Questionable Legislation Sponsored to Make Pyramid Schemes Legal

 

I have written two other blogs on this form of a commercial cult phenomenon:  2016, Beware the “Main Street Bubble” of Multi-Level Marketing Groups Without U.S. Government Protection and 2017, Multi-Level Marketing Groups Defraud Consumers!

 

Enter the latest scam. U.S. government bill H.R. 3409: Anti-Pyramid Promotional Scheme Act of 2017 which sounds like it is against MLMs, right? Wrong! It actually seeks to legalize them. Confused? I would be, too, except I had an expert explain it to me. Indeed, we do live in an age of such deception, greed, and crime and legislation, meant to help citizens, can be presented in such a way that it harms them instead. Ever hear of the Direct Selling Association? They are the lobbying organization for MLMs. They are promoting this bill. The main sponsor of H.R. 3409 was Representative Marsha Blackburn and she was just elected to be one of Tennessee’s Senators. This raises the concern that even if H.R. 3409 dies in the current Congress, Blackburn will introduce a similar bill in the Senate next year.

How do I know that H.R. 3409 is a scam? I interviewed attorney Douglas Brooks who is an expert on MLMs and has represented victims for many decades. In the included video, Doug explains how things are not how they appear to be. He recommends that everyone go to the “Pyramid Legalization Act” at https://www.govtrack.us/congress/bills/115/hr3409 to see if one of their Representatives sponsors this bill. If their name is there, one might surmise they have been the recipient of donations (at least to their election campaigns). There are 48 cosponsors (34 Republican, 14 Democratic)  and we ask you to contact them and urge them to withdraw their support for the bill!

The House subcommittee where the bill has been assigned: https://www.govtrack.us/congress/committees/HSIF/17.  Please contact your representative and urge them to vote against the bill!

 

Together with Bruce Craig (retired Assistant Attorney General from Wisconsin) and Robert Fitzpatrick (expert on pyramid schemes and MLM), Brooks has drafted a white paper explaining why H.R. 3409 would help pyramid schemes and harm consumers. He would be happy to send a copy of the white paper to anyone who is interested. Brook’s email is dmbrooks@brooks-law.net

 

Podcasts: The Dream and Uncover: Escaping NXIVM

 

Brooks represented victims of Consumers Buyline–a now-defunct MLM started by NXIVM founder Keith Raniere currently sitting in jail on charges of sex trafficking and forced labor. Twenty Attorneys General shut down the group and forbade Raniere from ever operating again. However, he created a MLM-style group that recruited people to be coaches.  If you wish to know more check out the podcast entitled Uncover: Escaping NXIVM.  It delves into the “DOS” group within NXIVM. The core of the podcast is a series of interviews with Sarah Edmondson, a former high-level NXIVM and DOS recruiter who became a whistleblower. Brooks helped the producers with background information on Raniere and his MLM, Consumers Buyline.

www.pyramidschemealert.org (Robert Fitzpatrick’s website)

www.mlm-thetruth.com (the late Jon Taylor’s website)

Video interview I did in 2014 with MLM experts Robert Fitzpatrick and Douglas Brooks

A book by former Amway MLM insider, which is online for free as a pdf