Speakasia is a ponzi Scam! Exposed by Bloomberg UTV

All copyright lies with Bloomberg UTV. Thank you for exposing such PONZI schemes like Speakasia Scam, Aryarup Scam and other fraudulent PONZI schemes in INDIA.

RMP INFOTEC violating IRDA Norms

According to Section (42) of the Insurance Act, 1938, appointing sub-agents and passing on commission or kickbacks is prohibited. 

But RMP Infotec which sells Bajaj Alliance insurance policies passes commission as part of the binary payouts. 

Many people in the chain when introduced to new members try to sell insurance without being qualified in first place to sell insurance also they are not authorized to sell insurance.

Mathematics of Pyramid and MLM Schemes

Pyramid and Multi level marketing schemes are anything but illegal. There are few legal MLM businesses; however they are made to fit into the legal framework compliant of the local laws.

Readers might be surprised on how I term them illegal irrespective of how genuine their business is or how life changing business model they employ because of the underlying mathematics the pyramid schemes employ, all the pyramid schemes finally collapse.

Hypothetical Example:

In a typical MLM scheme, one is required to deposit an initial subscription fee or required to purchase a product. Let’s take an example of the subscription fee being Rs. 10,000 

It is illegal to just collect money, so many fly-by-night MLM operators promise to sell products worth the subscription fee. 99.99% of the time the value of the product will be inflated highly.

Typical examples of MLM products are ebooks, training material, forex trading material, herbal products, skin rejuvenating creams, health products, solar products etc

Now you are required to sell the same set of items to two people in a pyramid fashion.

10 lies of MLM Marketing- Proxy for Pyramid and Ponzi Schemes

10 Lies of MLM Marketing - Proxy for Pyramid and Ponzi Schemes

Here are the 10 BIGGEST lies of MLM Marketing

LIE #1. Better business opportunities than all other conventional business and professional models

Truth: According to well proven facts and the underlying mathematics, less than 1% of the people make sustainable income from the MLM business. For everyone else, this is a loss making opportunity.

Lie #2: Network marketing is the most popular and effective new way to bring products. Consumers like to buy products on a one-to-one basis in the MLM model.

Truth: Personal retailing -- including nearly all forms of door-to-door selling -- is a thing of the past, not the wave of the future. Retailing directly to friends on a one-to-one basis requires people to drastically change their buying habits. They must restrict their choices, often pay more for goods, buy inconveniently, and engage in potentially awkward business relationships with close friends and relatives. In reality, MLM depends on reselling the opportunity to sign up more distributors.

Lie #3: Eventually all products will be sold by MLM. Retail stores, shopping malls,
catalogs and most forms of advertising will soon be rendered obsolete by MLM.

Truth: Fewer than 1% of all retail sales are made through MLM, and much of this is consists of purchases by hopeful new distributors who are actually paying the price of admission to a business they will soon abandon. It is those innocent and gullible victims who part their hard earned money to begin this new era of business only to realize the loss it impounds both financially and emotionally.
Its real products are distributorships that are sold through misrepresentation and exaggerated promises of income. People are buying products in order to secure positions on the sales pyramid. The possibility is always held out that you may become rich if not from your own efforts then from some unknown person ("the big fish") who might join your "downline."
The market dynamics are similar to those of legalized gambling, but the percentage of winners is much smaller.
Lie #4: MLM is a new way of life that offers happiness and fulfillment.
It provides a way to attain all the good things in life.
Truth: The most prominent motivational themes of the MLM industry, as shown in industry literature and presented at recruitment meetings, constitute the crassest form of materialism. Fortune 100 companies would blush at the excess of promises of wealth, luxury, and personal fulfillment put forth by MLM solicitors. Pictures of their team leaders next to BMW’s and Mercedes don’t mean they actually own them. You can also get a beautiful picture of yours next to Ferrari when you visit car parking of Star hotel in your town.
Lie #4: MLM is your way to freedom
Truth: Robbing Peter to Pay Paul isn’t way to freedom, but maybe a way to a prison. When the scheme goes bust eventually, you lose money, you lose friends and most importantly you lose confidence.
Lie #6: Success in MLM is easy. Friends and relatives are the natural prospects.
Those who love and support you will become your life-time customers.

Truth: The commercialization of family and friendship and the use of "warm leads" advocated in MLM marketing programs are a destructive element in the community and very unhealthy for individuals involved. People do not appreciate being pressured by friends and relatives to buy products. Trying to capitalizing upon personal relationships to build a business can destroy one's social foundation.

Lie #7: You can do MLM in your spare time. As a business, it offers the greatest flexibility
and personal freedom of time. A few hours a week can earn a significant supplemental income
and may grow to a very large income, making other work unnecessary.

Truth: Making money in MLM requires extraordinary time commitment as well as considerable personal skill and persistence. Beyond the sheer hard work and talent required, the business model inherently consumes more areas of one's life and greater segments of time than most occupations. In MLM, everyone is a prospect. Every waking moment is a potential time for marketing. There are no off-limit places, people, or times for selling. Consequently, there is no free space or free time once a person enrolls in MLM system. While claiming to offer independence, the system comes to dominate people's entire life and requires rigid conformity to the program. This is why so many people who become deeply involved end up needing and relying upon MLM desperately. They alienate or abandon other sustaining relationships.

Lie #8. MLM is a positive, supportive new business that
affirms the human spirit and personal freedom.

Truth: MLM is largely fear-driven. Many occupations are routinely demeaned for not offering "unlimited income" Working for others is cast as enslavement for "losers." MLM is presented as the last best hope for many people. This approach, in addition to being deceptive, frequently discourages people who otherwise would pursue their own unique visions of success and happiness. A sound business opportunity does not have to base its worth on negative predictions and warnings.

Lie #9. MLM is the best option for owning your own business and attaining real economic independence.

Truth: MLM is not true self-employment. "Owning" an MLM distributorship is an illusion. Most MLM contracts make termination of the distributorship easy and immediate for the company. Short of termination, downlines can be taken away arbitrarily. Participation requires rigid adherence to a "duplication" model, not independence and individuality. MLM distributors are not entrepreneurs but joiners in a complex hierarchical system over which they have little control.

Lie #10: MLM is not a pyramid scheme because products are sold.

Truth: Though sale of products is legal under Money Circulation Scheme, buying products whose value has been inflated makes it barely legal. The schemes are pseudo pyramid schemes and

India - The land of MLM Scams

MLM Scams have been on rise and rise in India and people fail to protect their hard earned money.
Today we write about the Top Indian Scams or Top Indian MLM Scams.

1. SpeakAsia Online ----------------------- Rs. 2200 Crore Scam
2. RMP Infotec ---------------------------- Rs. 2000 Crore Scam
3. Stockguru India --------------------------Rs. 1000 Crore Scam
4. AISE Capital - Abhay Gandhi ------------Rs. 400 Crore Scam
5. RAM Survey ------------------------ ----Rs. 600 Crore Scam
6. Imtsons Investors -------------------------Rs. 100 Crore Scam
7. Shraddha Saburi Consultants    ------------Rs. 7 crore Scam



Will keep updating all the proof of the scams soon. Please keep visiting the blog. 

We have Moved to www.ScamAlert.in

Please move note that to serve you better, we have moved to www.ScamAlert.in

The new website will help you serve better to know more about Scams, Discuss and Spread the word on a wider variety of scams, frauds, and cheating cases rampant in the country.

Please REGISTER to the FORUM

We have ample articles and will continue our efforts in exposing the truth behind INDIAN Scams and more particularly INDIAN MLM SCAMS.

ScamAlert.in is an MLM FORUM IN INDIA  dedicated to exposing the Scams. 

PLEASE VISIT http://ScamALERT.in TODAY

GOLDQUEST, QUEST NET, QI GROUP, Quest, SCAM

GOLDQUEST operates in multiple names -BEWARE -BIGGEST SCAM- SAVE YOUR MONEY FROM THESE GUYS
The network members, who lost their money in the Quest Net, a multi-level marketing company, are continuing to storm the Chennai Police Commissioner’s office with complaints.
According to sources, the police who sealed the company’s office is planning to freeze its bank accounts and arrest its founder Vijayendran who is in Hong Kong.
The case is likely to be transferred to Central Bureau of Investigation (CBI) for further investigation.
Meanwhile, Quest Net officials forwarded SMS to the network members requesting them not to file their complaints against the company, as they were innocent.
After losing the hope of getting their money back, the victims lined up at the Commissionerate for lodging their complaints. Unable to tackle the crowd, a separate counter was set up in front of Commissioner’s office to issue petition copies to be filled in by the affected persons.
Meanwhile the complainants who reached the Commissionerate today had different tale of woes to reveal to the policemen. Many claimed that joining Quest Net was one of the worst decisions in their life.
An auto driver, said that he pledged his wife’s jewellery to pay the amount in gold firm a couple of years ago.
One of the network members convinced that he would be able to earn lakhs of rupees by just purchasing a gold coin and by putting little effort to sell their products to others.
Another member Lakshmi alleged that only few have benefited from the scheme, ‘while a person like me had fallen prey to lofty claims made by representatives of the company.’
The victims also alleged that they were asked to attend meetings in five-star hotels where senior men from the firm coached them how to market the products and enroll customers.
Initially, the persons who attended the meetings were asked to sign a form and later the officials from the firm pressurised them to pay the money soon.
For the Quest Net officials, the police action came like the bolt from the blue as they were yet to recover from the excitement of the attractive show in a star hotel.
It may be noted, acting on a complaint from one of the company’s network member, the police arrested seven persons on the charges of fraudulent business practices.
According to the complaint, Quest Net refused to give him the gold coin after paying Rs one lakh on the ground that he failed to enlist 10 more members.