The recently published book, No One Would Listen, by whistle blower, Harry Markopolos, dramatically describes how SEC regulators ignored his alerts and allowed the Bernard Madoff Ponzi scheme to grow to enormous proportions. Their failure to act caused harm to thousands more people, despite his written and detailed warnings, which he brought to the agency five separate times over an eight-year period of investigating the scam. Additionally, the news media such as the Wall Street Journal and Forbes magazine also failed to respond to his evidence which he offered them. Madoff was apparetnly treated as “too big to expose.”
It was very good at the beginning, loved the selection. The products went a long way, they were very effective and did the job, I loved the personal interaction with the distributor, things came on time and full order. However, products were not cost effective, they were very expensive to ship and the constant pressure to become a distributor was unnerving. I just wanted to buy the products annually.
THIS IS ALL CRAP, EVERYTHING THIS GUY/GIRL IS SAYING IS ALL FAKE ESPECIALLY BECAUSE I AM A CROWN IN THE BUSINESS AND BECAUSE HE IS SAYING THAT IT IS NOT A PYRAMID SCHEME. ESPECIALLY, BECAUSE I HAVE AN UPLINE THAT IS IN THE LEVEL EMERALD AND I AM IN CROWN, EVEN THOUGH HE INVITED ME I PASSED HIM, SO THIS IS ALL CRAP IF ANYONE ONE IS INTERESTED IN THIS WONDERFUL OPERTUNITY CONTACT ME.
We drove our teal ’88 Oldsmobile Delta to the Bayou Club Estates for our requisite ‘dreambuilding’ and toured the brand-new houses: big mansions with tall, echoing ceilings and screened-in pools, shiny state-of-the-art kitchens, garages big enough for three Mercedes, a golf course in the back, vanity mirrors and crystal fixtures in every bathroom. We drove to the yacht dealer and toured the Princesses and the Prestiges, lying on cabin beds and ascending the wooden stairs to stand on pulpits, gazing toward imagined horizons.
In July 2007, a lawsuit was filed by IBS (Internet Business Solutions), owned by Quixtar Emeralds Henry and Sue Skaggs, naming Bill and Peggy Britt, Paul and Leslie Miller, Rocky Covington, Kevin and Beth Bell, and Britt World Wide, all of whom are Emeralds and above in Quixtar, as defendants. The suit alleges that the Skaggs, having developed a software system to allow for direct order fulfillment of tools to their downline, received approval from Britt to continue the development of the software program for eventual rollout to all of BWW (a tool system within Quixtar). During this time, the Skaggs state that they carried the burden of the development costs. According to the lawsuit, Bill Britt stated in 2005 that the program would not be rolled out across BWW. The Skaggs then claim they were de-edified by their upline. The suit alleges breach of contract, racketeering, and intentional interference with economic relations. In response, the defendants claimed that no contract was entered into and challenge the lawsuit on various other legal grounds.
Whether there is more emphasis on referrals or sale of products is very debatable. It pretty much depends on the individual IBO involved. In the Amway gathering I went to, the IBO making the presentation stressed the prospect of saving through the “discounted” prices on the hub rather than trying to sell us the idea of making a lot of money. Some IBOs might try to sell you the idea of making a fortune right away. Some are pushy, some are nice people.
I got the impression that she was becoming a laughingstock at work, an experience common enough to have spawned a whole genre of revenge fantasies in the Amway lore. Speakers always describe the retirement party you’ll be able to throw for yourself, complete with fireworks, to really stick it to the naysayers who once laughed at you. They also describe the houses and vacations you’ll give to your parents, who’ll finally realize how wrong they were about The Business. The yearning to save face—especially with people you urged to join Amwayâ€”seems to be a major factor keeping people in.
In 1983, Rich DeVos, one of Amway's founders, made recordings which, among other things, communicated his displeasure with several issues regarding some of the high ranking distributors/IBOs. These recordings are entitled "Directly Speaking" and were addressed to Direct Distributors (now called Platinums), who are considered leaders with various responsibilities for their downline group. In January 1983 Rich DeVos announced that Amway would pay Business Volume (BV) on Amway produced tapes. He expressed concern about the level of income from the sale of Business Support Materials (BSM; tapes, CDs, books, and business conferences/functions) compared to the income the high level distributors were making from Amway products. He stated his legal team was concerned if the tool income exceeded 10% of their Amway income, and stated that BV payouts on tapes can never exceed 20% of the distributor's total Business Volume.
In September 2006, following a public complaint, Andhra Pradesh and Telangana state police (CID) initiated raids and seizures against Amway distributors in the state, and submitted a petition against them, claiming the company violated the Prize Chits and Money Circulation Schemes (banning) Act. They shut down all corporate offices associated with the Amway organization including the offices of some Amway distributors. The enforcement said that the business model of the company is illegal. The Reserve Bank of India (RBI) had notified the police that Amway in India may be violating certain laws regarding a "money circulation scheme" and the IB Times article writes that "some say ... Amway is really more about making money from recruiting people to become distributors, as opposed to selling products". In 2008, the state government of Andhra Pradesh enacted a ban on Amway media advertisements.