Pyramid and multlevel marketing schemes, and the friendly stranger who seems sooo interested in you

The Lectric Law Library (condensed version of Better Business Bureau report ^ | 1993-1994 | Better Business Bureau

[StarfireIV]

With the current economic trend and the recent conversation with a friend who was "invited to attend" I thought it best to post this.

[Lizavetta]

These scams are deadly for personal relationships. The recruiter looks at every friend, relative, and casual acquaintance as a dollar sign and everyone becomes a target.

[cmsgop]

I can think of one......."Primerica" These people leased a space next to me for a couple of months and bailed overnight.

[Gorzaloon]

These scams are deadly for personal relationships. The recruiter looks at every friend, relative, and casual acquaintance as a dollar sign and everyone becomes a target.

And when they run out of friends and relatives, they end up looking for a real job, anyway, though sometimes after Chapter 13. One of the dealiest damages these things do is to convince the sucker they are "Building a business", as they slip into bankruptcy. Now, the sucker has no family, no friends, and no income.

Years ago, one enterprising scammer couple mailed their classmates, announcing a "Thirteenth Reunion".

People arrived to learn it was (Is someone going to FINALLY say the "A" Word"?).

The downside was a wasted evening, but the bright news was the house was trashed.

[Lizavetta]

Click on the link for lotsa dirt on Scamway:


http://www.rickross.com/groups /amway.html

[Drew68]

You have just been invited by a friend, neighbor or colleague to attend an "opportunity meeting"

While in college, I was invited to one of these "great opportunities" by two of my cousins. Being broke at the time, I attended. I was suspicious from the start. First of all, everyone was overly friendly and enthusiastic towards me, telling me how this is such a great opportunity to make thousands of dollars while at the same time they were very evasive with what the process entailed.

I also noticed a bunch of "ringers" --young, very good-looking people dressed in expensive suits and jewelry, Rolex watches, etc. who would talk about how they went from flipping burgers (or some other low-paying undesirable job) to driving a Ferrari and owning a condo in Aspen.

Anyhow, one of the ringers started describing the company in very vague terms yet I was able to instantly recognize it as a pyramid scheme. I told my cousins that this was bogus and to back out as quickly as they could. They thought I was a fool.

The company was named "Equinox" and they took my two cousins to the cleaners for around $15,000 before they wised up.

[Drew68]

Click on the link for lotsa dirt on Scamway:

www.rickross.com is a great site for lots of info not only on MLMs but on other schemes, religious cults and shady organizations as well.

[Pru]

Primerica is the worst! Very corrupt company. Has any one else had experience with this one?

[chaosagent]

I can think of one......."Primerica" These people leased a space next to me for a couple of months and bailed overnight

Just to point out that Primerica is part of Citigroup, i.e. Travelers Insurance, Travelers Bank, Solomon Smith Barney, Citibank, etc. and has over $1 trillion dollars in assets. Not exactly a fly-by-night business.

[DugwayDuke]

Why do you say Primerica is corrupt?

[sinkspur]

Just to point out that Primerica is part of Citigroup, i.e. Travelers Insurance, Travelers Bank, Solomon Smith Barney, Citibank, etc. and has over $1 trillion dollars in assets. Not exactly a fly-by-night business.

Exactly. The Primerica I'm familiar with sells high risk insurance, such as cancer and alzheimer's insurance. In fact, I wasn't aware they had any connection to MLM.

[cmsgop]

Primerica is part of Citigroup,

Thats Right, I remember they said that same line to my employee Over and Over and Over again.

[cmsgop]

They skirt the line,.......Like Razor Thin, I did research them a bit last year.

[martin_fierro]

The company was named "Equinox" and they took my two cousins to the cleaners for around $15,000 before they wised up.

Yeah, my cousin was taken in by this MLM scam, too. Lost a couple of grand on it.

Her experience was in Pittsburgh -- where was yours?

[Pru]

Primerica may be a big outfit but it is also a very corrupt one. Witness Worldcomm, Encron, Tyco et al. Don't be fooled by size.

[chaosagent]

What's corrupt about them?

[whipitgood]

Everyone should be a part of one of these scams. It's a great way to get rid of those pesky 'friends' who want to take up all your time with their whining. You just mention the name of the scam, tell them that you have been doing VERY well lately as a result of being involved, and invite tham to a meeting. Almost 100% guaranteed they will never speak to you again. But don't use it on people whose friendship you value.

[Pru]

Primerica used to be A. L. Williams, a replacement insurance agency run by Art Williams ex-football coach. When I say that Primerica is corrupt I don't mean that the agents are corrupt but the company itself. It steals from the agency that sells it's products. It really uses people horribly to the benefit of the corporation. The agents think of themselves as independent contrators but are treated as employees. That means that the people recruited assume all the risk for procurring the business (rents, leads etc.) and Primerica gains all the reward. It's also a nifty way for the corporation to remove tax liability for itself. The agents, especially at the bottom, are good people. They are just being hopelessly and unknowingly exploited.

[Drew68]

Her experience was in Pittsburgh -- where was yours?

Ft. Collins/Denver Colorado.

My first clue that something was fishy was the fact that the head of the company spelled his last name "Gouldd" and his brother (an Equinox executive) spelled his last name "Gould" with only one d. Why the spelling variations.

Interestingly enough, if you type up "Gouldd" in google, you'll find that this company has been busted over and over for fraud.

[vikingchick]

I knew a guy who got caught up in one called "Quorum." They got around $5000 from him before he bailed out. He was only able to convince one person to join his "downline."

He went to a meeting in Arizona, and his brother-in-law invited two leeches to share their room. They started charging meals to the room, and had no intention of paying, trying to stick my acquaintance with the bill.

And when you would politely turn down their great offer to join, they would reassure themselves that the world is full of winners and losers, and anybody who didn't join was obviously a loser.

That's why I'm chuckling to myself right now.