BREAKING NEWS: Zeek Ponzi "Determination of Claim" letters going out now

Zeek Rewards Receiver Ken Bell has released a new letter on the official website http://www.zeekrewardsreceivership.com/ dated 27-DEC-2013.

Determination of Claims basically confirms that you have a claim against Zeek Rewards (i.e. it owes you money). How much you will get back depends on how much he was able to claw back from the net winners... 15000 of them, 9000 of whom live in the US.

Even if you don't receive one (and as first batch is going out, and it'll take the remainder of the year just to finish the first batch)  that does not mean you don't have a claim. Some claims are harder than others to document and verify. If you have met the deadline to file your claim on the official website, you will eventually get a notice.

Here's some most interesting facts:

MLM Absurdities: Why Do New MLM Businesses Just End Up Cloning Old Scams? (Is Lucrazon a scam?)

 Lucrazon logo via CrunchBase

In studying network marketing and its illegal cousins, the pyramid schemes and the Ponzi schemes, it is sometimes rather disheartening to see that some people just end up reinventing old scams, or are treading so close they may as well as claimed to have reinvented the wheel. Here's one of those cliche quotes to throw around:

Those who cannot remember the past are condemned to repeat it. -- George Santayana

Perhaps in the modern times, it's necessary to add a corollary:

Those who cannot research the past are doomed to repeat it

And today, we shall examine one such biz... a seemingly very upright one... except it seem to be a business model that's a copy of a scam that was closed by the FTC 13 years ago.

That business is called Lucrazon.

Bad Arguments: Misrepresenting Pyramid Schemes, esp. by people who should know better

Some of the most persistent bad arguments presented by network marketers (not just noobs, but also many veterans) are various misconceptions about pyramid schemes, and using those misconceptions to explain how network marketing is NOT like that. However, that explained nothing since the rebuttal is based on a misunderstanding.

Today, we shall explore a website called "Engineered Lifestyles" by a guy named Jamie Messina, who claimed to be an automotive engineer before getting bitten by the network marketing bug. You'd think that an engineer would know about a bit of critical thinking... but let's look at the evidence, rather than presumptions.

Okay, what does Jamie Messina say about pyramid schemes? This can be found at:

http://engineeredlifestyles.com/mlm/pyramid-scheme.html

For a page with the title "Recognizing Pyramid Schemes, and subtitle: Is MLM a Pyramid Scheme?", the page is surprising light on information, as there is not a proper definition of pyramid scheme on this page at all. Instead, the entire page is actually a sales pitch about network marketing in an attempt by pointing out the pyramid like structure is all around us therefore a pyramid shaped organization is nothing to be afraid of.

While technically correct, that pyramid shaped organization is all around us and nothing to be afraid of, it is IRRELEVANT as it has NOTHING to do with a "pyramid scheme". This is a very common obfuscation defense even by famous "advisors" such as Robert Kiyosaki. A pyramid scheme is a type of FINANCIAL FRAUD and nothing nothing to do with organizational shape of an organization.

Jamie has gotten off to a bad start. Let's see if he can redeem himself in the second half...

Why Is Robert Kiyosaki Trying to Shoehorn MLM onto his Cashflow Quadrant in the WRONG Quadrant?

One of the most frequent pro-MLM arguments from fans of network marketing is "Robert Kiyosaki likes it!" (with an implied "he knows what he's talking about!")

Previously, MLM Skeptic has documented that Kiyosaki was actually an Amway rep (and a rather unsuccessful one, as he never touted his success there, or rather, NEVER EVER mentioned it) once upon a time, his book only became successful because it was "discovered" by Bill Galvin, a then diamond Amway rep, who recommended his sales organization, i.e. Yager Team, adopt it wholesale, as a part of the "Amway Tool Scam".  With the sales numbers "kickstarted" via MLM, Kiyosaki went to Warner Business Books and FINALLY (after YEARS of trying) got a real publisher instead self-publishing.

Thus, let's just say that Robert Kiyosaki is not exactly an impartitial expert when it comes to network marketing. Because he owes his entire publishing success to it, he's unlikely to say bad things about it.

But let's analyze the book Rich Dad Poor Dad, and its sequel, Cashflow Quadrant instead, and how it REALLY applies to MLM.

Most people who got the "recruiter's version" of "why you should choose MLM" will basically explain to you that MLM is in the "B" quadrant of Cashflow Quadrant, which looks like this, from a MLMer...

Employee works for Business owner, "has a job"

Self-Employed, or specialists, controls/owns their own job

Business owners own a system, so they can sit back and their business will continue to make money. (they hire employees)

Investor owns investments... money makes more money.

Sounds pithy, yes? Nothing *really* wrong with that. But... Where does a MLMer fit in on this quadrant?

The MLMers will say that it's in "B" quadrant. In fact, even Kiyosaki claimed that "network marketing is what I recommend for people who want to move to the B quadrant".

WRONG!

Robert Kiyosaki's Faustian Bargain With Network Marketing Is Confirmed

Previously, MLM Skeptic has raised the question whether Robert Kiyosaki had made a Faustian bargain with Network Marketing 

That's when someone pointed me to this sound-bite from Amquix, which confirmed that Kiyosaki was a downline in Amway under Bill Galvin.

http://www.amquix.info/sounds/kiyosaki_in_amway.mp3

Bill Galvin was a "diamond" level sales leader in Amway from way back when. In fact, he was thanked in the dedication / acknowledgement page of "Rich Dad Poor Dad". Here's a screenshot from the Amazon "look inside" and there's the name "Bill Galvin" right there. In fact, if you Google the names on this list, most of them *are* high-level Amway IBOs.

This is also confirmed via research done by SimpleDollar

Amway Global (Photo credit: Wikipedia)

He [Robert T. Kiyosaki] was involved in several business deals (most notably, nylon Velcro wallets) in the 1970s and 1980s which fell apart, leaving him bankrupt in the mid-1980s. In this timeframe, he became heavily involved with Amway, a multi-level marketing system, and began to cultivate relationships with many of the “top” members. In 1985, Kiyosaki founded Cashflow Technologies, a company that was designed to pitch a series of books and other educational materials that eventually evolved into Rich Dad, Poor Dad. 

By the mid-1990s, Kiyosaki had self-printed Rich Dad, Poor Dad and it was starting to appear in wide distribution among members of the Amway/Quixtar organization, as individuals higher in the pyramid would recommend it to people further down the chain looking to get ahead. 

Yet you NEVER hear Kiyosaki talk about his MLM career, did you? Nope. It was NOT mentioned in ANY of his books.

Perhaps he doesn't want you to know, hmmm?

But wait, there's more!

Scam Psychology: Intuitive Mind vs. the Rational Mind

A scammer is always leading you into getting the wrong impression of him, and thus of his scheme, and thus, this calls for you to think as little as possible. How that works requires explaining how your mind works.

Basically, your mind has roughly 3 parts... Reflexive, Intuitive, and Rational.

The reflexive mind (something that's so ingrained in you, it's a reflex, like move your hand away from something that causes pain, such as hot plate, electric shock, and so on. Thats completely automatic that you don't even have to think about it. It's in your subconsciousness.

Daniel Kahneman (Photo credit: Wikipedia)

The Intuitive mind handles something that is not completely similar (i.e. handled by reflex), but is similar enough that you are comfortable the recognition. This is "common sense", "going by feeling", "first impression", and so on. This is also sometimes known as "System 1" per Daniel Kahneman's book "Thinking... fast and slow".

The Rational Mind handles the rest, when something requires deeper thought beyond intuition and impression, such as logical and scientific analysis. This is also known as "System 2" per Kahneman book.

Scammers can't do anything about your mind... except how you perceive the scheme, so they will do all they can to make their scheme look familiar, and thus you NOT engage the rational mind, but stay with the intuitive mind. There are many ways to do that, but the the 4 basic techniques are

• Priming the idea
• Clear Visual Display
• Keep you in good mood
• Repeated experience

If they can use these four techniques on you, and you are not the pensive kind (i.e. you prefer to think things over, instead of doing things on impulse)  they can basically make you forget about "due diligence" and join just because "it sounds good".  

And that "first impression" will be wrong.. because the scheme was designed that way to take advantage of your cognitive biases to give you the wrong impression. 

Bad Argument: I Only Listen to People Who Made Money

One of more "cultish" arguments raised by followers of a particular scheme (starts with V) is "I don't have to listen to you. I listen to people who made money! How much did you make, huh?"

A somewhat more polite version would be, "If I want to play basketball I want to be like Michael Jordan. If I want to play football I want to be like Peyton Manning. If I want to make money I'll want to be someone who has made lots of money, such as my leader _______ in ______."

This sounds like it made sense... For about 3 seconds.

Why would you NOT want to emulate the top billionaires in the US of A... like Bill Gates (Microsoft), Warren Buffet (Berkshire Hathaway), or Larry Ellison (Oracle), or heck, Mark Zuckerberg (Facebook)? Why would you suddenly lower your goalpost? What sort of crazy argument is that?

It's like saying, "I want to be the best in the field... EXCEPT when it comes to money!"

WTF?! Man... WTF.

But wait, there's more!

Robert T. Kiyosaki's Sins, According to Robert T. Kiyosaki

Recently I ran into this rather amusing vidcap of a Kiyosaki video:

Yes, that's Robert T. Kiyosaki giving his "haters" a piece of his mind.

Well, according to Kiyosaki's own words, Kiyosaki's a sinner!

How so, you ask?

Ah, that's a story to tell. There's betrayal, there's vindication, there's a second betrayal, and lies to "spin doctor" the treachery into triumph.

So have a seat, and let us discover a chapter of "Rich Dad" that Kiyosaki would rather you not mention.

Is Robert "Rich Dad" Kiyosaki in a Faustian Bargain with Network Marketing?

Robert Kiyosaki Flipping Off the Haters
(Photo credit: i am real estate photographer)

Before 2000, NOBODY knew who Robert T. Kiyosaki is, other than a few seminar attendees, desperate for some advice to get rich.

Then in 2000, the book "Rich Dad Poor Dad" was published by Warner Business Books, and that thing just TOOK OFF like a rocket, resulting in a series of books that are just one rehash after another, filled with "pithy" sayings that may or may not apply, anecdotes that were presented as "these are the true stories of my two fathers"... but later admitted to be a myth, a fiction.

But what is the real secret behind the success of Robert T. Kiyosaki and his book "Rich Dad Poor Dad"?

A implicit bargain with an industry desperate for legitimacy... the "network marketing" industry.

Is it a Faustian bargain?  Does Kiyosaki care, or he just view everybody who asks as "haters"? As he can't make a mistake?

17 Signs that You're In a Sales Cult, or How a Sales Cult is like the Borg

Patrick Stewart as Locutus, the Borg assimilated
Jean-Luc Picard (Photo credit: Wikipedia)

A sales cult is a deformed "sales team", that uses cult tactics to keep and grow its membership, to take over its member's lives to the point where the members essentially cuts off most ties from his normal social circle all in the name of "success".

At what price? Are you really joining the Borg Collective instead?

Following are the signs that you're in a sales cult, not a sales organization. How many did you spot?

• I chant and sing every morning as part of a group "warmup"
• I have a mentor who shadows me almost 24/7. 
• I am always looking out for new recruits, whom I hope to mentor one day
• I am fully involved in my job / opportunity and have no time for frivolous stuff, like relationships
• I buy my clothes and stuff on credit because I haven't made any money (soon...)
• I think my partner / friend / family does NOT support me fully in my job / opportunity
• I have drifted apart from my regular partner, friends, and family
• I attend all sorts of after-work social events by my sales leader and mentor
• I am often very tired as I don't sleep much (I wonder how "they" do it...)
• I think my partner does NOT understand how important my job/opportunity is to me
• I think my partner does NOT understand how hard I am working
• I am not stopping for anyone or anything (including "friends", "family", "partner", and more)
• I cite my daily or weekly accomplishments to the team and I am PROUD of it. 
• I feel very sad if I don't hit my daily / weekly goals
• I am jealous of my sales leader's success and paycheck and fancy car and fancy cloths
• I have some doubts, but I don't dare show it. I am sure it's a phase that will pass. 
• I can't quit. I will let my leader and the team down if I do. They'll tell me I'm not a quitter. I am not. 

How many of these apply to you? Read on to understand why these are signs of a cult, not a business.

Below you will find two people discussing the signs above... a cult expert, and a former member of the Borg collective (this is kinda humorous, but rather dark humor).

What's common among Pigeon Chess, Scam, and the Matrix? Victims.

What's common between pigeon chess,
scam, and the Matrix?
 (Photo credit: Bill & Mark Bell)

Recently someone reminded me of this Internet meme: Pigeon Chess. It basically goes like this:

Arguing with [Insert Group Name] is like playing chess with a pigeon: no matter how good I am, the pigeon will knock over the pieces, craps all over the board, then fly off and claim victory with its flock

You can find various versions of this with various group names substituted, from retards to Christians to Mac Users, but what this really applies is a bit of a double entendre... as a "pigeon" is also slang for an "easy mark" or a "dupe", i.e. a gullible person, easily scammed.

And nowhere is this more obvious with pseudo-MLM scam victims, who refuse to recognize they had been cheated even when all the signs are right in front of them.

I've discussed "3 blind men and elephant" analogy before, as well as "ignorance is not bliss", but I thought I'd just hit this theme one MORE time to make my point.

Scam victims, i.e. a pigeon, often believe in the scam so much that nothing you tell them will convince them that they had been scammed. Instead, they'll insult you, refuse to listen to you, and claim they had "won" their argument with you by leaving.  They are much like Cypher... preferring the Matrix to reality. or to steal another catchphrase... "You can't handle the truth!" (from the movie "A Few Good Men")

Just like the pigeon who will knock over the pieces, crap all over the board, and fly off to its flock squawking victory.

Let's look at a few examples.

Evil MLM: Get Payday Loan to Join MLM? WTF?!

Editor's note: This is a start of a new, and hopefully continuing series of what NOT to do in MLM, under the tag "Evil MLM". Basically, this is the sort of bad behavior that gave MLM a bad rap (much of it deserved).

I've heard of people spending their severance pay to join MLM. In fact, this is done quite often in Israel, where when you are discharged from the required service in the Israeli armed forces, you're given a severance pay to help you get back into civilian life, and some sleazy MLMers have gone as far as park their fancy car, glitzy bling, and pretty girls next to discharge stations to snatch up recruits as they walk out. Too bad their leader is a f***ing cult leader who pushes Herbalife. 

But here's something more disturbing, closer to home... a "leader" in Vemma telling people on Facebook, that they should not worry about not having any money to join Vemma as a poor college kid. Instead, they should go take out a payday loan (with their usurious interest rates) and use that cash to join Vemma, and immediately do a full court press, to get the money back so the check doesn't bounce.

Don't believe me? Here's proof on Facebook:

Coalition Petitions FTC to Fully Investigate Herbalife, includes dozens of experts on various subjects

This just came up on my news alert: Coalition Petitions FTC to fully investigate Herbalife.

Among the names you'll find some familiar names if you are attuned to the MLM "controversy"

• Robert Fitzpatrick of pyramidschemealert.org, long-time opponent of MLM model, believes all MLMs are effectively pyramid schemes. I agree with him 90%. 
• Dr. Jon M. Taylor, who cooperated with Fitzpatrick on many of the papers, but also has his own anti-MLM website
• David Brear, another long-time vocal opponent of MLM, who also believes that all MLMs are pyramid schemes, albeit disguised. He and I have butted heads despite we agree 90% of the time. His blog is at mlmtheamericannightmare.blogspot.com (I may have misspelled that)
• Shyam Sundar, David Brear's counterpart in India, runs corporatefraudswatch.blogspot.com and covers mainly Indian scams, but also reposts Brear's blogposts
• Doug Brooks, who had started multiple class-action lawsuits against multiple MLM companies

Some notable anti-scam bloggers are there:

• Jason Jones, aka Salty Droid, whose stance on scams and pyramid schemes are well known and he considers MLMs in the same arena. He can be found at saltydroid.info
• Omri Shabat, of glancingweb. Omri had been writing superbly sarcastic and caustic blog posts about various Internet marketers and small time scammers, the type that was covered in The Verge's "Scamworld" series, for years

Cult Sales Conviction Upheld in France. Is US Next?

French Court recently handed down a decision that upheld conviction of Church of Scientology and its bookstores of preying upon members in the 1990's by pushing them into buying books... One victim claimed she was pushed into buying books and various devices totaling over 20000 Euros, including "a meter that measures mental energy". Court ordered the church to pay over 600000 Euros in fines and damages. Church itself claims its religious freedom is being trampled and vows to appeal to European Union court.

While I have no desire to debate whether Scientology is a cult or not (the French say it is, so debate it with them) I wish to point out that cult sales is a real problem. 

Cult Sales, as opposed to normal "sales job", is sales job with a dose of cult indoctrination to keep you producing, often with your own money. And many network marketing companies, along with a few abusive direct sales companies, are essentially cult sales companies.  Whether their products are real or valuable is irrelevant.

Some signs of cult sales:

• Always hiring / looking out for new blood
• Rah-rah chants and songs in the morning to get you "pumped up"
• Daily or weekly confession / recognition of sales results (or lack of)
• Shadow new recruits with a "mentor" (and you will later shadow a noob, treat noobs to social events, indoctrinate them just like they did to you)
• Fake it till you make it (fund your own attire, even before you can afford it)
• Overwork you, always selling around the clock, portrayed as "dedication"
• Dominate off-work hours too with "social" events and training and such
• If you don't recruit you're not "dedicated" enough to the company
• Guilt-trip if you tried to quit

How To Help People You Suspect Are Being Scammed

There has been many questions by folks with friends and relatives who were into suspicious schemes. The victims are so cult-indoctrinated that nothing seem to work. What can be done, if one cannot afford cult deprogramming / exit interview? And what if the victim does NOT wish help?

First, a disclaimer. I'm not a psychologist, psychiatrist, or know anything about the mind, other than some critical thinking. The following stuff is UNTRIED, UNTESTED "common sense" sort of approach I would take if I were to approach someone in a similar predicament.

My approach is... asking questions, Socratic questions. But this is NOT a quick fix. Undoing the knot will take a lot of time, and a lot of questions. This is my personal idea, based on Socratic Questions (as explained in Skeptoid #384). I hope this is of use to people, and I welcome any feedback. Any way...

You will probably need an empty work area, preferably with a big table where you can spread stuff out, a computer to do research on various topics, and a big stack of index cards. Figure at least 100, if not 200 cards, and a few pens, different color (you use one color for questions, he uses another for answers). You will definitely need one big red marker in addition to other colored pens.

And finally, you will need several hours, with refreshments and snack breaks in between, but NO CELLPHONES. The idea is to get the victim AWAY from his/her upline's influence for a while.

And you will need a quick lesson in critical thinking, and understand what is a "null hypothesis". I suggest you research a bit of critical thinking on your own before you attempt this "intervention".  Null hypothesis is best described as unknown / indeterminate state. If the premise is "WooPlus cures cancer", the null hypothesis would be "we don't know whether WooPlus cures cancer or not". the ANTI-premise is "WooPlus does NOT cure cancer". Facts and Logic (evidence) are suppose to move you from null hypothesis toward the premise. When there's not enough evidence you're left with the null hypothesis, not the anti-premise. Yet many people mistake the critical thinking process into thinking that it's either the premise, or the anti-premise, with no null hypothesis.

In the future, I may publish some of the better questions to ask, though this is highly dependent on the individual subject.

NOTE: If you cannot finish this in one sitting, you may want to pick a smaller premise, like "WooPlus product is effective for _____" first. Or perhaps ask for help analyzing his answers, even online. Just don't let him consult upline (yet). If questioned, reply that you want to get to the facts, which are easily Googled, instead of relying on someone else's memory.

There are three general phases:

• Engage and clarify premise with supporting evidence and logic
• Identify ambiguities, assumptions, and logical fallacies
• Re-examine premise with multiple perspectives

SEC Warns All About "profit-sharing" Pyramid Schemes Pretending to be MLMs

Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

The US Securities and Exchange Commission, SEC for short, has just released an Investor Alert warning all to watch out for pyramid schemes masquerading as MLM companies. It comes two days after SEC busting yet ANOTHER Ponzi scheme called CKB168, a purported MLM allegedly selling online children's courses, pitched primarily toward Asian Americans in the US. However, it mentioned something very interesting: SEC recognized the potentially illegal profitsharing by pseudo-MLMs back in 1971.

Back in 1971, when MLM first came upon the scene, SEC had ALREADY recognized the danger of "profit-sharing" schemes that are falsely marketed as "not investments". You are welcome to read the full SEC "interpretation", but here's an excerpt (with some sections bolded by me):

The Securities and Exchange Com­mission has considered-the applicabllity of the securities laws to multilevel dis­tributorship and other business opportunities that are being offered to prospective participants through pyramid sales plans. The Commission believes that the operation of. such plans -often Involves the offering of an "Investment contract" or a "participation in a profit-sharing agreement," which are securities within the meaning of section 2(1) of the Securities Act of. 1933. In such cases the security involved-the agreement between the offering company and the Investor­ must be registered with the commission unless an exemption is available. In the absence of registration or an exemption, sales of these securities violate section 5 of the Securities Act.

MLM Advice: Stop making irresponsible statements online or offline

Image via CrunchBase

Recently, in a spade of lawsuits and prosecutions, what you can say online has been tightened... for the common good. Shill reviews have been prosecuted as fraud. However, it seems that MLM participants had not gotten the message, and continue to make statements that could potentially get themselves and their company into trouble.

Crack Down on Shill Reviews

Yelp recently sued a lawfirm for posting fake reviews of itself.  There are extenuating circumstances that the lawfirm had previously sued Yelp for not delivering on its promise, so read the whole story with a pinch of salt.

New York Attorney General sued 19 different firms for posting fake reviews... By going as far as creating a fictitious business and going to "reputation management" firms who flood the net with fake positive reviews. The fake reviews are typically written by Filipinos and Bangladeshis and other cheap online labor. Often, the flood of positive reviews drown out negative reviews. Those are typically paid about $1 a review, while the reputation management firm charges hundreds, even thousands of dollars for the "management" of such.

Gartner Media predicted that 10-15% of all online reviews will be fake reviews by 2014.  There are statistics that suggest review sites like AngiesList, Yelp, and so on can contain as much as 25% fake reviews.

But what about MLM reviews and ads and comments?

TelexFree UK Office is a lie, and here's proof (UPDATE: "New" address is also a lie)

Previously I've explained why TelexFree has no US office. Both addresses are just a mailbox. Recently TelexFree suddenly started showing a UK office:

And it quickly mushroomed into various Facebook groups, unofficial announcements that "TelexFree opportunity has reached UK", and so on and so forth.

No one seem to have even bothered to check the actual address itself:

15 Bromet Close, Watford, Hertfordshire, WD17 4LP UK

What if you Google that address? You will find that it's home to many different businesses. This is just on the first page:

They can't all have the EXACT SAME ADDRESS, can they? 

Scammers Will Fake Anything and Everything

Let me show you this little "certificate" here, plastered all over the shady corners of the Internet called we critics call "the great fool pool", otherwise known as HYIP forums. HYIP, or "high yield investment programs", are basically Internet Ponzi schemes and/or ponzi/pyramid hybrid schemes where you are paid commission if you brought in people who pay into the program, and you get get extra money out of the program after X days, with promises of 1 to 2% interest per DAY.

Any way, here's the "certificate"

Notice anything wrong with it?

How about... Everything?

MLM Mythbusting: Did Harvard Business School Really Develop 3 Criteria of Successful MLM Companies? (No, they did not!)

English: Harvard Business School (Photo credit: Wikipedia)

Here's one of the most often repeated MLM myths: Harvard Business School teaches Network Marketing. That is a LIE. HARVARD BUSINESS SCHOOL DOES NOT TEACH Network Marketing, Multi-Level Marketing, or any such similar schemes.

MLMers who tries to legitimize the industry often repeat the claim that "network marketing is taught in 200 schools around the US, including Harvard Business School", and "HBS studied network marketing in detail and have developed a 3 item checklist to locate the successful ones."  Sometimes the list is also supplemented by a "4 stages of business success".

This is repeated ad infinitum by MLMers attempting to legitimate their own particular scheme, be in neutraceuticals and next uberfruit juice to woo bracelets and body wraps to... anything! In fact, search in Google for "Harvard Network Marketing" and you'll get bazillion hits. Okay, about 12 million hits. Almost all of them are lies.

Here's the honest truth:

There is only ONE SCHOOL in the US, that I know of, that offers a a degree in network marketing. It's a tiny little community college in Kansas called Bethany College. Technically it isn't even that. It's degree in marketing, with emphasis on network marketing.

(If you can cite another one, please show proof: magazine or newspaper article, school syllabus, etc.)

Harvard Business School (HBS) themselves are VERY TIRED of network marketers claiming something they do NOT do. In fact, if any MLM business claim so, it will very likely face a LAWSUIT from HBS, as this article (back in 1995!) had already busted. Quoting from the article:

 ``If the registrar's office had a dollar for every call we've had over the years over whether Harvard Business School teaches multilevel marketing or has studies on it, we could throw a very nice Christmas party,'' reads one internal business-school memo. ``This claim is harder to kill than a dandelion.''
What was once a nuisance now looks like grounds for potential defamation or libel lawsuits, says Frank J. Connors, a Harvard lawyer. Some handouts, for example, now claim _ falsely _ that Harvard has conducted ``extensive research in the network marketing industry,'' and that the business school calls multilevel marketing ``a once-in-a-lifetime opportunity.''

Got that? REPEAT AFTER ME: 

Harvard Business School DOES NOT TEACH NETWORK MARKETING!

Okay, where did this came from? How did this nasty rumor got started? 

From a network marketer, of course.