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Moneylife » Life » Public Interest » QNet, the MLM company, has no answers to Moneylife’s simple questions

QNet, the MLM company, has no answers to Moneylife’s simple questions

Sucheta Dalal and Yogesh Sapkale | 20/11/2012 05:50 PM | 

QNet, GoldQuest, QuestNet, MLM, Pyramid, Bio disc, chi pendant, Vijay Eswaran

QNet, the MLM company which has become active again in India, cannot provide answer to a single question asked by us. Instead it sent us a threatening and defamatory mail that raises more questions as to their real motive

QNet, the controversial Hong Kong-based multi-level marketing (MLM) operator with multiple names (GoldQuest, QuestNet, QNet, QI Ltd and QI group are the better known names) refused to answer simple questions like how much money their independent representative (IR) earns on an average every month and why their products are priced so highly.

 

Instead Zaheer K Merchant, director for corporate affairs at QNet, sent us a mail (after five days) which not only admits that the company tried to bribe us, but has also threatened us accusing Moneylife for targeting only QNet not other MLMs. As regular readers of Moneylife know, we have been writing on a large huge number of MLMs, pyramid or ponzi schemes. A simple search of www.moneylife.in would reveal scores of stories of these shady schemes. Here is a quick rundown on how Moneylife has never flinched from reporting on the corrosive influence of MLMs whenever it has had a chance to.

 

Remember Speak Asia, Stockguru and NMart? Even mainstream media has acknowledged that Moneylife was the first to expose them.  Moneylife flagged Speak Asia as a fraud, way back in October 2010. In December 2010, Moneylife had reported about the dubious modus operandi of Stockguru.India and advised investors to stay away from investing in the company. It collapsed much later. Similarly, in August 2011, we informed our readers, how Surat-based NMart Retails, a division of Newlook Multitrade Pvt Ltd, is running a collective investment scheme (CIS) based on MLM model, under the guise of selling products through its retail chain. Needless to say all the three mentioned above duped lakhs of people. There are scores of other such examples.

 

Here are a few initial questions that we asked to QNet, which it has failed to reply…

 

1. What is the churning ratio of QNet Independent Representatives (IRs)? On an average, how many IRs join and leave the company in a 12-month period? What is the IR retention rate in this line of sponsorship? What is the renewal rate of IRs?

2. What is the average amount an IR typically earns in a year?

3. How many IRs earn less than $1,000 as commission in a year?

4. What is the maximum amount an IR had earned in a year as commission and royalty through selling QNet products and through selling promotional, motivational materials?

5. Are the products sold by QNet priced competitively? If not, how much is the difference? Is it true that QNet products are costlier by over 100% than similar products available in the market since you shell out 50% as commission?

6. Who has certified your nutritional and wellness products? Is there any certification from FDA (US FDA) available for the nutritional supplements you sell? Who decides whether a person needs nutritional supplements? Is it your IR or a qualified doctor?

7. If someone decides that the QNet business is not for him, what is your refund policy?

8. Does the business model really free people from their jobs or have they just replaced their job with another that has more risk?

9. Does the QNet business really allow the leaders more time with their families?

10. What are the chances that someone starts from the scratch and own an office in QI Tower*?

11. Are you registered in India? Who is the regulator, governing your business activities in the country?

12. What is the status of court cases regarding GoldQuest and QuestNet in India?

 

Instead, five days after our queries, Mr Merchant (now Director Corporate Affairs, who was projected as legal head in 2009) wrote to us with a series of counter questions. We publish them with our replies below each sentence…

 

QNet: We had invited your organisation and Ms Sucheta Dalal, to attend at our office in Hong Kong to provide her with every opportunity to review our operations.

 

Moneylife: This was in August 2009, soon after the police action in Chennai had closed down its sale of numismatic coins in a company called GoldQuest. Moneylife had written extensively about it and was constantly writing to Ms Usha Thorat, the then Deputy Governor of the Reserve Bank of India (RBI) asking why action wasn’t taken against the company. She in turn passed the buck on to chief secretaries of states by writing to them. We had already written a story “Coin Game” on the shady business of GoldQuest coins.  It is obvious that this carefully timed media junket was seen as a way to ‘soften’ journalists with a paid foreign holiday rather than a review. Naturally Moneylife rejected it.

 

QNet: We made overtures to meet with her, and did do so in Mumbai some time back.

 

Moneylife: This is a lie. There has been no ‘overtures’. The fact is, ever since Moneylife has been campaigning against dubious MLMs and pyramids, both Amway and the Indian Direct Selling Association (IDSA) have long meetings at our office but could not answer many of our queries. Some of the questions asked to QNet were also asked to Amway. In fact, Amway representatives Richard N Holwill and Rajat Banerjee admitted to us that although some distributors tend to go overboard in pitching the scheme, income from being a distributor of Amway can, at best, be a source of additional income or pocket money for most people. It is not the pathway to riches as MLM companies make it out to be. However, Amway also insisted that there is no longer any joining fee and the model does not necessarily require enrolment of distributors. However, there was no answer to expensive nutraceuticals being prescribed by doctors, whose wives or relatives were Amway agents.

 

QNet: We had provided Ms Dalal with relevant information and material. Our distributors thereafter also met with her and attempted to communicate with her in connection with our business and its legitimacy.

 

Moneylife: Another lie. No distributor has ever met us in to communicate about the business or its legitimacy. The only person who met us, came as a close personal friend and on checking with him again, he insists that he had not met us as a QNet representative.

 

QNet: The fact that there is no express legislation governing the business in India doesn't make the same ‘illegal’ in the manner in which the same has often been cited and reported in the seminars and documents which your establishment presents.

 

Moneylife: This is a matter of dispute and debate. Mr Merchant agrees that they operated in a legally unclear area. He also indicated that QuestNet was being kept out of the Indian Direct Selling Association (IDSA) by a cabal of US MLMs such as Amway and Tupperware despite its best efforts. He also pointed out that these MLMs had not been facing problems in India.
 

The fact is there has been plenty of litigation on the issue, precisely because various authorities consider that the operations are illegal under the Prize Chits & Money Circulation (PCMC) Act of 1978.  Moneylife Foundation, an NGO for spreading financial literacy has repeatedly warned people about falling for MLM and pyramid companies with innumerable examples of losses incurred. Moneylife Foundation sent a representation to the Prime Minister, Finance Minister, Governor of RBI and SEBI.

Former Expenditure Secretary EAS Sarma has also written to the PM and the Ministry of Corporate Affairs (MCA) about the need to check the proliferation of Ponzis and binary pyramids which are duping people.  We have been specifically told by the Ministry of Consumer Affairs and the Ministry of Corporate Affairs that they are investigating these scams and plan action/tightening of legislation. To turn Mr Merchant’s argument on its head, just because our regulators are sleeping and scams are always discovered too late, if at all, does not make an unregulated scheme legal.

 

QNet: We have also found on several occasions that there is a marked level of partiality towards reporting inaccurate material about our business.

The discussions which have come about as to your site and seminars and the ‘talk’ is, contrary to what is projected by you as to being industry watchdogs with care and concern for the people allegedly duped by MLM business, you seemingly prefer certain MLM companies over others. The mantle almost of a crusade is thus assumed only against certain MLM entitles. Why do people have this impression? Can you please explain? I am certain that this is not the case, but I would appreciate your confirmation in writing to this assertion made by several other entities that you are not what you make yourselves out to be. Additionally, matters such as the success we have had in the courts are never dealt with. Preference is given in fact to reporting salacious and incorrect material, which is always unverified and inaccurate.

 

Moneylife: Mr Merchant prefers to throw unsubstantiated accusations. We prefer to offer facts. Only Moneylife has been writing about the menace of MLM schemes, including GoldQuest, QuestNet, Stockguru.India, JapanLIFE, Amway, Speak Asia, NMart, AdMatrix and so on. On the other hand Moneylife Foundation is helping people to become aware about money circulation or MLM schemes and is actively involved in making changes in the government policies through representations, memorandums etc.

 

It is laughable that Moneylife is accused of being partial towards any MLM when we alone are crusading against ALL such schemes. QNet should drop its defamatory and scandalous tone and please offer us one shred of proof.

 

Talking about getting in touch, we have been contacted by IDSA and Amway, who promised us to provide answers to questions raised by us. So what was stopping QNet from reaching out us? We reiterate that it was Moneylife which got in touch with QNet before writing any story and not the other way round as is being claimed by Mr Merchant.

 

QNet: Additionally, you have already written and filed a story which is defamatory, aside from being totally baseless and confused, about us. This leads to the possible conclusion that there is no real sincerity to the assertion that you are seeking information and wish to truly educate anyone. On the contrary, it begs the question whether any information given will be used properly, reported accurately or simply (worse as we have been warned about) that you may misuse or divulge information to other organisations which may be allied to you. The essential element is whether we will get a fair outcome or hearing, since the actions belie the request. The story is as below in the link pasted. Again, I am inclined to believe this cannot be case, but I would like formal confirmation in writing as to the same. Additionally, if you are going to publish your request for information and this response, please do us the courtesy of publishing the contents of this email in full as opposed to simply abridging and prefacing it wrongly. Your purported seminar on 23rd November also makes several assumptions and comments of us, preferring to lump us together with other (wrongful) companies quite baselessly. All these lead to concerns as to the points made above, which no doubt you will appreciate as much as address.

 

Moneylife: Before writing and publishing the current article, we contacted QNet through Mr Werner Fernandes whose company used to handle the PR of QNet, and gave them enough time to reply. However, instead of a simple reply, Mr Merchant sent a mail whose tone is threatening and defamatory.

 

According to Robert FitzPatrick, President of US-based Pyramid Scheme Alert, schemes like QNet or GoldQuest are an “endless chain”, or a “pyramid scheme”.

 

“I believe this form of fraud is a clear danger to national economies. They subvert efforts to accumulate wealth. They divert energy and funds from real businesses. They often divert people from seeking more education with their promises of fast wealth. They destroy savings and equity of lower income people. They confuse people as to what a legitimate value-based business is. Unless the regulators and analysts recognize and are willing to assert that this form of business is ‘inherently' fraudulent and harmful, it is rather difficult to stop any one particular company. Such a fraud, whether the products are soaps, gold coins, vitamins or air in a box, will always cause 90%-99% of the investors to ‘fail’. Whether some of the people engage in retail selling or not, the income promise that relies on continued expansion is deceptive, that is, it is a lie. The financial harm to the vast majority is predetermined. Calling it a business does not make it so. A real business requires an exchange of value," wrote Mr FitzPatrick to us. He is actively exposing several pyramid, ponzi and MLMs.

 

Mr FitzPatrik was involved in framing new law in Sri Lanka to deal with MLMs, especially GoldQuest. During 2005, the GoldQuest scheme spread across Sri Lanka, marketing gold coins for double their worth. Sri Lanka's central bank noticed that the equivalent in their currency of millions of dollars had left the country, a big drain.

 

What is sad is many people have left high-paying jobs to “pursue their dreams” in an MLM. Having been conned so dramatically, they do not easily admit defeat. It seems easier to cling to the bad dream in an increasing cycle of desperation to make the MLM work against all odds.

 

*QI Tower in Malaysia is where QNet founder Vijay Eswaran has his new office. (https://www.facebook.com/photo.php?fbid=521501461194473&set=a.204006466277309.56163.161033627241260&type=1&theater)


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jitu moni

jitu moni 5 days ago

Illegality in MLMs and recommendations for law enforcement
An open letter from MLM expert Robert L FitzPatrick of Pyramid Scheme Alert to the US FTC exposes illegality of multi-level marketing (MLM) schemes and how law enforcement agencies can curb it. The same applies for India where thousands of pyramid or network marketing schemes are duping gullible savers everyday and also lobbying for legitimacy

In an 'open letter' to the US Federal Trade Commission (FTC), pyramid scheme expert Robert L FitzPatrick, co-author of the book, 'False Profits', president of Pyramid Scheme Alert and co-founder of the International Coalition of Consumer Advocates, has provided a set of recommendations to the FTC on how to identify illegal multi-level marketing (MLM) schemes and to enforce consumer protection laws on pyramids disguised as 'direct selling'. The paper was sent following a conference call with officials of the FTC Consumer Protection Bureau in which an invitation for suggestions and recommendations was made by FTC officials.

The FTC recently prosecuted one of the larger MLMs, Fortune High Tech Marketing, but only after it had scammed more than 300,000 households and operated openly for nearly 12 years. Currently, the FTC is investigating one of the largest of all MLMs, Herbalife that has operated for more than 30 years.

Bright Lines of Illegality:

The paper submitted by FitzPatrick, entitled, Identifying 'Bright Lines' for Determining Illegality of Any Multi-Level Marketing Company under Section 5 of the FTC Act, lists telltale signs of illegality (unfair and deceptive trade practices):

1. Endless Chain Structure - The sales management chain has no sector of sales people that is focused directly and only on end-users. The sales chain expansion is without limit and without geographic restriction. All new participants, upon payment, are awarded the right and offered financial incentives to recruit more salespeople and extend the chain to multiple levels, usually six to infinity. This reward plan and structure indicate the use of the inherently deceptive“endless chain”, infinity factor” and “unlimited” income claim to induce purchases and fees.

2. Pay-to-Play – Despite providing no territorial protection or even historical saturation data provided to new salespeople, sales/ purchase quotas are imposed with specific dollar volumes of product purchases (either by the distributor personally or his/her recruitment chain). In some cases, there are structural recruiting requirements also imposed in order to maintain a position in the endless chain payment plan. These volume and recruiting quotas are signs of “pay-to-play” factors that operate in tandem with an endless chain structure and recruiting-based rewards to drive purchases and fee payments.

3. Money Transfer - The MLM employs a reward formula that overwhelmingly rewards chain extension activity that is recruiting-based over personal retail sales activity that is market-based. Evidence includes formulas that allocate higher aggregate rewards, per transaction, to those at the upper end of the chain, over those at the base and allocate total commission payout to recruiters in excess of total verified retail profits. Special bonuses and rates on total “group” volume are based on position on the endless chain. They money transfer formulas directly result in an extreme concentration of payments – 50% to 80% – of total payouts to those at the extreme upper end of the recruiting chain. As an example, the report referenced hard data on Nu Skin’s payment of 82% of all its commissions to the top 1.29% of its “active” sales force, which is 0.5% of the entire sales network.

4. Recruitment-Driven - The actual activity of the business is characterised by relentless recruiting, churning and transferring funds from later participants to earlier ones.

5. Little Evidence of Market-based Retail Selling - Little evidence, gained from an examination of marketing materials, website, and reports from participants or researchers, of market-based retail sales, per salesperson, and little evidence of retail profit gains among the sales force.

6. No Income Opportunity for Nearly All Participants - Large-scale losses are evident in the sales force, even among those in the upper one-third of sales chain.

Law Enforcement Guidelines
For law enforcement, the report offered specific reforms that would put any MLM on the legal side.

1. Limit the number of levels that any individual salesperson can personally recruit and gain override commissions to one or several. In combination with other reforms, this measure would eliminate the infinity factor.

2. Require that commissions be awarded only on consummated retail sales, that is to persons who are not signers of the company’s sales contract and are not eligible for recruiting-based rewards.

3. Allow no commissions to be paid on any purchases made by other salespeople or on the salesperson’s own account. This reform eliminates a major incentive for recruiting and for making personal purchases. It would also clearly indicate that all purchases made by the sales force are market-based.

4. Eliminate all purchase/ sales volume or recruiting requirements in order to maintain sales and recruiting authorization. With no geographic limitations or protections placed on MLM salespeople, and no information available on market saturation factors, volume and recruiting requirements serve no other purpose than as recruiting inducements.

5. Establish limited territories for distributors who want to develop sales teams with authorisation based upon management selection. The current practice of open-ended, even global territories and escalation on the sales chain being based purely on volume/ recruiting performance is a telltale indicator of the “endless chain” inducement and the lack of a real-world market basis for sales.

Principles of FTC Law Enforcement and Consumer Protection from Illegal MLMs

1. The establishment of an understandable and consistent “bright line” requires that the FTC take a clearly stated legal stand against the groundless and nonsensical claim of MLM promoters that purchasing products by the participants in multi-level marketing exempts the enterprise from an illegal pyramid definition. The bogus identity of “direct selling” by pyramid selling schemes and the claim of exemption from a pyramid scheme definition based on product purchases have confused and misled millions of consumers (“If the MLM sells a product, it’s can’t be a pyramid!”).

MLM lobbyists have claimed that pyramid scheme definitions must exempt enterprises in which rewards are gained through product sales “to participants.” They have lobbied for this “product exemption” in state laws and tried to get a federal law passed in 2003. In fact, in case after case of MLMs prosecuted by the FTC, the selling products was the disguise of choice, and “direct selling” turned out to be a false identity.

2. FTC must establish and publish a set of recognizable actors indicative of the use of the endless chain as a marketing device, once the endless structure is identified as part of that MLM’s business model.

The evidence of the use of endless chain marketing to induce purchases and fee payments is found in the MLM’s pay formula and in the statement of policies and procedures, both of which are generally published.

Additional evidence can be found in income disclosure documents, website, webinars and in SEC filings.

Evidence of the use of the endless chain is manifested in verifiable loss and churn rates and absence of profitable retail selling. Referencing these classic elements of a pyramid disguised as a sales company can be done in a matter of hours or days. Pyramid fraud is frequently in plain sight.

Mandate for Action Now

By offering bright lines and recommendations for law enforcement, the “Open Letter” supports the message of urgency that the International Coalition of Consumer Advocates delivered to the FTC in October, 2013 with it White Paper and petitions.

Currently, the FTC lacks a consistent or understandable standard for determining illegality of any MLM, rendering effective FTC prosecution and law enforcement in MLM sector essentially impossible and, indeed, virtually non-existent.

By any standard, this position for a law enforcement agency is intolerable. It leaves millions of people in America and around the world without any means of distinguishing legitimate direct selling opportunities from pyramid swindles. In recent years, these schemes have begun targeting the most vulnerable sectors of the public, students and immigrants. The FTC’s untenable position has also generated a dangerous uncertainty in the securities markets, putting pension funds at risk that are invested in MLM enterprises that are being openly challenged for operating illegally.

The scenario in India

Coming back to home, Moneylife has been continuously writing about the inaction by government and regulators regarding MLM companies, money circulation schemes, pyramid-marketing schemes and other similar companies that swindle the unwary public by offering them misleading inducements and depriving them of their hard-earned savings.

In April 2013, after the collapse of Saradha group, the ministry of corporate affairs (MCA) in a face saving measure has decided to hand over probe of such chit-fund, MLM, Ponzi and pyramid scheme operators to a Special Task Force under the Serious Fraud Investigations Office (SFIO). The ministry said the probe has been ordered in view of a larger public interest involved in the issues, although the state governments are the appropriate authorities for regulation of such chit fund companies and schemes under the Chit Fund Act, 1982.

Here are some of the important stories written and representations made by Moneylife over the years…

Moneylife Foundation’s representation to PM, FM and RBI on MLM schemes

In May 2011, following the exposé by Moneylife on Speak Asia Online Pte Ltd and its MLM scheme, Moneylife Foundation sent a representation to prime minister Dr Manmohan Singh, (the then) finance minister Pranab Mukherjee, finance secretary Sushama Nath and Reserve Bank of India (RBI) governor D Subbarao urging them to ban all MLM companies and their schemes in the country, or to bring all MLM companies under the regulation of either the RBI or the Securities and Exchange Board of India (SEBI), to stop them ensnaring gullible people.

West Bengal’s ‘chit fund’ mess and inaction of MCA

The massive money, which is raised surely shows somewhere on the balance sheet of the company, filed regularly with the MCA. The primary recipient of the information about these companies is the MCA, and surprisingly the MCA is the least proactive in the entire process of bringing these perpetrators to regulatory focus, sooner before tonnes of money vanish.

Chain Game

Dubious pyramid schemes or money-circulation schemes are looting Indians across economic strata, finds Sucheta Dalal. This will continue since Central and state governments seem unconcerned.

Pyramid schemes: Daylight robbery

Pyramid marketing companies are looting the public easily, while the government watches. Many countries have banned them outright.

Ponzi Scheme: Is RBI Passing the Buck?

A strange deposit scheme that is proliferating in the states of Orissa, Chhattisgarh, Karnataka and Maharashtra has already collected almost Rs1,000 crore and is expanding virtually unchecked. The scam has elements of money-laundering and possibly the use of fake and forged currency as well; however, the banking regulator would like to pass off the investigation to the respective state governments for investigation under the antiquated Prize Chits and Money Circulation Schemes (Banning) Act.

Coin Game

An international network marketing scheme hawking expensive limited edition coins is attracting a huge following. Sucheta Dalal examines this strange quest.

Ponzi schemes: Free for all

Moneylife readers know how MLM schemes ensnare lakhs of people by promising extraordinary returns. We learn from the ministry of consumer affairs that the government is now waking up to the need for better regulation of MLMs and ponzis. At the same time, the powerful Direct Selling Association of the US is lobbying hard for an amendment.

‘Beware of deception by pyramid schemes, MLMs trying to lure people with promise of high returns’

Pyramids are pure fraud. Their business is unsustainable-they promise payment for goods or services of dubious value. The hallmark of these schemes is the promise of sky-high returns in a short period of time, for doing nothing other than simply handing over your money to them, and getting others to do the same.

Ponzi schemes: The fraudulent art of chain game

Even as India bans pyramid schemes under a statute called the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, the country continues to be a happy hunting ground for pyramids because our legislation is deliberately unworkable.

Dubious Ponzi & MLM Schemes

Investors losing money, or falling for dubious Ponzi schemes, is not a recent phenomenon; this has been happening for decades and it is not restricted only to India. Why is it that people repeatedly fall prey to such schemes in spite of being aware of the frauds perpetrated by conmen under different guises?

Set up inter-departmental group to curb MLMs

EAS Sarma, former power and finance secretary, said the ministry of finance, Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and the investigating agencies should collectively tackle this problem without any delay, as every day of procrastination will only result in thousands of hapless families cheated by the promoters of these schemes.

How MLMs wave an annulled letter to claim legitimacy of their operations and con people

Spokespersons and dealers of multi-level marketing (MLM) schemes or network marketing schemes respond to questions about their legitimacy by brandishing a 2003 letter issued by the then secretary, ministry of corporate affairs (MCA). What they omit to mention is that the letter was subsequently annulled following complaints about its misuse. This means, the letter used by these scamsters is no more valid.

Pyramid and MLM schemes are scourge on people

While there are existing laws such as Indian Penal Code (IPC), the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (PCMCS Act) and others under which concerned agencies could prosecute the culprits, there is no effective mechanism in place to ensure a coordinated approach to identify the fraudulent operators in advance and book them well before they destroy the livelihoods of thousands of households and launder the ill-gotten funds to unknown destinations.

MLMs now want to ‘invest’ money in India, really?

A set of powerful MLMs, which are part of an exclusive closed club, called the Indian Direct Selling Association or IDSA (on the lines of the Direct Selling Association of the US) has been lobbying hard to make a distinction between their operations and those of others, who they call, fly-by-night operators such as SpeakAsia and Ad Magnet.

QNet, the MLM company, has no answers to Moneylife’s simple questions

QNet, the controversial Hong Kong-based multi-level marketing (MLM) operator with multiple names (GoldQuest, QuestNet, QNet, QI Ltd and QI group are the better known names) refused to answer simple questions like how much money their independent representative (IR) earns on an average every month and why their products are priced so highly. Instead, it sent us a threatening and defamatory mail that raises more questions as to their real motive.

2011: A year dedicated to MLM and Ponzi scheme frauds

If 2010 was the year of great Indian scams, 2011 was rather of ponzi and multi-level marketing (MLM) frauds. SpeakAsia managed to top the chart, but soon many others joined the bandwagon, duping gullible investors for several thousand crores.

How to avoid 'get-rich-quick' schemes and scams

Nothing comes free in this world, especially money. The universal truth is you need to earn your money by hard labour all the time and there are no shortcuts to double it in the shortest span of time. Therefore, even if your near and dear ones tell you he/she will double, triple, quadruple your money within a few days/months, politely reply to them that it is not possible and what they are advocating is a pure 'get-rich-quick' type of scam.

Herbalife is a pyramid scheme worth zero dollars: Bill Ackman

Herbalife, a global MLM scheme also prevalent in India, is believed to be worthless according to hedge fund manager Bill Ackman, who made a detailed presentation on why consumers should avoid buying the company’s products and stay away from the MLM.

http://www.moneylife.in/article/illegali...

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gurupreet

gurupreet 2 weeks ago

Hi All,

People from all over India keep calling and messaging me asking for why nothing is happening in the QNET case. Well friends many things keep on happening all the time but i have not been able to post on blogs recently.

Just a Update...

QNET has started firing many lawyers out of their cases, but i wonder how that will HELP? How stupid it has been for copy paste lawyers to have filed those stupid ABA,s in the first place and now junior advocates are becoming the fall-guys.

Many cases were lodged against me and the EOW in various courts including Bombay High Court, Sessions Court-Mumbai, Esplanade court etc.

I have faced many seniors advocates and counsels like Nitin Pradhan, Abad Ponda, Haresh Mohan Jagtiani etc who have been defending various QNET companies. I have appeared in-person in all these courts i.e without any advocate and till date no QNET company has been able to get any favorable order in any of the several cases filed by them.

After the QNET websites were blocked by an order of the court these scamsters were again conducting the online scam by forming different sub-domains of the main web site for eg, http://www.qbuzz.qnet.net , and used to post these links using URL shortening services on Facebook etc to show case to new users that see our web sites are functioning and there are no issues. I think even this backdoor has been fixed now.

Also the links https://portal.qnetindia.in/
https://portal.qnet.net/eStore4/verifyreferrer.aspx?language=EN
were working and these links were the portal logins thru which new sign ups used to take place. These links were working as again they were hosted on sub-domains i am sure even that has been fixed and these links are not resolving now.

My request to every one is you please call/contact me only if you want to fight this menace in our country and i am ready to help any one for that, but i am not in a position to argue or make clarifications regarding the SCAM.

This fight will go one never the less. People say why there is so silence..but in the past also "There has always been silence before the STORM".

Regards
Guru

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jitu moni

jitu moni 2 weeks ago

Cops tracking ‘Diamonds’ of Amway
Hyderabad: The top police officials of the two States of Andhra Pradesh and Telangana have launched a massive hunt to track down the ‘Diamonds’ and other members of Amway India Enterprises to make sure their role in the multilevel marketing scam of the US-based company.

According to informed sources, the police of both the states are even sharing information regarding the list of upline members in the hierarchy of Amway India Enterprises, who share commissions on purchase of products by the downline members. The sources said that in the business model of Amway, the upline members who enroll new members into the scheme of purchasing products received sizable income which was nothing but easy and quick money. “Once the list of the ‘Diamonds’ is prepared and their income on commissions is confirmed, we go ahead with arresting them also,” the source said.

Meanwhile, the police on Monday arrested the MD and CEO of Amway, William S Pinckney, who is presently in Charlapalli Jail and presented him in the judicial court which sent him to remand for 14 days. The MD was sent back to Charlapalli Jail. It is learnt that the police would file a petition in the court seeking custody of Pinckney for interrogation to take the criminal case against him to a logical conclusion.

A police official said that the law would take its own course and charge sheets would be filed soon in the criminal cases against Amway India. In another twist to the criminal case against the MD of Amway, the High Court did not issue any orders on the petition filed by Amway India to exempt its managing director Pinckney from surrendering the passport to the police department. However, the passport surrender order issue has become an impediment for the release of Pinckney on bail.
http://apthenewstate.in/2014/07/cops-tra...

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jitu moni

jitu moni 1 month ago

7 Point Charter

If you are a victim of Qnet and have lost money or know someone who has lost/invested money by believing false claims of their friends and relatives.
Then follow these steps
1.Emailed complaint to cp.mum.addcp.eow@gmail.com

2.Send a formal written complaint letter along with product purchase receipt etc as evidence through registered post to the address below:
Mr. Kapase Investigating Officer Qnet Economic Offenses Wing-3 Crime Branch Mumbai Police, Police Commissioner's Office,Opposite Crawford Market, D N Road, Fort Mumbai 400001.

3.Keep proof of letter of posting and a xerox copy of complaint.

4.Email eva.sing@qnet and global.support@qnet.net demanding refund.Save your emails.

5.Call/sms FIR complainant Gurupreet Singh Anand on 07498063701 for any query regarding all India FIRs, police complaints, ongoing court cases etc.

6.Follow developments on Moneylife Qnet (comments section) and join our Facebook group 'Anti Qnet India', where we are all exposing this MLM company along with others in a big way.

7.Spread the word and this message if you can, as it will be a big help.

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jitu moni

jitu moni 1 month ago


QNet Multi Level Marketing in India – Review
Posted on 3 June, 2014 by consumer — No Comments ↓

My friend Natraj Korgaonkar suddenly called me after 1 year, regarding a business meet. When he met me he started to enquire about my financial status, so I shared that it was not that good. He told me that he was running a business for which he left his job & is making more than the salary offered by the job. That sounded good so I fixed a meet. He told me that, it is 4 to 5 years project in which we will meet the VP (Vice Presidents) from different companies in the whole world. He assured that in this business I will be able to make rupees 4 to 5 crore in next 5 years. He asked me that if i would like to join him. I asked for a bit of details from him. He took me to his senior partner, named Mikhil Samel. Mikhil told me that they have very less positions for partners, which was valid only for that day hence i have to book the position immediately without delay, otherwise they will sign up some one else for their business project.

For this I was suppose to pay Rs. 3 lakhs to start the business, I did not have the arrangement for that sum so I said no to it. Then they said you can pay the booking amount approximately $595 (INR 45,000) and block the position. So I did the same. Then he insisted to make my husband join under me. I said will have to try first & then will put more money in the business, they then assured me the they will manage the business for me and were reluctant to share what exactly the business idea was. Since Natraj Korgaonkar was a trusted friend & used to work with me I believed it & also enrolled my husband for the same amount $595 (INR 45,000). When i asked about the business, they mentioned that “it is an e commerce business. Hence by paying money, i will be buying 3 shares of the company named Q.Net and i will be a partner”. They said ” I will get a IR code, which i can circulate amongst my friend & relatives circle and whenever they will shop, i will get the 10% to 14% of the total amount. They told me that projected profit per partner is 4.81 crore in 4 to 5 years. So, it’s not at all tough business.” When i was asking about company & business more, he never answered. He said its not our “standard operating procedure” SOP and you will know it gradually. As they were pressurizing me for money to close the position. I applied for loan, and i made an online purchase on the website using my credit card for both the transactions. We were not given options as to what we can buy & were forced to buy the holiday package (Explore 1 for 7nights & 8 Days).

Before enrolling said that this is very easy, he had promised me that I had to put in 2 to 3 hours daily from home, where few days later as after enrolling & making the payment he said I have to work at any time of the day & only as per his availability & meet at the place feasible to him. Most of the time when I called him he was busy during the day time & could not provide enough support. He used to come home at late night to explain the further procedures. I was not comfortable but had no option as I had payed already. I was shocked to see, that the destination for the Holiday package will decided by the company as per hotel & room availability & I had to suggest 3 options for the destination also that I will have to pay a sum of INR 6500 to book the date of my holiday which was not explained earlier. He showed me financial’s of the company and while seeing financials i came to know that it is “Network Marketing”, and I have to make 6 partners to start making money. than i realised that something wrong has happened with me. After Financials he took me to Mc Donalds, Hub Mall Goregaon, Mumbai for some Welcome session, In which they were talking about “Dreams”. They told me to write down minimum 20 Dreams that i would like to fulfill, than he told to make a name list of people whom i know. minimum 500 names. He explained that our name list should exceed by 10% every month, means we have to make new friend to make business partners. etc. The very next day after this session, he took me to a conference that these people call it as “System”. Where their Senior Partners (they call them Uplines) come and address the audience by showing off money & their experience. Still I was not clear that what is this all going on? What I have to do in business? and Natraj was not answering me regarding anything. Whenever i questioned him, he roudly replied that “just do as i am saying, dont dare to run your own brain in this work. No Questions, Just do as i say”. He gave a set of books and DVD’s to study before i start this business for which I had to pay additional INR 1000. I read the books & watched the DVD’s they were all about how to do network marketing. I was amazed to see, that I have got trapped by the tactics shown in the DVD’s & Books. Next time when he met me, he told me about Hot, Warm & Cold Zones. Hot Zones – Means the people who are very close to you and trust you a lot like your parents, best friends and relatives. Warm Zones – Means your normal friends Cold means – the people whom you dont know at all. These zones were the targets for them.

Natraj told me to make name list of all 500 contacts on my social networking websites. I was doing it than he told me to call up my near dear ones and tell them ” Bada acha business hath laga hai, send me money of minimum Rs.1 lakh immediately to my account. Agar profit nai mila toh, i will give you double amount in 3 years that no bank will give” He told me show urgency by saying ” I have only 1 position and i have to close it immediately, send me money jaldi se” . he told me not to answer any questions of anyone and keep the call. I felt very strange about all these things. According to me, this is not a right or ethical thing that was happening with me. Whatever they were teaching me, was not at all convincing for me. My ethics doesn’t allow me to do anything wrong and lie anyone for money. Hence after seeing all this, i started asking more questions from Natraj and he started getting more & more rude with me. I have been cheated because i saw that, they are teaching me ways to make people fool and get the money from your own friends & relatives. i found it completely unethical. The people who are called Up Lines, listen to every call. They listen to calls to know what are we talking about, as we are not supposed to say a single word without their permission. They want me to get people on the table to see this business plan, and immediately pay them money. I felt my money has been wasted unnecessarily and still i have to pay INR 6500 for the holiday package. I was never informed about the return policy or else I would have changed my decision to pay for this scam. On sheer trust i gave money and now i am paying EMI’s because i can’t lie or break anyone’s trust. Hence I didn’t even made a single partner in this business. I would like to get my money back, so that I can pay my loan back and can live my life peacefully.

Regards
vaismist@gmail

http://www.complaintbox.in/qnet-multi-le...

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