MULTI-LEVEL MARKETING SCAMS

We all definitely know what is multi-level marketing, because in our life, we have seen so much of people talking of multi level. 

Everyone thinks it is easy to gain money within a short period of time. When a company hired an employee, for doing marketing, they will definitely train him, how to fool others to earn money.





Best Example; We can talk about "QNET" is a HONGKONG based company.


In India it was facing so many issues and what the company  done was cheated unemployed youth under the texture of offering them a job and collected almost Rs 1,000 crore in the MLM scam.

Total 58 persons were arrested in 14 cases, which were registered under QNet and Vihaan Direct Selling Pvt Ltd in different types of police stations of Cyberabad are arrested. The godown of Vihaan Direct Selling of Qnet at Bangalore and a marketing agency for QNet products are seized. An amount of Rs2.7 crore in the bank account of Vihaan Direct Selling is frozen. The bank accounts of persons involved in the cases are also has been seized. 

There are almost 30cases registrated on Qnet only at cyberabad. 

In the same way, MLM cases registrated in bombay. Even the bombay high court rejected the anticipatory bail of accused people.

The main aim of the companyy " SELL MORE EARN MORE ".  The company always stands on a statement that people can be fooled. Thus, it is true 'sell more earn more' by fooling people. 

 The total money was collected on­line and  actual money was not available for withdrawal. maybe money was laundered outside India. The police in the investigation have come across 73 bank accounts of Q Net Ltd and total laundering of is around Rs135 crore.

"BEWARE SOCIETY NEVER EVER FALL IN THE TRAP OF MULTI-LEVEL MARKETING"

Three Foreign Firms With Links To Deepak Talwar's Close Aide, ED Identifies In The Aviation Scam

This is a case of money laundering, held in October, 2019, related to consultations that allegedly favored foreign private airlines and caused loss to state-owned Air India.
Corporate lobbyist Deepak Talwar has been accused of being a middleman in fixing bribes to politicians and public servants to make sure that Air India goes into  loss to favor foreign and local private airlines.

The Case
The Enforcement Directorate have identified three foreign companies linked to Yasmin Kapoor, a close associate of Deepak Talwar and alleged that these companies were used to wash the bribes received in an aviation scam. Talwar's lawyers tried to defend him by denying the charges by calling those baseless.The co-accused, Yasmin was arrested on October 3.

ED told a local court that a firm controlled by Yasmin Kapoor called Stone Travels,had received more than 6 crores from a Mauritius or Dubai company during the time when the aviation deal involving Air India was struck.It was found that Gulshan Promoters Pvt Ltd who owned Yasmin's residence on A P J Abdul Kalam road and one of whose promoters, Devendra Dogra,had alleged to receive $3.765 million(about 16 crores) from Gilt Asset  Management , a company which was controlled by Deepak Talwar and and was accused to had received bribes in the aviation deal.

ED also told the court that Dogra and Kautilya Pte Ltd of Dubai had send money in that period to Stone Travels which it routed to various entities.ED also claimed that a domestic travel company,
Cedar Travels which included involvement of Yasmin Kapoor, Deepak Talwar and his family members. Yasmin was a director of that company and the transactions of the company were being investigated.
Another company,Gabriel Trading Ltd, B V I (British Virgin Islands) was there in the remand application where Kapoor was a director with .Talwar and Dogra , the agency said.
According to the agency ,one more company, Y K Technologies Dubai,was cited,where Kapoor and her daughter were directors.

According to me,
In today's era ,a lot of money laundering cases are coming out which shows that people nowadays are focusing more on money in which they forget their ethics.If they will run their business ethically,it will grow slower but will last longer. 

SEC Halts Three In Alleged $125 Million Fraud

The Securities and Exchange Commission halted an international trading program in sept, 2019 which put more than $125 million of investor funds at risk.

What was the matter?

According to the SEC's complaint, beginning in March 2016, Michael S. Young,  Michael S. Stewart, and Bryant E. Swell (managers) and their companies Mediatrix Capital, Blue Isle Markets Inc. , and Blue Isle Markets Ltd. , offered investors to invest by showing a false data of their company.

The managers told investors that their company had been earning a profit every single year for almost five years during which they had returned more than 1600%. They also claimed that their marketing strategy had allowed Mediatrix Capital to accumulate assets under management of $125 million by the end of 2018.

In reality, their trading strategy consistently lost money- lost almost $18 million dollar in 2018 alone.

They also misappropriated more than $35 million of investor money for defendants' personal use.

"We alleged that this scheme has resulted in tens of millions of dollars in investor  losses, in part, to fund defendants' luxurious lifestyle," Kurt  Gottschall, director of the SEC's Denver regional office, said in a statement.

What SEC did?

The SEC has named 20 relief defendants, which it said was a result of Young, Stewart, and Sewall transferring millions of dollars of investor's money to spouses, relatives, friends, and shell companies they owned or controlled.

Ethical problem here-

Whatever the company did was ethically wrong:

Showing a false data to the investors and using their investments for personal use is totally wrong.

Here, the defendants were doing this fraud for a long time and SEC should have found this earlier. It is their responsibility to oversee the securities market and protect the investors.