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'Herbalife (HLF)' instigator, Mark Hughes, was a Narcissist.

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According to the pernicious Utopian fairy story entitled'Herbalife'(which  Michael Johnson and his criminal associates continue to peddle as total reality), 'Herbalife's founder,' Mark Reynolds Hughes (1956-2000), was a great 'Visionary' - an exemplary human being and 'philanthropic businessman' - an ordinary guy who (starting with virtually nothing), overcame adversity to 'achieve his dreams and goals,' and whose only purpose in life was to 'help others to achieve their own dreams and goals.'






In the adult world of quantifiable reality, Mark Hughes was an 'MLM income opportunity' racketeer  - a good-looking, well-groomed, well-tanned and well-rehearsed (but otherwise-mediocre) little charlatan who amassed a vast fortune unlawfully - seducing, cheating and silencing an endless-chain of victims by steadfastly pretending moral and intellectual authority. Mark Hughes undoubtedly suffered from severe and inflexible Narcissistic Personality Disorder (NPD), but as a teenager, his addiction to alcohol and drugs, had brought him into contact with a blame-the victim cultic racket known as 'CEDU'  (pronounced 'see do') - a spin-off of 'Synanon' a.k.a. 'The Church of Synanon.'




http://survivingcedu.wordpress.com/cedu-documentary/

http://en.wikipedia.org/wiki/CEDU

http://en.wikipedia.org/wiki/Synanon

http://paleofuture.gizmodo.com/synanons-sober-utopia-how-a-drug-rehab-program-became-1562665776

http://www.examiner.com/article/cult-of-narconon-and-synanon-drug-rehab-atrocities.



In 1974, aged 18, Hughes was a full-time (non-salaried) shill for the 'CEDU'racket. i.e. For a small cut (allegedly 5%), he targeted affluent individuals in California; gathering 'donations'for his masters by pretending that he was the living proof that 'CEDU' was able to transform losers into winners. Throughout the 1970s, Hughes (who looked the part and was a confident performer) acted essentially the same role for various fly-by-night 'MLM income opportunity' racketeers. They were hiding their criminal enterprise behind claims to be selling 'dietary products'(i.e. effectively unsaleable pseudo-medical wampum). Finally, in 1980, aged 24, Hughes instigated his own slightly more-sustainable, copy-cat 'MLM'racket which he labelled 'Herbalife.'







Twenty years, and 4 (former Beauty Queen) trophy wives, later, Hughes had been allowed to sell effectively-valueless shares in 'Herbalife' on Wall St. He was now a $ multi-millionaire, but behind the kitsch rags to riches fairy story, he remained chronically addicted to alcohol and prescription drugs. At this time, had the truth about Hughes precarious mental and physical state become public knowledge, then his entire racket (which was built on his own fake iconic status) would probably have collapsed. However, Hughes was then found dead in highly-suspicious circumstances (apparently from an accidental, alcohol-laced overdose of anti-depressants). Thus, a new generation of'Herbalife' bosses was able to maintain the instigator's monopoly of information; allowing Hughes' absurd racket to expand to billion-dollar proportions (right under the noses of regulators, journalists, law enforcement agents, etc.).

Classically, the co-ordinated, devious techniques of social, psychological and physical persuasion which Mark Hughes, and his successors, employed to instigate, and maintain, the 'Herbalife' racket, are neither original nor unique. The great weakness of all totalistic cults, is that, once you know how they function by deceiving their adherents into accepting a Utopian fiction as fact, the inflexible reality-inverting reactions of these groups to any challenge to their authenticity, can be predicted with almost 100% accuracy. It should also be remembered, that both the leaders and core-adherents of cults are dissociated from external reality, and that the unquestioning obedience of the core-adherents to their group's controlling-fiction only serves to confirm, and magnify, the leaders' existing delusions of grandeur. 






Movie fans might have recognised the distinctive voice of the commentator on 'The Mark Hughes Story,' as being that of the respected English actor, John Hurt. Perhaps it's just an unfortunate coincidence, but John Hurt starred as 'Winston Smith' in a version of George Orwell's 'Nineteen Eighty-Four' - a film which was specially released in 1984. The irony of this, is almost exquisite; for John Hurt sounds as though he was thoroughly unconvinced bythe life of Big Brother Hughes,according totheHerbalife Ministry of Truth. 






One wonders what this Winston Smith was paid by the bosses of the 'Herbalife'racket and what John Hurt's personal opinion now is?



 

'The purpose of Newspeak was not only to provide a medium of expression for the world-view and mental habits proper to the devotees of Ingsoc, but to make all other modes of thought impossible. It was intended that when Newspeak had been adopted once and for all and Oldspeak forgotten, a heretical thought - that is, a thought diverging from the principles of Ingsoc - should be literally unthinkable, at least so far as thought is dependent on words. Its vocabulary was so constructed as to give exact and often very subtle expression to every meaning that a Party member could properly wish to express, while excluding all other meanings and also the possibility of arriving at them by indirect methods. This was done partly by the invention of new words, but chiefly by eliminating undesirable words and by stripping such words as remained of unorthodox meanings, and so far as possible of all secondary meanings whatever.'

Georges Orwell (Appendix to 'Nineteen Eighty-Four')


The purpose of 'MLM Income Opportunity' jargon is not only to provide a medium of expression for the unquestioning world-view and mental habits proper to the core-adherents of 'MLM'  groups, but to make all other critical and evaluative modes of thought impossible. It is intended that when 'MLM Income Opportunity'  jargon has been adopted once and for all and traditional language forgotten, a heretical thought - that is, a thought diverging from the 'positive' principles of  'MLM'  - should be literally unthinkable, at least so far as thought is dependent on words. Its vocabulary is so constructed as to give exact and often very subtle expression to every 'positive' meaning that an 'MLM Distributor' can properly wish to express, while excluding all other 'negativemeanings and also the possibility of arriving at them by indirect methods. This is done partly by the invention of new 'positive' words and phrases ('Herbalife', 'Amway', 'NuSkin', 'Xango', 'Multi-Level Marketing', 'Distributor' , Independent Business Owner,'), but chiefly by eliminating undesirable 'negative' words and phrases ('cult', 'totalitarian', 'fraud', 'deception',  'brainwashing', 'victims', 'exploitation' , 'de facto slaves') and by stripping such words and phrases as remain of unorthodox meanings, and so far as possible of all secondary meanings whatever. 


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‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.

Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):
  •       has a grandiose sense of self-importance.
  •       is preoccupied with fantasies of unlimited success, power, brilliance,     beauty, ideal love, etc.
  •       believes that he/she is special and unique and can only be understood by other special people.
  •       requires excessive admiration.
  •       strong sense of self-entitlement.
  •       takes advantage of others to achieve his/her own ends.
  •       lacks empathy.
  •       is often envious or believes that others are envious of him/her.
  •       arrogant disposition.
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David Brear (copyright 2014)

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http://articles.latimes.com/2001/feb/18/magazine/tm-26780/2

Death and Denial at Herbalife

The Untold Story of Mark Hughes' public image, Secret Vice and Tragic Destiny

Los Angeles Times/February 18, 2001
By Matthew Heller

There's a star on the stage of the Great Western Forum. Immaculately dressed as always, 6-foot-1, tanned, not a hair out of place, he is a veteran of such very public appearances. In seminar after seminar, convention after convention, he has captivated thousands of people around the world with his charisma, sincerity and enthusiasm.
But this appearance, on Feb. 19, 2000, is something special for Mark Reynolds Hughes. It's part of a five-day celebration of the 20th anniversary of Herbalife International, the company he started in a former Beverly Hills wig factory. There is a lot to celebrate. At 44, Hughes is the ruler of a $956-million business empire that sells weight-management and personal-care products through a network of more than 1 million distributors in 50 countries.
So-called multilevel or network marketers are lucky to stay in business for several years. Hughes has racked up 20--and become extremely rich in the process. In the preceding fiscal year, he earned more than $2 million in salary and bonuses; he controls 60% of Herbalife stock, worth about $250 million, and has interests in suppliers of the company's products. In 1998, he collected a tidy $43 million in a leveraged buyout of one manufacturer. He owns homes in Beverly Hills, Malibu and Maui, and is planning to build a veritable San Simeon on a mountaintop above Benedict Canyon.
From the Forum stage, Hughes looks out on an audience of acolytes, about 4,000 Herbalife distributors who have followed his prescription for health and wealth with almost messianic fervor. To them, he is the manifestation of how a flair for salesmanship, hard work and a belief in your product can make just about anyone a millionaire. Like his followers, he sports one of the ubiquitous "Lose Weight Now, Ask Me How" badges--the slogan that also adorns telephone poles and car bumpers everywhere. "The dream he had has helped so many people like me," says Paco Perez, a distributor who was a hotel bellboy when he first met Hughes.
The faithful focus their attention as the Forum Diamondvision displays a video montage of highlights from Hughes' past, from the early days of selling a protein powder out of his car trunk to his current status as chairman and chief executive of a multinational corporation headquartered in a Century City high-rise.
There, on screen, is Hughes crying at Herbalife's fourth anniversary rally--"I can't believe what's happened with all of this," he sobs--hobnobbing with the likes of Milton Berle and Merv Griffin, handing out $1-million bonus checks to distributors, globe-trotting in the company's private jet, promising to "take Herbalife around the entire world."
On the Forum stage, moved by the nostalgia, Hughes again allows a tear or two to roll onto his cheeks. "I will never forget that moment," recalls Perez. "It was emotional for him and me."
Three months later, on May 21, Mark Hughes is lying on the four-poster bed in the master bedroom suite of his beach retreat, a Mediterranean-style mansion on 71/2 acres with 300 feet of Pacific Ocean shoreline that he recently bought for a Malibu-record $25 million.
It is late in the morning after another celebration. The 87th birthday party for Hughes' beloved maternal grandmother, Hazel, known affectionately as Mimi, had been a private affair, just a few family members joining him at home for the evening. Out of the public limelight, Hughes drank white wine, smoked a cigar and played his drum set, protected by security gates, round-the-clock guards and surveillance cameras.
From an adjoining part of the suite, Darcy LaPier Hughes--his fourth wife and, like her three predecessors, a former beauty queen--enters the master bedroom. Her husband's back is facing her. He is wearing only a black T-shirt and black bikini briefs. Something about him doesn't look right. Darcy calls the guards, who realize something is very wrong. They carry him to the floor and lay him on his back to perform CPR. Unsuccessfully.
The Los Angeles County coroner's office concludes he died of a toxic combination of alcohol and Doxepin, an antidepressant he was taking to help him sleep. His blood-alcohol level was measured at 0.21, more than 2 1/2 times the legal limit for driving.
The death was ruled an accident, an eerie echo of the ruling on the drug-related death of Hughes' mother 25 years earlier. Hundreds of mourners grieved the loss of a man struck down in his prime who had helped so many get so rich.
But the real story is even sadder, the tale of a troubled man who grew up amid discord and drug abuse and, as an adult, turned a mythical video version of his past--the Herbalife story--into his reality. It's also the story of how Mark Hughes, the super-salesman, may have become a prisoner of his public image.
Mark Hughes' version of his life story was a remarkable tale of tragedy, resolve and triumph. He said he grew up underprivileged on the gritty streets of a Latino neighborhood in La Mirada, tucked away in the southeast corner of Los Angeles County. "I was basically brought up by my grandparents," he said on the Herbalife 20th anniversary video, referring to his mother's parents, Lawrence and Hazel Hughes. And according to the myth, his mother, Jo Ann, who lived off welfare, had this weight problem.
"My mom was always going out and trying some kind of funny fad diet as I was growing up," he remembered in a speech to a 1985 Herbalife rally that was reprinted as part of an Inc. magazine article on Hughes. "Eventually she went to the doctor to get some help, and he prescribed to her Dexamyl, kind of a fad diet then. For those of you who don't know about it, it's a drug, a narcotic. It's a form of speed, or amphetamine. You're not able to eat or sleep." (In fact, Dexamyl combines an amphetamine stimulant with a barbiturate depressant to offset the amphetamine's side effects.)
Hughes continued: "After several years of using it, she ended up having to eat sleeping pills for her to sleep at night. And after several years of doing that, her body basically started to deteriorate. And she started seeing four or five doctors to keep her habit up."
Hughes, described by Inc. as "a tanned and blow-dried California swashbuckler resplendent in black tie and diamonds, brown eyes flashing over a perfect, polished smile," then reached the climax of his story, mustering a tear: "I was 19 years old when she died from an overdose."
As recently as November 1999, Hughes repeated a similar story to a trade publication, Network Marketing Lifestyles. He "transformed the tragedy into fuel for a higher purpose," the magazine said, making it his life's ambition to "develop an organization that would put the kind of reliable information and safe, effective products his mother never had into the hands of millions."
The real story was a lot more complex, and fit less neatly into an inspirational parable. Jo Ann Hughes did die of an overdose, and Mark Hughes did spend his first years in La Mirada. But he lived in a new tract home in a neighborhood sprinkled with citrus groves and mostly populated by upwardly mobile white suburbanites. And his mother died addicted to painkillers, not diet drugs.
Hughes was raised by Jo Ann and Stuard Hartman, one of two men who claim to be his biological father. Hartman now lives with his second wife in a modest L-shaped house in Camarillo. The retired businessman is tall and handsome, with a weathered face framed by tufts of white hair. He raised Mark, along with two other boys, Guy and Kirk. Tears sometimes well in his blue eyes as he tells his story, but he keeps his composure, arms crossed over his chest as if to ward off the pain.
He shows off photographs of Mark as a young boy. There he is, skinny, bangs of dark hair falling over his forehead, with a protective arm over the shoulders of each of his younger brothers; in another, he is posed with a softball and plastic bat as Hartman holds Guy and Kirk. A third photograph shows Mark smiling as he sits on a sparkling red bicycle equipped with training wheels. Behind him stands a petite, well-dressed young woman, her hands on her hips. This is Jo Ann, Hughes' mother and Hartman's first wife.
In the early '60s, the family moved to Camarillo, which was being transformed from an agricultural community into a suburban outpost of L.A. They acquired a custom-built ranch-style home, and with Hartman prospering as an entrepreneur--he had started a business supplying aircraft parts to the U.S. government--the boys enjoyed more riches than rags. "They always had the best toys, the best stuff, the best clothes," says Duane Livingston, a close friend of young Mark.
Of the three boys, Mark was the quietest, the least rambunctious, not academically brilliant but with a certain focus and intensity. He looked the most like his mother, sharing her dark hair and complexion.
His Camarillo lifestyle also included a housekeeper and fishing trips to the Channel Islands in Hartman's Chris-Craft Constellation cruiser. His mother drove a gold-colored Cadillac and spent a great deal of time on her wardrobe and appearance. But friends could detect all was not right. For one thing, there was a tension between Hartman and Jo Ann over disciplining the children. "It was always an issue--he was too strict and she wasn't," says Livingston.
Hartman adamantly denies Jo Ann had a weight problem. "This whole story is not true," he insists. But she did have a problem. "She was addicted to pain pills," Hartman says, singling out the popular painkillers Darvon and Percodan, which have never been prescribed for weight loss. "She used them in combination to prolong the high."
In a court declaration filed later as part of their divorce, Hartman alleged that Jo Ann's prescription Percodan habit in the early 1960s cost more than $2,000 a year. Because of her addiction, he said, she neglected her sons, even using money he gave her for groceries to buy drugs. "The children began to complain to me about being hungry," he recalled. And the house in Camarillo was "so filthy dirty it was on the verge of being unsanitary."
After Jo Ann suffered a seizure, she moved back to La Mirada in December 1969 to stay with her parents and be treated by a local doctor. On the pretext of taking 13-year-old Mark to visit his mother, Hartman alleged, Jo Ann's parents moved him from Camarillo into their own home. A few weeks later, Hartman returned home from work to find that Jo Ann had taken Guy, 12, and Kirk, 11, and cleaned out the closets. In February 1970, court documents show she filed for divorce.
The marital breakup could hardly have come at a worse time for Mark, who, according to a childhood friend, already was experimenting with alcohol and drugs. The source, who asked not to be identified, recalls seeing him at a bus stop one morning before school. "He had a gallon of cheap red wine. He was guzzling the wine and eating a handful of [pills]. He was just out of control, completely out of control."
Experts say it wouldn't be surprising if Mark's mother had passed on her addictive streak. "Genetics is the single most important component [of substance abuse], especially when it begins manifesting early on," notes Dr. Joseph S. Haraszti, medical director of Pasadena's Las Encinas Hospital and an expert on addiction. Moreover, he adds, the parent's use of alcohol or drugs as a coping mechanism becomes a model for the child.
In La Mirada, Jo Ann spent days in bed, abdicating almost all parental control. "We ran wild," Kirk Hartman admits. During that same period, Jo Ann was arrested for passing a bad check. Doctors declared her too ill to attend court hearings in the divorce case.
Hartman was awarded custody of Guy and Kirk, the younger boys, in December 1970; Mark remained with Jo Ann. There was no way Hartman could exert any influence over Mark, the two now completely estranged. "He blamed me for breaking up the family," Hartman says with a sigh.
Jo Ann was treated for addiction at the same Lynwood hospital where Mark was born. But on April 27, 1975, her father found her dead in her apartment. According to the autopsy report, several empty vials of prescription drugs were found beside her bed, and her doctor told the coroner she "was known to overingest her prescription drugs." Toxicological tests showed potentially lethal levels of propoxyphene in her system--its brand name is Darvon. Jo Ann Hartman died a drug addict, or, as the coroner put it more delicately, of acute drug intoxication.
Mark, then 19, was not with his mother when she died. Instead, having accumulated several drug busts, he was far away in the San Bernardino Mountains, at an institution that paved the way for his success at Herbalife.
CEDU, as the drug institute is called, was the brainchild of Mel Wasserman, a Palm Springs furniture store owner who had sponsored recovering addicts at Synanon, a drug rehab program, at its facility in Santa Monica. In the late '60s, as Synanon developed cult-like trappings, Wasserman founded his own center for troubled teens in bucolic Running Springs, west of Big Bear. Its goals included liberating the "spirit of the child" and creating "a safe and healthy environment for making new choices." Wasserman eschewed Synanon's confrontational approach to therapy.
"We were building character by instilling a strong work ethic," says Michael Rosen, a former CEDU staff member. "You would see what you were like through the eyes of other people. You really got strong feedback on how the world perceived you."
Rosen met Mark Hartman when the boy had been at CEDU for about six months. "He was the sweetest kid I ever met, but he had no skills," he recalls. "He was not sophisticated in any way." His style of dress was T-shirt and jeans. But Mark was interested in the fund-raising program that Rosen had started to supplement CEDU's meager public subsidies. He accompanied other CEDU students on fund- raising trips to upscale Southern California communities, dressed in a suit and armed with his pitch.
"You say, 'I have a story,'" Rosen explains. "You talk about who you are, who you've become. You try to inspire others. It would be no different at CEDU or Herbalife."
On one trip to Beverly Hills, Mark inspired Ronald Reagan, who had recently completed his second term as governor of California, to part with $500. On a visit to a Beverly Hills lawyer's office, he got a rude reception. "The lawyer grabbed him by the collar, threw him out the door, and said, 'I don't see anyone without an appointment,'" says former Herbalife corporate counsel Perry Turner. Undaunted, Mark found a pay phone in the lobby of the building and made an appointment. The lawyer, admiring his chutzpah, duly opened his wallet.
Mark had found his calling as a salesman. "He could project his energy and feelings tremendously," says Rosen. "He was a star at it." Such a star, in fact, that he stayed on for a while as a staff member at CEDU after turning 18.
Like the other students, Mark was allowed to keep 5% of the money he raised. When he left CEDU, he was eager to apply his new skills and add to his bank balance. "I asked him, 'What did the program do?'" recalls friend Duane Livingston. "He said, 'They help you realize your goals. My big goal is I always wanted to be rich.'"
In 1976, Mark began selling Slender Now diet products for Seyforth Laboratories, a multilevel marketer, becoming one of its top 100 earners. After Seyforth collapsed in 1979, he sold exercise equipment and weight-control products for Golden Youth, another direct-sales outfit. By the time Golden Youth, too, went out of business, Mark was ready to start his own operation that would combine the Eastern philosophy of herbal medicine with the vitamin and mineral technology of the West. With Slender Now manufacturer Richard Marconi, he developed a line of products that promised "100% Satisfaction Guaranteed or Your Money Back." In February 1980, the 24-year-old entrepreneur--now Mark Reynolds Hughes, having taken his mother's maiden name--unveiled Herbalife.
The products weren't cheap. A weight-loss program alone cost about $30 a month, and, purchased at list price, the full line of vitamin supplements and diet powders would cost about 10 times as much. But Hughes had a way around that. Customers who became distributors would get a minimum 25% discount on everything they bought in lieu of the money-back guarantee; with that discount, you could make a profit selling products to others. You could even get commissions by recruiting other salespeople. The bigger the organization you built, the bigger the payoff.
The payoff for Herbalife, which didn't have to worry about sales-force overhead, was dramatic. In its first five years, sales soared from $386,000 to $423 million, an increase of more than 100,000%; the company progressed from the wig plant to a Culver City industrial complex to a high-rise near Los Angeles International Airport.
Hughes, a multimillionaire well before his 30th birthday, progressed quickly to gold rings and a Cartier watch, to custom-made cuff links and expensive suits, to two Rolls-Royces. He bought a $7-million mansion in Bel-Air from singer Kenny Rogers. Having just divorced his first wife, former Miss Santa Monica Kathryn Whiting, he wed former Swedish beauty queen Angela Mack in 1984, hiring Wayne Newton to entertain their 300 wedding guests.
At rally after rally--many of which were broadcast as infomercials over the USA Cable Network and by TV stations across the country--Hughes projected a boyish enthusiasm and charisma, his thick Prince Valiant hairstyle more appropriate to a rock 'n' roller than a corporate executive. And he perfected the story he had been telling since he started Herbalife, the new story of who he was.
Hughes' appearances were part revival meeting, part Richard Simmons-style pep talk, part the Apostle Paul finding his vocation as a missionary. But Hughes could deliver his rags-to-riches tear-jerker (complete with the death-by-diet-pills myth of his mother's death) so that it resonated with just about anyone who wished to lose weight--or dreamed of becoming fabulously rich like him. "Against all odds, he made it big," says one Herbalife distributor. "It was one of the things that drew people to him. He turned his life around. Maybe we could do it too."
In 1985, Hughes attracted a lot of attention, much of it from government regulators. That March, the California attorney general and the state Department of Health Services charged him and Herbalife with making "untrue or misleading" product claims--primarily involving the caffeine content of some Herbalife products--and operating an "endless chain marketing scheme."
Prompted by complaints alleging that Herbalife product users had suffered illness and death, a U.S. Senate subcommittee called Hughes before a hearing in May. He had lost none of his bravado. Referring to a panel of nutrition experts who had criticized Herbalife in testimony the previous day, he asked the senators, "If they're such experts in weight loss, why were they so fat?"
Herbalife seemed constantly to be in the news. People magazine ran a profile of Hughes in which his ex-wife said he was so obsessed with money that he would sit up in bed working out interest rates and finances. "The sad thing is, it didn't seem to make him happy," Whiting noted.
Around the same time, Stuard Hartman, now remarried, received a visit from a freelance investigator working for a television news program that was checking allegations that Hughes' story about his mother was false. "They suspected this was all bogus," Hartman says.
He, however, refused to cooperate. "They pretty much told me they wanted to destroy him. No matter what our relationship was, I did not want to have to do that to him." The story never aired.
None of the stories about Hughes dug deeply into his childhood or his mother's death. And no one at Herbalife was likely to make any waves. From the early days of the company, Hughes surrounded himself with a loyal group of aides. He had known two of them, Rosen and Christopher Pair, at CEDU; Conrad Lee Klein, a longtime Hughes associate at Herbalife, started working for him as outside legal counsel in 1982. Hughes rewarded them handsomely--in 1999, for example, Pair received $3.4 million in salary, bonuses and other payments, plus stock options valued by the company at $382,000. Family members held key posts in Herbalife management, including Hughes' brother Kirk, three sisters-in-law, a brother-in-law and a cousin.
So Hughes' story--and his company--stayed intact. The California charges were settled for $850,000 and nothing came of the federal inquiries. Sales in the United States suffered from the adverse publicity, and some distributors dropped out. But the company still went public in 1986 and, to offset the domestic slump, launched an aggressive expansion overseas. Between 1988 and 1990, it opened operations in New Zealand, France, Spain, Germany, Israel and Mexico.
Personally, Hughes had suffered another upheaval as his second marriage ended after about a year. According to several sources, Angela had a substance-abuse problem that her husband could not tolerate. She would later die, the sources say, of alcohol-related illness. Although there was no formal company policy, substance abuse of any kind was not tolerated at Herbalife. "It was in effect a health-food company, and you're selling health," notes Perry Turner. "One of the last things to be included in a company of that type would be something that is unhealthy."
Turner once discussed an employee's drug habit with Hughes and other executives. "I said, 'The one thing you can't have here is a drug problem when you've got this kind of business and these kinds of distributors,'" he recalls. "This was something Mark agreed with." When someone asked, "If he keeps it private, what's the deal?" Turner insisted: "Listen, there's no room for it in this kind of business. That kind of thing can't be kept private." Hughes rebounded from his second divorce, marrying Suzan Schroder, a former Miss Hawaiian Tropics and court reporter, in September 1987. She was petite and buxom, with high cheekbones, long blond hair and a certain Barbie-doll quality. In their appearances together--and there would be many as they threw themselves into charitable endeavors--she would be the most glamorous of escorts.
One of their guests at the wedding was Jack Reynolds, then a plumbing contractor. Mark's maternal grandparents, who had feuded with Hartman, had arranged for Mark to meet Reynolds at least twice during his childhood, introducing him as his real father. At Suzan's urging, they had gone on vacation to Maui together and apparently warmed to each other.
Another addition to the family arrived in December 1991 when Suzan gave birth to Alexander Reynolds Hughes. And the new father made sure they would not be cramped for space, spending $20 million to acquire Grayhall, a historic, 22,000-square-foot Beverly Hills mansion designed to resemble a Tirolean castle. One publication called it a "storybook home for a storybook couple."
Relations between the couple could get frosty, though, particularly when Suzan tried to get Mark to open up about his past. Once, says a source, "Suzan brought up [Hartman] at Thanksgiving. Mark got pretty angry. It was like a taboo subject." Echoes Kirk Hartman: "When we got together, the past wasn't talked about."
Some believe Mark blamed Stuard Hartman for his mother's death. "He loved this lady," says Rosen. "He was torn apart." Hughes, who referred to Hartman as his stepfather, specifically excluded him as a beneficiary in a 1997 will.
In December 1994, another tragedy--the death of Mark's brother Guy Hartman at age 37, after years of alcohol abuse--brought Stuard Hartman to Grayhall for the first time. During the post-funeral reception, Hartman got a tour of the property, the proof of Hughes' self-made success. As guests were leaving, Hughes approached his brother Kirk and Kirk's wife, Jackie. "I showed him," he told Jackie Hartman. "I showed that bastard what I could do."
The Hugheses kept up their public profile. In May 1995, D.A.R.E. America honored them with its "Future of America Award," praising their commitment to "teaching our kids how to say no to drugs." But the marriage was crumbling. And less than 18 months later, Mark did something that suggested he was touched with the same curse as his late brother and mother.
About 11 PM on November 30, 1996, a Hawthorne police officer pulled Hughes over for driving on the wrong side of the road. Hughes, the police report said, was making his way from Los Angeles International Airport to the Bare Elegance strip club. The officer had him exit his Jeep Cherokee and put him through several sobriety tests, which Hughes failed.
Hughes said he had only drunk two glasses of wine. But a field breath test registered a blood-alcohol level of 0.22, almost three times the legal limit. Says Dr. Haraszti: "On the face of it, that is diagnostic of alcoholism. It is such a high level that an ordinary person would not be able to stand up, much less drive. You have to use a lot to develop that level of tolerance."
After being booked and released, Hughes was charged with driving under the influence. In April 1997, he pleaded no contest, agreeing to serve three years' probation, pay a fine of $1,501, have his driving license suspended and attend an alcohol-education program. (It has been reported that Hughes also was arrested for drunk driving in Malibu in July 1997. Court documents show he was arrested for misdemeanor driving on a suspended license and cited for various Vehicle Code infractions.)
The DUI conviction went unnoticed, buried in an Inglewood courthouse free of tabloid scandal-hunters. And the possibility that Herbalife's bronzed personification of health might have a serious health problem remained a secret.
Perry Turner, who worked for Herbalife until he retired in 1988, insists he never saw Hughes drink. Hughes continued to function as Herbalife's CEO, the energy and industry he devoted to his company never flagging. But the consensus among sources who discussed his drinking--all of whom asked to remain anonymous--is that he had become a problem drinker by the early 1990s.
According to Hughes' autopsy report, a Beverly Hills psychiatrist treated him with Antabuse, a drug that inhibits the craving for alcohol. "Dr. [Stephen] Scappa was aware that the decedent had drinking binges," the report says. But Dr. Drew Pinsky of Las Encinas Hospital notes: "Antabuse is fairly worthless unless [the patient] is involved in a program of recovery. They use Antabuse as a substitute for recovery."
According to Pinsky, those who binge on alcohol or drugs "tend to have more psychiatric pathology" than more continuous drinkers. Experts agree that Hughes, with his genetics, early substance abuse and a pathology of unresolved childhood issues and repressed feelings, fits the profile. "He resorts to alcohol as a way to numb his feelings," theorizes Haraszti. "He finds that to be effective and he is not motivated to change."
For Herbalife, so dependent on Hughes' cultlike appeal, public disclosure of his problem could have been a bombshell, equivalent almost to the scandals involving televangelists Jimmy Swaggart and Jim Bakker. "I would have thought it would have a profound effect on the business because the distributors so admired him," suggests Turner.
With Herbalife's glory days long past, shareholders would not have welcomed the news either. Although sales nearly doubled between 1994 and 1998, net profits increased only 5%. After Hughes registered plans in early 1997 to sell one-quarter of his shares, the stock began to slide from its all-time high of $37. As shares fell as low as $6, the CEO angered investors by discounting stock options for corporate insiders by about 50%. One money manager complained to Business Week that Hughes had "completely pushed the limits of shareholder boundaries."
The pressure on Hughes and his aides to maintain his healthy image was "dramatic," says a source. One executive who knew of Hughes' problem was not replaced, the source says, for fear of adding to the circle of people in the know.
Richard Marconi, whose company, Global Health Sciences, was one of Herbalife's major suppliers, says he wanted to avoid a possible scandal. So he approached Pair and another Herbalife executive with a plan to take Hughes to a discreet alcohol rehab facility in Switzerland, with each man spending a week as Hughes' overseer. For reasons still not clear, they never followed through.
In September 1997, Suzan Hughes filed for divorce after 10 years of marriage. As part of a settlement that gave her a mansion near Grayhall and alimony, lawyers made sure she would not say anything out of turn. Any discussion of her ex-husband's "wealth or any other habits that you think he has which are inappropriate" would result in her forfeiting the house and cash, a court document stated. Suzan declined to be interviewed for this article, citing the settlement.
At the time of Herbalife's 20th anniversary celebration one year ago, Hughes was under considerable stress. He had made an offer to buy out the public's shares, which had buoyed up the stock, but it had stalled due to financing problems and shareholder lawsuits. The stock was stuck at about $14. Beneath his buff exterior, sculpted by hours of personal training, Hughes' health was brittle. He was recovering from a recurrence of pneumonia, and the treatment involved steroids, which made it difficult for him to sleep.
"He was edgy, more short of temper," says Rosen. For his sleeping problems, he was taking Doxepin, which Haraszti describes as an "antediluvian" medication that he would not prescribe to anyone, let alone an alcoholic.
But Hughes still seemed to have plenty going for him. In February 1999, he married Darcy LaPier, another former Miss Hawaiian Tropics with two children and a history of wealthy husbands, including actor Jean-Claude Van Damme. Plans for their Benedict Canyon home--a colossus to be built on 157 acres that Hughes had acquired from Merv Griffin--were proceeding. And he and Darcy had moved into the peach-colored Malibu villa that they purchased in December 1999.
Herbalife's leader, his hair now coiffed in a leaner, sleeker do, shone at the Forum celebration. "He was hilarious, his usual charming, excited, exuberant self," recalls Denver-based distributor Leslie Stanford. Nobody could have foreseen the terrible news of that Sunday morning only three months later. Laments John Tartol, a close friend and longtime Herbalife distributor: "It was unbelievable to me."
Darcy Hughes told coroner's officials that her husband had been drinking the night of May 20 and had fallen asleep on the living-room sofa. She tried to wake him about midnight so that they could go to bed. But he stayed on the sofa. About an hour later, she failed again to rouse him and went up to bed herself, sleeping in a room adjacent to the master bedroom. She awoke at 10:30 on the Sunday morning to find him dead on their bed.
In the lobby of the Century City building that became Herbalife's headquarters in 1996, the legend lives on. The inscription on a framed poster of Hughes at a rally relates how millions of people "have become better human beings as a result of his dream, his vision and his precious gift to the world." It continues: "Now it's more important than ever to give this life-changing gift to others, because anyone who is touched by Herbalife carries a little bit of Mark inside of them."
Up on the 15th floor, from the window facing north, you can see the Benedict Canyon property, which is up for sale. Associate Conrad Klein is now an Herbalife executive vice president and a trustee of the huge Hughes estate. He has thinning hair, hooded eyes and a stooped posture. During a two-hour interview, a genuine affection for Hughes comes through. "He was a very sweet and gentle man," Klein says. "He had a very winsome way about him." With a pang, he adds: "I loved the guy. He had more joie de vivre than anyone you would ever meet."
Despite the evidence to the contrary, Klein refuses to amend the official story Hughes created. Mark, he says, was not raised in a two-parent household, and his mother "did have weight problems." Klein vigorously denies that Hughes had a drinking problem. "There is no basis for anybody to tell you Mark was an alcoholic. Mark was a good party animal when he felt like it. Maybe he had too much to drink at a party.To say Mark's an alcoholic, it's absurd."
At his grandmother's party, Klein says, Hughes "did in fact have something to drink. He had a lot to drink, everybody had a lot to drink."
Christopher Pair, the new CEO, also is keeping Hughes' story alive. In a message to distributors posted on the Herbalife Web site, he says, "Mark's mother died from unsafe dieting practices. This was a tragedy he never forgot." Distributors call talk of alcoholism a smear on Herbalife. "The only way our competition can hurt the company is some kind of slur campaign," Tartol says.
Herbalife stock is trading at about $7.50 a share, meaning Mark Hughes' holdings have lost about half their value since the company's 20th anniversary one year ago. The shares are held in trust for 9-year-old Alex Hughes, the principal beneficiary of his father's estate.
In addition to Klein, the trustees are Pair, who was convicted of shoplifting $400 worth of merchandise from a Beverly Hills department store in 1998, and Jack Reynolds, who may--or may not--be Alexander's paternal grandfather. In July, Reynolds, the former plumbing contractor, was appointed chairman of Herbalife International.
In Malibu, the house where Hughes died is for sale at a price of $31 million, fixtures and furnishings included. His widow, Darcy--whom a judge in January awarded $20 million from the estate--no longer lives there.
Jean-Paul Chiari, a dapper Frenchman who was an estate manager for Hughes, points out some of the mansion's more outstanding features--the set of three Baccarat crystal chandeliers in the lobby and living room, the handmade Aubusson rugs, the manicure station, the walk-in fridge, the computerized lighting-control system, the giant TV screen in the family room that descends from the ceiling. Only Dustin Hoffman has a similar video set-up complete with state-of-the-art projector in his home, Chiari says. "But Dustin Hoffman's isn't as large as Mr. Hughes' screen."
Most of the framed photographs on display feature Hughes with his son, whom he saw as often as possible given the demands of Herbalife. They would vacation together at Christmas and Easter and for three weeks in the summer, visiting resorts in the Caribbean and the French Riviera, where they could sail, surf and jet-ski. In the photos, they could hardly look happier. "He was a very family-oriented man," Chiari says of the father.
Just a few miles up the coast in Ventura County, another father lives in a house not far from where Mark Reynolds Hughes grew up. Stuard Hartman has volunteered to take a DNA test to prove he is Hughes' father but Herbalife declined the offer. He says he has "no ax to grind," no financial motive--a claim on the estate, for example--to make mischief.
With his death, Mark Hughes' estrangement from Hartman is now permanent. Hartman can only wonder what happened to the boy he raised to the age of almost 14, wonder why Mark, despite all his worldly success, would suffer a torment so similar to that of his mother.
"I've always been very proud of him, regardless of our relationship, for the successes he achieved," Hartman says. "It's obviously a very rare individual that can do what he did." But success, he adds, "didn't give him any satisfaction or happiness. His life was testament to that."

Financial journalist asks: How the fuck has the FTC allowed Herbalife?

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Julia La Roche


Today, a (usually-polite) financial journalist (who wishes to remain anonymous) sent me links to 'Business Insider' articles by Julia La Roche, along with a not-unreasonable question:

'How the fuck has the FTC allowed Herbalife?' 
I replied that: Unfortunately, the same question applies to the entire'MLM Income Opportunity' fairy story.

David Brear (copyright 2014)

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gratziani herbalife distributor
Bill Ackman, who runs Pershing Square Capital, has released an internal Herbalife video from 2005 that he says shows a top distributor talking about deceptive recruiting practices.
According to Pershing Square, the video is from a 2005 meeting of distributors and management in Anaheim, California. 
The video shows the meeting's keynote speaker Stephan P. Gratziani, a former US national cyclist who is now an Herbalife Chairman's Club Member.
"The Herbalife business model, at this point in time, is not based on customers purchasing, it‘s based on distributors purchasing volume," Gratziani says.
Here are some of his statements from the video: 
"We sell people on a dream business, that they can make it. Yet deep down inside, what do we really know? Yeah. We know that the reality is that most of them aren‘t going to make it." (Video 1, 1:00:16.)
"Who wants to bring their family into a struggle to make it? Who wants to bring their family into an eventual deception?" (Video 2, 7:20.)
"We tell people, hey, you know, sign on the dotted line, you know, start working from home, it‘s going to be unbelievable, you‘re going to have this incredible life. . . . So there really is this situation or this level of inauthenticity that‘s there." (Video 2, 8:28.)
"The Herbalife business model is based on distributors purchasing volume from them. . . . The Herbalife business model, at this point in time, is not based on customers purchasing, it‘s based on distributors purchasing volume." (Video 2, 14:34.)
"These sixty thousand people [whom the speaker lost as distributors over the preceding five years], primarily, why do you think they came into the business? Primarily? Primarily? Opportunity! Money! Right?" (Video 1, 46:05.
"[S]uccessful people in retailing in our business, it‘s a very small percentage. (Video 2, 28:08.)
"The majority of our people have a difficulty in selling products, in general." (Video 2, 29:46.)
"‘Fake it ‗til you make it.‘ Some of us got so good at faking it, we
forgot to make it!" (Video 1, 54:04.)
Ackman, who runs Pershing Square Capital, has been publicly shorting Herbalife for two years. He believes the company operates as a "pyramid scheme." 
Shares of Herbalife were last trading down 2.5%. 

Read more: http://uk.businessinsider.com/video-of-herbalife-distributor-gratziani-2014-12#ixzz3MCH08vCE

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http://uk.businessinsider.com/bill-ackman-on-herbalife-2014-12?r=US

Bill Ackman


Hedge-fund manager Bill Ackman of Pershing Square was just on Bloomberg TV's "Market Makers," talking about his infamous Herbalife short.
"We've actually come up with some new stuff," Ackman said before showing a clip of an internal Herbalife video from 2005 he says shows deceptive recruiting practices.  
According to Ackman, the video shows one of Herbalife's top distributors speaking, and it makes the company look pretty bad. It's a three-hour long presentation (you can watch a short clip below). 
Perhaps that's fitting for a crusade that's lasted two years, like Ackman's crusade against Herbalife has.
In December 2012, Ackman gave a 342-slide presentation publicly declaring that he was short $1 billion worth of Herbalife shares. Ackman believes that the company operates as a pyramid scheme that targets poor people, especially those from the Hispanic population.
His investment thesis is predicated on regulators, specifically the Federal Trade Commission, shutting the company down. (The FTC opened an investigation into the company back in March of this year.)
Ackman is shorting the company to $0. He has said that he will take this short to the "end of the earth." 
After Ackman's initial presentation, numerous fund managers, most notably Ackman's longtime rival Carl Icahn, piled on by going long the stock. 
Herbalife stock also surged in the months that followed. In October 2013, Ackman had to change the form of his short position. He said he covered a big chunk of the short and bought put options. He said this has "increased the potential for profit, but reduced the amount of capital at risk." 
The position is about 7% of Pershing's portfolio. At its peak, it was 15%. "But the opportunity for profit is greater than it was at the peak," Ackman said. 
It has definitely been a crazy ride up and down for the last two years. 
Shares of Herbalife have fallen about 50% this year. It looks like Ackman is back in the money. The stock was last trading down 2.6% during Ackman's interview on Bloomberg. 
Ackman said that the risk/reward looks more appealing now. He said the risk of the stock going to $50, $60 or $70 has "gone down enormously." He said he thinks the business is "deteriorating" and there's no longer a bull case for the stock. 
This summer, Ackman and Icahn made up after a decade-long rivalry. Icahn has said he hasn't sold a single share. 
Ackman told Bloomberg he has not had a recent conversation with Icahn. 
"Unfortunately, I think he's kind of stuck," he said, pointing out that Icahn is on the board of Herbalife and can't sell. 
Still, Ackman said, "I'd love to see him sell. I think it would be great to see him sell ... I think he's a stuck holder." 
He said Icahn would be fine, though.  


Here's the new video: 



Nevada: The trickle of 'Herbalife (HLF)' victims might soon turn into a flood.

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Several weeks ago, I was sent information from a concerned resident of Las Vegas about the tragic results of the 'Herbalife' racket in Nevada. 

At that time, I gave my correspondent the following brief analysis.

The fundamental rule of all Las Vegas casino managers is to keep their winning customers playing, because although it is possible for anyone occasionally to win by chance in any independently regulated casino, in the end, if winning customers don't quit whilst they are ahead, eventually the odds will always favour the house and they will lose.

The fundamental rule of all 'MLM' racketeers is to keep their chronic victims playing, because, in practise, the 'MLM' game of make-believe has not been independently regulated and has been secretly rigged so that only the few crooks who keep setting it up, can win. Thus, the longer victims play the 'MLM' game of make-believe, in the false hope of one day winning the jackpot, the more cash they will lose and the more, fresh victims they will attract.

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http://www.reviewjournal.com/news/las-vegas/nevadans-accuse-herbalife-preying-latinos-poor


Nevadans accuse 'Herbalife' of preying on Latinos and the poor:

Southern Nevadans who say they lost thousands of dollars to a pyramid scheme run by Herbalife called on the state attorney general Thursday to investigate the company, which sells nutritional and weight-loss products.

Activist Jose Melendrez said Herbalife preyed on Latinos and poor people by promising they’d make good money as “distributors” — but only after they shelled out thousands of dollars up front.

“Folks are being sold something that’s not a reality, that’s not going to happen,” said Melendrez, president of Nevada Alliance for Latino Education and Justice.
He spoke to reporters standing before a small group outside the Sawyer Building in Las Vegas. Some carried signs in English or Spanish with slogans including “Herbalife is a FRAUD!”

Melendrez said he knows of at least 60 victims in Nevada, but added people often are reluctant to come forward because they’re embarrassed.
“I just felt like a big fool and a sucker,” said David Furniss of Henderson, who said he lost about $7,000 trying to be a distributor for Herbalife. While laid up after a motorcycle accident, he heard a radio ad for an online business that sounded promising.
After paying $79 for an introductory packet that came in the mail, he said, he paid $1,500 for lists of phone numbers he could use to recruit new distributors. Marketing programs that call for participants to make money by recruiting others are often pyramid schemes, according to U.S. Securities and Exchange Commission advisories. Furniss said he also was given a “coach” in Canada who talked to him on the phone about how to make money.
In a statement, Los Angeles-based Herbalife said it has “millions of satisfied customers” nationally and more than 8,600 members — its word for distributors — in Nevada. Any members who are unhappy, the company said, can call 866-866-4744 so it can address the problem.

Herbalife said attacks against it in Nevada and other states have been fomented by hedge fund manager William Ackman, who has bet on the collapse of the company and campaigned for government investigations of it.

An Herbalife spokesman said he had no evidence Ackman had any connection to Thursday’s protest in Las Vegas.

Melendrez said he had never heard of Ackman and first heard about Herbalife through other advocacy and community groups. Melendrez added that he has a personal connection to the Herbalife issue: His brother-in-law lost several thousand dollars.
Herbalife recently agreed to pay $15 million to settle similar allegations in a federal class-action lawsuit in California, including up to $2.5 million in refunds for people who return unsold products.

The company didn’t admit wrongdoing, but agreed to change some of its business practices, such as shipping charges on the return of unsold products, Reuters reported. The settlement is scheduled for final approval by a judge in May.

Melendrez said he hopes Nevada officials will seek more reimbursement for victims here.
A spokeswoman for the attorney general’s office, Beatriz Aguirre, said the office “cannot confirm or deny an investigation.” But she said it has received 38 official complaints about Herbalife. Attorney General Catherine Cortez Masto will be replaced in January by Adam Laxalt.




Edme Torres of Las Vegas said she spent $10,000 on Herbalife products and another $10,000 opening a “nutrition club” on Twain Avenue to try to sell products. Torres and her husband, Edgar Solis, said they lost their home and had to declare bankruptcy in 2012.
Torres said she was told spending more money would get her steeper discounts on Herbalife products that she could supposedly then sell at regular price. But every dollar she got went back into Herbalife, she said.

Melendrez said Latinos can be especially vulnerable to such schemes thanks to lack of education and “a big entrepreneurial spirit.”

Furniss said he’s lucky the money he lost didn’t ruin him. But he said Herbalife seems to target poor people by giving them “the glimpse of the gold.”

Contact Eric Hartley at ehartley@reviewjournal.com or +1 702-550-9229. Find him on Twitter: @ethartley


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Readers are reminded that the hidden overall loss/churn rate for 'Herbalife' participation has been effectively 100%. Therefore, anyone claiming, or implying, that it is possible for the average 'Herbalife' contractee to generate an overall net-profit out of the operation a (so-called)'Herbalife Business,' is not telling the truth.



'Wake Up Now' is a 'Prosperity Gospel' cult!

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http://www.thisamericanlife.org/play_full.php?play=543




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'The Universal Identifying Characteristics of a Cult' (David Brear, Axiom Books, copyright 2005):

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Apart from its use in the sense of ‘a popular fashion especially followed by a specific section of society’ or ‘a person or thing popularised in this way,’ the traditional definition of the English noun, cult (Latin cultus worship), has been ‘a system of religious worship (Latin religiosus obligation, bondage) especially as expressed in ritual,’ or ‘devotion or homage to a person or thing.’ However, the word is now also used as shorthand for what is more accurately described as a pernicious cult. This evolving, criminogenic phenomenon can be briefly described as: 

any self-perpetuating, non-rational/esoteric, ritual belief system established or perverted for the clandestine purpose of human exploitation.

Such groups are identified by the following, essential characteristics:  

1). Deception. Pernicious cults are presented externally as traditional associations. These can be arbitrarily defined by their instigators as almost any banal group (‘religious’, ‘cultural’, ‘political’, ‘commercial’, etc.). However, internally, they are always totalitarian (i.e. they are centrally-controlled and require of their core-adherents an absolute subservience to the group and its patriarchal, and/ or matriarchal, leadership above all other persons). By their very nature, pernicious cults never present themselves in their true colours. Consequently, no one ever becomes involved with one as a result of his/her fully-informed consent.

2). Self-appointed sovereign leadership. Pernicious cults are instigated and ruled by psychologically dominant individuals, and/or bodies of psychologically dominant individuals (often with impressive, made-up names, and/or ranks, and/or titles), who hold themselves accountable to no one. These individuals have severe and inflexible Narcissistic Personalities (i.e. they suffer from a chronic psychological disorder, especially when resulting in a grandiose sense of self-importance/ righteousness and the compulsion to take advantage of others and to control others’ views of, and behaviour towards, them).* They steadfastly pretend moral and intellectual authority whilst pursuing various, hidden, criminal objectives (fraudulent, and/or sexual, and/or violent, etc.). The admiration of their adherents only serves to confirm, and magnify, the leaders’ strong sense of self-entitlement and fantasies of unlimited success, power, brilliance, beautyideal love, etc.
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‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.

Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):
  •       has a grandiose sense of self-importance.
  •       is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
  •       believes that he/she is special and unique and can only be understood by other special people.
  •       requires excessive admiration.
  •       strong sense of self-entitlement.
  •       takes advantage of others to achieve his/her own ends.
  •       lacks empathy.
  •       is often envious or believes that others are envious of him/her.
  •       arrogant disposition.
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3). Manipulation. Pernicious cults employ co-ordinated, devious techniques of social and psychological persuasion (variously described as: ‘covert hypnosis’, ‘mental manipulation’, ‘coercive behaviour modification’, ‘group pressure’, ‘thought reform’, ‘ego destruction’, ‘mind control’, ‘brainwashing’, ‘neuro-linguistic programming’, ‘love bombing’, etc.). These techniques are designed to fulfil the hidden criminal objectives of the leaders by provoking in the adherents an infantile total dependence on the group to the detriment of themselves and of their existing family, and/or other, relationships. Pernicious cults manipulate their adherents’ existing beliefs and instinctual desires, creating the illusion that they are exercising free will. In this way, adherents can also be surreptitiously coerced into following potentially harmful, physical procedures (sleep deprivation, protein restriction, repetitive chanting/ moving, etc.) which are similarly designed to facilitate the shutting down of an individual’s critical and evaluative faculties without his/ her fully-informed consent.

4). Radical changes of personality and behaviour. Pernicious cults can be of any size, duration and level of criminality. They comprise groups, and/or sub-groups, of previously diverse individuals bonded by their unconscious acceptance of the self-gratifying, but wholly imaginary, scenario that they alone represent a positive or protective force of purity and absolute righteousness derived from their leadership’s exclusive access to a superior or superhuman knowledge, and that they alone oppose a negative or adversarial force of impurity and absolute evil.Whilst this two-dimensional, or dualistic, narrative remains the adherents’ model of reality, they are, in effect, constrained to modify their individual personalities and behaviour accordingly.

5). Pseudo-scientific mystification. The instigators of pernicious cults seek to overwhelm their adherents emotionally and intellectually by pretending that progressive initiation into their own superior or superhuman knowledge (coupled with total belief in its authenticity and unconditional deference to the authority of its higher initiates) will defeat a negative or adversarial force of impurity and absolute evil, and lead to future, exclusive redemption in some form of secure Utopian existence. By making total belief a prerequisite of redemption,adherents are drawn into a closed-logic trap (i.e. failure to achieve redemption is solely the fault of the individual who didn’t believe totally). Cultic pseudo-science is always essentially the same hypnotic hocus-pocus, but it can be peddled in an infinite variety of forms and combinations (‘spiritual’, ‘medical’, ‘philosophical’, cosmological,’extraterrestrial’, ‘political’, ‘racial’, ‘mathematical’, ‘economic’, New-Age’, 'magical', etc.), often with impressive, made-up, technical-sounding names. It is tailored to fit the spirit of the times and to attract a broad range of persons, but especially those open to an exclusive offer of salvation (i.e. the: sick, dissatisfied, bereaved, vanquished, disillusioned, oppressed, lonely, insecure, aimless, etc.). However, at a moment of vulnerability, anyone (no matter what their: age, sex, nationality, state of mental/ physical health, level of education, etc.) can need to believe in a non-rational, cultic pseudo-science. Typically, obedient adherents are granted ego-inflating names, and/or ranks, and/or titles, whilst non-initiates are referred to using derogatory, dehumanizing terms. Although initiation can at first appear to be reasonable and benefits achievable, cultic pseudo-science gradually becomes evermore costly and mystifying. Ultimately, it is completely incomprehensible and its claimed benefits are never quantifiable. The self-righteous euphoria and relentless enthusiasm of cult proselytizers can be highly infectious and deeply misleading. They are invariably convinced that their own salvation also depends on saving others.

6). Monopoly of information. The leaders of  pernicious cults seek to control all information entering not only their adherents’ minds, but also that entering the minds of casual observers. This is achieved by constantly denigrating all external sources of information whilst constantly repeating the group’s reality-inverting key words and images, and/or by the physical isolation of adherents. Cults leaders systematically categorize, condemn and exclude as unenlightened, negative, impure, absolutely evil, etc. all free-thinking individuals and any quantifiable evidence challenging the authenticity of their imaginary scenarios of control. In this way, the minds of cult adherents can become converted to accept only what their leadership arbitrarily sanctions as enlightened, positive, pure, absolutely righteous, etc. Consequently, adherents habitually communicate amongst themselves using their group’s thought-stopping ritual jargon, and they find it difficult, if not impossible, to communicate with negative persons outside of their group whom they falsely believe to be not only doomed, but also to be a suppressive threat to redemption.

7). False justification. In pernicious cults, a core-group of adherents can be gradually dissociated from external reality and reformed into deployable agents, and/or de facto slaves, and/or expendable combatants, etc., furthering the hidden criminal objectives of their leaders, completely dependent on a collective paranoid delusion of absolute moral and intellectual supremacy fundamental to the maintenance of their individual self-esteem/identity and related psychological function. It becomes impossible for such fanatics to see humour in their situation or to feel pity for, or to empathise with, non-adherents. Their minds are programmed to interpret the manipulation, and/or cheating, and/or dispossession, and/or destruction, of inferior outsiders (particularly, those who challenge their group’s controlling scenario) as perfectly justifiable.

8). Structural mystification. The instigators of pernicious cults can continue to organize the creation, and/or dissolution, and/or subversion, of further (apparently independent) corporate structures pursuing lawful, and/or unlawful, activities in order to prevent, and/or divert, investigation and isolate themselves from liability. In this way, some cults survive all low-level challenges and spread like cancers enslaving the minds, and destroying the lives, of countless individuals in the process. At the same time, their leaders acquire absolute control over capital sums which place them alongside the most notorious racketeers in history. They operate behind ever-expanding, and changing, fronts of ‘limited-liability, commercial companies,’ and/or ‘non-profit-making associations,’ etc. Other than ‘religious /philosophical’ and ‘political’ movements and ‘secret societies,’  typical reality-inverting disguises for cultic crime are:

‘charity/ philanthropy’; ‘fund-raising’; ‘lobbying’ on topical issues (‘freedom’, ‘ethics’, ‘environment’, ‘human rights’, ‘women’s rights’, ‘child protection’, ‘law enforcement’, ‘social justice’, 'peace,' etc.); ‘publishing and media’; ‘education’; ‘academia’; ‘celebrity’; ‘patriotism’; ‘information technology’; ‘public relations’; ‘advertising’; ‘medicine’; ‘alternative medicine’; ‘nutrition’; ‘rehabilitation’; ‘manufacturing’; ‘retailing’; ‘direct selling/ marketing’; ‘multilevel marketing’; ‘network marketing’; ‘regulation’; ‘personal development’; ‘self-betterment’; ‘positive thinking’; ‘self-motivation’; ‘leadership training’; ‘life coaching’; ‘research and development’; ‘investment’; ‘real estate’; ‘sponsorship’; ‘bereavement/trauma counselling’; ‘addiction counselling’; ‘legal counselling’; ‘cult exit-counselling’; ‘financial consulting’; ‘management consulting’; ‘clubs’; etc. 

9). Chronic psychological deterioration symptoms. The long-term core-adherents of pernicious cults are psychotic (i.e. suffering from psychosis, a severe mental derangement, especially when resulting in delusions and loss of contact with external reality). Core-adherents who manage to break with their group and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For many years afterwards, recovering former core-adherents can suffer from one, or more, of the following psychological problems (which are also generally indicative of the victims of abuse):

depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness ( asthma, skin disorders, headaches, fatigue, etc.); sexual problems/ fear of forming intimate relationships; inability to trust; etc.

10). Repression of all dissent. The leaders of the most-destructive cults are megalomaniacal psychopaths (i.e. suffering from a chronic mental disorder, especially when resulting in paranoid delusions of grandeur and self-righteousness, and the compulsion to pursue grandiose objectives). The unconditional deference of their deluded adherents only serves to confirm, and magnify, the leaders’ own paranoid delusions. This type of cult leader maintains an absolute monopoly of information whilst perpetrating, and/or directing, evermore heinous crimes. They sustain their activities by the imposition of arbitrary contracts and codes (secrecydenunciation, confession,justice, punishment, etc.) within their groups, and by the use of humiliation, and/or intimidation, and/or calumny, and/or malicious prosecution (where they pose as victims), and/or sophism, and/or the infiltration of traditional culture, and/or corruption, and/or intelligence gathering and blackmail, and/or extortion, and/or physical isolation, and/or violence, and/or assassination, etc., to repress any internal or external dissent.



_________________________________________________________________________

A COMMON SENSE APPROACH TO CULTISM 

Who hasn’t heard about cults? The word, ‘cult,’ has been thrown around so often that most of us now take it for granted that we must know exactly what it means. To be honest, very few people have sought out sufficient background material to be able to form the lucid picture of cultism contained in the essential identifying characteristics presented in this booklet. Even the most-diligent news reports have tended to examine individual cultic groups in close-up, leaving the wider phenomenon either out of shot or out of focus. However, in recent years, it has become a matter of public record that, as a result of unprotected exposure to one of an ever-growing and evolving catalogue of apparently diverse and innocent groups, almost anyone can begin to exhibit remarkably uniform symptoms. In everyday terms, it is as though they’ve fallen head over heels in love. Although this initial euphoria is often short-lived, a significant minority will subsequently undergo a nightmarish transformation and recklessly dissipate all their mental, and/or physical, and/or financial, resources to the benefit of some hitherto unknown person(s), whom they continue to trust and follow no matter what suffering this entails. Only when enough victims of one of these latter-day ‘Pied-Pipers’ wind up in psychiatric hospitals or on mortuary slabs is the word, ‘cult,’ liberally applied by the popular press. It is then always revealed that there had been some timely attempt(s) to warn the authorities, but they couldn’t intervene, because, legalistically, cultism does not exist. That said, all cosmopolitan people readily accept that cults most-certainly do exist, but, due to the prevalent style of media coverage, we habitually think of them only as remote, and grotesque, freak-shows.

In my experience, if it is suggested that ‘we should all be on our guard against cultism, because it is actually much closer to us than we like to think,’ the average person is immediately convinced that such an idea is absurd. This instinctual reaction is usually accompanied by one, or more, of the following comments:
                                            
·     ‘Don’t worry, I wasn’t born yesterday, a cult couldn’t fool me or anyone in my family… only idiots and weaklings join cults.’

·     ‘In a free society everyone has the right to believe in what they want… if adults decide to hand over their time and money to some charismatic guru, it’s their own business.’

·     ‘One man’s cult is another man’s religion.’

·     ‘I suppose you’re including all the people who believe Elvis is still alive.’

·     ‘Unless they are being physically held as prisoners, adults always have a free-choice to walk away if they don’t like what’s happening to them.’

·     ‘Perhaps some cult members get harmed, but that’s their problem not mine.’

·     ‘Cults have been around for centuries, there’s nothing new to learn about them.’ etc.

Whilst these opinions can all seem valid to the ill-informed, the underlying facts prove them to be nothing more than ego-protecting self-deceptions, which completely miss the point. It’s easy to understand that ‘knowledge itself is power,’ but it’s altogether harder to accept that (by the same token) ignorance is vulnerability. Obviously, cults never announce themselves, but their many disguises continue to adapt to mirror the changing spirit of the times. Throughout the ages, a dangerous minority of mythomaniacs, charlatans and would-be demagogues have always been able to get their human prey to sail blindly into positions of subjection, by first bedazzling them with all manner of false beacons which seemed so welcoming and authentic that the majority of people could not have been expected to determine exactly what was lurking behind them. Even though most of us want to deny it, at a moment of weakness all of us can need to listen to the latest cultic voice of insanity; especially when it appeals to our existing beliefs and instinctual desires, and originates from the apparent face of reason. To casual observers, the phenomenon might seem to be a ridiculous anachronism, but cultism or occultism has survived the tide of history and continues to wreck countless lives, simply because its instigators keep updating the lyrics of their siren song. Totalitarianism itself is enduring, its camouflage is ephemeral.

Young children’s unconscious acceptance of ‘Santa Claus’ as total reality, stems from a fictitious scenario reflected as fact by the traditional culture in which they live. Up to a certain age, children are not equipped to challenge the model of reality offered to them by authoritarian figures within their family groups; particularly, their parents. Therefore, once children have been converted to a self-gratifying, non-rational belief in ‘Santa,’ the truth (that they are actually being deceived by the people whom they instinctively trust and follow) is unthinkable. The scenario can then be expanded to modify children’s behaviour — ‘Santa’ has magical powers… he can see and hear everything they do at all times… he will reward them for unquestioning belief and punish them for dissent. Only when they attain the necessary level of intellectual/psychological development, can children begin to use their critical and evaluative faculties and come to realise that ‘Santa’ is merely a game of make believe. If you think about it, what I’ve just described is the most elementary form of self-perpetuating, non-rational/esoteric, ritual belief system - perfectly tailored to fit infantile minds, and reliant on the maintenance of an absolute monopoly of information presented using a constant repetition of reality-inverting key words and images combined with pseudo-scientific mystification and closed-logic.

When analysed with the same level of intellectual rigour, many of the basic procedures and conditions required to establish cultic groups turn out not to be a mystery at all. They are revealed as only more-sophisticated versions of those which also propagate the benign ‘Santa’ deception. As such, they are frighteningly easy to replicate. However, the instigators of cults are anything but benign and, interestingly, many of their most-deluded subjects and convincing apologists turn out to be well-educated adults who have simply become incapable of facing the ego-destroying reality that they’ve been fooled by what is merely a game of make believe. No sane person would ever suggest trying to ban ‘Santa,’ and everyone lies to their children at some time to modify their behaviour, but consider the variety of destructive behaviour that an authoritarian adult (with hidden criminal objectives) could get dependent children to follow by exploiting their unconscious acceptance of the same imaginary, but nonetheless emotionally and intellectually overwhelming, narrative as total reality. The unpalatable truth is that, just by perverting the closed-logic rules of the game, anything - from theft by proxy to sexual, and/or violent, abuse - becomes possible.


Prior to publication, a number of people were given unfinished copies of this booklet to appraise. Although no reader could refute its content, the reactions of a minority were split into two groups; these were as different as chalk and cheese. Those who had already survived a direct personal experience of cultism devoured it. Others, who had never knowingly encountered the phenomenon, found the booklet less easy to digest; they generally described its tone as ‘alarmist.’ One man (a middle-aged, American academic) was sure that it had been written by a naïve soul who had suddenly discovered the world to be a cruel place, and who now wanted to shout about it. Several years ago, when I was naïve, I might have agreed with him. In fact, I now blush when I remember a conversation I once had with a senior citizen of the Czech republic (a survivor of rule by the ‘Nazi’ and ‘Soviet’ myths), in which I coolly dismissed his passionate contention that any country whose own citizens mistakenly believed themselves to be immune to totalitarianism, faced the greatest risk of from it. Today, in the light of a traumatic personal encounter in Europe with the large, American-based cultic group known as 'Amway,' I have come to understand that I could not have been more wrong. However, many of the crass opinions which cultism continues to attract are completely predictable, because, even as adults, we all instinctively want to shut out of our minds any information that disturbs our habitual model of the world. Sadly, anyone who searches for the truth about cultism, and who then speaks plainly, is forced to ask a lot of people to think the unthinkable; so I make no apologies for this.

Another man started to read the booklet and decided that it contained ‘intemperate language.’ He felt sure that it was  ‘going to be a sermon’ in which I would ‘attempt to impose ideas of morality’ on him. That opinion made me go back to my original text and remove any suggestion of preaching, because that’s the last thing I want to do. I don’t pretend to be perfect, and I fully recognise that morality is only what is generally regarded as an acceptable standard of behaviour by whatever culture we live in. I tried to base my investigation of cultism on quantifiable evidence, and my analysis on rules made by democratic institutions defining what is criminal, and/or unethical. I didn’t invent this evidence or write these rules, but I couldn’t escape the fact that cultism involves the subversion of traditional codes of morality. Like my wise Czech acquaintance, I have had the dubious privilege of witnessing for myself how unsuspecting individuals can be tricked into entering a counterfeit culture in which their existing perceptions of right and wrong are overturned and then made absolute. As a result, I now accept that apparently rational persons can suddenly abandon all reason and allow themselves to be systematically abused, exploited and even slaughtered whilst participating in the systematic abuse, exploitation and slaughter of others. In short, I am describing how it is possible to enslave any human being, but without the use of chains. This, in itself, is an ego-destroying reality which, self-evidently, many onlookers will wish to deny. However, when this reality is faced, at first it can become impossible to find appropriate words (other than expletives) to describe the results of cultism. Even presiding judges, in related cases, have felt it necessary to deliver verdicts using emotive terms such as ‘evil,’ ‘sinister,’ ‘depraved,’ ‘obnoxious,’ etc., to express publicly their own private outrage. Unfortunately, many other well-intentioned people have been, and continue to be, completely fooled by the seductive words and images shielding the instigators of cultism. The great paradox of the phenomenon is that persons under cultic influence will steadfastly claim to be absolutely righteous, even when all the quantifiable evidence proves their behaviour to be (at best) misguided, or (at worst) downright evil. Although they are demonstrably dissociated from external reality, cult adherents are always certain that they alone represent the ‘truth’ and they act accordingly.

In this booklet, I have tried to demystify cultism by using an accurate, deconstructed vocabulary to describe the phenomenon. As a result of my own extensive investigation, I am entirely satisfied that all groups exhibiting the essential characteristics given previously, are manifestations of the same problem. The historical evidence has led me to the inescapable conclusion that the only real differences between cults are the exact motives and mental state of their leaders, and the length of time they survive before they face a well-informed and determined challenge.

Cultism is a trap. Obviously, anyone who only examines the bait in a trap and who remains unaware of its true purpose, risks getting caught themselves. Just like a mousetrap, the basic design for the cultic trap has remained the same down the centuries even if the presentation of the bait has become evermore sophisticated. Sadly, many commentators have found it impossible - when faced with the apparently illogical results of cultism - to abandon their existing academic, and professional, disciplines, which are anchored in the logic of the traditional world. Consequently, their understanding has often been made impossible by misplaced objectivity. However, it must be remembered that a counterfeit banknote might be 99.9 % perfect, but the bit that is not makes all of it a fake. Similarly, in order to have any chance of understanding cultism, it must be approached from the apparently subjective point of view that its results are always the product of a contagious deception, the victims of which unconsciously accept fiction as fact. Only then, can the phenomenon be examined with genuine objectivity. Once this vital principle has been learned, the apparently authentic words and images reflected by persons under the influence of cultism - like those printed on counterfeit banknotes - are revealed as dangerous distractions. They should never be taken at face value and, therefore, I try to remind the reader of this at all times. Any commentator who repeats the reality-inverting shielding-terminology of any cultic group, but without detailed qualification (or heavy irony), demonstrates that he/she remains at a pitifully low-level of understanding.

In truth, if it wasn’t for its tragic consequences, then cultism would be nothing more than a sick joke. However, until an individual is confronted by a nightmarish change in the personality and behaviour of a loved-one, then they can never really appreciate the full horror of the phenomenon. I realised a long time ago that there are always some people who will never be able to accept what I describe, because, for them to do so, they would have to abandon too many self-deceptions supporting their own view of themselves. Like many others before me, a soul-destroying experience with members of my own family forced me to abandon most of mine. Then, through close contact with the survivors of various cults and my research into the deeper origins of ‘Nazism’ and the ‘New Global Terrorism,’ I came to the further, inescapable conclusion that it is actually impossible to exaggerate the potential menace posed by the creators of these counterfeit cultures, or their significance to the history and future of civilization. I then found great comfort in the opinions of some of my critics, because the people who first tried to warn the world of the horror lurking behind an apparently absurd, little gang of sanctimonious charlatans - calling themselves the ‘National Socialist German Workers Party’ and led by a hitherto unknown, German Army veteran playing the comic-book role of ordinary man turned superman - were also dismissed as ‘alarmists.’


Whilst it remains generally misunderstood, cultism will continue to be an unnecessary threat to the lives, liberty and happiness of all communities, families and individuals all over the world.


David Brear (copyright 2014)

'Herbalife (HLF)' - An informational video on identifying and protecting yourself against pyramid schemes.

The (modified) 'Herbalife (HLF)' fairy story, will still have a happy ending, according to Meredith Adler.

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Mystic Meg is the comically-inept 'astrologer' who was paid to publish a regular column in the (now defunct) UK newspaper, 'The News of the World,' but who (predictably) completely failed to predict her employer's demise. 


Meredith Adler.jpg
Meredith Adler (a long-time believer in the 'Herbalife'fairy story) is a financial analyst - i.e. she has been paid (by Barclays) to predict the future stock market value of publicly-quoted food and drug companies. As far as I'm aware, Ms. Adler has absolutely no experience in the investigation of major organised crime. Thus, when it comes to finding, let alone analysing, what's been hiding behind the effectively-valueless corporate front known as, 'Herbalife,' the comically-inept Ms. Adler, has been just another useful idiot. Indeed, she might as well have called herself Mystic Meredith.

Even one of'Herbalife’s'most wildly-optimistic casual observers (and de facto cheer leaders), Barclays' Meredith Adler, now predicts that 2015 will be another disastrous year for'Herbalife', but she still doesn't even begin to comprehend that'Herbalife' has been a counterfeit 'direct selling'company fronting a closed-market swindle and related advance fee frauds, because these tragicomic matters evidently remain beyond her own less-than-pathetic level of understanding.

https://www.youtube.com/watch?v=VYJaeFP3UYQ


In 1985, following intense media interest, the California Attorney General sued 'Herbalife'for 'making inflated claims about the efficacy of its products'. The company settled the suit for $850,000 without admitting any fault and was allowed to continue trading provided it respected the conditions of the settlement. Since that time,'Herbalife' has, in fact, driven a coach and horses through the settlement which, mysteriously, has never been enforced. Laughably, on pain of immediate closure, it was absolutely forbidden for 'Herbalife,' or its agents, to make false (and potentially lethal) claims about its products having medicinal qualities.


In 1986, Hughes and his associates (including his attorneys, bankers, accountants etc.) committed securities fraud when 'Herbalife' became a publicly traded company on the NASDAQ - pretending  US$1 billion annual sales. Obviously, without specifying what was the actual unlawful internal origin of all this apparently lawful external annual revenue.



Mystic Mark Hughes (author of the'Herbalife' fairy story)

Mark Hughes died (aged 44) May 20th, 2000. Officially, Hughes had been celebrating the 87th birthday of his maternal grandmother with a private party attended by just a few family members at his mansion in Malibu. In the months prior to Hughes' death, he was controversially trying to buy all outstanding shares of'Herbalife' and take the company private again. According to his medical records, Hughes' mental and physical state of health were not at all the same as his 100% positive, squeaky-clean, happy and healthy,public image had portrayed. He was, in fact, recovering from a recurrence of pneumonia. To accentuate the effect of antibiotics, Hughes' treatment had involved steroids ( a standard procedure). However, again according to his medical records, the steroids had 'made sleeping difficult,' but instead of sleeping tablets, his doctor had (for unexplained reasons) prescribed a powerful, tricyclic antidepressant (TCA), Doxepin. Although TCAs can sometimes be prescribed for chronic insomnia, they are not primarily used for the treatment of temporary insomnia caused by other prescribed drugs.



TCAs are used primarily in the clinical treatment of mood disorders such as major depressive disorder (MDD), dysthymia, and treatment-resistant variants. They are also used in the treatment of a number of other medical disorders, including anxiety disorders such as generalized anxiety disorder (GAD), social phobia (SP) also known as social anxiety disorder, obsessive-compulsive disorder (OCD), and panic disorder (PD), post-traumatic stress disorder (PTSD), body dysmorphic disorder (BDD), eating disorders like anorexia nervosa and bulimia nervosa, certain personality disorders such as borderline personality disorder (BPD), Neurological disorders such as attention-deficit hyperactivity disorder (ADHD), Parkinson's disease[5] as well aschronic painneuralgia or neuropathic pain, and fibromyalgiaheadache, or migrainesmoking cessationtourette syndrometrichotillomaniairritable bowel syndrome (IBS), interstitial cystitis(IC), nocturnal enuresis (NE), narcolepsyinsomniapathological crying and/or laughingchronic hiccupsciguatera poisoning, and as an adjunct in schizophrenia.


Almost immediately (and without any real investigation), May 21st, 2000, authorities announced that Mark Hughes had 'died of an accidental overdose after mixing alcohol with a "toxic level" of antidepressants. ' Scott Carrier, of the Los Angeles County Coroner's Office, later said final autopsy results found that Hughes had ingested a toxic combination of alcohol and Doxepin, an antidepressant he was taking to help him to sleep. His blood-alcohol level was measured at 0.21, more than 2 1/2 times the legal limit for driving.



http://www.nytimes.com/2000/08/12/business/binge-led-to-death-of-herbalife-founder.html

August 12th, 2000, it was reported in the New York Times that Mark Hughes:
  • had died after a 4 day drinking binge. 
  • smoked 6 or 8 corona cigars each day.
  • was being treated by a psycyhiatrist for chronic alcoholism.

Following Hughes sudden death, his personal attorney, Conrad Klein, assumed control of all his corporate fronts for racketeering activity including'Herbalife, The Herbalife Family Foundation' and 'The Mark Hughes Trust.'






The Herbalife racket continued to grow after Hughes death and in 2002, it was acquired for US$685 million by J.H. Whitney & Company and Golden Gate Capital, and the main front company was taken back to being private.


In April 2003, Michael O. Johnson joined'Herbalife' as CEO following a 17-year career with Disney (most recently as President of Walt Disney International). The irony of this is exquisite; for Michael Johnson was eminently well-qualified to run 'Herbalife.' He was, after all, highly experienced when it came to marketing repackaged, but unoriginal, fairy stories to a wide-eyed public.




On December 16, 2004, 'Herbalife'had an initial public offering on the New York Stock Exchange of 14,500,000 common shares at $14 per share. In order to perpetrate this new securities fraud, Michael Johnson and his criminal associates, simply declared Herbalife to have $1.3 billion of annual sales. Obviously, again without specifying what was the actual unlawful internal origin of all this apparently lawful external annual revenue. Incredibly, no regulator bothered to check what lurked behind this this fairy story.





The total value of the securities fraud rose to around US$7 billions when effectively valueless Herbalife shares were trading high. None of this would have been possible, if Hughes had lived, but (somewhat surprisingly) there doesn't ever seem to have been a rigorous independent investigation into whether he was murdered or pushed into suicide.

In order for Ms. Adler to understand-fully what's really been going on right under her nose, she's going to have to face the ego-destroying fact that she's been duped by a gang of essentially ridiculous quacks dressed up as philanthropic businessmen.


That said, Michael Johnson and his criminal associates, have been slightly more convincing performers than the outrageous Mark Hughes and his own criminal associates, even though they have all been playing exactly the same unoriginal roles in exactly the same game of make-believe.


 Ms. Adler is far from being alone in this personally-embarrassing situation. 

Mystic Michael Johnson (peddler of the'Herbalife' fairy story)
















After hanging out with the 'Herbalife'mob in Orlando Florida last week, even Mystic Meredith, was obliged suddenly to slash her 2015'Herbalife'earnings forecastby almost one third.
Her new prediction for 2015, is one quarter beneath that of Herbalife’s own figure published in November 2014.
According to Ms. AdlerHerbalife will earn $322 million in 2015, down from $503 million in 2014.  However, in 2016, she is predicting a smaller drop, to $309 million, but even these figures are still a financial fairy story, because in the world of quantifiable reality, it's looking increasingly likely that the big lie entitled 'Herbalife,' will not exist by the end of 2015.

Herbalife: Pyramid Scheme or Juggernaut? CEO Michael Johnson Fights Back

During the last 12 months, as 'Herbalfe's'monopoly of information has gradually been crumbling, effectively-valueless shares in this dissimulated racket, have plunged by 57%.


David Brear (copyright 2015)

Tim Sales; 'ARIIX', 'Herbalife (HLF)' and 'Scientology.'

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There's been more than just a strong whiff of 'Scientology' about'ARIIX'and'Herbalife.'

Two years ago, I posted an article entitled :

"Introducing Tim Sales: the "Herbalife'Lord Hee-Haw."



http://usanawatchdog.blogspot.fr/2011/07/top-usana-associates-leave-usana-for.html


Currently, Tim Sales is a shill for the'MLM income opportunity' cultic racket known as'ARIIX.'


However, whilst reading this updated version of the same article, readers are invited to bear in mind that Tim Sales has definitely been (and probably still is) a'Scientology' adherent. This begs some important questions:


  • What exactly has been the involvement of'Scientology' in 'MLM Income Opportunity'rackets?


  • Why is Tim Sales (a believer in the comic-book good versus evil  'Scientology' scenario) so interested in attacking persons challenging the authenticity of the negative versus positive 'Herbalife' fairy story?

In the past,'Herbalife' was linked to 'Scientology' in Europe, where it was observed that a significant number of  'Scientology' adherents had been persuaded to sign up for'Herbalife'in France, Germany Belgium and Luxemburg. 

Indeed, the not-unreasonable question began to be asked, 


  • Could 'Herbalife'be just another corporate front for'Scientology?'

Classically of a major cult, the self-appointed leadership of 'Scientology' has built a mystifying global labyrinth comprising many thousands of legally-registered profit, and non-profit, making corporate structures. These ever-shifting fronts have formed a giant rimless wheel of (apparently independent) spokes, but these have, in fact, all been joined together at the hub by the same controlling scenario. This classic perverted esoteric/hermetic system, has prevented, and/or diverted, investigation of'Scientology' and isolated its bosses from liability, for decades. During this period, the spokes have been used to feed cash, and intelligence, back to the hub.

Essentially, the above structural analysis, fits numerous'MLM income opportunity' cults.




http://www.info-sectes.org/entree/herbalife.htm

'Quel rapport entre Herbalife et la scientologie? "C'est un scientologue allemand, patron donateur sur la liste de l'International Association of Scientologists (IAS), qui donne les cours de vente Herbalife en Allemagne", affirme Jean Albert Fisch, du Cercle de défense de l'individu et de la famille (CDIF) de Luxembourg. "Quelques adeptes de l'église de scientologie contrôleraient une partie des réseaux de vente en France", écrit Le Monde en juillet 1993. La question vient même au Parlement luxembourgeois en avril 1993, lorsque le député John Schummer interpelle le ministre de la Santé sur la collusion entre démarcheurs d'Herbalife et la scientologie, car entre-temps la télévision allemande SAT 1, le 5 avril, a été bien plus explicite : un ex-adepte de l''église' explique comment on lui a conseillé l'usage d'Herbalife durant les cours Hubbard. D'ailleurs, "presque tous les autres scientologues en prenaient", affirme-t-il.

(Extrait du livre "Les Sectes en Belgique et au Luxembourg" par Alain Lallemand, journaliste au quotidien "Le Soir")


'What is the connection between Herbalife and Scientology? It's that a German Scientologist, listed as the main contributor to the International Association of Scientologists, teaches Herbalife recruits in Germany, confirmed Jean Albert Fisch of the Circle for the Defence of the Individual and Family ( a cult advice association) in Luxemburg. A few Scientology adherents control part of the (Herbalife) sales network in France, said 'Le Monde' in July 1993. A question even appeared in the Luxemburg parliament, when member, John Schummer, tackled the Minister of Health about the collusion between Herbalife and Scientology - whilst in the mean time, German television was far more explicit: a former Scientology adherent explained how the use of Herbalife products was advised during Hubbard educational courses. Virtually all other Scientologists take it (Herbalife), he affirmed.'

(Extract from 'Cults in Belgium and Luxemburg' by Alain Lallemand - a journalist at the Daliy paper, 'Le Soir.'

Typically, a commentator on CNBC sniggered in disbelief as he himself made the somewhat elementary observation that:

'If Herbalife is a fraud then so are many other MLM companies.' 

Over the years, various journalists have asked me:

'Are you seriously suggesting that the entire Direct Selling Industry is a fraud?'






Today, even in the light of the recent spectacular fall in the inflated market-price of effectively-valueless 'Herbalife' shares, many casual observers still find it impossible to accept that, for decades, a growing number of gangs of sanctimonious racketeers behind so-called 'MLM direct selling companies' ( 'Amway', 'NuSkin' , 'Herbalife', 'Xango', 'Forever Living Products', 'ARIIX,' etc.), have successfully dissimulated vast, blame-the victim, closed-market swindles and related advance fee frauds, simply by supplying endless-chains of constantly-churning, ill-informed recruits with banal, but grossly-over-priced (and, therefore, effectively-unsaleable) products, and/or services. This cleverly constructed big-lie, has enabled the same racketeers to launder billions of dollars of unlawful losing investment payments (made on the false-expectation of future reward) as 'lawful sales (based on value and demand).'

It beggars belief that (to date) no one from the mainstream media has had the courage, or gumption, to go the grinning bosses of any 'MLM income opportunity' racket, look them directly in the eye and calmly keep asking them the following, blindingly-obvious question:


  • What quantifiable evidence can you produce to prove that your alleged 'direct selling company's' so-called 'Multi-Level Marketing income opportunity' has actually generated any significant revenue other than that deriving unlawfully from its own constantly-churning, losing-participants?'



To the majority of 'MLM Income Opportunity/Prosperity Gospel' adherents, this Blog, 'MLM The American Dream Made Nightmare,' is usually seen as being a 'Negative Website.' To the significant minority of gung-ho 'MLM' core-adherents, my rational evidence-based analysis of 'MLM' (as the technical-sounding, made-up name for a cultic, blame-the-victim racket), has been systematically dismissed as the irrational ranting of an obsessed critic who doesn't know what he is talking about. However, to chronic 'MLM' fanatics, all free-thinking individuals and any quantifiable evidence challenging the authenticity of their delusional belief in 'future total financial freedom,' has been systematically categorised, condemned and excluded as absolutely evil.


David Steadson: The Unmasked 'Amway' Lord Hee-Haw



For years (as part of a wider, overall pattern of ongoing, major racketeering activity), the bosses of 'Amway' have sought to obstruct justice by hiding behind reality-inverting criminals who have steadfastly pretended moral and intellectual authority on the subject of 'MLM.'  Typically, of a cultic organized crime group, these provocative, de facto agents have posed as being independent of the leadership of 'Amway.' In reality, they have run various propaganda Websites and they have infiltrated countless other genuinely-independent Blogs and forums in a blatant attempt to disrupt free-debate and prevent 'Amway' victims from facing reality and complaining. This led me to label, David Steadson a.k.a. 'IBO Fight-Back', a.k.a. 'Insider', a.k.a. 'Icerat', etc. (the most-inflexible, and omnipresent, of these 'Amway' broadcasters): the Unmasked 'Amway' Lord Hee-Haw. At one time, this little shit with a psychology degree posted a lengthy 'Scientology'-style comic-book scenario on the Net. in which he described the 'Internet War' being prosecuted against 'Amway' by the members of an international anti-capitalist cult.

Mr. Steadson has also repeated a familiar, and deeply-mystifying, financial fairy story. In brief, he has insisted that:

 'MLM schemes' can't be pyramid schemes, because the minority of active 'MLM Distributors' sell 'MLM' products to the majority of inactive 'MLM Distributors' who, therefore, shouldn't be counted as 'MLM Distributors' at all - these are 'MLM' customers. 


I quickly began to thank Mr Steadson and to invite him to keep up his efforts, because each time he opens his mouth and recites one of his predictable 'Amway' Calling , 'Amway' Calling scripts, he is merely proving the validity of every word I have published on this Blog.

Despite a growing mountain of other evidence confirming the accuracy of my analysis, there are still many casual observers of the cult phenomenon who (apparently in defence of their egos) simply refuse to believe that unsuspecting individuals can be tricked into entering a counterfeit culture in which their existing perceptions of right and wrong are overturned and made absolute, or that apparently rational persons can suddenly abandon all reason and allow themselves to be abused and exploited by racketeers, whilst participating in the abuse and exploitation of others.



Veteran 'MLM Income Opportunity' schill, Dexter Yager (and spouse, Birdie), preaching the kitsch 'MLM Gospel of Prosperity' by posing as ordinary, ignorant poor humans: turned enlightened, multi-millionaire super-humans. 

For decades, self-styled 'Pastor' Dexter Yager  (a former beer salesman)was one of  the small group of racketeers who continue to steal billions of dollars annually by peddling a never-ending chain of 'Amway' hopefuls, exorbitantly-priced publications, recordings, tickets to meetings etc. , on the fraudulent pretext that these  'tools' contain vital secrets to 'buiding success' in 'MLM.'










The following is a transcript of a'motivational' tape entitled: ‘How to Handle Negative Websites’, produced and distributed by the ‘InterNet Services Corporation,’ an organization which was registered in the USA as a ‘privately-controlled limited-liability commercial company’ (apparently independent of ‘Amway’), but owned by Amway Diamond Distributor’,  Dexter Yager. 

(It is deeply-disturbing material like this which has produced, and maintained, the self-gratifying group-delusion controlling the personalities, and behaviour, of the most-inflexible 'Amway' fanatics):


‘I'm convinced more and more each day that this (‘Amway’) business was God's idea. What  I'm saying is God created this (‘Amway’) business so that we could pull families together and help people — and the Devil does not like that ! If you don't believe there's a Devil, go on the Internet  !  Man I'm telling you, there's a Devil ! The Devil does not like this (‘Amway’) business ! - He does not like the unity in this (Amway’) business ! All I want to say to you is:  guys, if I were the Devil and I saw a business that was keeping marriages together, where that men learned how to love their wife … they're taught from stage in Leadership sessions how to love their wife … where women are taught how to really integrate the marriage … the husband and wife relationship … where parents are taught how to bring up their children and encourage them to speak life and positive things into them so that those children have good healthy self-images and believe that they can really do anything that they put their minds to do .  If I saw a business that was responsible for holding those marriages and families together, and getting people out of debt, and learning how to treat people with dignity, respect and kindness … a business that gave people hope for freedom, hope for their financial future … that a person could not even succeed in this (‘Amway’) business without helping somebody else, and that the more people you help the more money you make… a business that teaches the principles of morals and ethics and integrity, that gives dignity to human life, that validates marriages an institution that should be reverenced that should not be put down or criticised or belittled .… If I saw a business that did all those things and so much more for humanity .… If I were the Devil, I'd hate it with a passion ! And I am convinced that not only does Satan hate the Church, I'm convinced with all my heart that Satan has good reason for hating this (‘Amway’) business. He has good reason for hating Dexter and Birdie and every Leader in their organisation. Satan hates this (‘Amway’) business with a passion, because this (‘Amway’) business stands for everything he hates ! And if you want to know whose behind those Websites, all I ask you is, who could it be… huh  ? … Could it be Satan ?

Pastor Mark Gorman 2001
_________________________________________________________________________________


Bill Ackman
 
                                                                    Robert FitzPatrick



Bearing all the above in mind, it becomes very easy to predict the us vs them reaction of the 'Herbalife' bosses to determined-challengers like Bill Ackman and Robert FitzPatrick.








The bosses of 'Herbalife'have also sought to obstruct justice by hiding behind a reality-inverting criminal, Tim Sales, who steadfastly pretends moral and intellectual authority on the subject of 'MLM.' Typically, of a cultic organized crime group, this provocative, de facto agent is posing as being independent of the leadership of 'Herbalife.' 








The ironically-named Mr. Sales (a former sailor), is yet another absurd, but nonetheless dangerous, 'MLM'shill - i.e. an extremely greedy, but otherwise-mediocre, fellow who has learnt how to dress-up in a suit and tie and play the unoriginal, and profitable, role of ordinary, ignorant poor man turned enlightened, millionaire superman. His recent propaganda broadcast (in which he first denigrates Bill Ackman as a wealthy Wall St. shark feeding off the poor and ignorant, then libels Robert FitzPatrick by describing him as a hate-filled, fake, pyramid scheme expert and arrogantly instructs the independent media not to take heed of him), is a blatant attempt to prevent 'Herbalife' victims from confronting reality and complaining. 

Mr. Sales repeated a familiar, and deeply-mystifying, financial fairy story. In brief, he insisted that:

 'MLM schemes' can't be pyramid schemes, because the minority of  active 'MLM Distributors' sell 'MLM' products to the majority of inactive 'MLM Distributors' who, therefore, shouldn't be counted as 'MLM Distributers' at all - these are 'MLM' customers. 

Self-evidently, this broadcast by the 'Herbalife' Lord Hee-Haw forms part of a wider, overall pattern of ongoing, major racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act 1970). 

Thank-you, and keep it up, Mr. Sales!

Each time you open your mouth and recite one of your predictable 'Herbalife' Calling, 'Herbalife' Calling scripts, you are merely proving the validity of every word I have published on this Blog!




David Brear (copyright 2015)

'Zinzino' is a lie, and Ørjan Sæle is its author.

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'The purpose of Newspeak was not only to provide a medium of expression for the world-view and mental habits proper to the devotees of Ingsoc, but to make all other modes of thought impossible. It was intended that when Newspeak had been adopted once and for all and Oldspeak forgotten, a heretical thought - that is, a thought diverging from the principles of Ingsoc - should be literally unthinkable, at least so far as thought is dependent on words. Its vocabulary was so constructed as to give exact and often very subtle expression to every meaning that a Party member could properly wish to express, while excluding all other meanings and also the possibility of arriving at them by indirect methods. This was done partly by the invention of new words, but chiefly by eliminating undesirable words and by stripping such words as remained of unorthodox meanings, and so far as possible of all secondary meanings whatever.'

Georges Orwell (Appendix to 'Nineteen Eighty-Four')





Fluent  'MLM Income Opportunity' jargon speaker, Wes Linden, demonstrates that: 
The purpose of 'MLM Income Opportunity' jargon is not only to provide a medium of expression for the unquestioning world-view and mental habits proper to the core-adherents of 'MLM'  groups, but to make all other critical and evaluative modes of thought impossible. It is intended that when 'MLM Income Opportunity'  jargon has been adopted once and for all and traditional language forgotten, a heretical thought - that is, a thought diverging from the 'positive' principles of  'MLM'  - should be literally unthinkable, at least so far as thought is dependent on words. Its vocabulary is so constructed as to give exact and often very subtle expression to every 'positive' meaning that an 'MLM Distributor' can properly wish to express, while excluding all other 'negativemeanings and also the possibility of arriving at them by indirect methods. This is done partly by the invention of new 'positive' words and phrases ( 'Zinzino', Herbalife', 'Amway', 'NuSkin', 'Xango', 'Network Marketing' , 'Multi-Level Marketing',  'Distributor' , 'Independent Business Owner,'), but chiefly by eliminating undesirable 'negative' words and phrases ('cult', 'totalitarian', 'fraud', 'pyramid scam', 'deception',  'brainwashing', 'victims', 'exploitation' , 'de facto slaves') and by stripping such words and phrases as remain of unorthodox meanings, and so far as possible of all secondary meanings whatever. 




http://hildeorjan.com/media/books-and-cds/

'90 DAYS TO WIN BY ØRJAN SAELE'

'90 Days to win, mlm prescription to cure a slow start, is a proven formula for winning in the MLM business. When a medical prescription is given by a doctor the key to the cure is to follow every detail of the prescription. Ørjan Saele indepth experience in MLM have shown that the key reason for failure is the wrong dosage. Either people do too little and never get leverage or they do too much and burn out. This book is to do the right thing at the right time for the right reasons so you can get the SUCCESS you deserve.'

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According to an exceptionally ill-written Wikipedia article:

Finn Ørjan Sæle (born 16 June 1975) is a Norwegian businessman, widely known for his role in MLM. He had the biggest downline in Scandinavia at the time it all collapsed.
He is author of the book 90 days to success which has been translated into Swedish and Finnish.
Finn Ørjan Sæle is the son of Christian conservative politician Anita Apelthun Sæle and newspaper editor Finn Jarle Sæle.
He is the founder and majority owner in Zinzino AB, another MLM company selling coffee by Rombouts/Malongo and functional food by Biaoactive Foods.

In reality, Ørjan Sæle, is yet another, essentially-absurd, blame-the-victim'MLM income opportunity' cultic racketeer (complete with a highly distracting trophy-wife). He has been pretendingmoral and intellectual authority whilst committing all manner of related-crimes - consumer fraud, securities fraud, advance fee fraud, obstruction of justice, etc. 



Ørjan Sæle, has foolishly extended his clandestine criminal activities to the USA. This leaves him (and his criminal associates) wide-open to prosecution under the US federal Racketeer Influenced and Corrupt Organizations Act, 1970. He's also been exploiting the innocent appearance of his young wife, Hilde. Together, the couple pretend to have discovered a secret knowledge which has enabled them to  transform from ordinary poor humans into multi-millionaire super-humans, and who are prepared to share this secret knowledge with anyone (for a price).





As part of an overall pattern of ongoing major racketeering activity, in order to prevent his victims from facing reality and complaining, Ørjan Sæle has been pretending association with the celebrated, family-owned Flemmish coffee company, Rombouts. Indeed, by fixing their price at an exorbitant level (rendering them effectively unsaleable on the open-market), Ørjan Sæle has been using Rombouts patent coffee products (which have not been available in traditional retail outlets in Scandinavia) as the means of laundering unlawful losing-investment payments into a classic dissimulated closed-market swindle a.k.a. pyramid scheme.



malongo1

'Zinzino'victims have, self-evidently been deceived into buying Rombouts patent coffee products at grossly-inflated prices (based on the false expectation of future reward, not as the result of a fully-informed free-choice based on value and demand). Anyone in Scandinavia can, in fact, order Rombouts patent coffee products online and, even after deducting delivery charges, the saving is enormous. Laughably,'Zinzino'has been offering Rombouts patent coffee machines at approximately 300 Euros  (i.e. a jaw-dropping 3X the average price which they have been commonly-retailed for in Belgium and France and 8X the discount retail price). The price of Rombouts patent coffee pods (i.e. doses), has been similarly multiplied by the'Zinzino'racketeers.








The 'Zinzino' racketeers have also been peddling their adherents exorbitantly-priced life-transforming 'nutrition'products which bear an alarming resemblance to those peddled by the'Herbalife' racketeers.




In simple terms, Ørjan Sæle has been peddling the unoriginal pseudo-economic fairy story that anyone can become financially free, simply through duplicating a proven system and purchasing a regular quota of products from his 'Zinzino' company whilst recruiting others to duplicate exactly the same system, etc. ad infinitum. Once inside the initial 'Zinzino'pyramid scam, a secondary advance fee frauds kicks in, and victims are then peddled a never-ending stream of effectively-valueless materials (publications, recordings, tickets to meetings, leads, lead generation systems) on the pretext that these are vital to achieving success.

Classically of an'MLM'racket, the secondary frauds have been run behind a mystifying labyrinth of (apparently independent) corporate structures, designed to prevent, and/or divert, investigation and isolate the bosses of the racket from liability.





Anyone claiming or implying that it is possible to receive an overall net profit from the operation of so-called 'Zinzino business,' has not been telling the truth, because (apart from the usual insignificant minority of grinning shills at the top of the pyramid) the so-called'Zinzino MLM income opportunity' has been hiding an effectively-100% overall loss/churn rate. 




Zinzino’s CEO, Dag Bergheim Pettersen, and the stock exchange bell.
Furthermore, in 2014, Ørjan Sæle and his criminal associates have conspired to commit securities fraud by selling effectively-valueless shares in a dissimulated criminal enterprise on the Scandinavian Nasdaq (a parallel, unregulated stock exchange). 

To date, what  Ørjan Sæle has been doing in plain sight, remains completely beyond the understanding of Scandinavian trade, and financial, regulators and law enforcement agents. These dunces with diplomas evidently haven't yet considered the fact that Ørjan Sæle (just like Charles Ponzi and Bernie Madoff) has been living in a typical narcissistic fantasy, and that his grandiose delusions have been contagious.





Ørjan Sæle, is undoubtedly suffering from severe and inflexible Narcissistic Personality Disorder.

‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.

Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):
  •       has a grandiose sense of self-importance.
  •       is preoccupied with fantasies of unlimited success, power, brilliance,             beauty, ideal love, etc.
  •       believes that he/she is special and unique and can only be understood by       other special people.
  •       requires excessive admiration.
  •       strong sense of self-entitlement.
  •       takes advantage of others to achieve his/her own ends.
  •       lacks empathy.
  •       is often envious or believes that others are envious of him/her.
  •       arrogant disposition.
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What Ørjan Sæle has been doing is neither original nor unique and, consequently, it cannot be fully-understood in isolation: 

  • How many victims have wasted their time and money in 'Multi-Level Marketing' scams?


  • Why do so few 'MLM' victims ever complain?


The short answer to these frequently-asked questions, is that the overwhelming majority of all the countless millions of victims who continue to get burned by individual 'MLM Income Opportunity/Prosperity Gospel' cults, will remain silent and continue (unconsciously) to form part of the overall lie: whilst, as a direct result of the passivity of the overwhelming majority of the victims, all casual observers of individual 'MLM income opportunity/Prosperity Gospel' cults (including, law enforcement agents, regulators, academics, legislators, judges, journalists, insurers, bankers, accountants, associated celebrities, etc.) will also remain passive and continue (unconsciously) to form part of the overall lie.

Today, it is very difficult to determine exactly how many people in total around the world have already been churned through the pay-through-the-nose-to-play 'MLM Income Opportunity/Prosperity Gospel' cultic game of make-believe, since it was first peddled as reality under the name of 'Nutrilite Inc. / Mytinger and Casselberry Inc.' back in the late 1940s. It is also important to distinguish between short-term and chronic 'MLM' losing-players. In general, the overwhelming majority of fraud victims never complain, but, right from the outset, the self-perpetuating 'MLM' lie was maliciously designed to implicate its victims - loading them with shame and guilt, and, thus, prevent them from ever facing reality. Classically, the quantifiable evidence proves that, without exception, chronic 'MLM' losing-players have been subjected to co-ordinated devious techniques of social, and psychological, persuasion designed to shut down their critical, and evaluative, faculties. In this way, they have been conditioned (unconsciously) to think of themselves, not as the victims of a cruel deception or as brainwashed cult adherents, but as 'Independent Business Owners' exercising free-will What has made external reality even more unacceptable, is the ego-destroying fact that a large proportion of 'MLM' victims were deceived by a close friend or relative (acting under the guided-delusion that 'MLM' has been of great benefit to its participants) and, in turn, these victims then deceived, or tried to deceive, their own close friends and relatives (acting under the same guided-delusion that 'MLM' has been of great benefit to its participants). The few, destitute, chronic former 'MLM' losing-players who have managed to recover fully their critical, and evaluative faculties, and who have filed well-informed civil lawsuits against the corporate fronts of 'MLM' cultic racketeers, have invariably been obliged to settle out of court. Although a number of isolated civil investigations, and successful prosecutions, have been pursued by the Federal Trade Commission against some smaller 'MLM' front-companies in the USA, no co-ordinated official effort has ever been made to face wider-reality and identify, let alone tackle, the overall criminogenic/cultic phenomenon that has lurked behind all the shielding layers of structural, and pseudo-economic/scientific, mystification, reality-inverting 'direct selling/commercial'  jargon and kitsch capitalist/Utopian/American Dream imagery.


For the benefit of the many new readers coming to this Blog, here (yet again) is a more detailed account of the absurd origins of blame the victim  'MLM Income Opportunity' cultic racketeering.


The original 'MLM income opportunity' racketeer, Carl F. Rehnborg (1887-1973), posing as a historically-important, visionary-scientist, autodidactic scholar and multi-millionaire, philanthropic businessman who helped thousands of people to start their own business.

The parallels between the 'Nutrilite' fairy story originally peddled as reality by Carl F. Rehnborg, and those fairy stories peddled by the instigators of countless other so-called 'MLM direct selling' companies, are quite remarkable. In brief, all 'MLM' racketeers have played the unoriginal role of ordinary men, turned super men - prepared to share their secret of unlimited health, wealth, happiness, freedom etc., with anyone (for a price). However, this is hardly surprising, because ‘Nutrilite Products Company Inc.’ was, after all, the prototype corporate-front for all subsequent 'Multi-Level Marketing Income Opportunity' rackets.


In the 1950s, 'Nutrilite' was a highly-controversial trademark owned by Carl F. Rehnborg a.k.a. 'Dr.' Rehnborg, a previously-penniless, American toothpaste-salesman (of German origin) who'd acquired a considerable fortune by reinventing himself as a historically-important, visionary-scientist, autodidactic scholar and philanthropic businessman. Lawyers from the US Food and Drug Administration Bureau of Enforcement, who successfully-challenged the authenticity of some of Rehnborg's many absurd lies in the federal courts during two decades, privately knew him to be nothing more than one of a trio of sinister quacks protected by an echelon of shyster attorneys, who’d combined, and updated, the medicine show and Ponzi-scheme to reflect the spirit of the age. However, Rehnborg was no ordinary charlatan. He almost certainly suffered from severe and inflexible Narcissistic Personality Disorder. 


Former penniless science-fiction author, turned multi-millionaire, cultic racketeer, L. Ron Hubbard, posing as a historically-important,visionary scientist and philanthropist who had discovered the secret of how ordinary humans can become healthy, wealthy happy and free super humans. Hubbard was also prepared to share this secret with anyone (for a price).
The Nutrilite Story
Tellingly, Rehnborg's own comic-book version of his life and achievements (set-down in various published documents, including a book signed by his son and heir, Sam Rehnborg), reads uncannily like the autobiography dreamt-up by 'Scientology' instigator, L. Ron Hubbard - a man who was once famously described as 'a combination of  Baron Münchausen and Adolf Hitler.'


Unfortunately, just as with the followers and casual observers of Hubbard, the only information made available to the followers and casual observers of Rehnborg, has been carefully controlled.


Carl F. Rehnborg, circa 1915.
Rehnborg, Circa 1927.

Thus, to date, the world has been led to believe that Rehnborg (who was born in 1887 in St. Pitersberge, Florida) :- 

- was a noted-child-prodigy who read voraciously and who amazed his teachers with his detailed knowledge of: philosophy, religion, history, politics, astronomy, mathematics, aerodynamics, chemistry and human rights. 

- was  fluent in many languages, including Chinese. 

- was not a believer, but he studied Christianity, making a boyhood pilgrimage to Palestine and Egypt.

- had a great passion in his teen-age years - the study of planet Earth, its population, its food reserves, and the 'technology of conservation of natural products, but his first love was always the science of nutrition. 

 - was, by the tender age of 27, already a 'doctor of chemistry' who had moved to Tianjin in China to work as an accountant for an American Oil company.

- ran a shipbuilding company, before becoming the representative of the 'American Dairy Company' and, eventually, the representative of 'Colgate Products Company' in Shanghai.

 - witnessed ‘mass-starvation’ in China, before surviving a ‘siege of Shanghai’ by supplementing his diet (and that of his starving friends) with an improvised, vitamin and mineral-enriched broth made from grasses, vegetables, powdered limestone, ground-up bones and rusty nails, etc.

- sailed across the Pacific (studying its many island-cultures on the way) and landed on the West Coast of the USA, where, despite having no money, he managed to establish a 'research laboratory’ in his modest loft-apartment on California’s Balboa Island.


- selflessly dedicated 6 years of his life (1927-1934) to develop a ‘Revolutionary New Food Supplement’ to save mankind from starvation, assisted only by his dutiful young wife, Edith.

- first naively tried to give his wonderful new formula away, but the cynical world wasn’t interested, so, in 1934, he reluctantly decided to create ‘California Vitamins Inc.’ 

- moved his flourishing  ‘Business’ to a ‘Manufacturing and Processing Facility’ in Buena Park, California, and created the ‘Nutrilite Products Company Inc.’ in 1939. 

- acting in association with a ‘Network Sponsoring Company’, ‘Mytinger and Casselberry Inc.’ (to whom he’d sold ‘Exclusive Nutrilite Distribution Rights’) created the ‘World’s First Multi-Level Marketing Scheme’

- had lived the American dream, starting from nothing to become an admired and respected millionaire through ‘Helping 15 thousands fellow Americans to build their own MLM Businesses.’ 


Carl F. Rehnborg  circa 1939

Exactly like L.Ron Hubbard, scant quantifiable evidence has been produced to prove that Rehnborg was qualified (let alone expert) in anything, other than lying to vulnerable people to get their money. There is even reason to doubt that Rehnborg (who apparently did once work for 'Colgate & Co') was in China in the exact period he claimed during, and after, WWI; whilst all the other exciting episodes in his various occidental and oriental odysseys are largely anecdotal. However, the truth about Rehnborg’s convoluted ‘Rags to Riches’ American fairy story is an entirely different matter.





In 1934, Rehnborg (aged 48) legally-registered ‘California Vitamins Inc.’allegedly to manufacture and distribute what he arbitrarily defined as 'the World’s First Multi-Mineral/Multivitamin Plant-Based Food Supplement - a Unique Combination of Vitamins and Minerals in a Special Base.’  At first, this so-called ‘Health Tonic’ was brewed up, and peddled as 'Vita-6'  a.k.a. 'Vitasol,' in insignificant quantities. Consequently, it was of no particular interest to regulators.






However, anyone with an ounce of common sense could immediately tell that Rehnborg’s ‘invention’ was just another essentially-inert potion (in the absurd tradition of the medicine show); a random mixture of cheaply-procured common substances with an expensive price tag. It had probably taken Rehnborg 6 hours to concoct, not 6 years.



Aerial View of Nutrilite Products Inc. Plant



By 1939, Rehnborg had spotted the existing term, 'Nutrilites' (probably in an old scientific magazine). So he legally-changed the name of his pay-to-play game of make-believe to the technical-sounding ‘Nutrilite Products Company Inc.’ and moved his quackery onto an almost unprecedented scale. Soon, Rehnborg was legally employing dozens of white-coated workers in purpose-built industrial buildings in Buena ParkCalifornia. He also acquired an alfalfa farm near to the city of Hemet in California's San Jacinto valley, but it is unclear exactly where he suddenly found all the necessary capital to pay for these impressive sites and their modern equipment. To his followers and casual observers, Rehnborg’s activity looked like any other lawful enterprise. His staff were ordinary honest folk, to whom the truth was also unthinkable.








At this time, Rehnborg rechristened his potion ‘Nutrilite Double X (‘XX’Supplement.’ He now proposed to offer it as two ‘complimentary products’ in one pack -  comprising little green bottles of bright red ‘Multivitamin Capsules’ and boxes of pale-coloured ‘Multi-Mineral Tblets.’ The product was deliberately designed to look modern and scientific (like a proprietary medicine), but, tellingly, the price was fixed at just less than $20 a box (the equivalent of several hundred dollars today). Rehnborg claimed that the ‘XX’ brand-name was derived from the Roman numeral representing twenty. It should have been read as ‘double cross;’ for when the former toothpaste salesman’s pricey wampum was routinely analysed by independent chemists working for the FDA, it was discovered that (although it contained essentially what it said on the labels and was quite harmless) ‘XX Supplement’ really did mostly comprise a random mixture of cheaply-procured, common substances in which vitamins and minerals naturally occur (dried vegetable extracts: alfalfa; parsley; watercress; yeast; etc.). FDA experts later estimated that XX Supplement’  cost no more than a few cents a pack to produce. Thus, FDA lawyers must have known that Rehnborg was, in fact, using authentic pharmaceutical equipment to mass-produce a precisely-measured, harmless placebo, but labelled as a ‘Health Tonic’ (a meaningless term), and peddling it at an exorbitant mark-up (certainly, more than 1000%). This crack-pot pseudo-scientific swindle, which was tantamount to a self-styled 'alchemist' stamping a valueless amalgam of base-metals, 'Pure Gold,and selling it for the price of pure gold, could have been quickly nipped in the bud, simply by charging Rehnborg with criminal fraud. Apparently, prosecutors never considered the possibility that they might be dealing with someone with severe psychological problems whose own inflexible delusions were contagious. Instead, at first, FDA lawyers felt obliged to take no action; reasoning that, by truthfully listing the banal ingredients, but avoiding making any specific therapeutic claims, on his packaging, Rehnborg had found a loophole in federal laws concerning criminal misbranding of medicines. As result, an up-dated version of an age-old fiction was permitted to be mass-marketed as fact to an unsuspecting public. Unfortunately, the lack of any rigorous, official challenge only brought its author more credibility. Not surprisingly, a host of copy-cat 'Unique Vitamin and Mineral Health-Tonic’ scams quickly sprang up.




As WWII drew to its close, ‘Nutrilite’ had lost its novelty, so Rehnborg (who was approaching 60) had teamed-up with two respectable-looking associates, Lee S. Mytinger and William S. Casselberry (later described by FDA officials as a ‘cemetery-plot salesman’ and a ‘psychologist’). The result was ‘Mytinger and Casselberry Inc.,’ a second corporate structure peddling ‘Exclusive Commission-Agency Rights’ to ‘Distribute XX Supplement’ using (what was first defined by the company’s owners as) a ‘New Business Model.’ In theory… you could try to sell ‘XX  Supplement’ to your social contacts for a small profit, but, if you wanted to make big money, you didn’t need to sell anything… you could buy a monthly quota of ‘XX Supplement’ yourself and sign-up your social contacts to do the same… your ‘Sponsored Recruits’ would then ‘Sponsor’ their own social contacts, etc., ‘compensation’ would automatically multiply in an infinitely-expanding geometric progression




‘Mytinger and Casselberry Inc.’ offered a mind-numbing contract’ in which the ‘company’ undertook to pay its ‘Independent Distributors’ an escalating ‘monthly commission’ on the totality of their escalating ‘Business Volume’(i.e. their own regular monthly purchasesfalsely defined as sales’, added to the regular monthly purchases, falsely defined as ‘sales’, of their ‘Sponsored Recruits’, and those of the recruits of their recruits, etc. etc. ad infinitum).




In reality, the new set-up was merely the original mystifying lie with a second mystifying chapter added, but to casual observers ‘Nutrilite Products Company Inc.’ appeared to be exclusively manufacturing for, and wholesaling ‘XX Supplement’ to, ‘Mytinger and Casselberry Inc.,’ whose commission agents, in turn, appeared to be retailing it to the public for a profit. Although ‘XX Supplement’ was presented as ‘Unique,’ it mostly comprised substances which could easily be bought at a fraction of their exorbitant, assembled fixed-price, in traditional retail outlets. The product was effectively-impossible to sell to the general public for a profit on the open market. Therefore, the overwhelming majority of its final customers were merely the non-salaried agents of the second corporate structure, which itself was the sole agent of the first corporate structure. In order for them to maintain the false hope that if they signed-up further contributing participants they would automatically become rich, the participants in this dissimulated money circulation game were obliged by its rules to keep handing-over a monthly payment to Mytinger and Casselberry, to be shared with Rehnborg. From all rational points of view (medical, economic, legal, etc.), ‘XX Supplement’ might have well not existed; for it was just a convenient means of laundering illegal payments in a closed-market swindle, or pyramid scheme,  based on the crack-pot, non-rational theory that endless-chain recruitment + endless payments by the recruits = endless profits for the recruits. New victims were supplied with a $49.50 ‘Business Kit’ (i.e. a large cardboard box stuffed with a month’s supply of ‘XX Supplement’ and a fat folder containing page after page of mind-numbing pseudo-economic/medical presentations and diagrams, and instructions in how to go about remembering, contacting and recruiting everyone they’d ever known during their lives). These presentations contained the concrete evidence which FDA lawyers could use to prosecute Rehnborg, Mytinger and Casselberry. Contributing participants were being instructed to smile, project excitement and enthusiasm, and to recite a precisely-worded script which proclaimed ‘Nutrilite XX Supplement’ to be ‘good value,’ because it could ‘cure or prevent,’ virtually any known human illness.


William W. Goodrich
William W. Goodrich
http://law.justia.com/cases/federal/district-courts/FSupp/87/650/2011431/

Even though it wasn’t his area of responsibility, FDA Legal Counsel (1939-1971), William W. Goodrich, was probably the first senior US law enforcement agent to deduce that the innocent baby that Rehnborg, Mytinger and Casselberry had baptised a ‘New Business Model’ (later to become known as: ‘Multi-Level Marketing’) was actually the same old delinquent previously known as a 'pyramid scam.’ Again, anyone with an ounce of common-sense could work out immediately that, since Rehnborg had been peddling medical alchemythe strong likelihood was that Mytinger and Casselberry were peddling economic alchemy. The sinister trio of quacks were obviously acting in association, but agents of the Food and Drug Administration and those of the Federal Trade Commission acted independently. At this time, anti-racketeering legislation did not yet exist in the USA. However, in the late 1940s, the rapidly-expanding ‘XX Supplement’ dossier was already in the hands of FTC lawyers. Apparently, prosecutors still never considered the possibility that they might be dealing with persons suffering from severe psychological problems and whose own inflexible delusions were contagious. Instead, they still felt obliged to take no action; this time reasoning that Mytinger and Casselberry appeared to have found a loophole in federal law prohibiting fraud. For even today, the fundamental identifying characteristic of all pyramid scams and Ponzi schemes, has not yet been accurately defined by legislators. As a result, another updated version of an age-old fiction was permitted to be mass-marketed as fact to an unsuspecting publicYet again, the lack of any rigorous official challenge only brought its authors more credibility. Not surprisingly, a host of copy-cat 'income opportunity' swindles (camouflaged by banal, but pricey, wampum) quickly sprang up.


By 1947, Rehnborg, Mytinger and Casselberry were steadfastly pretending  ‘15 000 Successful Distributorships in the USA,’ with ‘sales’ totalling ‘$500 000 dollars per month.’ They had also organised the production of a ‘Free’ booklet, ‘How to Get Well and Stay Well’, in which they further pretended that ‘Nutrilite Double X Supplement’ had ‘cured or greatly helped such common ailments’ as : ‘Low blood pressure, Ulcers, Mental depression, Pyorrhoea, Muscular twitching, rickets, Worry over small things, Tonsillitis, Hay Fever, Sensitivity to noise, Underweight, Easily tired, Gas in stomach, Cuts heal slowly, Faulty vision, Headache, Constipation, Anaemia Boils, Flabby tissues, Hysterical tendency, Eczema, Overweight, Faulty memory, Lack of ambition, Certain Bone conditions, Nervousness, Nosebleed, Insomnia, Allergies, Asthma, Restlessness, Bad skin colour, Poor appetite, Biliousness, Neuritis, Night blindness, Migraine, High blood pressure, Sinus trouble, Lack of concentration, Dental caries, Irregular heartbeat, Colitis, Craving for sour foods, Arthritis, Rheumatism, Neuralgia, Deafness, Subject to colds.’



Carl.F. Rehnborg circa 1947

Rhenborg now cast himself in the role of ‘Scientific Adviser’ to ‘Mytinger and Casselberry Inc.’ He toured the USA preaching the gospel to wide-eyed ‘Distributors’ - ‘for less than $20 a month’‘Nutrilite Double X Supplement’ was the ‘Answer to Man’s Search for Health.’ After both companies’ owners were approached by FDA officials and warned that they could face criminal prosecution for misbranding, the booklet was ‘revised.’ Specific therapeutic claims were supposed to be eliminated. ‘All illnesses’ suddenly became a ‘state of nonhealth’ produced by ‘chemical imbalance’.… ‘Nutrilite XX Supplement’ cured nothing, it merely ‘enabled people to Get Well and stay Well’ by themselves. However, pages 41-52 of the booklet still recounted alleged case-histories explaining that ‘Nutrilite brought relief from such ailments as diabetes, feeble mindedness, stomach pains, sneezing and weeping.’ Not surprisingly, the FDA officials were not impressed, so they finally launched a number of raids, and seizures of ‘Nutrilite XX Supplement’ and associated publications.





In 1951, after a series of lawsuits, appeals and counter suits (in which Mytinger and Casselberry hired top lawyers who portrayed their clients as American capitalist heroes being crushed by Soviet-style bureaucracy), the FDA obtained (on behalf of the people) a permanent Supreme Court injunction against ‘Mytinger and Casselberry Inc.’ preventing Distributors’ from referring to 50 publications making false claims about ‘Health Tonics and Food Supplements’ (including various ‘Revised Editions’ of ‘How to Get Well and Stay Well). FDA agents soon found that the injunction was being flouted. As a result of mounting complaints, they infiltrated the organization (as potential recruits) and recorded deluded proselytisers chanting the same cure-all mantra about ‘XX Supplement.’ Faced with more litigation and fearing that their monopoly of information might be lost, in 1954, Rehnborg, Mytinger and Casselberry hired a leading advertising agency which handled the clean-cut Hollywood star, Alan Ladd. Along with his wife and children, Alan Ladd then briefly-featured in a kitsch 'Nutrilite' advertising campaign - published in various mainstream magazines right up until 1959.  





 

The charlatan-trio, 'Mytinger, Casselberry and Rehnborg,' also paid a team of Hollywood professionals to produce a 20 minute colour propaganda film, From the Ground up’ (featuring themselves as three nice ordinary American guys turned philanthropic scientists and industrialists), and they began to publish their own propaganda magazine, ‘Nutrilite News'’ (stuffed with colour photos of happy, healthy and wealthy ‘Distributors')


Amway Co-Founders Rich DeVos and Jay Van Andel (bottom row, second and third from the right, respectively) and their group of senior key agents pose with Nutrilite Founder Carl F. Rehnborg and his wife Edith Rehnborg, in front of their tour bus, 1956.
Richard DeVos and Jay Van Andel (2nd and 3rd from the right, front row), Carl F. Rehnborg (immediately behind Van Andel, second row), circa 1950.

Soon, the 'Nutrilite' show was touring the USA on a motor coach (like a 'Tent Revivalist' group).  Mytinger, Casselberry and Rehnborg had begun organizing pay-to-enter ‘Rallies and Seminars'’ (addressed by allegedly ‘Successful Christian Distributors’ like Rich De Vos and Jay Van Andel). No quantifiable evidence (in the form of audited accounts) was ever produced to prove what percentage of claimed ‘sales'’ were authentic retail transactions to the general public for a profit (based on value and demand), or how many people who’d signed a contract'’ with ‘Mytinger and Casselberry Inc.'’ had actually received an overall net-profit from the operation of what its instigators arbitrarily defined as an MLM income opportunity’. Excluding the tiny percentage of grinning shills at the top of the pyramid, the hidden, rolling insolvency/churn-rate was 100%. Since there was no significant or sustainable external revenue, participants were actually buying infinite shares in their own finite money. 


 Richard DeVos                                                    Jay Van Andel

Circa 1950
circa 1965

In 1959, when it seemed that ‘Mytinger and Casselberry/Nutrilite Products Inc.’ might finally be shut down (under the ‘Federal Food, Drug and Cosmetic Act 3381-3383’, rather than anti-fraud legislation) De Vos and Van Andel hid behind familiar, patriotic words and images stolen from contemporary popular culture. They created the ‘American Way Association’ - the first of what was to become a shoal of red, white and blue herrings.

Previously, the two up-and-coming charlatans, Mytinger and Casselberry, gravitated towards the established (but ageing) Rehnborg, and vice versa. Rehnborg seems to have reflected the pair's own narcissistic delusions as reality and behaved as though they were important businessmen/psychologists, whilst the pair treated him as though he really was an important and respected scientist/ philanthropic businessman. This was the point at which'Nutrilite Inc.' (a legally-registered, and industrialized, pseudo-scientific swindle), began to transform into a highly-organized, self-perpetuating, blame-the-victim 'Prosperity Gospel' cultic racket - tailor-made to fit the existing beliefs and instinctual desires of a broad range of people - peddling a perversion of the 'American Dream' whilst giving victims the illusion that they were making free choices. 

Evidently, US law enforcement agents never fully-understood that Rehnborg, Mytinger, Casselberry, DeVos, Van Andel and their close-associates, were dangerous manipulators who magnified each others' narcissistic delusions. The longer they went unchallenged: the more adherents they ensnared and the more-capital they acquired. The more capital they acquired: the easier it became to deceive more adherents and the more severe, and inflexible, their own delusions became. Sadly, and exactly like L. Ron Hubbard, the more convinced of their importance Rehnborg, Mytinger, Casselberry, DeVos and Van Andel became: the more convincing they became.



On September 6th 1949 (along with Michael Pacetti), two, clean-cut, hitherto-unremarkable USAAF veterans of Dutch Protestant origin, Richard DeVos (aged 23) and Jay Van Andel (aged 25), registered the ‘Ja-Ri Corporation.’ However, throughout the 1950s, this (apparently independent) company was the agent of both Nutrilite Products Company Inc.' and of  'Mytinger and Casselberry Inc.'

The two Pentacostalists, DeVos and Van Andel spent ten years perfecting their own sanctimonious 'MLM' act, before finally setting up a copy-cat 'income opportunity' racket.

 'Amway' frst operated as an affinity fraud targetting the flag-waving adherents of Evangelical Churches in the Bible Belt. Most early 'Amway' adherents were already trained to defer systematically to the moral and intellectual authority of their pastors - so De Vos and Van Andel simply dressed up, and behaved, exactly likerespectable Church pastors. They taught their male followers to duplicate their clean-cut example. Thus, alcohol, cigarettes and even beards were forbidden. Amway men had to wear a suit and tie, whilst Amway women were forbidden to wear pants or anything too sexy. Indeed, until relatively recently, 'Amway Network Leaders' were commonly referred to as 'Black Hats.'


The classic movie, 'Elmer Gantry' (released in 1960), was written and directed by Richard Brooks and is loosely-based on a novel of 1927 by the Nobel prize-winning author, Sinclair LewisIn the Movie, 'Gantry' (played by Burt Lancaster) is a grinning charlatan in a loud suit - a hard-drinking whore-chasing travelling-salesman, who, for sexual and financial motives, attaches himself to the beautiful 'Sister Sharon' (played by Jean Simmons), the focus of a profitable 'Tent Revivalist' group working the Bible-Belt during Prohibition (1920-1933). 'Elmer Gantry' keeps his grin, but he dons a sombre suit and black hat, and is reborn as 'Brother Gantry' 'Charismatic Preacher' and 'Moral Crusader'. He soon discovers that he has the power to create mass-hysteria, and reap tens of thousands of dollars, by manipulating individuals' existing beliefs and instinctual desires. At a key-moment in the movie, a Protestant Minister (bedazzled by 'Brother Gantry's' offer to fill his church coffers) abandons the traditional Christian message and proclaims: 'Business is business, that's the American Way'.


Perhaps it's just a coincidence, but at almost exactly the time that the 
American Way Association' 
first appeared, ‘Elmer Gantry' was playing to packed movie-theatres all over America.




Initially (and with an irony that is close to exquisite), in order to dodge being drawn into the ongoing FDA investigation of 'Nutrilite,' De Vos and Van Andel got rid of the pills and potions and now laundered all the unlawful investment payments into their copy-cat, dissimulated, closed-market swindle, behind the claim that they were selling a laundry detergent  (i.e. banal, but effectively-unsaleable, non-'medicinal' pseudo-scientific wampum of their own fabrication). Again, the updated snake oil stain remover was deliberately designed to look modern and scientific, whilst De Vos and Van Andel grinned from ear as they too steadfastly pretended that these strangely-familiar, cheaply-procured mixtures of common substances, were all-American, exclusive, good-value and unique.







The original 'Nutrilite' lie was progressively-absorbed back into the spin-off 'Amway' lie, 1972-1994, where it still is peddled as the truth.

Only after the 'MLM' virus had spread to almost every State of the Union, did the US Federal Trade Commission finally make a half-hearted attempt to close-down 'Amway.' After receiving a significant number of complaints,  FTC prosecutors, advised by specialist economists, recognised that what they were faced with, was not a direct selling scheme, but as a classic pyramid scam, without a significant or sustainable source of revenue other than its own victims, but hidden behind a smokescreen of products. However, after years of investigations and hearings, in 1979, a naive, and/or corrupt, federal judge ruled that although 'Amway' had previously been massively in breach of the law and would have to pay fines, the company would be allowed to continue to trade. This was because the judge accepted the latest unbelievable chapter of the 'MLM' fairy story. i.e. That 'Amway' s owners were respectable Christian businessmen who were vehemently opposed to  pyramid schemes and that, consequently, they had stopped fixing prices and introduced their own rules which would, henceforth, oblige the members of 'Amway's' sales force to sell at least 70% (by value) of the products which they had bought wholesale from the company, to at least 10 customers, before they could receive commission paymentsAmazingly, no independent, common-sense mechanism was created to ensure that this latest twist in the fairy story was true, and that 'Amway' would now be in compliance with the law.

Not surprisingly, this tragicomic judgement was seen as an open-invitation to thieve, and, consequently, a whole host of 'Amway' copy-cat 'MLM' rackets soon began to appear.   
More than 30 years later, the so-called 'Direct Selling Association,' is a demonstrable lie financed and controlled by the bosses of a classic, organized crime syndicate.


David Brear (copyright 2014)











'Zinzino' is yet another a 'Prosperity Gospel' cult disguised as a 'business'.

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 Finn Ørjan Sæle.




The unoriginal Scandinavian-based  'MLM Income Opportunity/ Prosperity Gospel'cultic racket known as'Zinzino,' was ostensibly instigated by an otherwise-mediocre, Norwegian narcissist, Finn Ørjan Sæle. 



Former jailbird and failed-businessman: turned 'MLM Multi-Millionaire,' Randy Gage

Ørjan Saele seems to have learnt his self-deluded act, almost word for word, from a notorious American'MLM'shill, Randy Gage, whom he encountered in his youth.






Randy Gage is yet another absurd loud-mouth who is fluent in'MLM' jargon. Following the classic ordinary poor little man turned mighty 'MLM' superman fairy story, Mr. Gage has variously boasted of being a once-penniless high-school drop out substance abuser who was briefly jailed for armed robbery, and who (aged 30) went bankrupt (for a second time) trying to open a restaurant, but who finally transformed into an 'Amway Diamond and multi-millionaire MLM motivational author and speaker.'




In reality, more than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Network,' or 'Multi-Level, Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, leads,' etc.).

'MLM'racketeer, Terje Duesund
'Zinzino' has not been Ørjan Saele's only corporate front for racketeering. Indeed,  Ørjan Saele and his criminal associate, Terje Duesund, have been leading members of a veritable Scandinavian 'MLM' Mafia. 


Terje Duesund has lately been the boss of'Lyoness Norway.' 



Ørjan Sæle andTerje Duesund also ran 'Nature's Own' (a.k.a. 'Natures of Scandinavia').



Claiming 600 000 adherents(i.e. more than 10% of the Norwegian population),'Nature's Own'was openly described in the Norwegian media as a pyramid scam. At first, Norwegian Government agencies (including the Justice Dept.) seemed to be taking a tough line against the counterfeit  'direct selling company', but strings were evidently pulled and what seemed to be just a case of mass-consumer fraud began to show all the classic signs of major ongoing racketeering activity.


Anita Apelthun Sæle

Former, Right-Wing Norwegian Member of Parliament, Anita Apelthun Saele (Christian Democrats - KrF) who just happens to be Ørjan Sæle's mother, was publicly accused of trying to influence Norwegian public prosecutors. Anita Apelthun Saele was even reported to have been directly involved in promoting 'Nature's Own,'but later she claimed only to have used the products


Finn Jarle Sæle

Ørjan's Sæle father, Finn Jarle Sæle - is an influential newspaper editor in Norway. 

Gudmund Restad

At the time'Nature's Own' came under investigation in Norway as a suspected pyramid scam, Norwegian Minister of Finance, Gudmund Restad, was reported to have had his three daughters involved in 'Nature's Own.'



Evidently not wanting to open this embarrassing can of Norwegian worms, an extensive investigation allegedly conducted by the Norwegian Ministry of Justice and Public Security, was apparently shelved by prosecutors with jurisdiction in the case. However, all the bad publicity surrounding the front company obliged its bosses to change their corporate camouflage to'Natures of Scandinavia.'The restyled front company was used to expand its bosses' criminal activities into the mobile phone market, offering adherents Internet subscriptions (in the false expectation of future reward) under the name 'PGOne'- a corporate structure which was later integrated into 'Ventelo'.





Now believing themselves to be above the law, Sæle and his criminal associates began to instigate a labyrinth of copy-cat rackets in Scandinavia and elsewhere, including 'Zinzino'which has lately been used to infiltrate financial markets in Sweden. However, 'Zinzino' has attracted more, unwelcome attention in Sweden, Finland and Estonia.



In Sweden, 'Zinzinotruthhttp://zinzinotruth.com/ has challenged the racket, but the bosses of'Zinzino'have already started to export their clandestine criminal activities to the USA.

Other rackets which Sæle and/or Duesund have been involved with have included: 

'Spinglo/Synkronice'
'SaferWaver' (targetting people who fear radiation), 
'Bewell' 
'DailyPoker' 

Many of the blame-the-victim rackets which have lately been the constituent parts of a cultic epidemic in Scandinavia, turn out to have been instigated and dissimulated by Sæleand/or Duesund, or persons who have been closely linked to them (like Peter Jakobsson in Sweden and Jimmy Larsen from Denmark). These rackets are neither original nor unique and, consequently, they cannot be fully-understood in isolation.


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'The Universal Identifying Characteristics of a Cult' (David Brear, Axiom Books):

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Apart from its use in the sense of ‘a popular fashion especially followed by a specific section of society’ or ‘a person or thing popularised in this way,’ the traditional definition of the English noun, cult (Latin cultus worship), has been ‘a system of religious worship (Latin religiosus obligation, bondage) especially as expressed in ritual,’ or ‘devotion or homage to a person or thing.’ However, the word is now also used as shorthand for what is more accurately described as a pernicious cult. This evolving, criminogenic phenomenon can be briefly described as: 

any self-perpetuating, non-rational/esoteric, ritual belief system established or perverted for the clandestine purpose of human exploitation.

Such groups are identified by the following, essential characteristics: 

 

1). Deception. Pernicious cults are presented externally as traditional associations. These can be arbitrarily defined by their instigators as almost any banal group (‘religious’, ‘cultural’, ‘political’, ‘commercial’, etc.). However, internally, they are always totalitarian (i.e. they are centrally-controlled and require of their core-adherents an absolute subservience to the group and its patriarchal, and/ or matriarchal, leadership above all other persons). By their very nature, pernicious cults never present themselves in their true colours. Consequently, no one ever becomes involved with one as a result of his/her fully-informed consent.

2). Self-appointed sovereign leadership. Pernicious cults are instigated and ruled by psychologically dominant individuals, and/or bodies of psychologically dominant individuals (often with impressive, made-up names, and/or ranks, and/or titles), who hold themselves accountable to no one. These individuals have severe and inflexible Narcissistic Personalities (i.e. they suffer from a chronic psychological disorder, especially when resulting in a grandiose sense of self-importance/ righteousness and the compulsion to take advantage of others and to control others’ views of, and behaviour towards, them).* They steadfastly pretend moral and intellectual authority whilst pursuing various, hidden, criminal objectives (fraudulent, and/or sexual, and/or violent, etc.). The admiration of their adherents only serves to confirm, and magnify, the leaders’ strong sense of self-entitlement and fantasies of unlimited success, power, brilliance, beautyideal love, etc.
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‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.

Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):
  •       has a grandiose sense of self-importance.
  •       is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
  •       believes that he/she is special and unique and can only be understood by other special people.
  •       requires excessive admiration.
  •       strong sense of self-entitlement.
  •       takes advantage of others to achieve his/her own ends.
  •       lacks empathy.
  •       is often envious or believes that others are envious of him/her.
  •       arrogant disposition.
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3). Manipulation. Pernicious cults employ co-ordinated, devious techniques of social and psychological persuasion (variously described as: ‘covert hypnosis’, ‘mental manipulation’, ‘coercive behaviour modification’, ‘group pressure’, ‘thought reform’, ‘ego destruction’, ‘mind control’, ‘brainwashing’, ‘neuro-linguistic programming’, ‘love bombing’, etc.). These techniques are designed to fulfil the hidden criminal objectives of the leaders by provoking in the adherents an infantile total dependence on the group to the detriment of themselves and of their existing family, and/or other, relationships. Pernicious cults manipulate their adherents’ existing beliefs and instinctual desires, creating the illusion that they are exercising free will. In this way, adherents can also be surreptitiously coerced into following potentially harmful, physical procedures (sleep deprivation, protein restriction, repetitive chanting/ moving, etc.) which are similarly designed to facilitate the shutting down of an individual’s critical and evaluative faculties without his/ her fully-informed consent.

4). Radical changes of personality and behaviour. Pernicious cults can be of any size, duration and level of criminality. They comprise groups, and/or sub-groups, of previously diverse individuals bonded by their unconscious acceptance of the self-gratifying, but wholly imaginary, scenario that they alone represent a positive or protective force of purity and absolute righteousness derived from their leadership’s exclusive access to a superior or superhuman knowledge, and that they alone oppose a negative or adversarial force of impurity and absolute evil.Whilst this two-dimensional, or dualistic, narrative remains the adherents’ model of reality, they are, in effect, constrained to modify their individual personalities and behaviour accordingly.

5). Pseudo-scientific mystification. The instigators of pernicious cults seek to overwhelm their adherents emotionally and intellectually by pretending that progressive initiation into their own superior or superhuman knowledge (coupled with total belief in its authenticity and unconditional deference to the authority of its higher initiates) will defeat a negative or adversarial force of impurity and absolute evil, and lead to future, exclusive redemption in some form of secure Utopian existence. By making total belief a prerequisite of redemption,adherents are drawn into a closed-logic trap (i.e. failure to achieve redemption is solely the fault of the individual who didn’t believe totally). Cultic pseudo-science is always essentially the same hypnotic hocus-pocus, but it can be peddled in an infinite variety of forms and combinations (‘spiritual’, ‘medical’, ‘philosophical’, cosmological,’extraterrestrial’, ‘political’, ‘racial’, ‘mathematical’, ‘economic’, New-Age’, 'magical', etc.), often with impressive, made-up, technical-sounding names. It is tailored to fit the spirit of the times and to attract a broad range of persons, but especially those open to an exclusive offer of salvation (i.e. the: sick, dissatisfied, bereaved, vanquished, disillusioned, oppressed, lonely, insecure, aimless, etc.). However, at a moment of vulnerability, anyone (no matter what their: age, sex, nationality, state of mental/ physical health, level of education, etc.) can need to believe in a non-rational, cultic pseudo-science. Typically, obedient adherents are granted ego-inflating names, and/or ranks, and/or titles, whilst non-initiates are referred to using derogatory, dehumanizing terms. Although initiation can at first appear to be reasonable and benefits achievable, cultic pseudo-science gradually becomes evermore costly and mystifying. Ultimately, it is completely incomprehensible and its claimed benefits are never quantifiable. The self-righteous euphoria and relentless enthusiasm of cult proselytizers can be highly infectious and deeply misleading. They are invariably convinced that their own salvation also depends on saving others.

6). Monopoly of information. The leaders of  pernicious cults seek to control all information entering not only their adherents’ minds, but also that entering the minds of casual observers. This is achieved by constantly denigrating all external sources of information whilst constantly repeating the group’s reality-inverting key words and images, and/or by the physical isolation of adherents. Cults leaders systematically categorize, condemn and exclude as unenlightened, negative, impure, absolutely evil, etc. all free-thinking individuals and any quantifiable evidence challenging the authenticity of their imaginary scenarios of control. In this way, the minds of cult adherents can become converted to accept only what their leadership arbitrarily sanctions as enlightened, positive, pure, absolutely righteous, etc. Consequently, adherents habitually communicate amongst themselves using their group’s thought-stopping ritual jargon, and they find it difficult, if not impossible, to communicate with negative persons outside of their group whom they falsely believe to be not only doomed, but also to be a suppressive threat to redemption.


7). False justification. In pernicious cults, a core-group of adherents can be gradually dissociated from external reality and reformed into deployable agents, and/or de facto slaves, and/or expendable combatants, etc., furthering the hidden criminal objectives of their leaders, completely dependent on a collective paranoid delusion of absolute moral and intellectual supremacy fundamental to the maintenance of their individual self-esteem/identity and related psychological function. It becomes impossible for such fanatics to see humour in their situation or to feel pity for, or to empathise with, non-adherents. Their minds are programmed to interpret the manipulation, and/or cheating, and/or dispossession, and/or destruction, of inferior outsiders (particularly, those who challenge their group’s controlling scenario) as perfectly justifiable.

8). Structural mystification. The instigators of pernicious cults can continue to organize the creation, and/or dissolution, and/or subversion, of further (apparently independent) corporate structures pursuing lawful, and/or unlawful, activities in order to prevent, and/or divert, investigation and isolate themselves from liability. In this way, some cults survive all low-level challenges and spread like cancers enslaving the minds, and destroying the lives, of countless individuals in the process. At the same time, their leaders acquire absolute control over capital sums which place them alongside the most notorious racketeers in history. They operate behind ever-expanding, and changing, fronts of ‘limited-liability, commercial companies,’ and/or ‘non-profit-making associations,’ etc. Other than ‘religious /philosophical’ and ‘political’ movements and ‘secret societies,’  typical reality-inverting disguises for cultic crime are:

‘charity/ philanthropy’; ‘fund-raising’; ‘lobbying’ on topical issues (‘freedom’, ‘ethics’, ‘environment’, ‘human rights’, ‘women’s rights’, ‘child protection’, ‘law enforcement’, ‘social justice’, 'peace,' etc.); ‘publishing and media’; ‘education’; ‘academia’; ‘celebrity’; ‘patriotism’; ‘information technology’; ‘public relations’; ‘advertising’; ‘medicine’; ‘alternative medicine’; ‘nutrition’; ‘rehabilitation’; ‘manufacturing’; ‘retailing’; ‘direct selling/ marketing’; ‘multilevel marketing’; ‘network marketing’; ‘regulation’; ‘personal development’; ‘self-betterment’; ‘positive thinking’; ‘self-motivation’; ‘leadership training’; ‘life coaching’; ‘research and development’; ‘investment’; ‘real estate’; ‘sponsorship’; ‘bereavement/trauma counselling’; ‘addiction counselling’; ‘legal counselling’; ‘cult exit-counselling’; ‘financial consulting’; ‘management consulting’; ‘clubs’; etc. 

9). Chronic psychological deterioration symptoms. The long-term core-adherents of pernicious cults are psychotic (i.e. suffering from psychosis, a severe mental derangement, especially when resulting in delusions and loss of contact with external reality). Core-adherents who manage to break with their group and confront the ego-destroying reality that they’ve been systematically deceived and exploited, are invariably destitute and dissociated from all their previous social contacts. For many years afterwards, recovering former core-adherents can suffer from one, or more, of the following psychological problems (which are also generally indicative of the victims of abuse):

depression; overwhelming feelings (guilt, grief, shame, fear, anger, embarrassment, etc.); dependency/ inability to make decisions; retarded psychological/ intellectual development; suicidal thoughts; panic/ anxiety attacks; extreme identity confusion; Post-Traumatic Stress Disorder; insomnia/ nightmares; eating disorders; psychosomatic illness ( asthma, skin disorders, headaches, fatigue, etc.); sexual problems/ fear of forming intimate relationships; inability to trust; etc.

10). Repression of all dissent. The leaders of the most-destructive cults are megalomaniacal psychopaths (i.e. suffering from a chronic mental disorder, especially when resulting in paranoid delusions of grandeur and self-righteousness, and the compulsion to pursue grandiose objectives). The unconditional deference of their deluded adherents only serves to confirm, and magnify, the leaders’ own paranoid delusions. This type of cult leader maintains an absolute monopoly of information whilst perpetrating, and/or directing, evermore heinous crimes. They sustain their activities by the imposition of arbitrary contracts and codes (secrecydenunciation, confession,justice, punishment, etc.) within their groups, and by the use of humiliation, and/or intimidation, and/or calumny, and/or malicious prosecution (where they pose as victims), and/or sophism, and/or the infiltration of traditional culture, and/or corruption, and/or intelligence gathering and blackmail, and/or extortion, and/or physical isolation, and/or violence, and/or assassination, etc., to repress any internal or external dissent.


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A COMMON SENSE APPROACH TO CULTISM 

Who hasn’t heard about cults? The word, ‘cult,’ has been thrown around so often that most of us now take it for granted that we must know exactly what it means. To be honest, very few people have sought out sufficient background material to be able to form the lucid picture of cultism contained in the essential identifying characteristics presented in this booklet. Even the most-diligent news reports have tended to examine individual cultic groups in close-up, leaving the wider phenomenon either out of shot or out of focus. However, in recent years, it has become a matter of public record that, as a result of unprotected exposure to one of an ever-growing and evolving catalogue of apparently diverse and innocent groups, almost anyone can begin to exhibit remarkably uniform symptoms. In everyday terms, it is as though they’ve fallen head over heels in love. Although this initial euphoria is often short-lived, a significant minority will subsequently undergo a nightmarish transformation and recklessly dissipate all their mental, and/or physical, and/or financial, resources to the benefit of some hitherto unknown person(s), whom they continue to trust and follow no matter what suffering this entails. Only when enough victims of one of these latter-day ‘Pied-Pipers’ wind up in psychiatric hospitals or on mortuary slabs is the word, ‘cult,’ liberally applied by the popular press. It is then always revealed that there had been some timely attempt(s) to warn the authorities, but they couldn’t intervene, because, legalistically, cultism does not exist. That said, all cosmopolitan people readily accept that cults most-certainly do exist, but, due to the prevalent style of media coverage, we habitually think of them only as remote, and grotesque, freak-shows.

In my experience, if it is suggested that ‘we should all be on our guard against cultism, because it is actually much closer to us than we like to think,’ the average person is immediately convinced that such an idea is absurd. This instinctual reaction is usually accompanied by one, or more, of the following comments:
                                            
·     ‘Don’t worry, I wasn’t born yesterday, a cult couldn’t fool me or anyone in my family… only idiots and weaklings join cults.’

·     ‘In a free society everyone has the right to believe in what they want… if adults decide to hand over their time and money to some charismatic guru, it’s their own business.’


·     ‘One man’s cult is another man’s religion.’


·     ‘I suppose you’re including all the people who believe Elvis is still alive.’


·     ‘Unless they are being physically held as prisoners, adults always have a free-choice to walk away if they don’t like what’s happening to them.’


·     ‘Perhaps some cult members get harmed, but that’s their problem not mine.’


·     ‘Cults have been around for centuries, there’s nothing new to learn about them.’ etc.


Whilst these opinions can all seem valid to the ill-informed, the underlying facts prove them to be nothing more than ego-protecting self-deceptions, which completely miss the point. It’s easy to understand that ‘knowledge itself is power,’ but it’s altogether harder to accept that (by the same token) ignorance is vulnerability. Obviously, cults never announce themselves, but their many disguises continue to adapt to mirror the changing spirit of the times. Throughout the ages, a dangerous minority of mythomaniacs, charlatans and would-be demagogues have always been able to get their human prey to sail blindly into positions of subjection, by first bedazzling them with all manner of false beacons which seemed so welcoming and authentic that the majority of people could not have been expected to determine exactly what was lurking behind them. Even though most of us want to deny it, at a moment of weakness all of us can need to listen to the latest cultic voice of insanity; especially when it appeals to our existing beliefs and instinctual desires, and originates from the apparent face of reason. To casual observers, the phenomenon might seem to be a ridiculous anachronism, but cultism or occultism has survived the tide of history and continues to wreck countless lives, simply because its instigators keep updating the lyrics of their siren song. Totalitarianism itself is enduring, its camouflage is ephemeral.

Young children’s unconscious acceptance of ‘Santa Claus’ as total reality, stems from a fictitious scenario reflected as fact by the traditional culture in which they live. Up to a certain age, children are not equipped to challenge the model of reality offered to them by authoritarian figures within their family groups; particularly, their parents. Therefore, once children have been converted to a self-gratifying, non-rational belief in ‘Santa,’ the truth (that they are actually being deceived by the people whom they instinctively trust and follow) is unthinkable. The scenario can then be expanded to modify children’s behaviour — ‘Santa’ has magical powers… he can see and hear everything they do at all times… he will reward them for unquestioning belief and punish them for dissent. Only when they attain the necessary level of intellectual/psychological development, can children begin to use their critical and evaluative faculties and come to realise that ‘Santa’ is merely a game of make believe. If you think about it, what I’ve just described is the most elementary form of self-perpetuating, non-rational/esoteric, ritual belief system - perfectly tailored to fit infantile minds, and reliant on the maintenance of an absolute monopoly of information presented using a constant repetition of reality-inverting key words and images combined with pseudo-scientific mystification and closed-logic.


When analysed with the same level of intellectual rigour, many of the basic procedures and conditions required to establish cultic groups turn out not to be a mystery at all. They are revealed as only more-sophisticated versions of those which also propagate the benign ‘Santa’ deception. As such, they are frighteningly easy to replicate. However, the instigators of cults are anything but benign and, interestingly, many of their most-deluded subjects and convincing apologists turn out to be well-educated adults who have simply become incapable of facing the ego-destroying reality that they’ve been fooled by what is merely a game of make believe. No sane person would ever suggest trying to ban ‘Santa,’ and everyone lies to their children at some time to modify their behaviour, but consider the variety of destructive behaviour that an authoritarian adult (with hidden criminal objectives) could get dependent children to follow by exploiting their unconscious acceptance of the same imaginary, but nonetheless emotionally and intellectually overwhelming, narrative as total reality. The unpalatable truth is that, just by perverting the closed-logic rules of the game, anything - from theft by proxy to sexual, and/or violent, abuse - becomes possible.


Prior to publication, a number of people were given unfinished copies of this booklet to appraise. Although no reader could refute its content, the reactions of a minority were split into two groups; these were as different as chalk and cheese. Those who had already survived a direct personal experience of cultism devoured it. Others, who had never knowingly encountered the phenomenon, found the booklet less easy to digest; they generally described its tone as ‘alarmist.’ One man (a middle-aged, American academic) was sure that it had been written by a naïve soul who had suddenly discovered the world to be a cruel place, and who now wanted to shout about it. Several years ago, when I was naïve, I might have agreed with him. In fact, I now blush when I remember a conversation I once had with a senior citizen of the Czech republic (a survivor of rule by the ‘Nazi’ and ‘Soviet’ myths), in which I coolly dismissed his passionate contention that any country whose own citizens mistakenly believed themselves to be immune to totalitarianism, faced the greatest risk of from it. Today, in the light of a traumatic personal encounter in Europe with the large, American-based cultic group known as 'Amway,' I have come to understand that I could not have been more wrong. However, many of the crass opinions which cultism continues to attract are completely predictable, because, even as adults, we all instinctively want to shut out of our minds any information that disturbs our habitual model of the world. Sadly, anyone who searches for the truth about cultism, and who then speaks plainly, is forced to ask a lot of people to think the unthinkable; so I make no apologies for this.

Another man started to read the booklet and decided that it contained ‘intemperate language.’ He felt sure that it was  ‘going to be a sermon’ in which I would ‘attempt to impose ideas of morality’ on him. That opinion made me go back to my original text and remove any suggestion of preaching, because that’s the last thing I want to do. I don’t pretend to be perfect, and I fully recognise that morality is only what is generally regarded as an acceptable standard of behaviour by whatever culture we live in. I tried to base my investigation of cultism on quantifiable evidence, and my analysis on rules made by democratic institutions defining what is criminal, and/or unethical. I didn’t invent this evidence or write these rules, but I couldn’t escape the fact that cultism involves the subversion of traditional codes of morality. Like my wise Czech acquaintance, I have had the dubious privilege of witnessing for myself how unsuspecting individuals can be tricked into entering a counterfeit culture in which their existing perceptions of right and wrong are overturned and then made absolute. As a result, I now accept that apparently rational persons can suddenly abandon all reason and allow themselves to be systematically abused, exploited and even slaughtered whilst participating in the systematic abuse, exploitation and slaughter of others. In short, I am describing how it is possible to enslave any human being, but without the use of chains. This, in itself, is an ego-destroying reality which, self-evidently, many onlookers will wish to deny. However, when this reality is faced, at first it can become impossible to find appropriate words (other than expletives) to describe the results of cultism. Even presiding judges, in related cases, have felt it necessary to deliver verdicts using emotive terms such as ‘evil,’ ‘sinister,’ ‘depraved,’ ‘obnoxious,’ etc., to express publicly their own private outrage. Unfortunately, many other well-intentioned people have been, and continue to be, completely fooled by the seductive words and images shielding the instigators of cultism. The great paradox of the phenomenon is that persons under cultic influence will steadfastly claim to be absolutely righteous, even when all the quantifiable evidence proves their behaviour to be (at best) misguided, or (at worst) downright evil. Although they are demonstrably dissociated from external reality, cult adherents are always certain that they alone represent the ‘truth’ and they act accordingly.

In this booklet, I have tried to demystify cultism by using an accurate, deconstructed vocabulary to describe the phenomenon. As a result of my own extensive investigation, I am entirely satisfied that all groups exhibiting the essential characteristics given previously, are manifestations of the same problem. The historical evidence has led me to the inescapable conclusion that the only real differences between cults are the exact motives and mental state of their leaders, and the length of time they survive before they face a well-informed and determined challenge.

Cultism is a trap. Obviously, anyone who only examines the bait in a trap and who remains unaware of its true purpose, risks getting caught themselves. Just like a mousetrap, the basic design for the cultic trap has remained the same down the centuries even if the presentation of the bait has become evermore sophisticated. Sadly, many commentators have found it impossible - when faced with the apparently illogical results of cultism - to abandon their existing academic, and professional, disciplines, which are anchored in the logic of the traditional world. Consequently, their understanding has often been made impossible by misplaced objectivity. However, it must be remembered that a counterfeit banknote might be 99.9 % perfect, but the bit that is not makes all of it a fake. Similarly, in order to have any chance of understanding cultism, it must be approached from the apparently subjective point of view that its results are always the product of a contagious deception, the victims of which unconsciously accept fiction as fact. Only then, can the phenomenon be examined with genuine objectivity. Once this vital principle has been learned, the apparently authentic words and images reflected by persons under the influence of cultism - like those printed on counterfeit banknotes - are revealed as dangerous distractions. They should never be taken at face value and, therefore, I try to remind the reader of this at all times. Any commentator who repeats the reality-inverting shielding-terminology of any cultic group, but without detailed qualification (or heavy irony), demonstrates that he/she remains at a pitifully low-level of understanding.


In truth, if it wasn’t for its tragic consequences, then cultism would be nothing more than a sick joke. However, until an individual is confronted by a nightmarish change in the personality and behaviour of a loved-one, then they can never really appreciate the full horror of the phenomenon. I realised a long time ago that there are always some people who will never be able to accept what I describe, because, for them to do so, they would have to abandon too many self-deceptions supporting their own view of themselves. Like many others before me, a soul-destroying experience with members of my own family forced me to abandon most of mine. Then, through close contact with the survivors of various cults and my research into the deeper origins of ‘Nazism’ and the ‘New Global Terrorism,’ I came to the further, inescapable conclusion that it is actually impossible to exaggerate the potential menace posed by the creators of these counterfeit cultures, or their significance to the history and future of civilization. I then found great comfort in the opinions of some of my critics, because the people who first tried to warn the world of the horror lurking behind an apparently absurd, little gang of sanctimonious charlatans - calling themselves the ‘National Socialist German Workers Party’ and led by a hitherto unknown, German Army veteran playing the comic-book role of ordinary man turned superman - were also dismissed as ‘alarmists.’


Whilst it remains generally misunderstood, cultism will continue to be an unnecessary threat to the lives, liberty and happiness of all communities, families and individuals all over the world.



David Brear (copyright 2015)





Bahrain bans so-called 'Multi Level Marketing.'

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More than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Network'or 'Multi-Level Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs,' etc.).


In theory, Bahrain has banned all 'MLM Income Opportunity' cultic rackets, but in  practice, they are still operating there.







http://www.bna.bh/portal/en/news/654657

Hierarchical, network marketing banned
09 : 24 PM - 17/02/2015



















Manama, Feb. 17 (BNA) The Minister of Industry and Commerce today issued edict 2/2015, banning hierarchical and network marketing. Increasing consumers' complaints about such business practices have prompted the ministry to issue the ban.

"Hierarchical and network marketing flouts rules and regulations, particularly the law on consumer protection", said Consumer Protection Director Senan Ali Al-Jabery. The concept of hierarchical and network marketing consists in convincing a person to buy a product and then persuade others to purchase the item which allows the chain to expand. The first buyer obtains more commissions in case he integrates more members into his network and increases the volume of sales.

Al-Jabery said that some companies adopting such operations have been contacted and urged to correct their activities and adhere to the ministerial edict. The Bahrain Chamber of Commerce and Industry has also been approached to direct the trading sector to comply with the ban and instruct hotels and hall-renting companies not to allow meetings that promote these two marketing practices at their venues.

"The ministry has started taking administrative and legal measures to ensure compliance with the ban", Al-Jabery said, calling upon consumers to cooperate. In a statement today, he announced that the ministry will take the required procedures in cooperation with concerned bodies at the General Directorate of Anti-corruption and Economic and Electronic Security to stop such marketing practices. Violations can be reported via hotline 17007003, email Consumer_protection@moic.gov.bh or the ministry’s twitter and Instagram accounts.





A H N

BNA 1835 GMT 2015/02/17

60 'Herbalife' victims come forward in Hong Kong with losses of HK$ 50 millions.

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The following familiar article has appeared in 'The South China Morning Post (Hong Kong).' 
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Claudia Mo (left) and two of the 60 alleged victims of the scam. Photo: Sam Tsang
'Two women who claimed to be presidents of one of the world’s biggest nutrition and weight loss companies took more than HK$50 million in product orders before disappearing, the alleged scam victims said today.
Some 60 people said they had been duped by two women, surnamed Choi and Ng, who claimed to be presidents in the Hong Kong office of multilevel marketing company Herbalife.
Choi and Ng allegedly told the victims they could buy Herbalife products at a cheaper price from them directly on which they could make a resale profit of between 5 per cent and 10 per cent.
The victims said that initially they received the goods and made a profit, so they started to invest more money in the scheme. However, they said the two so-called presidents disappeared at the end of last month and they had been unable to find them.
One of the victims, who gave her surname as Tsang, said she had lost HK$2.6 million in the scheme. She said she had known one of the women for years and that she had approached her around two years ago to invest in the products.
“I believed she was a president of the company. Herbalife’s office had her photo,” Tsang said.
The victims said Herbalife had claimed the two women were only ordinary members of the organisation and were not on its staff.
Herbalife said it was “shocked” and appalled” to hear about the case. A spokesman said the memberships of the two women had been terminated, though it did not specify when.
“Herbalife takes any case of violation of the company’s rules of conduct by our independent members very seriously. Herbalife has a very strict ethics policy and code of conduct, which all our independent members are contractually bound to comply with,” the spokesman said, adding that he could not comment further due to an ongoing police investigation.
Civic Party legislator Claudia Mo Man-ching, who is assisting the victims, said Herbalife should shoulder some of the liability for the victims’ losses.
“Herbalife as a multinational company should take some responsibility. We are talking about business ethics ... You can’t just say some members had inappropriate practices and you have nothing to do with it,” she said.
Mo said the victims had reported the case to police and the commercial crime bureau is investigating.'
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Unfortunately, the author of the above article, Timmy Sung, completely failed to comprehend that the fake'direct selling'company known as 'Herbalife'has itself been the bait in a cultic trap, and only part of an ongoing criminogenic phenomenon of historic significance. Thus, Mr. Sung repeats thought-stopping 'MLM income opportunity' jargon without any detailed qualification or heavy irony.

Predictably, in response to victims coming forward, the bosses of the'Herbalife'cultic racket have yet again steadfastly pretended that they were totally unaware of, and are not at all responsible for, any criminal activity occurring within the ranks of their entirely 'ethical' organization. 
However, these carefully-scripted reality-inverting denials are clearly an attempt by US citizens to obstruct justice in China in order to continue to commit related-frauds on a global scale. As such, the 'Herbalife' bosses' misleading statements to the Chinese media (and to law enforcement agents) form part of an overall pattern of ongoing major racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970).

This age-old pattern has been followed all over the world for decades, and by literally hundreds of copy-cat 'MLM' mobs, but law enforcement agents, legislators, prosecutors, etc., never seem to cotton on to how it works (but then, certain law enforcement agents, prosecutors and legislators, have continued to be offered piles of stolen cash by'MLM' racketeers).

In reality, just like'Mafia' rackets, 'MLM' rackets have simply been hidden behind mystifying labyrinths of apparently independent corporate structures and individuals, so that their real bosses can isolate themselves from criminal liability.

Thus, once any intellectually-rigorous observer understands how this criminogenic system has functioned, the various 'MLM'front companies are revealed as having been luring countless millions of individuals into essentially the same thought-stopping trap, so that apparently independent individuals and companies can steal their time and money. For decades, whenever a significant number of 'MLM'victims have complained to the media, and/or law enforcement agencies,'MLM' bosses have followed their classic organized crime tactic, and thrown up their hands in  feigned horror whilst publicly-excommunicating the expendable  front-line thieves from their organizations. 

This truly evil system, has remained beyond the understanding of all casual observers, but particularly, beyond the understanding of its chronic victims - many of whom have sided with the billionaire racketeers who've been exploiting them: rather than face reality.


Herbalife Capitol

http://www.latimes.com/local/political/la-me-pc-herbalife-capitol-rally-20150218-story.html
Meanwhile, at virtually the same time as the latest chapter in the 'Herbalife' tragicomedy was unfolding in Hong Kong, a claque of deeply-deluded, uniformly-dressed'Herbalife' adherents turned up at the California State Capitol in Sacramento, and (without producing any quantifiable evidence) attempted to convince State legislators and law enforcement agents that the version of the unoriginal 'MLM' fairy story entitled 'Herbalife,' is entirely true.

It is to be hoped that California State officials had the gumption to take the names and addresses of all these de facto'Herbalife'slaves, so that checks can be made on their income-tax records. 

David Brear (copyright 2015)

'Herbalife (HLF)' : Shame on Pamela Jones Harbour!

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It is a matter of public record that, between 1973 and 2006, approximately one million UK and Irish citizens were churned through the US-based so-called 'MLM Income/Business Opportunity'known as 'Amway.'Effectively, all of these persons (including my own brother) failed to generate an overall net-profit from their so-called'Amway Businesses.' During the same period,'Amway UK Ltd.'never once declared a trading profit. Yet, behind all this apparently illogical, economically-suicidal activity, a parallel labyrinth of apparentlyindependentcorporate structures was used to collect an estimated billion dollars of unlawful profits which were secretly shipped to the USA. 





This mountain of stolen cash came from fraudulently peddling so-called 'business building tools' to the never-ending chain of ill-informed British and Irish 'Amway' recruits on the pretext that these exclusive good-value materials contained secrets vital to achieving 'Total Financial Freedom.'


Although numerous (senior and junior) British government officials were clearly informed (by me and others) as to how this monumental US-based cultic racket functioned, no effective-action has ever been taken by the British government to hold'Amway's' real bosses to account in the USA, and no attempt has ever been made by any agency of the British government, or of law enforcement, to warn the British public about 'Amway,' let alone about the wider, evolving criminogenic phenomenon of'MLM income opportunity'racketeering.







Yet, a few years back, a British government trade official (who headed the team of accountants tasked with investigating 'Amway UK Ltd.,'but not the advanced fee fraud which lurked behind it)  told me (in private) that he 'considered Amway and other US-based Direct Selling companies (offering the public so-called Multi-Level Marketing Income Opportunities in the UK), to be like the 2nd KKK dressed in a suit and tie.' He also told me that he'd discovered many of his senior colleagues were 'initially unwilling to accept this shocking analysis.' However, I told this unusually-frank civil servant that I had long-since formed the same conclusion.





This civil servant's silence was typical, in that he was constrained not to offer his real thoughts publicly, because British government officials are prevented (by a catch-all piece of legislation called the 'Companies Act') from disclosing their own personal views of any corporate structure(s) legally-registered in the UK. In other words, British government officials are forbidden to apply common-sense and warn the British public (their employers) about companies which they know damn-well to be fraudulent and dangerous, and which they wouldn't touch themselves with a barge pole. Similar blanket laws appertaining to commercial companies have been introduced all over the world. Thus, each time I have encountered government officials, I have asked them the following common-sense question:

What would be your personal reaction if a member of your own family, or a close friend came to you, and told you that he/she had signed up for a so-called 'MLM Income Opportunity?'

Predictably, the overwhelming majority of government officials have been incapable of giving me a straight answer. When pushed, some have become angry and indignant. That said, in certain countries (e.g. France and some Scandinavian states), there are other laws which make it a offence to refuse to go to the aid of a person, or persons, in danger. 


Bill Ackman

To date, Bill Ackman says he has invested many millions of dollars researching, investigating, challenging and warning the world about the so-called 'MLM Income Opportunity' entitled, 'Herbalife.' 

Currently, Mr. Ackman's public analysis of 'Herbalife,' is that it is an ultimately-valueless corporate structure fronting a 'criminal organization' run by 'predators' who have been using the 'big lie' (a 'totalitarian/ Nazi' propaganda tactic) to 'sell the American Dream' to millions of vulnerable persons. Mr. Ackman has been widely-described in the mainstream media as 'Herbalife's main critic.' He has also been savagely attacked by 'Herbalife's' reality-inverting propagandists.

I have to say that (slowly), Mr. Ackman (who is undoubtedly a courageous, and determined, man with a strong sense of traditional morality) is getting ever-closer to the extraordinary truth lurking behind the thought-stopping jargon of 'MLM,' but, despite his financial, and intellectual, investment, Mr. Ackman has (so far) not accepted publicly that 'Herbalife,' is neither original nor unique and that, consequently, it cannot be fully understood in isolation.

Mr. Ackman should perhaps also invoke the following piece of wisdom (contained in a poem by Tennyson):

'... a lie which is all a lie may be met and fought
with outright,
But a lie which is part a truth is a harder matter to
fight.'






Image result for pamela Jones harbour

                               Pamela Jones Harbour (b. 1959).

For a long time I've been saying that 'MLM income opportunity' racketeers have compiled their unlawful fortunes by knowing that you can fool some of the people all of the time and all of the people some of the time, but you can't fool all of the people all of the time (with the notable exception of the many greedy dunces with law diplomas temporarily holding down low paid jobs at the FTC).

Since October 2014, Pamela Jones Harbour (who truly is a legally-qualified, former, senior US federal regulator) has been part of the 'Herbalife'lie  - i.e. she is under contract to the 'Herbalife' racketeers. However, she's effectively been bought by an organized crime syndicate; because when 'Herbalife'falls, then the entire multi-billion dollar'MLM income opportunity'lie, will surely follow.

Let's be absolutely clear about this, I consider Ms. Jones Harbour's paid role in temporarily propping-up this reality-inverting cultic tragicomedy, to be not only shameful and criminal, but also a betrayal of everything, and everyone, she has ever claimed to stand for. That said, if Ms. Jones Harbour still sincerely believes that the continued peddling of any part of the demonstrably-pernicious'MLM Income Opportunity'fairy story, is in the interests of the people of the USA, then she's probably too stupid to be held to account.






A strong clue as to how Ms. Jones Harbour was approached, groomed and co-opted, is that she has claimed to be 'a Herbalife customer.' Indeed, Ms. Jones Harbour has been quoted as saying that she bought her first Formula 1 weight-loss shake powder (Herbalife’s best-selling product), from a family member at a meeting in 2004 just to be nice. She liked it, though, especially the Cookies ’n Cream flavor, and would occasionally mix up a shake for dinner after a long night at the FTC.

In a recent string of anonymous propaganda messages to this Blog (which I didn't post), I was informed that I have been silent on the subject of Pamela Jones Harbour, because:
  • 'she is a legal expert and I am not.'
  • 'she has thoroughly investigated Herbalife and decided that Herbalife is not a pyramid scheme.' 



  • 'she is a friend of Barack and Michelle Obama.'
  • 'she would never agree to work for a fraud.'


Yet, anyone with an ounce of common-sense ought to be able immediately to deduce that Ms. Jones Harbour has (and probably has had) a severe conflict of interest when it comes to examining how 'MLM income opportunity' racketeering actually functions. I personally would like to know exactly when she was approached by the'Herbalife'racketeers with the lucrative offer of employment (which she has lately-accepted), and exactly how much cash she stands to earn in total, if the 'Herbalife' lie manages to survive, because (based on this key-information) even Ms. Jones Harbour's previous activities at the FTC (2003-2009) should be called into question.


In the above video,'Herbalife'CEO, Michael Johnson, steadfastly pretends moral and intellectual authority. He is allowed to recite the 'Herbalife' fairy story whilst posing as an innocent victim of Bill Ackman's greed-fueled ignorance and lies. Predictably, Mr Johnson completely ignores the key-fact that many well-informed people (without any financial interest) accused 'Herbalife' of being a pyramid fraud and a cult, years before Bill Ackman ever appeared on the scene. Furthermore, Mr. Johnson's tightly-scripted performance also confirms my published wider-analysis that more than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Network,' or 'Multi-Level, Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, leads,' etc.).




Laughably, the bosses of the'Herbalife'racket have admitted thatthey have employed Ms. Jones Harbour to root out illegal and unethical practises occurring within their organization;  for on October 6th 2014, they began boasting that they had appointed a former FTC commissioner as their 'first senior vice president for global member compliance and privacy.' Obviously, this impressive-sounding post is a just a new chapter in the pernicious 'Herbalife'fairy story; for in the adult world of quantifiable reality, as part of an overall pattern of ongoing major racketeering activity, Michael Johnson and his criminal associates are now attempting to obstruct justice in the USA, in order to continue to commit fraud on a global scale, by pretending that they have created their own in-house police force - led by a real regulator.

In the weeks following the announcement that Ms. Jones Harbour was working for 'Herbalife,' it was reported that Bill Akman's attorney, David Klafter, had written to her, and told her that 

“Based on our extensive investigation over the past three years, we believe Herbalife operates the largest and best-managed pyramid scheme in the world,” 


http://nypost.com/2014/11/06/ackman-sends-warning-to-herbalifes-new-compliance-chief/

http://www.bloomberg.com/news/2014-10-08/herbalife-s-new-compliance-chief-comfortable-risking-neck.html

Mr. Klafter's statement is demonstrably-flawed, in that Mr. Ackman's team has (so far) only publicly acknowledged just one part of a ongoing criminogenic phenomenon of historical significance; for the 'Herbalife'racket is neither original nor unique and, consequently, it cannot be fully- understood in isolation.

Mr. Klafter invited Ms. Jones Harbour to meet with himself and Bill Ackman, but (so far) this meeting has not occurred.



David Brear (copyright 2015)



'Herbalife (HLF)' 10K - Once Upon Tme.

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Once upon a time, a handsome, but poor, young Prince called Mark Hughes dreamt of building an Empire called 'Herbalife' where he would be Emperor and where, under his benign rule, there would be endless health, wealth and freedom for all folks - so long as they just kept buying, and swallowing, his exclusive, magic economic, and medical, potions and recruiting others to do the same. Mark's potions could not only make fat folks thinner, and thin folks fatter, but they could also cure sick folks and protect them from all illness whilst transforming the deepest believers into millionaires.


Some very wicked and jealous people (called regulators and journalists), began to suspect that what Mark Hughes offered was far too good to be true, but Mark replied that he'd not been lying at all, it was only some of his naughty followers. From that day forward, Mark promised that he would make sure that everyone in the magic Empire called 'Herbalife, would only tell the truth.






Many years later (after Mark Hughes had died), lots more wicked and jealous people (this time, called critics and short sellers) again began to say that 'Herbalife' was far too good to be true; for another well-rehearsed ruler, called Michael Johnson, had come along and had again insisted that there would still be endless health, wealth and freedom for all folks - if they ignored all voices of doubt and just kept buying, and swallowing, 'Herbalife's' magic potions and recruiting eveyone they knew to do the same


Meanwhile back in the adult world of quantifiable reality, the 'Herbalife' racketeers have just been forced to admit to the US Securities and Exchange Commission that belief in their once profitable, self-perpetuating fairy story is rapidly diminishing all over the globe, and that almost everyone who has ever signed up for'Herbalife' has left the organization.





'Our results in 2014 reflect our ongoing transition to a more consumer-focused organization. 

Our transformation, which first began in 2008 and will continue through 2015, is creating a stronger, more consumer friendly Herbalife and one that is evolving and getting better every single day.

Critical to our transformation has been the focus of Herbalife and our members on daily consumption as well as our emphasis on bringing new sales leaders into a company in a more sustainable way than in the past. This more gradual path to becoming a sales leader is working. As all of the data show that these leaders are more productive and stay with Herbalife longer. 2014 saw record-breaking retention rates for our sales leaders. We achieved what we believe is an industry leading and impressive retention rate of 54.2%, that's up from 51.8% in 2013.

We are continuing to grow our customer base and have more customers in 2014 than any time in our 35-year history, and we reported record net sales for the year of $5 billion.'

When translated into plain English, in Michael Johnson's most-recent thought-stopping propaganda broadcast, he now pretends that most of 'Herbalife's' adherents (who were once all labelled 'Distributors'in the fairy story, but who are now all re-labelled 'Members'),were really only temporary 'customers' travelling through the magic Empire, and who never expected to make any money.Therefore, according to Michael Johnson: even though Mark Hughes' magic potions have never cured anyone of poverty or illness, no one was ever tricked in to buying them and, consequently, 'Herbalife' is not a lie.
  

Yet if you apply common sense and remove all the arbitrary thought-stopping definitions and confront the simple fact that virtually no one who has not been under contract to 'Herbalife' has been buying anything from this organization (based on value and demand), then you immediately realize what has really been occurring.

In this unoriginal cultic racket, a closed-market swindle has been dissimulated behind effectively-usaleable products, and the reality-inverting term'customer'has lately been hung round the necks of victims in order to obstruct investigation and continue to commit the same fraud.

This, in a nutshell, is the sustainable racket that US law enforcement agents and prosecutors ought to have been be addressing right from the outset of the'Herbalife' fairy story.


David Brear (copyright 2015)






'Herbalife (HLF)' The deceptive art of before-and-after pictures

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Mark's vision: Mark Hughes passed away in 2000, but his vision for changing people’s lives – helping people manage their weight, regain their health and find financial prosperity – continues to thrive. Are You Ready to design the life You were meant to Lead?  Call Tania at: (808)938-4951 or Message: bigislandnutrition@gmail.com My websites: http://herbal-nutrition.net/BigIslandNutrition -------------- Earn what Your Worth: http://workfromhomesystem.com/BigIslandNutrition #happylife #workfromhome




Once upon a time, a handsome, but poor, young Prince called Mark Hughes dreamt of building an Empire called 'Herbalife' where he would be Emperor and where, under his benign rule, there would be endless health, wealth and freedom for all folks - so long as they just kept buying, and swallowing, his exclusive, magic economic, and medical, potions and recruiting others to do the same. Mark's potions could not only make fat folks thinner, and thin folks fatter, but they could also cure sick folks and protect them from all illness whilst transforming the deepest believers into millionaires.


herbalife before and after Herbalife Products produce AMAZING RESULTS, please check it out: http://doherty.herbalhub.com/ or call TOLL FREE 877-573-8340. Start today and get your FREE Wellness Evaluation!


https://www.youtube.com/watch?v=WFW7rHcnAZQ
https://www.google.fr/search?q=herbalife+before+after&biw=1440&bih=809&source=lnms&tbm=isch&sa=X&ei=oGr1VL-qEdXsaKSwgJAM&sqi=2&ved=0CAYQ_AUoAQ

________________________________________________________________________

Meanwhile, back in the adult world of quantifiable reality.

http://www.bbc.com/news/blogs-magazine-monitor-31638187

Before and after shots
Before-and-after adverts, showing pictures of people who have lost weight or become fitter, feature in thousands of magazines. But how reliable are they, asks Justin Parkinson.
Wow, what a transformation. Two volunteers go from looking pale and unfit to tanned, toned and dynamic. Before and after photos show the benefits of a change in lifestyle - eating better, exercising more and, in many cases, taking dietary supplements to help the process along.
So how long did it take for the man and woman on the left to turn into those on the right?
Just under two hours.
They volunteered for photos taken as part of BBC Wales's Week In Week Out show investigation into sports supplements. The "regime" consisted of spray-tanning, 15 minutes of light exercise, improved posture and the introduction of more subtle lighting.
"I was amazed when I first saw the difference," says Joe, the male volunteer. "We hardly did anything in between. There was hardly any editing of the photos, either. It just goes to show what complete rubbish some of these adverts must be."
Physical self-improvement is a long-established business. During the 1940s, weightlifter Charles Atlas advertised his bodybuilding courses by describing himself as a the "97lb weakling who became 'the world's most perfectly developed man'". The pieces often featured stories of how skinny young men on beaches had followed his diktats for a short period, returned and successfully confronted bullies who had kicked sand in their faces.
These days, thousands of nutritional supplements are sold with the stated aim of helping people develop their bodies. The industry is worth more than £300m a year in the UK and, with concerns over obesity far higher than during the post-World War Two period, the global weight-loss industry is expected to be worth £220bn by 2017.
The basic formula remains the same. "If you're in charge of advertising diet products, body-building supplements or vitamins for a client you'd pretty much get fired if you didn't come up with at least one campaign featuring a before-and-after shot," says Peter Davies, director of the RMS public relations agency.
Under EU rules, claims about rapid weight loss or before-and-after photographs which state or imply a rate or amount of weight loss are prohibited, according to a Health Supplements Information Servicespokesman.
He adds that there is no specific prohibition against "before-and-after" pictures in relation to muscle gain, but using them to make a claim in relation to a product could be viewed as misleading. A protein product can only ever be marketed as providing the materials for muscle gain that is actually achieved through working out.
"One old trick clients used to try was to simply avoid the use of the words 'before' and 'after'," says Davies. "They'd simply print the pictures alongside each other with no text to lead the reader to assume they were 'before-and-after' images." However, the rules have tightened up, he adds, and "anything that misleads the punter will be pulled" by theAdvertising Standards Authority.
Could there even be an upside to before-and-after adverts?
"You could instantly see the volunteers' confidence growing after they were shown the 'after' pictures," says the photographer Antti Karppinen, who carried out the shoot for Week In Week Out. "They were surprised how much better they looked. It was a boost to them.


Copyright BBC 2015.

'Xoçai' - Fox News' Bill O'Reilly promoted an 'MLM Income Opportunity' racket.

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‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.

Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):
  •       has a grandiose sense of self-importance.
  •       is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
  •       believes that he/she is special and unique and can only be understood by other special people.
  •       requires excessive admiration.
  •       strong sense of self-entitlement.
  •       takes advantage of others to achieve his/her own ends.
  •       lacks empathy.
  •       is often envious or believes that others are envious of him/her.
  •       arrogant disposition.
___________________________________________________________________
William James 'Bill' O'Reilly (b. 1949)

Although he appears to be a comic-book character, Bill O'Reilly (Anchor of Fox News) really is a bombastic right-wing American television celebrity who, for decades, has pretended moral and intellectual authority by posing as a wise 'conservative Christian political commentator' - the fearless, honest champion of ordinary God-fearing American people and of the American way - selflessly-struggling to re-establish the truth and, thus, protect the US Constitution, in the face of a Godless Fifth-Column of left-wing liars, and propagandists, who are out to destroy the Land of the Free and the Home of the Brave.





Meanwhile, back in the adult world of quantifiable reality, Bill O'Reilly is notorious for bullying his guests, his subordinates or, indeed, anyone else who dares to challenge his deeply-self-righteous model of reality. One doesn't need to be medically-qualified to recognize that Bill O'Reilly has exhibited several of the diagnostic criteria of Severe and Inflexible Narcissistic Personality Disorder. 

Bear in mind, in the above videos, this is what Bill Reilly can be like at work, and when he knows that millions of people are watching him - so imagine what he might be like in private.




Bill O'Reilly is currently being widely-ridiculed after finally getting caught spinning a web of outrageous ego-inflating lies about himself. Classically, Bill O'Reilly's narcissistic fantasies have been ambiguously-worded and do contain some elements of the truth.





Recently, I was contacted by a couple of American journalists wanting my opinion of a so-called 'MLM Income Opportunity'called 'Xoçai.'The reason for their interest was that  'Xoçai'has been promoted on Fox News by none other than world-class liar, Bill O'Reilly. 



Three years ago, Bill O'Reilly steadfastly pretended to be drinking 'Xoçai' every day of his life.






Let's be perfectly clear about this, 'Xoçai'is yet another'Amway'copy-cat blame-the-victim 'Income Opportunity/ Prosperity Gospel'cultic racket; which means that Bill O'Reilly has got lots more explaining to do here.



More than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Network' or 'Multi-Level Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs,' etc.).


David Brear (Copyright 2015)

The 'New York Times' has failed to spot 'Herbalife (HLF)', but now looks at 'The Pigeon King.'

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http://www.nytimes.com/2015/03/05/magazine/the-pigeon-king-and-the-ponzi-scheme-that-shook-canada.html


Jon Mooallem

March 6th 2015, an extended article, written by Jon Mooallem and entitled 'Birdman (The Pigeon King and the Ponzi Scheme That Shook Canada),' appeared in the 'New York Times Magazine.' 







Some people (including myself) would say that the time for the 'New York Times' to have been looking at the so-called 'Pigeon King,'was years ago, not now; but then the same observation could have been made about the entire mainstream media's tardy, but loud, arrival on the scene of Bernie Madoff's crimes. 






One should never forget that, for decades (with a few notable exceptions), a flock of dunces with diplomas (i.e. mainstream journalists) casually reported Madoff's fictional perpetually-expanding 'Hedge Fund,'as though it was fact.





http://www.nytimes.com/2014/03/10/business/staking-1-billion-that-herbalife-will-fail-then-ackman-lobbying-to-bring-it-down.html?_r=0

More recently, three 'New York Times' journalists (Michael S. Schmidt, Eric Lipton and Alexandra Stevenson) not only failed to spot the 'Herbalife'racket, but they actually produced a jargon-laced article which repeated elements of the comic-book 'Herbalife'fiction asfact,and portrayed its criminal authors as victims.  


Arland Galbraith (b. 1947)






Jon Mooallem's recent piece sets out the tragicomic story of Arland Galbraith - a softly-spoken (failed) Canadian farmer and the self-styled'Pigeon King' - who, 12 months ago, was sentenced to more than 7 years prison for instigating, and running, a dissimulated closed-market swindle or 'Ponzi' scheme which stole C$ 42 millions from almost 1000 victims in 5 Canadian Provinces and 20 US States. Invariably dressed in dungaree overalls and flannel shirt, Galbraith pretended affinity with his victims - posing as an ordinary man on a mission to save struggling small farmers - just like himself. Unfortunately, Jon Mooallem did not clearly explain that, classically of a 'Ponzi' schemer, at first, Galbraith must have been fully-aware that he was lying, but as more and more victims fell for his ego-inflating, comic-book act: the more he fell for it himself. Mooallem's article does however, present sufficient evidence for readers to deduce that, in the end, Galbraith was undoubtedly dissociated from external reality.




http://www.betterfarming.com/online-news/15-million-lawsuit-threatens-pigeon-king%E2%80%99s-personal-wealth-961

Five years before he was jailed, Galbraith's counterfeit company,'Pigeon King International,' was bankrupted with outstanding liabilities totalling C$ 356 millions (in the form of worthless contracts held by Galbraith's victims, in which 'PKI'promised to keep buying pigeon chicks at a fixed price of C$ 50 each). At least 175 000 of the approximately 400 000 unwanted breeding pigeons and chicks, had to be gassed. Galbraith had spun a web of increasingly absurd lies to explain this infinite demand for pigeons. At one time, he claimed that Avian flu was about to destroy the world population of chickens, and that within 12 months, all supermarkets, and restaurants, in N. America and the rest of the world, would be desperate to buy pigeon meat.




Meanwhile, in the adult world of quantifiable reality, in order just to have honoured all his company's existing debts, Galbraith would have had to have deceived tens of thousands more victims into buying millions of breeding pigeons and producing millions more pigeon chicks against a fresh batch of worthless contracts, but this time totalling C$ 1.5 billion. Self-evidently, this rapidly multiplying madness wouldn't have stopped there, because in order to keep paying all 'PKI's' new debts, soon billions of new victims and pigeons, and trillions of dollars, would have been required .





A significant number of Galbraith's victims were members of N. America's Amish and Mennonite farming communities, whom he deliberately targeted, because he knew that they did not have ready access to the media and telephones, and that they would probably not file complaints. Galbraith also pretended moral authority by introducing 'Biblical'quotes into his act.

Behind a legally-registered corporate front, a smokescreen investment commodity and a labyrinth of thought-stopping commercial jargon and mathematical mystification, Galbraith's so-called income / business opportunity was actually based on converting ill-informed individuals to an absolute belief in the crack-pot, non-rational pseudo-economic theory that never-ending recruitment + never-ending payments by the recruits = never-ending profits for the recruits. In simple terms, just like Bernie Madoff and Charles Ponzi, Arland Galbraith was yet another (otherwise mediocre) economic Alchemist peddling bedazzled-individuals infinite shares of their own finite money. Right from the start, this obvious conclusion could easily have been arrived at, simply by applying common-sense and by asking Mr. Galbraith the right questions. e.g.:

What quantifiable evidence can you produce to prove that your alleged income opportunity has had a significant, and sustainable, source of revenue other than its own participants?

Mainly because Galbraith kept taking money from his new so-called 'growers', 'breeders' and 'investors'and paying out profits to his existing so-called 'growers', 'breeders'and 'investors,'for a long time, no one did apply common-sense, let alone ask the right questions. Thus, between 2001 and 2008, Galbraith was allowed to recite his economically-incestuous feathered fairy story without the slightest challenge from Canadian, or American, law enforcement agencies. This total lack of regulation only served to give his lies added credibility. To the average victim, the mere fact that Galbraith had been operating in plain sight for several years, convinced them that 'PKI' must be legitimate. Indeed, but for the determined intervention of an independent campaigner, Dave Thornton, the'Pigeon King' racket would have run much longer and possibly even still been running today. Dave Thornton first tried to draw the attention of law enforcement agents to Galbraith in 2007, but when his complaints were ignored, he began telling the truth about Galbraith in the street with a bull-horn. This led to an investigative article appearing in 'Better Farming' (a small independent magazine based in Ontario). However, law enforcement agencies still refused to take any action against Galbraith, who was now steadfastly pretending to be an innocent victim of a conspiracy of jealous liars led by Dave Thornton.





http://www.cbsnews.com/news/morley-safer-on-human-gullibility/

When some American State Attorney Generals recognized and blocked Galbraith's criminal enterprise, the mainstream media began to report and the'Pigeon King'racket finally fell apart. It then took another 2 years and 6 months, before Galbraith was charged with fraud, and 3 more years before he appeared in court. During his trial, Galbraith sacked his attorney and presented his own deeply-deluded defence. Essentially, he steadfastly pretended that he too was a poor victim who had lost his money in Pigeon King and that he was simply a honest businessman whose business had failed. It seems that Canadian prosecutors didn't, and still don't, have the slightest idea who, or what, they were actually confronted with. They were, in fact, confronted with a severe and inflexible Narcissistic Personality Disorder sufferer, whose grandiose (and eventually paranoid) ego-building fantasies had been contagious.

Even in the light of the court case, throughout his entire 'Birdman' article, Jon Mooallem (who specialises in writing about the relationship between humans and animals) falls into the classic trap of repeating Galbraith's thought-stopping jargon, by referring to his victims / adherents as 'breeders'and'investors.'




Dave Thornton is well-known for campaigning loudly against pyramid schemes and schemers in Canada, and this CBC programme (linked above), gives a very good idea of the important role he has previously played, and how shabbily he has been treated by the authorities. Perhaps the most disturbing aspect of Jon Mooallem's article is his own shabby treatment of Dave Thornton, whom (ironically) he portrays as an 'erratic, fixated and eccentric vigilante.'

Although Dave Thornton is an undoubted expert on pyramid fraud, he is a passionate, and highly-moral, man who has been driven to the point of despair by the morally, and intellectually, bankrupt attitude of the Canadian authorities to what he, and many others, have rightly identified as an ongoing criminogenic phenomenon of historic significance. In reality, Dave Thornton is an unsung hero who (over a period of many years) has selflessly acted in defence of his fellow citizens, simply because Canadian legislators, law enforcement agents and mainstream journalists have not been doing their jobs in respect of pyramid fraud. Indeed, Dave has discovered that a significant number of Canadian law enforcement agents have been deeply-involved in the promotion of pyramid frauds and that, consequently, this is a can of worms which few people wish to open. Dave Thornton has been the target of specious lawsuits and character assassination attempts, but Jon Mooallem's recent article thoughtlessly trivialised his efforts, and came close to ridiculing him.

Having said all that, I strongly recommend readers of 'MLM The American Dream Made Nightmare,' to take a look at Jon Mooallem's 'New York Times' article, because it is undoubtedly well-researched. However, I would also recommend that Jon Mooallem take a look at the wider-phenomenon of'MLM income opportunity'cultic racketeering. This might give him insight into what it is that Dave Thornton has been up against.


David Brear (copyright 2015)


The Wall St. Journal again fails to spot the 'Herbalife (HLF) / MLM' racket.

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More than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Network,' or 'Multi-Level, Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, leads,' etc.).

___________________________________________________________________

William Ackman, founder and chief executive of Pershing Square Capital Management LP, during a Bloomberg Television interview in January.
Bill Ackman

In yet another thought-stopping'MLM' jargon-laced mainstrem media article, Christopher M. Matthews of the Wall St. Journal, reports:
----------------------------------------------------------------------------------------------------------------------------------
'Federal prosecutors and the Federal Bureau of Investigation are probing potential manipulation of Herbalife Ltd. stock and have interviewed people hired by hedge-fund billionaire William Ackman, who has led a long-running campaign against the nutritional-products company, people familiar with the matter said.

Prosecutors in the Manhattan U.S. attorney’s office and New York field office of the FBI have conducted interviews and sent document requests in recent months in connection with the investigation, which is looking into whether people, including some hired by Mr. Ackman, made false statements about Herbalife’s business model to regulators and others in order to spur investigations into the company and lower its stock price, the people said. Mr. Ackman’s firm, Pershing Square Capital Management LP, has made a huge bet on Herbalife shares declining.

One of the people familiar with the matter said investigators are scrutinizing public statements and allegations relayed to regulators by the array of consultants and activists who have lobbied against Herbalife, as well as any connections or potential collaboration between those people and Pershing Square.

Neither Mr. Ackman nor Pershing Square has been served with a subpoena or been visited by FBI agents in connection with the probe, another person familiar with the matter said. The investigation could end with no charges being filed.'
_________________________________________________________________________________

The irony of Mr. Matthews' phrase:- 

'Prosecutors in the Manhattan U.S. attorney’s office and New York field office of the FBI have conducted interviews and sent document requests in recent months in connection with the investigation, which is looking into whether people, including some hired by Mr. Ackman, made false statements about Herbalife’s business model to regulators and others in order to spur investigations into the company and lower its stock price...' 

- is close to exquisite, because the thought-stopping jargon term,'Herbalife's business model,'is itself a false statement which has been repeated ad infinitum by the 'Herbalife'racketeers in order to commit all-manner of criminal acts - wire fraud, advance fee fraud, securities fraud, obstruction of justice, etc.



Well-informed readers will have deduced from this far-from-intellectually-rigorous WSJ article that the'Herbalife'racketeers are merely continuing to prove the validity of the old adage that: 

'He that first cries out stop thief, is often he that has stolen the treasure.'

Indeed, effectively-valueless'Herbalife'shares apparently recovered slightly, because of this WSJ article. Therefore, it is to be hoped that US law enforcement agents have been scrutinizing the accurate public statements which I have been making on the subject of blame the victim'MLM income opportunity' racketeering - statements which (in some cases) predate the intervention of Bill Ackman by more than 15 years, but particularly, these three articles (below) which I posted on the tragicomic subject of the WSJ and 'MLM'racketeering, exactly three years ago.

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The Chairman and CEO of 'Amway' have confessed to running a Ponzi scheme, but the 'Wall Street Journal's' finest has apparently not understood this

I previously stated that, in 1945, whilst most, contemporary mainstream commentators were unable to look beyond the ends of their noses, with a perfect sense of irony, George Orwell (1903-1950) presented fact as fiction in an insightful 'fairy story' entitled, 'Animal Farm.' He revealed that totalitarianism is merely the oppressors' fiction mistaken for fact by the oppressed. In the same universal allegory, Orwell described how, at a time of vulnerability, almost any people's dream of a future, secure, Utopian existence can be hung over the entrance to a totalitarian deception. Indeed, the words that are always banished by totalitarian deceivers are, 'totalitarian' and 'deception.' Sadly, when it comes to examining the same enduring phenomenon, albeit with an ephemeral 'American/Capitalist' label, most contemporary, mainstream commentators have again been unable to look further than the ends of their noses. However, if they followed Orwell's example, and did some serious thinking, this is the reality-inverting nightmare they would find.






Barry Chi and Holly Chen



As if to prove the validity of my statement, 'The Wall Street Journal' (owned by Rupert Murdoch's 'News Corporation') recently published an article and related video report


about 'Amway' in general, and Barry Chi and Holly Chen (alleged examples of ordinary humans, turned 'Amway' multi-millionaire superhumans) in particular. The article and video described a pay-through-the-nose-to-enter orgy of deluded self-gratification attended by 1100 unquestioning 'Amway' adherents in Las Vegas, but which was conducted in Mandarin Chinese to the glory of a citizen of Taiwan who spoke extensively about 'God' and who was addressed by the assembled multitude as 'Teacher' (the name which the Bible says was used to address Jesus by his Disciples).

Dennis K. Berman

In response, I contacted its author, Dennis K. Berman, by phone and then (at his request) I sent him an e-mail and attachments (February 16th, 2012), in which I gently invited him to look beyond the end of his nose and do some serious thinking:

Dennis

'The "Amway/MLM income opportunity" fraud, is perhaps the biggest self-perpetuating lie (by value) that any gang of latter-day cultic racketeers has ever peddled as the truth. Current estimates (based on"Amway's" own declared numbers of adherents and declared annual drop-out rates) reveal that more than 10 millions Americans have already been churned through "Amway"  alone, and more than 50 millions worldwide. When confronted by deluded "Amway/MLM" adherents steadfastly pretending to be earning money lawfully, it is always a good idea to look them in the eye and calmly ask them to produce quantifiable evidence (particularly, income-tax payment receipts). The critical and evaluative faculties of the most-fanatical, insolvent  "Amway" adherents do not function. They exhibit what psychologists describe as 'confirmation bias' (i.e. they will cling to any evidence, no matter how flimsy, which appears to confirm their model of reality). Such unquestioning persons are popularly referred to as Ambots. If you try to explain to Ambots that they haven't a hope of achieving their guided-Utopian dream of "total financial freedom,"  their bewildered, and often angry, reaction, is essentially identical to that of infants if you tell them that "Santa Claus" does not exist and that their parents are, therefore, liars.

I referred Dennis Berman to America's leading independent-authority on 'MLM income opportunity' fraud, Robert L. FitzPatrick http://pyramidschemealert.org/. Dennis Berman was also referred to previous, alarming US media coverage of the 'Amway' fraud:

Dennis Berman did not bother to reply, so I sent him the following e-mail:

I can well-appreciate why you have not yet replied to my previous e-mail; for I (above all people) know that journalists are very busy and that cultism can be a particularly demanding, and disturbing, phenomenon for anyone to try to understand.

However, I would still be fascinated to hear what you (a leading, American, financial journalist and joint-winner of a Pulitzer Prize) now really think about the absurd, but nonetheless pernicious, cultic organization which has been generally referred to as the 'Amway' Corporation,' and which you featured in your recent article in the WSJ.

Sadly, the mere fact that 'Amway/MLM' was covered in the WSJ (even if this wasn't an entirely-flattering portrait), is a major propaganda victory, because 'Amway/MLM'  is not, never has been and never will be, a 'business,' in the traditional sense of the word.

'Amway/MLM' is, without a doubt, the reality-inverting title over the entrance to one of the most-sinister, blame-the-victim, cultic control-frauds operating in the world today. This type of organized crime is neither original nor unique. It is always designed to shut-down the critical, and evaluative, faculties of not just its victims, but also those of all casual observers (including journalists, law enforcement agents and legislators). Indeed, in my experience, the more-highly educated a casual observer of cultism is, the less-likely he/she is to want to admit that he/she can be fooled by it.

The secret of understanding how any pernicious cultic group functions, is to make a conscious effort to put your ego/self-esteem to one side, then look beyond the group's Orwellian camouflage, and always describe what you find, using accurate, deconstructed language.

Dennis Berman finally sent me the following question (in large blue type):

Thanks for your note.

A quick question for you…

If you could ask questions of Amway’s chairman and CEO, what would they be?

In response, I sent Dennis Berman the following e-mail:
I think that you must realize that this is essentially the same as asking me:
If you could have asked questions of Charles Ponzi, and/or Bernie Madoff (during the fat years prior to their dramatic downfalls), what would they have been?

I'm sure you will agree that the most-fundamental identifying-criteria of all Ponzi schemes, pyramid scams, money circulation schemes, etc; is that they are all 'dissimulated closed-market swindles,' in which victims are lured (by their own instinctual desires) and fooled (by various strategies designed to shut down their critical, and evaluative, faculties) into buying infinite shares of their own finite money.

The simplest way to explain this age-old con, is to imagine 100 wide-eyed children being persuaded by a psychologically-dominant adult to place one dollar each on a table on the pretext that they can magically all have more money than they started with. Sadly, unless the recipient really does possess super-human powers, then, if the resulting 100 dollars is divided up honestly, the most that each infant contributor can hope to receive in return, is only what he/she started with.

Bearing this fully-deconstructed explanation in mind, the obvious questions that would have exposed Ponzi and Madoff as manipulative crooks, they would have simply refused to answer, probably whilst attempting to make the questioner feel guilty, or foolish, for asking them.

e.g. You could have asked Madoff:

Excluding all your own company's documentation, and that issued to its alleged 'successful investors,' what quantifiable evidence can you produce proving that your company's alleged 'permanently profitable hedge fund' has actually had any significant external source of revenue other than its own alleged 'successful investors?'

Whilst you could have asked Ponzi:

Excluding all your own company's documentation, and that issued to its alleged 'successful investors,' what quantifiable evidence can you produce proving that your company's alleged 'permanently profitable system of trading international postal coupons' has actually had any significant external source of revenue other than its own alleged 'successful investors?' 

Thus, essentially the same killer question (that the real 'Amway' bosses will simply refuse to answer, probably whilst attempting to make the questioner feel guilty, or foolish, for asking.), concerns the overall total number of alleged 'successful Amway business owners' who have actually been churned through the alleged 'permanently profitable Amway/MLM income opportunity' since its instigation in 1959, and the percentage of these many millions of persons who have managed to show an overall net-profit from the operation of their alleged 'Amway businesses.' 

In the most simple terms: 

Exactly how many people have signed up for 'Amway' overall and exactly how many overall have got back more than they paid in?

Thus, another killer question is: 

Out of all the alleged 'multi-billion dollar Amway sales around the world,' exactly what percentage have been authentic, external, retail transactions to members of the public for a profit, rather than internal transactions between the various 'Amway's' companies and the millions of alleged 'Amway business owners,' but which have been vaguely described as 'sales' in order to dissimulate the operation of a closed-market swindle from which the ill-informed ordinary contributors cannot have hoped to receive any more money than they paid in?

Thus,  the ultimate killer question to ask the 'Amway' bosses is:

Excluding all your own corporation's  documentation, and that issued to its alleged 'successful distributors,' what quantifiable evidence can you produce proving that your corporation's alleged'permanently profitable multi-Level Marketing income opportunity' has actually had any significant external source of revenue other than its own alleged 'successful distributors?' 

Being a practical sort of a guy, what I don't understand, is why on Earth weren't these obvious questions put to 'Amway's' bosses by law enforcement agents in the past, but then why on Earth weren't they put to Charles Ponzi and Bernie Madoff?




Dennis Berman again did not bother to reply to me. Without informing me, three days later, he conducted this thoughtless, 30 minute interview http://online.wsj.com/video/the-big-interview-questioning-the-amway-way/FE12F29C-D022-42B8-8ACD-16A114E0DA96.html in which, not only did he fail to ask Messrs. DeVos and Van Andel the above questions, but he actually behaved like a grinning stooge feeding scripted gag-lines to two grinning comedians. At no time did Dennis Berman challenge any unsubstantiated statement made by Messrs. DeVos and VanAndel whom he kept addressing as'you guys.' 

After approximately 14 minutes of sycophancy, Dennis Berman asked the 'Amway' bosses what percentage of their '$10.8 billion annual sales' are to the general public? He was first told that according to 'Amway's' own estimates, 50%, but in almost the same breath, this 50% figure was quickly qualified as referring to 'customers and end-users.'  However, again almost in the same breath, the'Amway' bosses made the absurd claim that 100% of 'Amway sales are to customers and end-users, because Amway distributors are all customers and end users.' Given the fact that Dennis Berman had access to a perfect deconstruction of how the so-called 'Amway income opportunity' has been a closed-market swindle in which unlawful payments have been laundered as 'sales,' this WSJ interview would appear to be a sham designed to cover-up ongoing major racketeering activity. The video is now all over the Net, and the WSJ is being used to make it appear that the so-called 'Amway business opportunity' might have had some legal problems, but is now legitimate.

During the interview, and in his previous WSJ article, Dennis Berman made passing reference to the fact that attorneys acting for 'Amway' are currently in the process of settling a class-action lawsuit in California, but he completely failed to mention that this lawsuit was filed by Boies Flexner and Schiller LLP under the Racketeer Influenced and Corrupt Organizations Act, 1970, or that it essentially accused the 'Amway' corporation of being the front for a Ponzi scheme (dissimulated as an 'MLM income opportunity') and related advance fee frauds (dissimulated as the sale of 'Business Support Materials' or 'Tools'). Dennis Berman did, however, briefly mention that, last year, 'Amway's' attorneys offered to pay the equivalent of $155 millions to stop this California case from going to trial. I am reliably informed that a new, agreed-settlement is about to be made public within the next few weeks. 

Dennis Berman seemed to be completely unaware that, in order to avoid closure (after a protracted US Federal Trade Commission investigation) the 'Amway' bosses introduced a fake 'rule' which appeared, to casual observers, to require that 70% of all purchases by 'Amway sales people' be resold to at least 10 retail customers before 'Amway sales people' could receive commission payments. Mysteriously, 'Amway' was allowed to continue by a 1979 federal court ruling, apparently on the mistaken assumption that at least 70% of 'Amway' products would, henceforth, be retailed to the public, but the same court failed to determine what this fake '70% retail rule' actually stated or to introduce an independent mechanism to verify that it would be enforced. However, even though 'Amway's' own essentially-meaningless 'rule' very specifically did not refer to 'the public' and has never been enforced, the '7O%' criteria still established whether what 'Amway' describes as'bonuses'are lawful payments based on external, retail sales transactions, or unlawful internal reward-payments secretly based on recruiting. i.e. if a significant majority of 'Amway's' claimed 'sales' are to the public, 'Amway' is a direct selling company, but, if a significant majority of 'Amway's' alleged 'sales' actually derive only from the recruits' own purchases, 'Amway' is a Ponzi scheme. Thus, by claiming that only 50% of 'Amway' sales are retail, the 'Amway' bosses have now foolishly admitted to running a Ponzi scheme (albeit, not in so many words). Instead, they have steadfastly pretended to be running a'direct selling' scheme with $10.8 billions in total annual revenue deriving from independent business owners. Yet, the company's own data reveals total annual sales worldwide of just over $6 billions. In other words, the 'Amway' bosses would have us believe that their own '3 millions sales force' buys and consumes, but never sells, around half as much as the rest of the entire world buys from 'Amway.' Now, even a ten year child ought to be able to tell that this mathematically-complex, Utopian/capitalist fairy story does not add up.

In reality, believing that they were following a proven-plan to achieve 'total financial freedom,' for more than 50 years, a never-ending chain of tens of millions of temporary, active 'Amway' recruiters have been paid net-loss 'bonuses' on their own monthly purchases of effectively-unsaleable 'Amway' wampum. When they have abandoned this closed-market swindle, almost all of them have never bought from 'Amway' again. 
Thus, only a fool, or a stooge, would accept that 'billions of dollars of purchases' and 'sales' made by all the tens of millions of constantly-churning  'Amway' recruits have been based solely on 'value'  and  'demand', as Messrs. VanAndel and DeVos told the wide-eyed Dennis Berman. Indeed, in the recent lawsuit brought by high-level 'Amway' adherents, the plaintiffs submitted a sworn affidavit stating that 'Amway' products were sold almost entirely to the 'distributors' and never retailed. They also produced an internal 'Amway' study of 2006 which revealed that retail sales to the public were actually less than 4%. In other words, by lying to Dennis Berman about the legality of their enterprise,  Doug DeVos and Steve Van Andel have actually used the on-line version of  'The Wall Street Journal' to commit wire fraud. 

As if to prove his complicity with the bosses of the 'Amway' mob, Dennis Berman now does not want to talk to anyone rigorously-challenging the authenticity of his so-called 'Big Interview' with Doug Devos and Steve Van Andel.

_________________________________________________________________________

After one month, Rupert Murdoch's 'Wall Street Journal' is still covering up the 'Amway' racket

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From 'The Universal Identifying Characteristics of a Cult' ( Axiom Books, copyright David Brear 2005).

Self-appointed sovereign leadership. Pernicious cults are instigated and ruled by psychologically dominant individuals, and/or bodies of psychologically dominant individuals (often with impressive, made-up names, and/or ranks, and/or titles), who hold themselves accountable to no one. These individuals have severe and inflexible Narcissistic Personalities (i.e. they suffer from a chronic psychological disorder, especially when resulting in a grandiose sense of self-importance/ righteousness and the compulsion to take advantage of others and to control others’ views of, and behaviour towards, them).* They steadfastly pretend moral and intellectual authority whilst pursuing various, hidden, criminal objectives (fraudulent, and/or sexual, and/or violent, etc.). The admiration of their adherents only serves to confirm, and magnify, the leaders’ strong sense of self-entitlement and fantasies of unlimited success, power, brilliance, beautyideal love, etc.
_____________________________________________________________________________________________

Narcissus by Caravaggio c. 1599

‘Narcissistic Personality Disorder,’ is a psychological term first used in 1971 by Dr. Heinz Kohut (1913-1981). It was recognised as the name for a form of pathological narcissism in ‘The Diagnostic and Statistical Manual of Mental Disorders 1980.’ Narcissistic traits (where a person talks highly of himself/herself to eliminate feelings of worthlessness) are common in, and considered ‘normal’ to, human psychological development. When these traits become accentuated by a failure of the social environment and persist into adulthood, they can intensify to the level of a severe mental disorder. Severe and inflexible NPD is thought to effect less than 1% of the general adult population. It occurs more frequently in men than women. In simple terms, NPD is reality-denying, total self-worship born of its sufferers’ unconscious belief that they are flawed in a way that makes them fundamentally unacceptable to others. In order to shield themselves from the intolerable rejection and isolation which they unconsciously believe would follow if others recognised their defective nature, NPD sufferers go to almost any lengths to control others’ view of, and behaviour towards, them. NPD sufferers often choose partners, and raise children, who exhibit ‘co-narcissism’ (a co-dependent personality disorder like co-alcoholism). Co-narcissists organize themselves around the needs of others (to whom they feel responsible), they accept blame easily, are eager to please, defer to others’ opinions and fear being seen as selfish if they act assertively. NPD was observed, and apparently well-understood, in ancient times. Self-evidently, the term, ‘narcissism,’ comes from the allegorical myth of Narcissus, the beautiful Greek youth who falls in love with his own reflection.

Currently, NPD has nine recognised diagnostic criteria (five of which are required for a diagnosis):

·         has a grandiose sense of self-importance.
·         is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
·         believes that he/she is special and unique and can only be understood by other special people.
·         requires excessive admiration.
·         strong sense of self-entitlement.
·         takes advantage of others to achieve his/her own ends.
·         lacks empathy.
·         is often envious or believes that others are envious of him/her.
·         arrogant disposition.

_________________________________________________________________________________________



Charles Ponzi                           Bernard Madoff

Imagine if a leading financial journalist had been granted an interview with either the high and mighty Charles Ponzi or Bernie Madoff, prior to them being exposed as absurd, but dangerous, economic alchemists running variations of the same outrageous, fake 'investment scheme' without any external source of revenue other than that deriving their own so-called 'investors.' Imagine if that journalist had been given a complete prior-explanation (at his own request) of what Mr. Ponzi or Mr. Madoff was doing, but then failed to ask the obvious key-questions which would have revealed their hidden criminal objectives.

With the benefit of hindsight, what conclusions would any free-thinking observer of such a friendly interview be forced to draw?

In reality, from what we now know of Mr. Ponzi and Mr. Madoff, neither of these severe and inflexible narcissists would have agreed to take part in any interview unless he was confident that the interviewer was financially illiterate, or unless the interview itself was part of the economic hocus-pocus and the interviewer a stooge.



Reed Elliot Slatkin, admired and respected 'Scientology Minister,' 
sentenced in California in 2003  to 14 years prison for
mail fraud, wire fraud, money laundering and obstructing justice.


Perhaps a more revealing analogy would be to imagine if a leading financial journalist had been granted an interview with Reed Slatkin, prior to him being exposed as a psychotic economic alchemist who secretly justified 25 years of financial crimes with the scripted lie that he was an enlightened 'Scientologist' - a superior being struggling to clear planet Earth of the invisible forces of evil.

So, how can the following be explained?



It is now one month since this 30 minute propaganda broadcast for the 'Amway' fraud, in the form of an 'interview' appeared on the Net.


Dennis K. Berman

Let's be quite clear about this, unless he really is a financially illiterate dope (which is very difficult to believe, considering his job), Dennis Berman (Deputy Bureau Chief, Money and Investing, at Rupert Murdoch's 'Wall Street Journal') conducted a sham interview maliciously designed to obstruct justice and cover up ongoing major racketeering activity; for despite being supplied (at his own request) with a full and accurate deconstruction of how all so-called 'MLM income opportunities' have actually been closed-market swindles (a.k.a. Ponzi schemes, dissimulated behind effectively-unsaleable products, and or services, and based on the specious economic theory that endless-chain recruitment + endless purchases by the recruits = endless profits for the recruits), Dennis Berman failed to ask Messrs. DeVos and Van Andel the obvious questions that might have revealed their hidden criminal objectives:

Excluding all the 'Amway' corporation's own unsubstantiated documentation, and all unsubstantiated verbal statements made by yourselves and by your alleged 'sales force,' what independent evidence can you produce that would prove that your enterprise's alleged 'permanently profitable and expanding Multi-Level Marketing income opportunity' has actually had any significant external source of revenue other than that deriving from its own constantly-churning participants? i.e. Can you produce the audited accounts of a significant number of persons who have been under contract to 'Amway' as alleged 'business owners,' showing that their alleged 'businesses' have been authentic and that these persons have paid income-tax on profits accruing lawfully from their having regularly retailed a significant quantity of 'Amway' products, and/or services, directly to the public? 

Self-evidently, during the alleged interview, Dennis Berman behaved like a grinning stooge feeding scripted gag-lines to two grinning comedians. Laughably, at no time did he challenge any unsubstantiated statement made by Messrs. DeVos and Van Andel whom he kept addressing as'you guys.' 

After approximately 14 minutes of sycophancy, Dennis Berman asked the 'Amway' bosses what percentage of their '$10.8 billion annual sales' are to the general public? He was first told that according to 'Amway's' own estimates, 50%, but in almost the same breath, this 50% figure was quickly qualified as referring to 'customers and end-users.'  However, again almost in the same breath, the 'Amway' bosses made the absurd claim that 100% of 'Amway sales are to customers and end-users, because Amway distributors are all customers and end users.'In other words, 'Amway' adherents have been both buyers and sellers in an economically-unviable closed-market. To the ill-informed,  this mystifying economic hocus-pocus might sound impressive. However, it is a classic piece of Orwellian 'double-think,' but then, the quantifiable evidence proves that 'MLM income opportunity' lie has been maintained, by shutting down the critical and evaluative faculties of its victims using co-ordinated devious techniques of social, psychological and physical persuasion (without their fully-informed consent). Indeed, in a recent lawsuit brought by a group of distressed American 'Amway' adherents, an internal report (from 2006) was produced as evidence. This unchallenged document (which had been deliberately withheld from the public) showed that less than 4% of alleged 'Amway sales' were, in fact, authentic retail transactions to the public. However, even this ridiculously low score is a distortion of reality, because most 'Amway customers,' who have not been adherents of the organization, turn out to have been relatives or close friends of adherents. 


Rupert Murdoch

After Dennis Berman's comic charade with the billionaire 'Amway' bosses appeared on the WSJ Website, for obvious reasons, both Robert FitzPatrick and I contacted him with our many concerns. Furthermore, we also contacted Dennis Berman's Bureau Chief at the WSJ, and I took the trouble to contact Rupert Murdoch ( boss of 'News Corporation'). Indeed, I spoke to Rupert Murdoch's personal assistant, Nancy Porto, at length, and she requested that I send my concerns about Dennis Berman (in the form of an e-mail) to her, to be given to her boss.

After one month, neither Robert FitzPatrick nor I, have received so much as an acknowledgement, let alone an intelligible reply, from any employee or officer of the 'WSJ' or  'News Corporation.' 

In this instance, Rupert Murdoch cannot say that he was completely unaware that a 'News Corporation' employee has been participating in corrupt activities. 


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William H. McMasters

It is interesting to note that one of Ponzi's 'business' associates/employees, a sharp-witted publicist, William H. McMasters (who, for 10 days during 1920, helped Charles Ponzi, to expand his fraud dramatically by arranging for him to be interviewed by wide-eyed journalists who then published articles which were the equivalent of free advertisments), sold the explanation of what Ponzi was really doing to the 'Boston Post,' and that this publication later received the 1921 Pulitzer Prize for its reporting of the story. McMasters saw that Ponzi was a blithering idiot who couldn't even add up. He immediately applied common sense, and deduced that what Ponzi said (that his 'Securities Exchange Company' had been sending millions of dollars of its investors' money to a network of agents who had been buying international postal reply coupons in countries with currencies weakened by WWI, and then shipping them to the USA, where he had exchanged them for equivalent US postage stamps which he had then sold for a 400% profit) was far too good to be true. McMasters, who was not an economist, simply observed that all Ponzi was doing was taking his later victims' money to pay out imaginary 'profits' to his earlier contributors. Ponzi wasn't actually sending money abroad or trading in anything. He was peddling his victims infinite shares of their own finite money. It was later discovered that Ponzi had only ever bought a handful of international postal coupons (which could not be redeemed for a profit), and that the entire world supply of these documents was vastly-inferior to the phenomenal quantity which Ponzi had claimed to have traded.  



In the case of Bernie Madoff, as most people now know, no one seems to have taken much notice of the independent whistle-blower, Harry Markopolos, who applied common sense and came up with essentially the same absurd explanation as McMasters had, 80 years previously. 


Bernie Madoff's narcissistic lie entitled, 'the world's largest hedge fund'(but which appears almost insignificant in comparison with the narcissistic lie entitled 'MLM income opportunity'), had been allowed to grow to such titanic proportions, that the truth had become almost unthinkable.


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Robert FitzPatrick has asked the 'Wall Street Journal' to investigate 'Amway'

I was not the only person to have taken the trouble to explain to Dennis Berman of the 'Wall Street Journal' how 'MLM income opportunity' fraud functions, and what questions to ask the billionaire bosses of the 'Amway' mob in order to uncover their clandestine criminal objectives. The following is a copy of an e-mail sent to Dennis Berman February 27th 2012 by Robert L. FitzPatrick (President of Pyramid Scheme Alert) and to which Dennis Berman did not respond:


Robert Fitzpatrick

Dennis K. Berman


Dennis

If I had an expectation of a direct and factual answer and with verification (tax data to show actual net profits earned, and national demographics or surveys of retail customer base, etc., I would ask…

1.  Business Opportunity: Over the last 10 years, how many citizens worldwide were enrolled as Amway IBOs and what percentage of them earned more from the business than they spent in total?

2. Business Identity and Legality: What percentage of all Amway goods are retailed to the public by the IBOs?

I have provided Amway payout analysis in several court cases in the USA and Canada as well as to Chinese officials who were deliberating whether or not to legalize the Amway compensation system (they chose to outlaw it). The data show that far less than even 1% of all who are recruited  ever make a profit. Based on that loss rate, if you add up the total investments of all IBOs over a 10 year period, the losses far exceed those caused by Bernard Madoff and affected a staggering number of people at the lower end of income scales (those less able to afford losses).

At the heart of all controversies about Amway's viability and legality is the the simple question, "Where does the money come from?" Or, drilling down a bit further, "When Amway pays its commissions, what is the ultimate source of those reward funds?" According to the criteria used by the FTC for determining legality, and the tests it has applied to other multi-level marketing companies it has prosecuted, the ultimate source must be retail end-users, not newly recruited IBOs. If it is primarily IBOs, Amway is, by definition, a closed market, a money transfer, a pyramid scheme. Rewards are paid to top level IBOs to recruit lower level IBOs who are offered the right and the incentives to continue to expand the chain. The reward funds come, ultimately and finally, from those recruited and any reward they might obtain is contingent on their recruiting more IBOs, with the reward funds coming from the investment of the later recruits, ad infinitum.

The claim that Amway is a closed market pyramid scheme, not a direct selling company is the charge of the current class action lawsuit in the USA for which Amway has already offered $150 million to settle.

Will be glad to discuss this with you.

Sincerely




Robert L. FitzPatrick.

________________________________________________________________________




Without informing Robert FitzPatrick, three days later, Dennis Berman conducted this thoughtless, 30 minute interview in which, not only did he fail to ask Messrs. DeVos and Van Andel the above questions, but he actually behaved like a grinning stooge feeding scripted gag-lines to two grinning comedians. At no time did Dennis Berman challenge any unsubstantiated statement made by Messrs. DeVos and VanAndel whom he kept addressing as'you guys.'

________________________________________________________________________


Charles Ponzi                           Bernard Madoff

The following is a copy of another e-mail sent to Dennis Berman by Robert FitzPatrick and to which Dennis Berman again did not respond:  


Dennis

I watched with great interest your 30-minute interview with Doug DeVos and Steve VanAndel of Amway. I believe this is the first interview of Amway's leaders by a professional journalist that has been published in recent years.

One question you posed was enormously significant. Upon the  answer hangs the legality of the entire Amway enterprise, which you noted is frequently challenged.

The question was, what percentage of the goods that Amway sells to the distributors are resold to end users who are not also distributors? This was analogous to asking Bernie Madoff what trades he actually did to generate 12% per year returns, year after year, or asking Charles Ponzi how many international postage coupons he traded to pay a 50% return to all his investors.

The answer given to you by the two Amway executives was that approximately one-half of the sales made to the salespeople (which would be $5.4 billion) was subsequently retailed to the general public (people who are not also Amway salespeople).

Given the importance of that question, I was astonished that you did not ask for verification or pursue the question further. The answer they gave – if it is true – was shocking and a flaming red flag.  With a bit more financial analysis,  a 50% retail sales level (if it is true) reveals that Amway almost certainly would fail the FTC's test of legality. It also shows that the salespeople cannot, on average, make money from retailing. It shows that the recruiting rewards paid by Amway cannot be sourced from retail revenue (the key to legality.)

If it is to be believed, Mr. Devos and Mr. VanAndel gave you the data on which to determine Amway's legality and that data shows that Amway almost certainly fails established tests for legality. I will be happy to discuss this with you and go through this data.  Harry Markopolis offered similar calculations to journalist, John Wilke, at your magazine regarding Madoff's operation. History records that WSJ missed the greatest story of our time.

>From Markopolis' testimony to Congress:
<>

I can show you that the figure proves that the sales force cannot be profitable from retail selling. You mistakenly stated that it is "easy to make a little money" at Amway. In fact, the data shows that less than 1% make any money. In reality, to make even a little profit is extremely difficult, and almost no one does.

Additionally, the  two Amway execs went on to claim that the salespeople also serve as "end-users." As you may know, this argument is not accepted by US courts or the FTC and the argument was recently rejected also by a court in Belgium that has now declared that Herbalife is an illegal pyramid scheme. Herbalife could not offer evidence of a retail customer base (as Amway also cannot do) but claimed its own salespeople's purchases served as retail sales and that those purchases were based on the usual consumer factors of demand and value.

In Amway's case, with virtually no brand awareness, no advertising, and generally higher prices,  it is is not reasonable to think such a demand exists. As for value, Amway's execs offered you nothing to show their products are differentiated. Also, few consumers continue to buy Amway goods after they quit the income scheme. Do you know even one person who ever told you they are looking to buy Amway products based on need or value or price, without any regard for the income scheme?

The answer to the question you posed to Amway's leaders adds fuel to of the current class action lawsuit against Amway.  I serve as an expert witness in that case. The original prosecution of Amway by the FTC in 1975-9 rested upon this very same question you posed. The 50% answer is grounds for that court case to be re-opened. And the reason the UK government recently sought to close down Amway in that country was similarly based on this question. Lack of evidence or retail sales in the UK meant that the only rewards to be gained came from "bonuses" tied to recruiting. Data showed that less than 1% of the sales force earned enough bonuses to be profitable -- in a 30 year period!

For purposes of fraud analysis, the question may be stated slightly differently: Where does the money for recruiting rewards come from? When Amway sends bonus payments to its upline recruiters based on the investments (purchases, not sales) of the downline distributors, legality requires that the ultimate source of those bonus reward funds must be from retail sales, just as Madoff's payments had to come from actual profitable trades, not from the funds of other investors.

Without adequate levels of retail sales, Amway's rewards must be money transfers from the recruits to the recruiters. If little of the revenue for the rewards is  retail-based, the Amway business becomes a closed market, based on endless chain recruiting, just as Madoff's hedge fund payments were mere transfers from later investors to earlier ones and therefore required an endless supply of new investors. Without adequate retail revenue to cover the nearly $3 billion in upline bonus payments, and all other business costs, Amway becomes an internal money transfer, commonly called a pyramid scheme.

The loss rates in a pyramid scheme will be near total and they are built into the model. "Hard work" will make no difference to the outcome.

Since 1979, Amway has famously required that 70% of all purchases by the sales people must be resold to at least 10 retail customers in order to qualify for the performance bonuses. Amway's operation was  tentatively permitted in a 1979 federal court ruling on the grounds that at least 70% of its products were retailed. The retailing level establishes whether Amway "bonuses" are actually advances on future retail sales activity, as Amway told the court, or are rewards for recruiting. If they are retail sourced, Amway is a direct selling company. If they are sourced from investments of the recruits, it's a Ponzi scheme.

Amway claims to be a "direct selling" company with $10.8 billion in revenue gained directly from independent contractors. Yet, its own data indicates total retail sales worldwide of just over $6 billion. (half the sales to the distributors, plus their retail margin). It shows that the sales force consumes and never sells about half as much as the entire world buys retail from Amway. Something is horribly wrong with that picture.

The picture becomes clear only when you factor in that Amway pays recruiters (investors in the pay plan) almost $3 billion to bring in new investors who are induced to make inventory purchases. In fact, the recruits are even paid bonus points on their OWN purchases! In short, the salespeople are financially rewarded to buy as part of the pay plan. Then, when they quit the financial scheme, almost all never buy again. No reasonable analyst could conclude that the purchases are based on "value" or  "demand", as VanAndel and DeVos told you.

Dennis, I will be glad to walk you through these calculation and their significance.

For legality purposes, the FTC can now test Amway's numbers, based on its claim of 50% retail sale, which you uncovered, to see it total retail revenue exceeds cost of goods, overhead, bonuses and retail profit. Whatever the shortfall is,  that amount is what the company is paying  for recruiting. If the shortfall is a high percentage of the bonus payments, Amway is, by definition, a pyramid scheme.

The data show that Amway's bonuses are likely funded almost entirely from investments made by the recruits.  They are, de facto, recruitment rewards. All this data flows from DeVos/VanAndel's statement to you that only 50% of its products are ever retailed. That data is combined with its payout data and its compensation plan figures.

For my part, I am preparing a letter to the FTC today, with copies to your editors, in which I will refer FTC regulators to your interview and formally request an investigation. I will ill cite the specific data and calculations that I only referenced above. I am happy to discuss this with you and walk you through the data.

Are you following up this interview with an analysis of Amway's legality? Or are the words of the two executives on these questions to be taken as final?

Sincerely,


Robert L. FitzPatrick (March 8th 2012)

________________________________________________________________________


The following, is a copy of a letter sent by Robert FitzPatrick to Alex Martin, Bureau Chief, Money and Investing, at the 'WALL STREET JOURNAL,' 1211 Avenue of the Americas, New York, NY 10036.


Dear Alex:


This letter follows my March 13, 2012 phone call to you to ask your bureau to investigate
information presented in a videotaped interview that Deputy Bureau Chief, Dennis Berman,
recently conducted with Amway executives, Doug DeVos and Steve Van Andel.
As a court certified expert on pyramid and Ponzi schemes, I also offer my knowledge and
experience in this field and with the Amway Corporation in particular, if you choose to make
an inquiry.


Amway’s statements deserve extraordinary journalistic scrutiny because of (1) the
company’s record of regulatory infractions, (2) verifiable data revealing multi-billion dollar
consumer losses among those who invest in Amway’s income proposition, (3) repeated
credible accusations made in lawsuits and regulatory prosecutions, backed with verifiable
data, that Amway is operating a massive and financially destructive pyramid scheme and (4)
past statements and documents from Amway and Amway insiders that contradict claims
Amway’s executives made to Mr. Berman regarding the source of Amway’s revenue.
Amway’s statements to Mr. Berman deserve scrutiny from WSJ because on the question of
their truthfulness rests the legality or illegality of the entire enterprise. It deserves scrutiny
also because the company’s practices have a significant financial impact on Main Street.
Amway currently claims to have over 650,000 distributors in North America alone. The
question is whether or not Amway is operating a Ponzi scheme on a scale larger, over time,
than Bernard Madoff’s. Credible and substantial evidence is available for that determination.
Amway is charged with running a pyramid scheme involving false promises of income to
millions of people in a financial scheme based upon endless chain expansion of the
investor/salespeople. The charge is made of a fraud disguised as a direct selling but which
lacks requisite retail sales to qualify as one. Rather than from direct selling of products,
revenue is gained by inducing investments from consumer/investors in a pay plan with the
false claims of a lucrative “business opportunity.” Rather than investing in a valid direct
selling income opportunity as they believed they were, millions of people are lured into a
closed market scam in which they cannot possibly gain a profit. An enormous loss rate is the
inevitable consequence of a closed market endless chain.



The Amway Corporation was recently accused of systematic fraud by the government of
England, which sought to have the entire Amway business closed in that country. The
regulatory action was based on data showing that 99% of all UK salespeople had lost money
over a 30-year period. Additionally, Amway has been accused recently by consumers in
Canada and USA in two separate class action suits of operating an illegal pyramid scheme.
The primary evidence offered by the consumers is lack of retail sales revenue, resulting in the
true business being the sale of an endless chain investment scheme. Officials in India and
China have similarly accused the company of the same fraud. And, high level distributors,
who are effective insiders, have charged that the company is operating a disguised pyramid
scheme, having little or no retail sales revenue.


Contrary to Amway executives’ statements to Mr. Berman, compelling evidence exists that
little of Amway’s product are ever sold to the public, making what it calls sales transactions
merely internal transfers, and requiring continuous expansion of the investor/sales force for
existing investor/salespeople to gain a profit. This is called an endless chain.
Mr. Berman contacted me by email to ask for questions to submit to the Amway executives. I
spent considerable time to explain the extraordinary significance of two key questions about
the retail sales level and consumer losses, and I provided the information to him via email. I
emphasised to him that Amway’s legality is based upon these questions.
Mr. Berman did not question the Amway officials about consumer losses. Instead, he
inexplicably volunteered to them that he personally believed it was “easy to earn a little
money” in Amway. The data show this is not true and no verifiable evidence is available to
support the statement. Mr. Berman may have been misled by Amway’s published data about
an average annual gross income of $2,424 for “active” distributors, who constitute just 46%
of the sales force. The other 54% earn no discernible profit and receive no payments from
Amway.


He might not have realized that the unverified figure of $202 per month on which the $2,424
figure is based is a mean average, not a median. It includes the enormous payments made to
the top fractions of the top 1%. In no way does it indicate that the majority of participants
gain this much revenue per month. Amway explicitly divulges that the $2,424 figure is an
“annualized” projection based on a mean monthly average of payments. It is not an annual
average income of participants. The vast majority of Amway salespeople are not active for a
year. The company suffers a 50+% churn rate among the salespeople, which is not factored.
The data also completely omits the financial plight of 54% of all the salespeople who are
reclassified as “inactive.” In any event, the data of “income” is only gross revenue, not net
income after expenses.


The average income figure, according to Amway, includes “retail” profits, without any basis
for determining them. When an objective analysis is made, it is evident that it is nearly
impossible to earn even “a little” net income and, indeed, almost no one does. I will be happy
to walk through an analysis with you. I provide similar analyses as a consultant or expert
witness in court and to financial institutions.


Regarding retail sales, Amway officials told Mr. Berman that 50% of all sales to the sales
force are subsequently retailed. Despite the extraordinary importance of this figure, he asked
for no verification and posed no follow-up question at all. In fact, there is abundant evidence
that this figure is false. And if it is false, Mr. Berman has prima facie evidence –
mathematical – that the charges against Amway of operating a massive pyramid scheme are
true.


1. Until about 2000, as a result of an earlier prosecution of pyramid fraud against Amway by
the Wisconsin Attorney General, Amway provided all consumers with the document, Sales
Aid 4400 (enclosed). This document revealed that the average retail sales level was 18% of
what distributors purchase on average.


2. In a lawsuit against Amway, the Procter & Gamble Corporation asserted that retail sales
level to be less than 18% and charged that Amway was an illegal pyramid scheme.


3. In a recent lawsuit brought by high level Amway distributors, the plaintiffs offered the
court a sworn affidavit that Amway products were sold almost entirely to the distributors
only and were not subsequently retailed. They also cited an Amway study in 2006 that they
said concluded that retail sales were less than 4%. (see page 13, lines 5-13 which is
enclosed).


Even if Amway’s retail sales were 50% of sales to the distributors, as Mr. DeVos and Van
Andel told Mr. Berman, Amway would clearly fail the FTC test for legality which has been
applied in previous prosecutions of “multi-level marketing” companies. I have reproduced
the test in class action cases. Using the criteria of the FTC, which is based on numerous court
decisions, 50% would be an insufficient retail base to cover the more than $2.5 billion that
Amway pays its recruiters annually in “bonuses.” The courts have repeatedly affirmed that
legality of recruitment-based rewards requires that these payments to recruiters be covered by
subsequent retail revenue. The bonuses cannot be ultimately sourced from those who are
recruited, who in turn are offered the same proposition to gain rewards from recruiting yet
more investor/salespeople, ad infinitum. The courts and the FTC have also rejected the claim
that sales to contractor/dealers (salespeople) constitute retail sales yet Amway officials made
the assertion to Mr. Berman that sales to distributors are retail sales, and he did not challenge
it.


At 50% retail sales, Amway would a “direct selling” company with reportedly $10.8 billion
in revenue but no more than about $7 billion in sales to the public. Even with the alleged
50% retail sales level, $3-4 billion would have been sold only to the Amway sales channel
without ever being resold. And there is no reasonable basis for the claim that these purchases
by the salespeople were driven by market forces of price, quality or demand and are
unconnected to the distributors’ pay plan or Amway’s claims of income potential.
The 50% retail claim to Mr. Berman, if it were true, would also mean that the maximum
average gross profit from retail sales available to the 1.38 million “active” distributors is less
than $1600 a year (based on a 29% average gross retail profit), while the average amount
purchased by all distributors and not resold is $1800.


Without a viable retail sales opportunity, what remains for the consumer/investor is an
income proposition that is based on recruiting more salespeople and profiting from their
investments, i.e., the endless chain proposition.
I am available to you for discussion or explanation.


Sincerely,


Robert L. FitzPatrick, March 14th 2012


_____________________________________________________________________________________________ 

Predictably, Doug DeVos and Steve Van Andel are simply ignoring my overt charge that they are a pair of cultic racketeers posing as 'philanthropic Christian capitalists,' who have maliciously infiltrated the Internet-based version of the 'Wall Street Journal' to commit wire fraud.  



David Brear (copyright 2015)


'Herbalife' propaganda paints Bill Ackman as unethical and dishonorable.

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Bill Ackman says 'Herbalife'is effectively-valueless, because it is a 'criminal enterprise.'

The bosses of the 'Herbalife' racket have been bluffing and on December 20th, 2012, hedge fund manager, Bill Ackman, called their bluff by revealing he was holding a vast short-selling position involving around $1.2 billions of 'Herbalife'  shares. However, at the same time Bill Ackman laid his own winning-hand on the table (by publishing a detailed analysis of why he considers the legally-registered corporate structure known as 'Herbalife' to be the front for a vast and damaging pyramid fraud and, therefore, effectively-valueless), he also declared that all the profits he will personally make from this tainted deal will be handed over to charity.  


'Herbalife' racketeer, Michael Johnson.

Later in December 2012, Michael Johnson insisted that 'Herbalife has millions and millions of customers,' and that Bill Ackman's analysis was based on his not understanding that many 'Herbalife customers' are 'distributors.' Michael Johnson then insisted that 90% of all 'Herbalife's' declared sales were to persons outside of the company's own distribution network. In reality, for more than 30 years, the overwhelming majority of all 'Herbalife's' declared 'sales'have been economically incestuous internal transactions between the company and persons under temporary take it or leave it contract to the company, and who were clearly defined as 'Distributors,' but who have lately been redefined as 'Members.' Soon afterwards, Michael Johnson claimed that he had 'mispoke.'

The laughable, but predictable, reaction of 'Herbalife' boss, Michael Johnson, was to continue his bluff, by steadfastly pretending innocence whilst accusing Bill Ackman of wilful market manipulation, i.e. lying in order to damage a valuable American enterprise and make money. Yet neither Michael Johnson, nor his previously-aggressive echelon of attorneys, have been able to refute Bill Ackman's published analysis of 'Herbalife' by providing quantifiable evidence which would prove that the so-called 'Herbalife MLM income opportunity' has generated any significant, and sustainable, revenue other than that deriving unlawfully from a never-ending chain of losing investors around the world. This is because, for decades, the bosses of  the 'Herbalife' racket have been riding on the coat tails of the 'Amway' racketeers - operating a dissimulated closed-market swindle (right under the noses of regulators and financial journalists), in which they have been laundering billions of dollars of unlawful, losing investments (based on the false expectation of future reward), by falsely-declaring these payments as lawful sales (based on value and demand).




Sometimes, when looking at cults, you need to pinch yourself, to make sure that you are not dreaming.


As a result of inside information which was apparently first touted (but without any takers) by a PR specialist working for the 'Herbalife' mob, to various mainstream media publications, the 'Wall St. Journal' reported last week that US law enforcement agents have launched a probe to determine whether short seller, Bill Ackman, has been engaging (via paid third parties - activists lobbyists, consultants, etc.) in unlawful market manipulation, to drive down the price of 'Herbalife' shares.

(Bear in mind that core'Herbalife' adherents have been programmed to believe that Bill Ackman is a ruthless Wall St. Shark who has invented a pack of lies about 'Herbalife' simply to make money). 


Within hours, this carefully-constructed, black propaganda story was all over the mainstream financial media, but it had become qualified asthe Office of the Mahattan US Attorney, and FBI agents, checking the voracity of complaints filed by a few alleged 'Herbalife'victims who had been traced by sub-contractors working for 'Global Strategy Group' (a reputable consultancy firm working for Bill Ackman's Pershing Square Capital).


As a result of this latest reality-inverting chapter of the'MLM income opportunity' fairy story, the market price of effectively-valueless'Herbalife' shares, rose by more than 8%.


Typically, when this two-dimensional mixture of lies and truths had already gone around the world, the multi-dimensional truth was still getting its boots on.







David Brear (copyright 2015)







Probe of Ackman Team Over Herbalife Campaign May Go Nowhere: Legal Experts

U.S. authorities investigating potential manipulation of Herbalife Ltd.'s shares by consultants working for billionaire investor William Ackman will find it difficult to prove that false statements were deliberately made to drive down the company's value, securities lawyers said.


In a probe that began last year, the FBI and the office of Manhattan U.S. Attorney Preet Bharara have been examining whether the consultants solicited people to file baseless complaints with regulators regarding Herbalife, two people familiar with the matter said. There is no indication that Ackman himself is a target of the investigation.

News of the probe has thrown a temporary shadow over the more than two-year campaign by Ackman and his hedge fund Pershing Square Capital Management against Herbalife. Ackman alleges that Herbalife is a pyramid scheme and he has taken a $1 billion short bet that its stock price will slide. The nutritional supplements seller has long denied the allegations, saying the campaign is based on misinformation.

U.S. law defines market manipulation as artificially raising or depressing the price of a security for the purpose of inducing trades by others. Potential methods include orchestrating phantom trades or spreading false information.

In the most common type of market manipulation, someone buys or shorts a stock, spreads misinformation about it to drive its price up or down sharply, and then reverses their position to take a profit. The scheme, commonly known as a "pump and dump" or "buy, lie and sell high" scheme, depends on the manipulator reversing their position before those being deceived catch on to what is happening.
However, lawyers with expertise in securities law say that the Ackman campaign has not attempted to hide what it is doing and has argued its stance very publicly. Ackman has also pledged to retain his short position in the stock until Herbalife is exposed as a pyramid scheme and its stock goes to zero.

"For me, it's impossible to imagine that Ackman is involved," said Jonathan Macey, a Yale University professor who has made public comments in defense of the tactics of short sellers, including Ackman. "If he had made up some lie about the company, he hasn't profited from that, because he's still short. In manipulation, at some point you've got to transact the security. Otherwise, there's no point to it."

Herbalife stock rose 8.2 percent on Friday because of news of the probe. The Wall Street Journal was first to report the existence of the investigation after hours on Thursday.

Spokesmen for both the FBI and the Manhattan U.S. Attorney's office declined to comment.

It was not clear on Friday whether the investigation had focused on particular individuals, or whether any wrongdoing had been discovered. One of the sources said it could end without any charges being filed.


RECEIVED SUBPOENAS

In a statement on Thursday night, Herbalife spokesman Alan Hoffman said that Ackman's bet meant he had a direct financial interest in hurting Herbalife and had orchestrated a false and fabricated attack against the company. "We are confident in the strong fundamentals of our business model," he said.
On Friday, Herbalife declined to respond to questions.

Ackman says he believes Herbalife is a company that is based on signing up more distributors and getting them to buy its products, rather than on meeting the needs of consumers, and that as markets become saturated with new distributors the business is doomed to fail.

Ackman told CNBC on Friday that some people who had done work for one consulting firm he was using, Global Strategy Group, had received subpoenas. He said that the firm had hired some subcontractors around the country.

He later told Reuters in an interview that his firm was still working with Global Strategy. "We work with the best of the best. We can afford to. My belief is they conduct themselves appropriately," he said.

A Global Strategy spokesman said in a statement: "It is our clear understanding that neither the firm nor any of our employees are a target of any investigation, and we are confident that all our work surpasses the highest legal and ethical standards."

Market manipulation prosecutions generally require proving intent to lie or deceive, which is difficult without an incriminating document, securities lawyers said.

"You're always dealing with circumstantial evidence. We don't have the ability to probe people's minds," said Eric Chaffee, a University of Toledo law professor.

Ackman said Pershing Square's very public campaign was the furthest thing from market manipulation.

"What have we done? We've shorted the stock. We've disclosed the size of our position. We've made a 330-page PowerPoint presentation," he told Reuters. "Market manipulators don't make 330-page PowerPoint presentations and broadcast them globally."
Emphasizing the public nature of his campaign, he added, "No one could say anything worse about a company that what we've said about Herbalife. It's a pyramid scheme. It's a criminal enterprise that harms poor people."

U.S. guarantees of free speech mean that short-sellers have a right to talk down a stock price, even with the assistance of public relations and lobbying firms like the ones Ackman has hired.
The U.S. Securities and Exchange Commission often brings civil charges against the manipulators of penny stocks, which are most vulnerable to misinformation. Enforcement cases are much more rare among big, listed companies.

"Prosecutions of market manipulation by the government are as scarce as hen's teeth," said James Cox, a Duke University law professor.


© 2015 Thomson/Reuters. All rights reserved.


California Judge rules losing-investors should have realized 'Herbalife(HLF)' shares were not safe.

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More than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Network,' or 'Multi-Level, Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, leads,' etc.).

--------------------------------------------------------------------------------------------------------------------------------




Apparently in ignorance of the above irrefutable, fully-deconstructed analysis, May 9th 2014, Pomerantz LLP announced the filing of a class action lawsuit against 'Herbalife Ltd.' and certain of its officers. The class action was filed in United States District Court, Central District of California and docketed under 2:14-cv-02850, on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of'Herbalife'between May 4, 2010 and April 11, 2014 both dates inclusive (the 'Class Period'). This class action sought to recover damages against 'Herbalife'and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
In a shareholder alert document which appeared (due to its elementary grammatical errors) to have been put together by a bunch of lazy school kids, Pomerantz LLP described 'Herbalife' as:
 'a network marketing company that sells weight management, nutritional supplement and personal care products. The Company sells its products globally through a network of independent distributors, which are typically individuals with little marketing expertise that were induced by the Company to purchase the Company's products in the hope that they would be able to resell the product to other consumers or distributors. Herbalife also sells literature and promotional materials to these distributors. '
The Complaint alleged that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company's operations were based on a pyramid scheme whereby its distributors generate revenue by recruiting other distributors rather than selling 'Herbalife's'diet and nutritional products to the general public; (ii) the Company engaged in deceptive trade practices where it unduly pressured its members to purchase more products to resell as one of its 'distributors'; and (iii) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

The complaint put forward no original research or fully-deconstructed analysis; instead it relied on the jargon-laced facts that:

ODecember 19th 2012, CNBC reported that Bill Ackman, Founder and Chief Executive Officer of Pershing Square Capital Management, L.P. considers 'Herbalife' to be a pyramid scheme after spending a year researching the Company's fundamentals.  On this news, 'Herbalife'stock declined $5.16 per share, or over 12%, to close at $37.34 per share on December 19, 2012.
On December 20, 2012, Ackman conducted a presentation concerning 'Herbalife'at the Sohn Investment Conference where he affirmed his conclusion that 'Herbalife'is a pyramid scheme as its'distributors' make more money by recruiting other 'distributors' than selling the Company's products to the general public.  Specifically, Ackman alleged that since the founding of the Company, approximately 1.9 million'distributors' have failed to make any money from selling'Herbalife' products, costing them a net loss of $3.8 billion.  On this news, 'Herbalife' stock declined an additional $10.07 per share, or over 27%, over the next two trading sessions, to close at $27.27 per share on December 21, 2012.
On January 9, 2013, the New York Times reported that the Securities and Exchange Commission had opened an investigation into the Company. 
On January 23, 2014, U.S. Senator Edward J. Markey of Massachusetts sent letters to federal regulators, including the SEC and the FTC, urging them to investigate 'Herbalife.' Mr. Markey also sent a letter to 'Herbalife's'CEO, Michael O. Johnson, asking several questions about the company's 'business,' including pointed requests that reflected the concerns raised by Ackman  in December 2012. Some of the questions asked in the letter to 'Herbalife' include: (1) "How much profit (net earnings after expenses) can the average 'distributor'expect to make from retailing to non-'distributors'(i.e., people who are not directly involved in'Herbalife'themselves)?"; and (2) "What's the correct number of sales outside the network as a percentage of total sales" for each of the last five years and information on these sales measured by product, quantity and dollars. 
Senator Markey urged both the FTC and SEC to examine whether 'Herbalife was a legitimate multilevel marketing Company,' whose revenues are ultimately generated by sales to the general public; or whether 'Herbalife' was a pyramid scheme, whose revenues were dependent on continuous recruitment of other 'distributors,' which were ultimately left sustaining substantial losses on their purchases of the Company's weight loss products.  To highlight evidence that 'Herbalife' may indeed operate as a pyramid scheme, Senator Markey pointed to instances where residents of Massachusetts suffered crushing financial setbacks as a result of the Company's marketing practices.   On this news, 'Herbalife' stock declined $7.61 per share, or over 10%, to close at $65.92 per share on January 23, 2014.
On April 11, 2014, the Financial Times reported that the United States Department of Justice and Federal Bureau of Investigation had opened a criminal probe of'Herbalife.' On this news, shares of 'Herbalife'spiraled downward from $59.84 to $51.48, more than 13%. 
________________________________________________________________________



Dale Fischer District Judge.jpg
Judge Fischer

California federal judge, Dale Susan Fischer, has now dismissed this short-sighted shareholder class-action suit, arguing that 

'there was no evidence the ('Herbalife'company had made disclosures to investors that caused its shares to fall.'

Judge Fischer rejected the plaintiffs' argument that the Dec. 2012 presentation from Bill Ackman's Pershing Square Capital calling'Herbalife'a pyramid scheme was a corrective disclosure.

 'The [amended complaint] and plaintiffs’ related arguments are insufficient to compel the conclusion that the Pershing presentation was based on previously unavailable information or that the information could not be understood absent of expert analysis.'

______________________________________________________________________



Reuters subsequently reported  - Herbalife Ltd (HLF) won the dismissal of a lawsuit that claimed the maker of weight-loss and nutritional products fraudulently portrayed itself as a legitimate company, and that shareholders lost money because it was actually an illegal pyramid scheme.
U.S. District Judge Dale Fischer in Los Angeles said that shareholders led by two pension funds did not show that questions raised about Herbalife's business by hedge fund manager William Ackman and various investigators showed that the company had fraudulently inflated its stock price.

Ackman and his Pershing Square Capital Management LP have campaigned against Herbalife since December 2012, when they revealed a $1 billion bet against the Los Angeles-based company. Herbalife has long denied it is a pyramid scheme.

Herbalife shares were up 9.4 percent at $37.68 on Wednesday afternoon after rising as much as 14 percent earlier in the session. They remain well below their January 2014 peak above $83.

Fischer on Monday rejected claims in the proposed class action that news about concerns from Massachusetts Senator Edward Markey, a Federal Trade Commission probe, weak quarterly results, and even questions raised by Ackman and hedge fund manager David Einhorn were "corrective disclosures" that revealed Herbalife's fraud.

"Just as black swans may exist, there may theoretically be some form of opinion that is factual or revelatory in nature such that it qualifies as a corrective disclosure," Fischer wrote in a footnote. "Such an opinion would need to reveal to the market something previously hidden or actively concealed. That is not this case."

The lead plaintiffs are the Oklahoma Firefighters Pension and Retirement System and the City of Atlanta Firefighters’ Pension Fund. Their lawyer, Maya Saxena, on Wednesday said the plaintiffs are considering whether to amend their complaint.
Herbalife said it welcomed Fischer's decision.

"We are confident in the strong fundamentals of our business model and remain committed to helping people and communities improve their nutrition," it said.
Critics have said Herbalife misleads distributors about how much they can earn, and that its success depends more on recruiting distributors than selling products.

Ackman told CNBC last week that federal investigators examining possible manipulation of Herbalife's stock price have subpoenaed people hired by a consulting group working for Pershing.

Another federal judge in Los Angeles will on May 11 consider final approval of Herbalife's $15 million settlement with distributors who said the company misled them.

The case is In re: Herbalife Ltd Securities Litigation, U.S. District Court, Central District of California, No. 14-02850.

(Reporting by Jonathan Stempel in New York)

------------------------------------------------------------------------------------------------------------

Based on the limited complaint with which she was presented, Judge Fischer was not able to recognize 'Herbalife'as being one part of an ongoing criminogenic phenomenon of historic significance. Contrary to how the 'Herbalife' Ministry of Truth has attempted to spin this news, when translated into to plain English, Judge Fischer has not ruled that Bill Ackman's analysis of 'Herbalife' as the legally-registered corporate-front for a criminal enterprise, was inaccurate. She has evidently ruled that, in her opinion, anyone (including advisers to pension funds) who was so reckless as to have bought 'Herbalife' shares between May 4th 2010 and April 11th 2014, only has themselves to blame, because Bill Ackman's analysis proved that there was sufficient information publicly available in order for anyone to apply common-sense and deduce that'Herbalife' shares were probably not a wise investment.


David Brear (copyright 2015)


'Herbalife's (HLF)' new defender, 'CREW,' financed by George Soros 'Open Society'

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0
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More than half a century of quantifiable evidence, proves beyond all reasonable doubt that what has become popularly known as 'Network,' or 'Multi-Level, Marketing' is nothing more than an absurd, cultic, economic pseudo-science, and that the impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organized crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim closed-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, leads,' etc.).



Years before the intervention of Bill Ackman in December 2012, I was openly saying that the legally-registered, so-called'Multi Level Marketing'company known as 'Herbalife,'has been part of an ongoing criminogenic phenomenon of historic significance.




'Citizens for Responsibility and Ethics in Washington (CREW),'claims to be a non-partisan watchdog organization that targets both Democrats and Republicans for corruption.

According to its own literature:


 'CREW is dedicated to promoting ethics and accountability in government and public life by targeting government officials—regardless of party—who sacrifice the common good to special interests.' 





Whenever I come across self-righteous individuals, and/or organizations, steadfastly pretending moral and intellectual authority (particularly, in Washington DC), one common-sense question immediately springs to mind, 'Quis custodiet ipsos custodes?' - Who will watch the watchmen?




http://www.opensocietyfoundations.org/people/george-soros

http://www.forbes.com/sites/nathanvardi/2013/08/01/why-george-soros-investment-in-herbalife-is-terrible-news-for-bill-ackman/

http://crewexposed.com/who-is-crew/crews-left-wing-funders/

Talking of persons pretending moral and intellectual authority, 'CREW'has, in fact, been heavily-financed by George Soros''Open Society,' and that fact, casts a huge doubt on the real motives behind 'CREW's'recent, reality-inverting public intervention in the ongoing 'Herbalife' vs Bill AckmanWall St. saga; for at the beginning of August 2013, it was reported that the Soros Hedge Fund had bought a large stake in 'Herbalife,' causing shares in the counterfeit 'direct selling' company immediately to jump 9%; for it was also implied that the messianic billionaire, George Soros, had personally been responsible for making this trade. 


                     George Soros                                     Bill Ackman


 
          Carl Icahn


The temporary re-inflation of the market price of effectively-valueless 'Herbalife' shares, meant that (on paper) Bill Ackman was around $300 millions down on his $1.2 billion short-selling bet that 'Herbalife' is a fake enterprise which will soon be closed down, whilst (again on paper) Carl Icahn and the Soros Hedge Fund, were hundreds of millions of dollars up on their own long bet against Bill Ackman's short position.



  Paul Sohn (b.1978)

In reality, the person who was largely-responsible not only for the Soros Hedge Fund buying a significant chunk of effectively-valueless 'Herbalife' shares, but also for making sure that the rest of the world knew about it,  is Wall St. whiz -kid,  Paul Sohn. He is reported as boasting to a gathering of fellow Wall St. whiz kids (whom, for obvious reasons, he wanted to pile in on the 'Herbalife' deal) that :

'George Soros broke the Bank of England..! He can break the back of Bill Ackman!'
http://uk.businessinsider.com/paul-sohn-reportedly-left-soros-fund-2015-1?r=US

More than a year later, young Mr. Sohn was no longer employed at Soros, but the following information was made public by 'CREW:'

'As part of its longstanding interest in how Wall Street investors manipulate the regulatory process for financial gain Citizens for Responsibility and Ethics in Washington (CREW) filed requests under the Freedom of Information Act with the Department of Justice, the Federal Trade Commission, and the Securities and Exchange Commission seeking documents on December 8, 2014. In light of reporting showing that hedge fund manager William Ackman orchestrated demands for investigation of Herbalife while maintaining a short position in the company’s stock, CREW’s FOIA requests with the FTC, SEC and DOJ seek to learn more about Mr. Ackman’s efforts.'



Anne Weismann accepts a Madison Award from the ALA on behalf of CREW (Photo Credit: ALA Washington Office)
Anne Weismann, Interim Executive Director of 'CREW'

http://www.citizensforethics.org/page/-/PDFs/Legal/Letters/3-18-15_Commerce_Short_Seller_Letter.pdf?nocdn=1

Completely ignoring Bill Ackman's evidence-based analysis of 'Herbalife'as the effectively-valueless corporate-front for a criminal enterprise that continues to deceive, and damage, countless vulnerable individuals around the world, Anne Weismann (Interim Executive Director of'CREW'), has instead suddenly asked Congress to investigate attempts by short sellers 'to manipulate the federal government for personal financial gain.'
'...now it’s William Ackman ginning up a federal investigation into Herbalife to make good on a billion dollar bet against the company.'
'Mr. Ackman and his hedge fund Pershing Square Capital Management have gone to unprecedented lengths to urge federal regulatory action against Herbalife, a company in which Mr. Ackman and his fund have maintained a significant short position.'
'Mr. Ackman has admitted he just needed to get any one of the SEC, the FTC, the 50 attorney generals around the country, [or] the equivalent regulators in 87 countries, interested in investigating to succeed in driving the price down.'
According to documents obtained by 'CREW'through a Freedom of Information Act (FOIA) request, Ackman’s lawyers regularly contacted Lois Greisman, the Associate Director of the Division of Marketing Practices at the FTC, with emails attaching articles and blog posts critical of Herbalife. 
CREW says that many of these messages 'appear to have been ginned up by Ackman or his supporters.
...'While it appears DOJ and the SEC may be investigating Mr. Ackman’s conduct, Congress needs to look at this issue. Many Americans already believe Wall Street is a rigged game. Watching billionaire hedge fund managers get richer by instigating government action can only lead to further decreased confidence in the country’s financial markets and government leaders.'


Herbalife Ltd.
NYSE: HLF - Mar 20 1:24 PM EDT
40.87Price increase2.93 (7.72%)



As a result of a recent, re-intensified, coordinated propaganda campaign to paint Bill Ackman as an unethical and dishonourable criminal, the market price of effectively-valueless 'Herbalife'shares has again begun to re-inflate.

Meanwhile, back in the adult world of quantifiable reality, after examining the available data, an entirely different picture emerges. In fact, when it comes to lobbying government, the 'Herbalife' racketeers have been massively outspending Ackman, and Pershing Square, over the last two years:


Lobbying expenses of 'Herbalife' and 'Pershing Square', in US$ and % of total assets

During  2013 and 2014, 'Herbalife' committed almost 5 times as much on lobbying the US government as Ackman did. When the lobbying expenses are calculated as a percentage of total company assets, the difference  for 2013 and 2014 (respectively), is that 'Herbalife' spent 37 and 26 times as much on lobbying as Pershing Square.

Not surprisingly, 'Herbalife' has significantly increased its lobbying budget since Ackman announced his short in December 2012.

Lobbying expenses of 'Herbalife' ($) in the USA, 2009-2014
  
For many years, 'Herbalife's' annual lobbying budget remained around $500,000, but during 2012 to 2013, this figure doubled and is expected to double again during 2013 to 2014. In the first half of 2014, 'Herbalife' had already spent more than $1 million on lobbying. This was already equal to the total lobbying budget for 2013.

Lobbying expenses of 'Herbalife' as a % of annual revenues, in the USA, 2009-2014


As a percentage of annual revenue, 'Herbalife's', lobbying expenses also quadrupled during 2012 - 2014, but that is not all there is to it; for while many large commercial companies have considerable lobbying budgets, one rarely finds one that spends as much of its revenue on lobbying as 'Herbalife.'



Lobbying expenses 'Herbalife' compared to competitors, % of revenue, USA, 2012-2014

'Herbalife' steadfastly pretends to be an entirely legitimate 'direct selling enterprise' and part of the 'nutrition industry.' In which case, 'Herbalife' should consider companies like Unilever and Procter & Gamble to be its main competitors. However, these companies spend only a fraction of their revenue on lobbying compared to 'Herbalife'. As a percentage of annual turnover, 'Herbalife' has lately been spending 3 and 5 times (respectively) as much annually as P&G and Unilever. In 2014, these highly-revealing figures have climbed to an estimated 7 and 12 times (respectively).

Furthermore, 'Herbalife' mainly lobbies on issues related to 'trade and finance', whilst authentic nutrition product manufacturers, such as Unilever and P&G, focus on health related issues.

When people are asked which industries they would expect to spend the most money on lobbying? - weapons, tobacco, oil and pharmaceuticals are the most often heard replies. Few people (if any) mention the nutrition industry. Yet, by comparing the lobbying expenses of 'Herbalife' to big tobacco, oil, and pharmaceutical companies, we find a remarkable picture.


Lobbying expenses of 'Herbalife' compared to high-rollers, USA, % of revenue, 2012-2014

The increase in lobbying expenditure made by 'Herbalife' following Ackman's short, has placed this alleged'nutrition company' on pole position in comparison to weapons manufacturers, tobacco producers and oil, and pharmaceutical, companies. While during 2012 'Herbalife' only managed to outspend Royal Dutch Shell and Philip Morris (from this list), subsequently, the 'Herbalife' racketeers have put even the highest (lobbying) rollers such as Pharmaceutical giant, Pfizer, to shame. As a percentage of annual revenue, 'Herbalife' will lately spend more than twice as much on lobbying as Pfizer, 4 times as much as BAE Systems, 8 times as much as Philip Morris, and a staggering 24 times as much as Royal Dutch Shell.

The lobbying activity of 'MLM' racketeers has not been limited to the USA. Like Philip Morris, both 'Amway' and'Herbalife' have found their way to Brussels.

Not surprisingly, the lobbying activities of 'Herbalife' in the EU are slightly less shocking than in the USA. So far, Ackman's short has only made regulatory action imminent in the USA. THE 'Amway' bosses however, have committed a vast amount of stolen money to persuading EU officials to allow them to continue to thieve from the citizens of Europe - currently, almost 2 millions euros per year (and that is only what has been officially declared).





In the European Union, compared to authentic commercial companies and the highest (lobbying) rollers, both 'Herbalife' and 'Amway,' are on the lobbying pole position yet again. Although 'Herbalife' has been spending more than 5-10 times as much as Pfizer, Royal Dutch Shell, etc., on lobbying in the EU, Philip Morris did manage to spend slightly more than 'Herbalife.' However, 'Amway' massively outspent everyone. As a percentage of annual revenues (in $), the EU lobbying costs (in €) of 'Amway' are almost three times as high as those of Philip Morris, and a staggering 26 and 32 times (respectively) as much its alleged competitor, P&G, and weapons manufacturer BAE Systems.

________________________________________________________________________

NOTE:

- All total lobbying expenses for 2014 are projected (i.e. the amounts reported for the first half year were doubled).
.
- 2013 revenues were used to estimate  2014 revenues. 

- To avoid issues with exchange rate differences, the percentages for the EU were calculated using lobbying expenses in euros, and turnover in US dollars.

_______________________________________________________________________
'Citizens for Responsibilty and Ethics in Washington is dedicated to promoting ethics and accountability in government and public life by targeting government officials—regardless of party—who sacrifice the common good to special interests.' 

Presumeably, the fact that Madeleine Albright is no longer in government, explains why those tenacious watchdogs at 'CREW'don't have the slightest interest in her financial connections with racketeers.


During the last 7 years, Madeleine Albright's company , 'Albright Stonebridge Group,' has received approximately ten millions  dollars from the 'Herbalife'mob. In return for this pile of stolen cash, Ms. Albright has betrayed every single value that she (and her late father) ever claimed to have stood for, by enthusiastically participating in committing fraud and obstructing justice. 


'Herbalife's' most-useful idiot, Madeleine Albright, and her associates, can have absolutely no moral or intellectual justification for holding onto the ten millions pieces of stolen silver they have received from the bosses of the 'Herbalife' racket.







David Brear (copyright 2015)


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