- what has become popularly-known as 'Multi-Level Marketing' is nothing more than an absurd, cultic, economic pseudo-science.
- the impressive-sounding made-up term 'MLM,' is, therefore, part of an extensive, thought-stopping, non-traditional jargon which has been developed, and constantly-repeated, by the instigators, and associates, of various, copy-cat, major, and minor, ongoing organised crime groups (hiding behind labyrinths of legally-registered corporate structures) to shut-down the critical, and evaluative, faculties of victims, and of casual observers, in order to perpetrate, and dissimulate, a series of blame-the-victim rigged-market swindles or pyramid scams (dressed up as 'legitimate direct selling income opportunites'), and related advance-fee frauds (dressed up as 'legitimate training and motivation, self-betterment, programs, recruitment leads, lead generation systems,' etc.).
|Rupert Jones (Deputy-Editor Guardian Money Section)|
We are Clive Leach, David Ross & Diana Ross, directors of Leach-Ross & Associates Ltd., which is an Authorised Distributorship of The Utility Warehouse Discount Club owned and operated by the Telecom Plus Plc group of companies. The purpose of this site is to serve members of our team as an additional resource to that provided to them by Telecom Plus Plc and to provide an insight to prospective team members as to the “nitty gritty” of this brilliant business.
There is already a large body of documentary evidence proving that 'Utility Warehouse' adherents have been, and are being, exposed (without their fully-informed consent) to co-ordinated devious techniques of social, psychological and physical persuasion, designed to shut down their critical, and evaluative, faculties - dissociating them from external reality in order to exploit them and prevent them from complaining. Lying at the dark heart of the 'Utility Warehouse' cult has been the classic guilt-producing closed-logic controlling-narrative. This constantly tells 'MLM' converts that only those who exclude all negativity and continue to work hard and believe totally that they will achieve the future redemption of financial freedom, can achieve financial freedom. Thus, all those who lose money and quit must not have believed totally and only have themselves to blame.
1). Keep the person unaware of what is going on and how attempts to psychologically condition him or her are directed in a step-by-step manner.
2). Control the person's social and/or physical environment; especially control the person's time.
The members serve as models of the attitudes and behaviors of the group and speak an in-group language.
Strip members of their main occupation (quit jobs, drop out of school) or source of income or have them turn over their income (or the majority of) to the group.
Once the target is stripped of their usual support network, their confidence in their own perception erodes.
As the target's sense of powerlessness increases, their good judgment and understanding of the world are diminished. (ordinary view of reality is destabilized)
As the group attacks the target's previous worldview, it causes the target distress and inner confusion; yet they are not allowed to speak about this confusion or object to it - leadership suppresses questions and counters resistance.
This process is sped up if the targeted individual or individuals are kept tired - the cult will take deliberate actions to keep the target constantly busy.
4). Manipulate a system of rewards, punishments and experiences in such a way as to inhibit behavior that reflects the person's former social identity.
The target's old beliefs and patterns of behavior are defined as irrelevant or evil. Leadership wants these old patterns eliminated, so the member must suppress them.
Members get positive feedback for conforming to the group's beliefs and behaviors and negative feedback for old beliefs and behavior.
The only feedback members get is from the group; they become totally dependent upon the rewards given by those who control the environment.
Members must learn varying amounts of new information about the beliefs of the group and the behaviors expected by the group.
The more complicated and filled with contradictions the new system is and the more difficult it is to learn, the more effective the conversion process will be.
Esteem and affection from peers is very important to new recruits. Approval comes from having the new member's behaviors and thought patterns conform to the models (members). Members' relationship with peers is threatened whenever they fail to learn or display new behaviors. Over time, the easy solution to the insecurity generated by the difficulties of learning the new system is to inhibit any display of doubts—new recruits simply acquiesce, affirm and act as if they do understand and accept the new ideology.
The group has a top-down, pyramid structure. The leaders must have verbal ways of never losing.
Members are not allowed to question, criticize or complain. If they do, the leaders allege the member is defective, not the organization or the beliefs.
The targeted individual is treated as always intellectually incorrect or unjust, while conversely the system, its leaders and its beliefs are always automatically, and by default, considered as absolutely just.
Conversion or remolding of the individual member happens in a closed system. As members learn to modify their behavior in order to be accepted in this closed system, they change—begin to speak the language—which serves to further isolate them from their prior beliefs and behaviors.
any self-perpetuating, non-rational/esoteric, ritual belief system established or perverted for the clandestine purpose of human exploitation.
Such groups are identified by the following characteristics:
- has a grandiose sense of self-importance.
- is preoccupied with fantasies of unlimited success, power, brilliance, beauty, ideal love, etc.
- believes that he/she is special and unique and can only be understood by other special people.
- requires excessive admiration.
- strong sense of self-entitlement.
- takes advantage of others to achieve his/her own ends.
- lacks empathy.
- is often envious or believes that others are envious of him/her.
- arrogant disposition.
David Brear (copyright 2017, first published 2005)
'The (Utility Warehouse) partner payments scheme is legal,'
but in almost the same breath, he was forced to admit that:
'...trying to get your head around its byzantine system of commissions and fees, plus the jargon – there’s something called the “stairway to success” with eight different levels of partner – takes some doing.'
Thus, if Rupert Jones couldn't fathom how the 'Utility Warehouse income opportunity' is supposed to function, what chance have its adherents had? Indeed, without a well-informed comprehensive explanation of what is happening here, what chance has anyone had?
In reality, the so-called 'Partner Payments Scheme,' is typical, cultic hypnotic hocus-pocus designed to shut-down the critical, and evaluative, faculties of not only 'Utility Warehouse' adherents, but also those of all casual observers.
In plain language, the 'Partner Payments Scheme' is a steaming pile of bedazzling bullshit, whilst the 'Utility Warehouse' racket is neither original nor unique and consequently, it cannot be fully-understood in isolation.
Currently somewhere approaching 20 000 ill-informed people are being quietly churned through the 'Utility Warehouse' racket each year (i.e. at this rate, almost 200 000 per decade), whilst there is no quantifiable evidence to prove that any of these former so-called 'independent distributors/partners' have generated one penny of net-profit for themselves. This endless-chain of hopefuls have been temporary de facto slaves who have collectively generated vast net-profits for their temporary de facto masters. Since none of this key-information has been made available to new 'Utility Warehouse' recruits (in an easy to understand format), this so-called 'income opportunity' is revealed as being intrinsically fraudulent under criminal law in the UK .
For more than 20 years the 'Utility Warehouse' racket could not have continued to function and find the required new de facto slaves to invest their time and money in it, without its wealthy bosses deliberately hiding the truth from the public, regulators, journalists, etc. However, the same common-sense analysis applies to many other essentially identical 'MLM' rackets, whilst the phenomenon first infected the UK in 1973, when 'Amway' arrived.
|Charles Wigoder (b. 1960)|
Economic alchemist, Charles Wigoder (the ostensible boss of 'Utility Warehouse') says that his company's 'business model' is 'Multi-Level Marketing,' but (for obvious reasons) he doesn't care to explain where this term comes from. That said, I very much doubt if Charles Wigoder actually knows, or would be prepared to acknowledge, the true history of the pernicious fairy story which his company has peddled and upon which his current (approximately £200 millions) fortune precariously rests.
Carl F. Rehnborg (1887-1973)
|Carl F. Rehnborg and his first family, circa 1920|
When Charles Wigoder was born in 1960, 'Nutrilite' was a 20 year old, increasingly-controversial trademark owned by Carl F. Rehnborg a.k.a. 'Dr.' Rehnborg, a 73 year old previously-penniless, American toothpaste-salesman (of Germanic Swedish origin). However, from 1939 onwards, Rehnborg had acquired a considerable fortune by reinventing himself as a historically-important, visionary-scientist, autodidactic scholar and philanthropic businessman. Lawyers from the US Food and Drug Administration Bureau of Enforcement, who successfully-challenged the authenticity of some of Rehnborg's many outrageous lies in the federal courts during two decades, privately knew him to be nothing more than one of a trio of sinister quacks protected by an echelon of attorneys who had combined, and updated, the medicine show and Ponzi-scheme to reflect the spirit of the age. However, just like his contemporary, L. Ron Hubbard, Rehnborg was no ordinary charlatan; he exhibited the diagnostic criteria of severe and inflexible Narcissistic Personality Disorder.
Former penniless science-fiction author, turned multi-millionaire, cultic racketeer, L. Ron Hubbard, posing as a historically-important,visionary scientist and philanthropist who had discovered the secret of how ordinary humans can become healthy, wealthy happy and free super humans. Hubbard was also prepared to share this secret with anyone (for a price).
Tellingly, Rehnborg's own comic-book version of his life and achievements (set-down in various published documents, including a book signed by his son, and heir, Sam Rehnborg), reads uncannily like the autobiography dreamt-up by 'Scientology' instigator, L. Ron Hubbard (a man who was once famously described as 'a combination of Baron Münchausen and Adolf Hitler').
Carl F. Rehnborg circa 1939
Exactly like L.Ron Hubbard, scant quantifiable evidence has been produced to prove that Rehnborg was qualified (let alone expert) in anything, other than lying to vulnerable people to get their money. There is even reason to doubt that Rehnborg (who apparently did once work for 'Colgate & Co') was in China in the exact period he claimed during, and after, WWI; whilst all the other exciting episodes in his various occidental and oriental odysseys are largely anecdotal. However, the truth about Rehnborg’s convoluted ‘Rags to Riches’ American fairy story is an entirely different matter.
However, anyone with an ounce of common sense could immediately tell that Rehnborg’s ‘invention’ was just another essentially-inert potion (in the absurd tradition of the medicine show); a random mixture of cheaply-procured common substances with an expensive price tag. It had probably taken Rehnborg 6 hours to concoct, not 6 years.
By 1939, Rehnborg had spotted the existing term, 'Nutrilites' (probably in an old scientific magazine). So he legally-changed the name of his pay-to-play game of make-believe to the technical-sounding ‘Nutrilite Products Company Inc.’ and moved his quackery onto an almost unprecedented scale. Soon, Rehnborg was legally employing dozens of white-coated workers in purpose-built industrial buildings in Buena Park, California. He also acquired an alfalfa farm near to the city of Hemet in California's San Jacinto valley, but it is unclear exactly where he suddenly found all the necessary capital to pay for these impressive sites and their modern equipment. To his followers and casual observers, Rehnborg’s activity looked like any other lawful enterprise. His staff were ordinary honest folk, to whom the truth was also unthinkable.
|Perhaps it's just a coincidence, but in 1940 Charlie Chaplin's celebrated satire of 'Nazi' Germany, 'The Great Dictator', had transformed the Swastika into the 'Double Cross.'|
Rehnborg claimed that the ‘XX’ brand-name was derived from the Roman numeral representing twenty. It should have been read as ‘double cross;’ for when the former toothpaste salesman’s pricey wampum was routinely analysed by independent chemists working for the FDA, it was discovered that (although it contained essentially what it said on the labels and was quite harmless) ‘XX Supplement’ really did mostly comprise a random mixture of concentrated cheaply-procured, common substances in which vitamins and minerals naturally occur (dried vegetable extracts: alfalfa; parsley; watercress; yeast; etc.). FDA experts later estimated that ‘XX Supplement’ cost no more than a few cents a pack to produce. Thus, FDA lawyers must have known that Rehnborg was, in fact, using authentic pharmaceutical equipment to mass-produce a precisely-measured, harmless placebo, but labelled as a ‘Health Tonic’ (a meaningless term), and peddling it at an exorbitant mark-up (certainly, more than 1000%). This crack-pot pseudo-scientific swindle, which was tantamount to a self-styled 'alchemist' stamping a valueless amalgam of base-metals, 'Pure Gold,' and selling it for the price of pure gold, could have been quickly nipped in the bud, simply by charging Rehnborg with criminal fraud. Apparently, prosecutors never considered the possibility that they might be dealing with someone with severe psychological problems whose own inflexible delusions were contagious. Instead, at first, FDA lawyers felt obliged to take no action; reasoning that, by truthfully listing the banal ingredients, but avoiding making any specific therapeutic claims, on his packaging, Rehnborg had found a loophole in federal laws concerning criminal misbranding of medicines. As result, an up-dated version of an age-old fiction was permitted to be mass-marketed as fact to an unsuspecting public. Unfortunately, the lack of any rigorous official challenge only brought its author more credibility. Not surprisingly, a host of copy-cat 'Unique Vitamin and Mineral Health-Tonic’ scams quickly sprang up.
|William W. Goodrich|
By 1947, Rehnborg, Mytinger and Casselberry were steadfastly pretending ‘15 000 Successful Distributorships in the USA,’ with ‘sales’ totalling ‘$500 000 dollars per month.’ They had also organised the production of a ‘Free’ booklet, ‘How to Get Well and Stay Well’, in which they further pretended that ‘Nutrilite Double X Supplement’ had ‘cured or greatly helped such common ailments’ as : ‘Low blood pressure, Ulcers, Mental depression, Pyorrhoea, Muscular twitching, rickets, Worry over small things, Tonsillitis, Hay Fever, Sensitivity to noise, Underweight, Easily tired, Gas in stomach, Cuts heal slowly, Faulty vision, Headache, Constipation, Anaemia Boils, Flabby tissues, Hysterical tendency, Eczema, Overweight, Faulty memory, Lack of ambition, Certain Bone conditions, Nervousness, Nosebleed, Insomnia, Allergies, Asthma, Restlessness, Bad skin colour, Poor appetite, Biliousness, Neuritis, Night blindness, Migraine, High blood pressure, Sinus trouble, Lack of concentration, Dental caries, Irregular heartbeat, Colitis, Craving for sour foods, Arthritis, Rheumatism, Neuralgia, Deafness, Subject to colds.’
|Carl.F. Rehnborg circa 1947|
Rhenborg now cast himself in the role of ‘Scientific Adviser’ to ‘Mytinger and Casselberry Inc.’ He toured the USA preaching the gospel to wide-eyed ‘Distributors’ - ‘for less than $20 a month’, ‘Nutrilite Double X Supplement’ was the ‘Answer to Man’s Search for Health.’ After both companies’ owners were approached by FDA officials and warned that they could face criminal prosecution for misbranding, the booklet was ‘revised.’ Specific therapeutic claims were supposed to be eliminated. ‘All illnesses’ suddenly became a ‘state of nonhealth’ produced by ‘chemical imbalance’.… ‘Nutrilite XX Supplement’ cured nothing, it merely ‘enabled people to Get Well and stay Well’ by themselves. However, pages 41-52 of the booklet still recounted alleged case-histories explaining that ‘Nutrilite brought relief from such ailments as diabetes, feeble mindedness, stomach pains, sneezing and weeping.’ Not surprisingly, the FDA officials were not impressed, so they finally launched a number of raids, and seizures of ‘Nutrilite XX Supplement’ and associated publications.
In 1951, after a series of lawsuits, appeals and counter suits (in which Mytinger and Casselberry hired top lawyers who portrayed their clients as American capitalist heroes being crushed by Soviet-style bureaucracy), the FDA obtained (on behalf of the people) a permanent Supreme Court injunction against ‘Mytinger and Casselberry Inc.’ preventing ‘Distributors’ from referring to 50 publications making false claims about ‘Health Tonics and Food Supplements’ (including various ‘Revised Editions’ of ‘How to Get Well and Stay Well’). FDA agents soon found that the injunction was being flouted. As a result of mounting complaints, they infiltrated the organization (as potential recruits) and recorded deluded proselytisers chanting the same cure-all mantra about ‘XX Supplement.’ Faced with more litigation and fearing that their monopoly of information might be lost, in 1954, Rehnborg, Mytinger and Casselberry hired a leading advertising agency which handled the clean-cut, but fading, Hollywood star, Alan Ladd. Along with his wife and children, Alan Ladd then briefly-featured in a kitsch 'Nutrilite' advertising campaign - published in various mainstream magazines right up until 1959. Alan Ladd (who secretly suffered from chronic depression and who had problems with alcohol and narcotics) was, however, soon to be air-brushed out of the 'Nutrilite' fairy story.
|Richard DeVos and Jay Van Andel (2nd and 3rd from the right, front row), Carl F. Rehnborg (immediately behind Van Andel, second row), circa 1950.|
The classic movie, 'Elmer Gantry' (released in 1960), was written and directed by Richard Brooks and is loosely-based on a novel of 1927 by the Nobel prize-winning author, Sinclair Lewis. In the Movie, 'Gantry' (played by Burt Lancaster) is a grinning charlatan in a loud suit - a hard-drinking whore-chasing travelling-salesman, who, for sexual and financial motives, attaches himself to the beautiful 'Sister Sharon' (played by Jean Simmons), the focus of a profitable 'Tent Revivalist' group working the Bible-Belt during Prohibition (1920-1933). 'Elmer Gantry' keeps his grin, but he dons a sombre suit and black hat, and is reborn as 'Brother Gantry' 'Charismatic Preacher' and 'Moral Crusader'. He soon discovers that he has the power to create mass-hysteria, and reap tens of thousands of dollars, by manipulating individuals' existing beliefs and instinctual desires. At a key-moment in the movie, a Protestant Minister (bedazzled by 'Brother Gantry's' offer to fill his church coffers) abandons the traditional Christian message and proclaims: 'Business is business, that's the American Way'.
Perhaps it's just a coincidence, but at almost exactly the time that the
Initially (and with an irony that is close to exquisite), in order to dodge being drawn into the ongoing FDA investigation of 'Nutrilite,' De Vos and Van Andel got rid of the pills and potions and now laundered all the unlawful investment payments into their copy-cat, dissimulated, closed-market swindle, behind the claim that they were selling a laundry detergent (i.e. banal, but effectively-unsaleable, non-'medicinal' pseudo-scientific wampum of their own fabrication). Again, the updated snake oil stain remover was deliberately designed to look modern and scientific, whilst De Vos and Van Andel grinned from ear as they too steadfastly pretended that these strangely-familiar, cheaply-procured mixtures of common substances, were all-American, exclusive, good-value and unique.
The original 'Nutrilite' lie was progressively-absorbed back into the spin-off 'Amway' (aka 'Quixtar') lie, 1972-1994, where it still is peddled as the truth. The packaging has been updated, but the fairy story remains essentially the same.
Only after the 'MLM' virus had spread to almost every State of the Union, did the US Federal Trade Commission finally make a half-hearted attempt to close-down 'Amway.' After receiving a significant number of complaints, FTC prosecutors, advised by specialist economists, recognised that what they were faced with, was not a direct selling scheme, but as a classic pyramid scam, without a significant or sustainable source of revenue other than its own victims, but hidden behind a smokescreen of products. However, after years of investigations and hearings, in 1979, a naive, and/or corrupt, federal judge ruled that although 'Amway' had previously been massively in breach of the law and would have to pay fines, the company would be allowed to continue to trade. This was because the judge accepted the latest unbelievable chapter of the 'MLM' fairy story. i.e. That 'Amway' s owners were respectable Christian businessmen who were vehemently opposed to pyramid schemes and that, consequently, they had stopped fixing prices and introduced their own rules which would, henceforth, oblige the members of 'Amway's' sales force to sell at least 70% (by value) of the products which they had bought wholesale from the company, to at least 10 customers, before they could receive commission payments. Amazingly, no independent, common-sense mechanism was created to ensure that this latest twist in the fairy story was true, and that 'Amway' would now be in compliance with the law.
Not surprisingly, this tragicomic judgement was seen as an open-invitation to thieve, and, consequently, a whole host of 'Amway' copy-cat 'MLM' rackets soon began to appear.
6. When, and how, were you first approached to participate in 'MLM' and when was the name 'Utility Warehouse' first mentioned?'
- Was 'Utility Warehouse' first presented to you individually or as part of a group?
- Did the presentation comprise drawing circles containing numbers and percentages on a board or sheet of paper?
- Did you fully-understand the presentation?
- Was the presentation given by a man with a woman nodding in agreement next to him?
- Were you given to believe that anyone could understand 'MLM?'
- Did the recruiter(s) seem generally happy and excited as though they had wonderful news to share?
- to earn income?
- to buy services at a discount price?
- Neuro-Linguistic Programming?
- coercive behaviour modification?
- group pressure?
- covert hypnosis?
- thought reform?
- mental manipulation?
- love bombing?
- to alter you habitual way of speaking? (if yes, give a brief explanation)
- to alter your habitual way of dressing? (if yes, give a brief explanation)
- to alter you habitual way of eating? (if yes, give a brief explanation)
- to alter your habitual sleep pattern? (if yes, give a brief explanation)
- to alter you habitual social contacts? (if yes, give a brief explanation)
- that everyone above you in your 'MLM Network' was your 'Upline' and everyone beneath you was your 'Downline?'
- that your 'Upline' was there to help you and was to be 'admired and respected?'
- that your 'Upline's success in MLM depended on helping his/her 'Downline' to succeed?'
- to divide everyone, and everything, in your life into 'negative' vs 'positive?'
- that 'MLM' products/services were to be deemed 'positive' and non-'MLM' products/services deemed 'negative?'
- that you should buy a regular quota (by value) of 'positive' products/services?
- that you should draw up a list of prospective 'MLM' recruits comprising everyone you had ever encountered in your life?
- that you should progressively contact all these 'prospects' and attempt to recruit them using a precisely-worded 'positive' script?
- that when trying to recruit 'prospects' you should exhibit excitement and enthusiasm, and recite your own personal 'story' describing how your life had been been transformed for the better by 'Utility Warehouse?'
- that you should never say anything 'negative' about 'MLM?'
- that you should never listen to, or look at, anything 'negative' about 'MLM?'
- that all persons who refused to join you (particularly, those who said 'MLM' is a scam) were to be deemed 'negative' and a threat to your own success?
- that all 'negative' persons were to be deemed 'losers, whiners, dream stealers,' etc., and should be excluded from your life?
- that all persons with regular jobs were to be labelled 'Just Over Broke' losers?
- that you should only have contact with 'positive winners?'
- that you should regularly buy, and listen to, recordings of 'positive winners?'
- that you should regularly buy tickets to, and attend, extended meetings conducted by 'positive winners' at which you took part in group, rhythmic chanting and moving?
- that you should regularly buy, and read, publications, written by 'positive winners?'
- that you should exactly duplicate the 100% positive mental attitude and behaviour of the 'positive winners' in your 'Upline?'
- that you should regularly visualise your 'dreams an goals' in life (luxury cars, expensive houses, exotic holiday destinations, etc.)?
- that you should fix images of your 'dreams and goals' in strategic places in your home?
- that all persons who develop a '100% positive mental attitude and never quit, ultimately achieve their dreams and goals in MLM?'
- that all persons who 'fail to achieve their dreams and goals in MLM, are negative losers, whiners, quitters etc., who always try to blame others, when they only have themselves to blame?'
- that you should disclose personal information about yourself, and about your friends and family, to your 'Upline?'
- that you should gather personal information about your 'prospects' (i.e. the persons whom you wanted to recruit) in order to find their 'hot button' (i.e. a specific means of approach tailored to an individual's personal situation and which could get him/her excited about 'Utility Warehouse').
31. As a result of duplicating the 'proven Utility Warehouse plan,' approximately how many days per week were you active and approximately how much of your own time did you commit each day?
32. How long did you remain under contract to 'Utility Warehouse?'
33. Did you ever manage to recruit anyone into 'Utility Warehouse?' (if yes, give brief details).
34. What level(s), if any, did you rise to in the 'Utility Warehouse Stairway to Success' hierarchy? (give brief details).
35. What do you now consider yourself to be, or to have been - a 'Utility Warehouse:'
- 'Customer ?'
37. As a result of your involvement with 'Utility Warehouse,' did you lose contact with any family members, and/or with anyone with whom you had previously been close? (if yes, give brief details).
38. Have you filed, or attempted to file, a complaint about 'Utility Warehouse' with any law enforcement agency? (if yes, give brief details).
39. Were you led to believe that 'Utility Warehouse' cannot possibly be a fraud, because numerous police officers and former police oficers are 'distributors'.
40. What agency of law enforcement do you think has the responsibility of protecting the UK public from pyramid schemes run behind legally-registered companies, for receiving complaint from pyramid scheme victims and prosecuting pyramid scheme instigators?
David Brear (copyright 2017)