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MLM scams

Fred

This is excellent news.
Almost every day, some poor sod tells me how they're about to make a fortune from an MLM scam, with no clue they're being ripped off.
I'm really please to see this place being hammered, and hope it'll be the first in a long line of this rip off companies to get closed down.
Well done, Indonesia.



TEMPO.CO, Jakarta – The Jakarta administration will revoke PT Rajawali Prima Indonesia’s (Raprindo) business license for committing fraud against dozens of its employees. The Jakarta Manpower and Transmigration Agency was currently waiting for the results of an internal investigation before continuing with the revocation.

“The police have barricaded the company’s premise with police lines, so we can’t examine documents,” Jakarta Manpower Agency head Priyono told Tempo on Monday, November 24, 2014.

Currently, Priyono said, the government was working with the police to unravel the case. However, Prioyono said the police could not proceed with their investigation without reports filed by the victims. But Priyono promised the investigation will proceed.

Earlier, police investigators arrested a resident named Johan for killing two female employees of PT Raprindo in West Jakarta. Johan killed both employees out of frustration that the company had committed fraud against its employees through a multi-level-marketing scheme. Each employee was promised a monthly salary of Rp2.2 million (US$183.3)if they recruited a new employee.

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Ubudian

Thank you Fred for posting this!  It is indeed excellent news!

MLM scams abound here in Bali.  It’s terrible and many of the scams are run by foreigners…the victims usually being hapless Indonesians.

The typical scam is being charged a few million IDR for their “sales kit,”  being offered very little if any training, and promises of good earnings…as mentioned in this article.

Fred

Most of the ones I've seen here are Malaysian, with some Indonesian.
Seeing one closed is good news; seeing the lot get hammered would be a lovely Christmas gift.

Ubudian

What you say makes perfect sense to me Fred as these MLM scams are rather recent for us here in Bali. 

One can hear, "not all MLM companies are scams" and maybe that's true.  Do you "buy that" or do you think they are all dodgy at best?

Fred

The business model of an MLM is a scam, nothing else is possible.

kardus

all MLM are scams, unless you own the MLM company you couldnt really call MLM a business model. its a good business if you own one, there is no sense in running as MLM agent. its good business if you cant get a job and can maintain to live daily by just drinking water, no eating and walking as your primary mode of transportation

ronal60p

The other night a friend met me at a restaurant here on Bali, Indonesia.  He wanted to see if I wanted to buy a product called Bio Spray that he told me would cure not only my gout but just about everything else imaginable.  The cost:  Only  for 7 small bottles and they would throw in 5 more for "free!" 

In the back of the restaurant over a hundred people had gathered for the sales pitch from the doctor who is the head of this MLM scam.  I met with him, told him my medical situation, and he diagnosed me, then laid out the regimine of Bio Spray I would need to be healthy.  Interestingly enough, he told me I would have to take it while in the care of a medical doctor but should never tell that doctor I am taking Bio Spray...now go figure!

How anyone can get involved in these scams is so far beyond my comprehension that I cannot even think of it any longer. 

Some of the gullible walked out with small bags of Bio Spray that they are to now go out and sell.  I have no idea what their initial buy in had to cost, but whatever it was it was a stupid decision.

The worst part of such a scam is those in need of medical attention will not get it.  They will take these snake oil potions with the belief they will be cured and in, many cases, their ailments will either kill them or get worse.  There should be strong laws against this and those selling such crap should be prosecuted, especially the founders.

I guess PT Barnum was right..."There is a sucker born every minute."  Be smart, don't be one yourself!!!

ronal60p

Joining any kind of pyramid scheme is a sure way to lose friends fast.

Fred

saintjean wrote:

Joining any kind of pyramid scheme is a sure way to lose friends fast.


How true.
Seen this many times - the victim tries to get all the people they know to "invest", soon finding out no one wants to know them.

Fred

These companies have no morals, and their victims end up very much like drug addicts, desperate for one more sale and willing to do anything to get it.