Guangdong Procuratorate Reveals New Methods of MLM Crime
The "legal" packaging deception of MLM continues to be updated
Nanfang Daily (Reporter/Correspondent Shang Liyang/Wei Lei Liangcheng) On May 11, the reporter learned from the Guangdong Provincial People’s Procuratorate that during the judicial handling of the case, the procuratorial organs of our province discovered that the current pyramid scheme crime has some new characteristics. The concealment of its form, the large amount of money involved, and the number of victims are shocking. According to the person in charge of the relevant department of the Provincial Procuratorate, taking Dongguan as an example, since 2016, the Dongguan City Procuratorate has handled 71 pyramid schemes involving 220 people, with a total amount of more than 13.3 billion yuan involved. New MLM crimes increasingly focus on packaging themselves as “legal” and constantly innovate their methods. Next, the Guangdong Procuratorate will further strengthen its crackdown on this type of crime.
Falsely claiming to be a branch of a famous enterprise
According to the person in charge of the relevant department of the Provincial Procuratorate, new pyramid scheme crimes often find ways to directly or indirectly link their organization names or registered companies with well-known companies to enhance the reputation of the "organization" and win the trust of members. For example, in the case of MLM activities organized and led by Huang, Lan and others, Huang claimed to be the store manager of the Tangxia branch of Taiyang God Company, and falsely claimed that the Tangxia branch was a branch of Guangdong Taiyang God Group Co., Ltd. He sold the purchased Taiyang God health care products and skin care products to members at high prices, and used this as a gimmick to continue to develop offline purchases and earn commissions from them.
In the case where Liu, Xie and others were suspected of using "Zhongbei Egg Industry" to organize and lead pyramid schemes, each branch of "Zhongbei Egg Industry" claimed that "the head office Hubei Zhongbei Egg Industry Co., Ltd. is a comprehensive company specializing in the procurement, wholesale and retail of eggs, and focusing on the development of e-commerce." They also recorded a video claiming that the company was successfully listed on the Shanghai Stock Exchange Center and that Shenzhen Maker No. 1 Information Technology Co., Ltd. invested 30 million yuan to help its development, as a means of deception.
Online platform upload certificate
The person in charge of the relevant department of the Provincial Procuratorate said that in order to gain the trust of members, some MLM organizations have tried every means to open up information channels such as online searches, industrial and commercial inquiries, and consumer platforms, and have done enough "legal business" homework.
