Showing posts with label Persuasion. Show all posts
Showing posts with label Persuasion. Show all posts

Monday, March 17, 2014

BREAKING NEWS: Kevin Trudeau gets 10 year sentence

Kevin Trudeau gets 10 year sentence for 6 separate contempt of court and stiffing the court 37 million in fines.

Kevin Trudeau had been scamming for DECADES with bogus books, bogus sales, bogus minerals, bogus nutrition, bogus diet, and various types of bogosity for decades. He claimed that last few months in jail changed him and he owned up to everything and he's very sorry and blah blah blah.

Judge didn't believe him.  Please see related article below for story about his prior scams.

http://www.chicagotribune.com/business/breaking/chi-kevin-trudeau-sentenced-20140317,0,832577.story
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BREAKING NEWS: Rwanda banned TelexFree, Uganda may be next

Uganda's ambassador to Rwanda just tweeted Rwanda's official ruling on TelexFree: it's BANNED! And he's asking Uganda to ban this quickly too!


Thanks to BehindMLM for the lead. 

Oh, and here's the official signed order, thanks to PatrickPretty.com for the link and photo.

BREAKING NEWS: Italy fined Vemma, Organo Gold, and Asea 500K Euros for pyramid scheme and false claims

Flag of Italy
Flag of Italy (Photo credit: Wikipedia)
Italy's Financial Regulators (Guardia di Finanze) Special Market Protection Unit, Anti-Trust Group, just issued fines to Vemma Italy (100K Euro fine), Asea Italy (150K Euro fine), and Organo Gold Europe (250K Euro fine) for "unfair business practices" (i.e. pyramid sales) of pushing illegal MLM beverage business.

Asea and Organo Gold got extra fines because they also made unsubstantiated health claims. Asea apparently claimed their product strengthens the immune system, promote healing process, and reduce harmful effects of free radicals. Organo Gold apparently claimed that their ganoderma mushroom made it effective in prophylaxis of nerve diseases, vascular diseases, and cancer, without side effects.

http://www.helpconsumatori.it/acquisti/vendite-piramidali-antitrust-decide-multe-per-500-mila-euro/79331
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Friday, March 14, 2014

BREAKING NEWS: Ming Xu claims he's no longer involved in WCM777 / Kingdom 777 / Global Unity

In a series of tweets, instead of Bible-sounding quotes (i.e. "God gave me strength to persevere") Ming Xu claimed he's no longer involved in WCM / Kingdom / Global "due to investigations". He claimed he found a buyer who will follow his "vision".

Given that he previously found an actor to take over Kingdom 777... This is "I'll believe it when I see more than just announcements".

http://behindmlm.com/companies/wcm777/xu-abandons-wcm777-over-regulatory-heat

Tuesday, March 11, 2014

BREAKING NEWS: Quebec, Canada, and Alaska, US, issues alert regarding WCM777 and related entities

State of Alaska, United States of America, issued an investor fraud alert regarding WCM777 (later renamed Kingdom777, later renamed Global Unity)

http://www.commerce.state.ak.us/pub/PR-14-004-Investor-Fraud-Alert.pdf

This was quickly followed by Quebec Canada

http://www.lautorite.qc.ca/en/press-releases-2014-corpo.html_2014_alert-wcm777.html

If you are involved in WCM777, having put money into it, or know of someone who did, you may want to contact the authorities, esp. if you are in these areas.  Even if you are not, these are just some of the dozen jurisdictions that have issued investor alerts or outright cease and desist orders against WCM777. Chances you are in one of the other areas. Even if you are not, your money is in danger and you should contact your local authorities ASAP.

You can see all related articles regarding WCM777 via the tag below.


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Monday, March 10, 2014

Duke University's Free Coursera Course on Critical Thinking: Take it!

Duke / Coursera has a free course on critical thinking. It can even lead to a certificate if you take a couple other classes, but by itself it's a great intro to critical thinking and proper arguments, as well as detect improper arguments being used on you.

https://class.coursera.org/thinkagain-003/lecture

Class is free, though they're already on Week 8, so you'll have a bit of catching up to do!
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Sunday, March 9, 2014

Guest Post: Vemma and Napoleon Hill's "Think and Grow Rich", part 4 of 6

Previously we had SlayerofScams, a fellow scambuster on IGN, posting his essay on how people misconstrue Napoleon Hill's advice to coerce the weak-minded sheeple.  Here is part 4 of 6.

 ----------

SlayerOfScams, January 8, 2014



Round Four of Napoleon Hill's Smackdown of Vemma/Verve From Beyond the Grave

Hill says that to become successful or rich, one must perform an annual self-analysis/self-inventory. With the New Year just starting, what better time for the Verve reps to do that?

Here are some questions from Hill's self-inventory that are especially pertinent to Vemma reps:

To help you consider the correct answers, ask yourself: are you happy with having lost and continuing to lose $150+ USD per month in order to buy cans of Verve that you do not want and cannot sell, in the false hopes that Vemma will pay you fat commission checks for the rest of your life off of the recruitment and purchases made by your fictitiousnon-existent downline victims - fictitious and non-existent, of course, because real people (other than, perhaps, a few odd exceptions) are not actually stupid enough to sign up for this scam underneath you?

Next, ask yourself if any of the few downline victim suckers who you may have been lucky enough to dupe into the Vemma pyramid scam underneath yourself, and who are (like yourself) inevitably losing money every month to Verve, would be satisfied if they asked themselves the same questions given above.

Sunday, March 2, 2014

BREAKING NEWS: TelexFree under investigation in Africa

The East African newspaper out of Kenya has confirmed with Rwandan government officials that TelexFree had spread to Rwanda and is being investigated by officials of being a fraudulent scheme.

Emmanuel Bayingana, the official in charge of Competition at the Ministry of Trade and Industry, confirmed that TelexFREE was being investigated.
“We are doing an assessment of the operations of TelexFREE,” Mr Bayingana said. “The investigations will determine the way forward. The assessment will be concluded next week.”
He noted that the ministry, Rwanda Development Board (RDB) and the central bank will come up with a position, especially if the business is found to be risk-prone.
The government has been strict on pyramid schemes and multi-level marketing businesses with a number of them, including Questnet, banned from operating in Rwanda.


http://www.theeastafrican.co.ke/Rwanda/News/Rwanda-govt-probes-TelexFREE-over-Ponzi-scheme-claims-/-/1433218/2226134/-/aha5x8/-/index.html

There are several reports that TelexFree may also be under investigation in other African countries. However, those cannot be confirmed at this time.

Saturday, March 1, 2014

BREAKING NEWS: TelexFree cancels recruitment seminar on Jersey

According to Detective-Sargeant Andrew Smith of Police of Jersey, when TelexFree reps learned that the local police is already aware of them, a recruitment seminar scheduled was abruptly cancelled, as reported by Globo:
"When they learned that we knew, they canceled the meeting," says Andrew Smith, Detective Sergeant of Police of Jersey, the iG . "We know that this is a fraud, a scam."
According to Smith, representatives of Telexfree from abroad were expected for the event. The police declined to disclose the names, and denied that they were Carlos Costa, Carlos Wanzeler, James Merrill and Steve Labriola, business leaders who participated in a company cruise in Brazil in December 2013.

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BREAKING NEWS: FTC responds to Senator Markey's Letter... with nothing

FTC just made public their response to Senator Markey's letter regarding Herbalife and its investigation.

They took 3 pages to get to the point, which can be roughly summarized as

"We're looking into it, and we can't answer your questions without giving ourselves away. Stay tuned."

Here's Kevin "The MLM Attorney" Thompson of Thompson-Burton discussing the response.

http://thompsonburton.com/mlmattorney/2014/03/01/ftc-responds-to-senator-markeys-letter/

Friday, February 21, 2014

MLM Absurdities: The "Big Placebo" industry that markets nutritional supplement woo

Dietary supplements
Dietary supplements Do they actually improve your health?
(Photo credit: Andrei Z)
In studying the network marketing industry, MLM Skeptic had come to a conclusion that most network marketing companies deal with nutritional supplements and skin care, or as the somewhat pejorative slang goes: "lotions and potions".

The "potions and lotions" often promise some very vague and generalized health effects, with weasel descriptions such as:
Recently I came upon a quote by Richard Dawkins, and found it very applicable here:
If any remedy is tested under controlled scientific conditions and proved to be effective, it will cease to be alternative and will simply become medicine. So-called alternative medicine either hasn't been tested or it has failed its tests. 
The same applies to any sort of nutritional supplement, really. If any nutritional supplement is properly scientifically tested and proved to be effective, it will be adopted as national or even global nutritional standard. And it's clear that except for a few select examples, most nutritional supplements on the market are just woo, as they have not been tested properly, or have failed its tests to be effective in something.

So why do these nutritional supplements proliferate, and can be found in supermarkets and pharmacies and more?

The reason is quite troubling, as this has to do with growing scientific IGNORANCE and science denial.

Thursday, February 20, 2014

Bad Propaganda: Found and Lost on Oprah's Website

Given the amount of woo that had been pushed by Oprah and her various spawns like Dr. Oz, it's very ironic that her own quiz of what's a scam and what's a cure, is no longer available.

Wonder if it hit a bit close to home?
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Tuesday, February 18, 2014

Bad Propaganda: Avon was NOT a sterling example of MLM success

 u
Español: Logotipo de la empresa estadounidense...
Avon logo  (Photo credit: Wikipedia)
When trolling for new members, the recruiters for MLM often cite Avon, Amway, and until recently, Herbalife as sterling examples of network marketing. But are they really?

Since Amway is a private company, I have no stock data to show you, and Herbalife prices are crazy because some hedge fund managers are having an ego trip by playing with HLF stock. That's not a good indicator of the confidence in the company.

But Avon, that company had been around for over 100 years. How did it do?

If you enter AVP into Google, you'd find that Avon had been in STEADY DECLINE for the last ten years... since it adopted MLM. That's right, Avon did NOT adopt multi-level marketing until 2005. And it had been FAILING every year.

Avon Products, as of 18-FEB-2014
The stock chart is clear: for the last 10 years, S&P 500 had gone up 71%, while Avon stock price had gone DOWN 52%.

And one of the MAJOR change during that decade is Avon adopting MLM in 2005.

Please recall that MLM was started in 1979 when Amway survived an FTC challenge in court.

It took 25 years for Avon to go MLM, after MLM was created, and 100+ years AFTER the company was founded.

And it had done steadily WORSE every year, ever since.

Think about that. What do the stockholders know that we don't?

(And why would MLM defenders cite Herbalife's stock price rise since Ackman's challenge as proof that MLM is thriving, while ignoring Avon's price drop?)

Sunday, February 16, 2014

Scam Psychology: Why Bad Arguers Often Retreat to Conspiracies As Final Defense

Conspiracy Theory with Jesse Ventura
Conspiracy Theory with Jesse Ventura
Making a living through selling nothing... like a lot
of scams that call themselves network marketing
(Photo credit: Wikipedia)
In studying the financial scams and its victims, as well as the common arguments the brainwashed sheeple use to 'defend' the scam they're in, one of the most common "final arguments" is accuse any 'opponents' as a part of the conspiracy against something. While most often found among the "lotion and potion" defenders, they can be found among all sorts of scams, esp. one that had gone viral across the world (and thus must be eradicated).

There seem to be 3 general types of conspiracies when it comes to network marketing, which is grouped by size: personal conspiracy (it's just some hidden reason why the "opponent" is against the scheme), industry conspiracy (some sort of nebulous attack by competitors, though sometimes it's the government), or global conspiracy (often involving some nebulous mention of Bilderbergs, etc.)

All the conspiracy boils down to is "motivation denial of evidence (of scam)". Such conspiracy accusations can take the following forms (but obviously is not limited to such)

  • You must have failed at ____ to be so bitter
  • You must work for our competitor
  • You're just out to get hits for your blog
  • You are a part of medical establishment against the "wellness industry"
  • You're a part of conspiracy of the rich to keep the rest of us poor

Problem with such conspiracy accusations is conspiracies often rely on circular logic.

Q:Is there any signs of a conspiracy? 
A:No. 
Q:So why is there a conspiracy? 
A:Because conspiracy suppressed the signs! 

Or on a more personal level

Q: Why do you think I work for a competitor? 
A: Because you said we are a scam!
Q: Do you have evidence that I work for a competitor? 
A: No... but it made sense to me!
Q: Here's evidence why ____ is a scam. 
A: You are a liar and those evidence are fake.
Q: Why would I fake such? 
A: Because you work for a competitor.  
Q: But you said you have no evidence that I work for a competitor. 
A: Because you hid it really well! 

Basically, any sort of evidence can be dismissed by "it's part of a conspiracy (against us)".  You have to PRESUME the conspiracy to be true to make sense of the twisted circular logic. It's "self-sealing".

Conspiracy theories are often quite fascinating to study, as it's basically how the mind twists itself into a gordian knot. Psychologists have studied correlations of conspiracy theorists (PDF file), such as is there any correlation between beliefs of conspiracies (i.e. does believing free market make one more like to believe climate denial?)

The results are surprising, and a little troubling. And so was the reaction by the conspiratorial community.

Saturday, February 15, 2014

Scam Absurdities: Kingdom 777 (i.e. WCM777) adopts Ponzi Speak and Pyramid Selling

A blatant ponzi scheme such as WCM777 (which changed its name to Kingdom 777) that was chased out of both North and South America by various jurisdictions, decided to go Orwellian by adopting "Newspeak", which seems to be copied from existing ponzi schemes, such as Ad Surf Daily.

BehindMLM made a copy of Kingdom777's official announcement:

Kingdom777 "word usage explanation" announced 13-FEB-2014

  • Investment, purchase
  • Investor, member
  • Dividend or return , bonus

Hilarious, since this is exactly what "Andy" Bowdoin of Ad Surf Daily ponzi did. Quoting from the SEC press release:
To avoid regulatory scrutiny, Bowdoin referred to ASD’s investors as “members,” referred to the investor’s money, payment and investment principle as “ad packages,” and referred to the return on the member’s investment that ASD promised and paid as “rebates.” 
Let's compile the list...

  • investor, member
  • investment, ad packages
  • return, rebates

Yep, same thing.

But there's something else... It seems Ming Xu is simply replaying the Vantone scam, which is the same trick that Interush tried in Hong Kong, and already busted.


Friday, February 14, 2014

Bad Propaganda: The Real Story Behind the "Dropout Lambo" Meme

A recent viral meme that was made popular by Vemma sheeple was the "Dropout" Lamborghini Aventador

Hyundai SantaFe with "Scholar" Vanity plate,
and Lamborghini Aventador LP700 (2012)  with "Dropout" vanity plate
via Flickr circa 2013
The intent from Vemma sheeple is to ridicule school, and how Vemma is going to change the lives of the young people participating in it.

But what's the *real* story about the DROPOUT Lambo?

The Lambo is real. Its owner "PK" (who asked not to be identified) contacted me to give me the real story. Yes, I've confirmed his identity.

Thursday, February 13, 2014

MLM Absurdities: MLM may be a Cult... revisited. Why Do Herbalifers get Tattoos?

Previously, MLM Skeptic has discussed how often MLM resembles a cult (of money/greed), where members are to worship their upline and their company, any dissent is stamped out with shame, any defectors ridiculed and denounced, any critics ignored.

Today we will discuss a different part of cult behavior... identifying marks... such as tattoos.

Michael Burton
showing off his Herbalife
tattoo at an Herbalife event
in Serbia 2012
Tattoos used to belong to the realm of gangs and religious cults. It is only in recent years that the more elaborate tattoos have made the transition to "fine art".

Think about it. Tattoos are semi-permanent. It's on your body. It is intensely personal. It is extremely difficult to remove (often costs thousands of dollars), so you are REALLY showing your commitment if you choose to get one.

No wonder gangs often have gang tattoos, so much so, law enforcement have gang tattoo databases to readily identify gang affiliations.

And religious cults often have tattoos, special signs or greetings, and such.

But tattoos for a company? Really?

Back in 2013, a real estate company in New York offered 15% pay raise if its employees get a company tattoo. Owner said he was inspired by one employee who got a tattoo just for the heck of it, and the owner offered him a raise, and from there he decided to go for broke.

Putting a company tattoo on yourself just for the heck of it? That takes some dedication... Or mental illness.

Meet Michael Burton... member of (cult of) Herbalife.

Here's Michael Burton, showing off his Herbalife tattoo. He said he used to be a flabby used car salesman and went backrupt, so he went into Herbalife (at insistence of his in-laws) and became so fit, he competed in those fitness competitions.

Then he went bankrupt. And he owes tons of people money. And he has almost nothing left. Except his passion for Herbalife and his Herbalife tattoo.

But he's hardly the only one with Herbalife tattoos.


Wednesday, February 12, 2014

MLM Absurdities: What They Don't Want You To Know About Ganoderma "Healthy Coffee"

In the past several years, a plethora (plague?) of "healthy coffee" companies appeared on the market. They bear names such as "Gano Excel", "Organo Gold", "Vidacup", "SereniGy", and so on. And they claim to bring you coffee, but with some magical healthy ingredient added to make you healthier, like ganoderma mushrooms and/or some other magical herbs. Sounds enticing, but here's what they don't want you to know.

1) Lousy coffee beans are used to make flavored coffee.

Traditionally, there are good coffee beans... and bad coffee beans. People would buy the good ones for a premium. So what do they do with the not so good ones?

They make flavored coffee with them. The added flavor (and smell) made the bad coffee more palatable.

Coffee geeks would never desecrate good coffee with flavors, even good flavors.

2) How are flavored coffees made any way? 

Modern flavored coffee is made by adding flavored oil to whole roasted beans, before they are grounded. Generally, 3% flavor oil (i.e. 3 pounds of flavor oil for 100 pound of beans) is added. Then the whole thing is sent through a mixer so the oil coats the beans (which can mess up your grinders)

Flavor oil on coffee. Hmmm...  So how did they get Lingzhi flavor onto coffee, if it's generally water extracted?  (see 4)

3) Generally there are only 4 camps of flavored coffee (no mushrooms)

Coffee dated back hundreds of years from Africa when the inhabitants of present-day Yemen drank coffee flavored with nuts. Later, fruits, chocolate, and such flavors are added. Foodeditorials wrote:
Generally speaking, there are four categories of this type of coffee. The first category includes flavors based upon spices such as clove, cinnamon, anise, and cardamom. Next, there are also some coffee flavors that are based upon fruits such as coconut or raspberry. Chocolate based flavors are the next type with the most common being chocolate mint. Lastly, some flavors are based upon nuts like vanilla, hazelnut or macadamia nuts. Crème coffees also have their share of followers; these include flavors such as Irish Creme or French Vanilla coffee.
To recap, that's spice, fruits, chocolate, and nuts. For hundreds of years, these are the four main categories of flavored coffee.

No mushrooms. Ever wonder why?

Tuesday, February 11, 2014

Bad Argument: When You Comment, You Should Check Your Facts!

Was browsing YPRPariah's website, and found something amusing... Some Vemma noob came and posted some comment about how great is Vemma and how everybody else are losers for doubting Vemma, blah blah blah.

Vemma Product Photography and Ad
Vemma Product Photography and Ad
(Photo credit: themichaelminer)
Here's a point for point critique.  His stuff is in blue, and mine will be in red
Honestly I use to be skeptical about vemma just like everyone here. As a business student I’ve been approached multiple times. but I realized that if I’ve been approached so much times it must be a trend and I put my ego aside and just let my friends explain to me why their so excited
So he just admitted he's a victim of FOMO: fear of missing out.  
 At the end of the day you guys really have to choose who your listening too.
So why should we listen to him?  
For anyone who’s skeptical your choosing to listen to a wordpress blog which has no credibility over people like robert kiyosaki, bob proctor, and eric thomas who are all millionaires who all directly work with vemma.
It's interesting how much credence he puts in "credibility". I wonder if he knew the following:
Kiyosaki was an Amway rep and his book was made popular by Amway's Sager Group. And he advocates screwing over his partners because he got away with it TWICE. He charges big speaking fees to appear at events. 
Bob Proctor basically stole all his schtick from Napoleon Hill (and admitted so), and his wife and daughter are high-rankers in Vemma 
As for Eric Thomas, former NFL player and now "Hip Hop Preacher", he's an inspirational speaker who will come to your event if you pay him enough. Between 10K and 20K per appearance, according to one article, as spoken by himself. 
They work with Vemma because Vemma paid them. They are mercenaries, much like lawyers. 
 Why would such credible people put their million dollar reputations on the line to work with vemma if it was a scam? They don’t need any extra money so the risk of working with a scam DEFINITELY wouldnt be worth it.
The answer is simple: they can always speak for someone else. Kiyosaki is constantly pumping out more rehash of his books and has that stupid "seminar" for pumping people more money. Bob also speaks for various other companies as well as his own "The Secret" related seminars, and so does Mr. Eric Thomas. If anything happens to Vemma, it wouldn't hurt them much, if at all. The damage he *thinks* will happen to them is negligible, and the deterrence he relied on is nonexistent.
This is just "appeal to celebrity" fallacy, or "association with celebrity" fallacy.