Memo to Fraudsters: Best way to succeed is to run a criminal enterprise that employs thousands. U can call it multi-level marketing.
— Sam E. Antar (@SamAntar) December 24, 2012
Sam Antar is Former Crazy Eddie CFO, former CPA, and a convicted felon as a result of the Crazy Eddie scam. He now teaches law enforcement, professionals, businesses, and students how to catch the crooks.
I've only ever seen one legitimate MLM: stream energy. They sell retail power and natural gas. They have no inventory, they're just selling energy contracts that are sleeved through one of the larger wholesalers. But the typical story with them is that half the "customers" are actually the sales reps who are buying the products they're hocking.
ReplyDeleteIt's a pyramid scheme, because there are only so many layers of the distribution chain before the actual consumer market for the product saturates and the whole enterprise goes bankrupt, which wipes out everybody except the people at the top layer of the pyramid who from the beginning collected their commission fees from all the suckers that followed them and whose network of suckers had already grown exponentially. They also get the sales reps to max out their credit cards to buy a large inventory of the product and to pay for the "training seminar" which usually involves half-baked motivational speeches, bad sales advice, and a cult surrounding the company and the founder. To put it all into perspective, Donald Trump was involved in MLM.
DeleteIt's funny how a convicted person would act tweet something like that. Maybe that's how he got caught. :)
ReplyDelete