pe. If you wear a necklace, she was able to lift heavy loads, "he said.

Not long ago, the police respond to the report and hold Syamsuri and Bambang. Both are QNET MLM leaders in East Java.

http://howmoneyindonesia.com/2014/06/18/...

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gurupreet

gurupreet 3 weeks 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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jitu moni

jitu moni 3 weeks ago

Kavali Gold Quest Scheme Fraud: Accused Arrested

HYDERABAD: The Crime Investigation Department arrested two most-wanted persons in different cases on Thursday. While one was detained at the Rajiv Gandhi International Airport at Shamshabad, the other was detained at the airport in Chennai.

Additional DGP (CID) T Krishna Prasad said that one of them, Raavi Ramesh Babu, is an accused in a cheating case registered at the Kavali II Town (T) police station in Nellore district.

In this case, several people of Kavali town were lured by local promoters of Gold Quest scheme run by Questnet Enterprises. Believing the promises of the accused, several people joined the scheme by paying `33,000 or `66,000 but were cheated. One of the outside promoters of the Gold Quest scheme is Raavi Ramesh Babu. He is one of the main accused and had been absconding ever since the case was registered. As his activities are clandestine, the economic offences wing of the CID opened a look-out circular (LOC) against him. Ramesh Babu was arrested by the immigration authorities at the Rajiv Gandhi International Airport.

On the information given by the immigration authorities, a CID team went to the airport and took the accused into custody to produce him before the magistrate concerned.

In another case, police arrested Swaminathan Sivanandan at the Chennai airport. Sivanandan is an accused in a dowry harassment case registered at the Pet Basheerabad police station here. At the request of the Cyberabad police commissioner, a look-out circular was opened against Sivanandan. The trial court issued an arrest warrant against him as he was not attending the court. He had gone to Doha in Qatar to escape arrest.

http://www.newindianexpress.com/cities/h...

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