|Received:||7/6/2006 11:20:02 PM|
|State:||Not in the US|
|Subject:||Business Opportunity Rule|
|Title:||Notice of Proposed Rulemaking|
|CFR Citation:||16 CFR Part 437|
Comments:We investigate victims of MLM, pyramid and Pozi schemes actively taking legal action on their behalf. Unfortunately with the latest computer generated power point programs and misleading information; corrupt police and government employees, accountants, and financial advisors that are involving themselves in these schemes and the fact most of it is Affinity fraud "sprung" while the victim's guard is down it is much easier to dupe ordinary people to join these frauds. It is devastating to families, friends, the workplace, churches and community when these schemes predictably collapse. We at CrimeBustersNow are particularly concerned about seniors being taken. They have little or no time left to generate an income to offset their loses; ethic groups where these fraud spread like wild fire to the financially unsophisticated, and universities, colleges and now even high schools with students as young as 16 getting involved in decisions like this, the losses of which of which can be a critical life altering experience. Now, if one of a few successful scammer, they become corrupted into believing that this is the way business is legally conducted in a democracy, when it is in fact fraud. These are not good lessons to be learned. It is also unfortunate today that almost anyone can get a line of credit through credit cards, unavailable decades ago and easily get in over their heads. Some who get their friends involved not only lose their money but will voluntarily pay back friends leaving them with far more debt than they imagined. These organizers encourage people to use credit cards, mortgage or rent payments, savings for universities etc., with promises of quick returns with absolutely devastating results. In Canada these scammers are now actively recruiting on the campuses of colleges and universities with teacher now involving students. A case we are pursuing is a government prosecutor, and college teacher who involved a student, a paralegal, she taught law, into a pyramid scam run by a corrupt lawyer now threatening to sue and destroy this young woman's credit rating for refusing to pay the rest of the $2000 or so balance of her contract signed under great pressure and almost religious like recruiting tactics. It is a serious and abhorrent problem in Canada imported from the U.S. through companies such as Arbonne, Lifewave and the granddaddy of all Amway Corp. Conversely, many Canadian pyramid selling schemes especially gemstones scams from Canada are being spread to the U.S. and around the world via the internet. Canadian Diamond Traders, Treasure Traders International, Business in Motion, Departure Central, now cloned into flight 36 and many more. Any laws or regulations that would better disclose the truth to counter the rosy picture of Financial Freedom is certainly welcome. We fully endorse the recommendations of Robert Fitzpatrick of Pyramid Scheme Alert in the U.S. that... 1. All multi-level marketing companies must comply with earnings-claims disclosure rules. No multi-level marketing company should be given an option of making "no earnings claims". 2. Multi-level marketing companies must disclose the average retail-based income earned by participants in each level of the hierarchy. 3. Income disclosures of multi-level marketing companies must include: -- The total number of participants who joined in the past year, not just the so-called active "participants" in one part of a year. -- The average NET, not gross, income of participants in each level. Average net income is the average of all monies received from the company by participants minus the average of all moneys paid to the company by participants in each level. Expenditures paid to the company include product purchases, renewal fees, shipping costs, books, audio and video tapes, training and motivation seminars, computer fees, etc. Pres. David Thornton - CrimeBustersNow ...