As of November 30, 2018, the 5169888 Member Management Platform has not been officially recognized as a pyramid scheme. The 5169888 Member Management Platform is the membership platform of Hunan Hualai Biotechnology Co., Ltd., but please note that Hunan Hualai Biotechnology Ltd.’s sales practices. Hunan Hualai Biotechnology Co., Ltd. has been identified by the police as suspected of pyramid schemes many times, so please judge with caution. The following are media reports about Hunan Hualai Biotechnology Co., Ltd. being investigated by the police.
The problem is that every time you enter the house, you have to stay there for a whole day. So the question is, what secrets does this rental house hide?
According to Shandong Radio and Television Station’s public **** channel "People's Livelihood Express", the police conducted a surprise inspection at the address provided by the newspaper. As soon as they entered the door, the police clearly felt something was wrong! "When they saw us entering, they didn't say anything, just sat there and put the books away."
Although the eight people in the room said that they were friends gathering to drink tea, and there was indeed hot tea on the table, this scene was very strange in the eyes of the police who have many years of experience in combating illegal pyramid schemes. It’s all too familiar: eight men and women huddled in a small room, each with a laptop. There was silence as they greeted the inspection, and the walls were covered with posters and photos of the event. The police speculated that this was probably an illegal pyramid scheme!
These people all have a red leather notebook with the words "Hunan Hualai" printed on it, which records their MLM methods and slogans. Although it is a typo, the meaning is very clear: they first become "members", then win over "all the people they know", and "greet each other with a smile" and "must listen to the teacher". "The final result is the result of this simple formula.
In addition, the police also found a large number of pictures and videos about pyramid schemes on the computer in the inner room, as well as a list of some pyramid schemes. Subsequently , the police summoned these 8 people to the Economic Investigation Brigade of the County Public Security Bureau for in-depth investigation. On the one hand, the police on the Economic Investigation Brigade "defeated" the 8 people one by one; on the other hand, they carefully analyzed the extracted study materials and laptops, and analyzed the stored information. The content was sorted out. In the face of a large amount of evidence, 8 people truthfully explained the situation of their MLM network.
The police said that this MLM gang is well organized and divided from bottom to top into members, team leaders, directors, and managers. , five levels of director. The director is divided into five levels: gold, ruby, jade, diamond and honor. The top leader in Linyi County is a woman named Zhang Mouqin, whose rank is jade director. Zhang Mouqin developed more than 200 people in Linyi.
When the police prepared to arrest Zhang Mouqin, they did not expect that she had already fled. On February 27 this year, the police in Linyi County Zhang Mouqin and his downline members were blocked in a private house in the North Outer Ring Road.
In this arrest operation, in addition to the "leader" and "Jade Director" Zhang Mouqin, the police also arrested. "Golden Director" Zhang Mouwei confessed: They joined the Hunan Hualai Dark Tea MLM Organization in April 2012, and later returned to Linyi to directly or indirectly develop more than 200 members, with more than 5 million yuan involved. The two made illegal profits of more than 20 million yuan each. The criminal suspects Zhang Mouqin and Zhang Mou have been criminally detained by the Linyi County Public Security Bureau in accordance with the law on suspicion of organizing and leading pyramid schemes.
After police investigation, this case was discovered. The leader of the MLM organization in Linyi County, Zhang Mouqin, is not highly educated and does not have outstanding eloquence. So why do so many people flock to her MLM products and finally invest in this big network? At work, Zhu, a member of this MLM organization, repented and told how he was brainwashed by Zhang.
"She said that it would be good to be an e-commerce business and make black tea. I'll go over and find out." Zhu said that "pulling people" is their first step, and they only pull a specific group of people around them, and try every means to get them into the gang's "hut."
Police introduction: The people she is looking for are mainly women, as well as laid-off workers and some unemployed people. These people generally have the mentality of getting rich overnight.
The products sold by this pyramid scheme are from a company called Hunan Anhua Hualai Biotechnology Co., Ltd. produces a brand of dark tea called "Hualai Jian". During the MLM process, the upline will continue to instill in the downline and members that "drinking dark tea can not only improve your health, but also improve your health." Can drink wealth! " concept.
"A group of seven people can earn 800 yuan by selling tea for 8 cents each."
If the new people who join this group have concerns and doubts, then the marketing backbones will use various so-called "evidences" to prove: first, the product quality is guaranteed; second, the economic returns are quite large. ; In addition, MLM backbones will also take new members to visit the headquarters. "There were police cars under the train to clear the way, and a big sign of China's key support units was hung at the door."
Although the game designed by the backbone of MLM is indeed clever, if we look at the essence through the phenomenon, they still cannot conceal the first basic feature of illegal MLM: the price of MLM products seriously deviates from the actual value of the product itself. , some MLM products have no use or value at all, and the service projects are purely fictitious. "Although black tea with a unit price of 4,980 yuan is quoted at 4,980 yuan, the actual cost should be around four to five hundred yuan."
The police said that the backbone of the pyramid scheme also knew that this scam was full of loopholes and could be easily seen through, so they formulated a set of attractive rewards and upgrade steps to make downlines and members addicted to it.
"First invest 4980 yuan as a downline and then become a member. If this member develops two more members, he can become the team leader. Then he will recruit 8 people, and each of these 8 people will invest 4980 yuan. , after recruiting 8 people, the team leader can make a profit of 5,000 yuan and join a higher group called the sales group. The two people he originally recruited also enter the sales group, and this person will become a manager. If 8 more people join the sales team, the manager will finally get 110,000 yuan. "
The higher the level, the more dividends. Anyone with a discerning eye will know at a glance that this pyramid structure will make the money at the bottom slowly move upwards, and it is the people at the top of the pyramid who will ultimately profit. And if you want to move up, you must develop more downlines and member. "Some people need to find downlines to make money. Some people can't find it, so they can develop on their own and buy more." Buy more, invest more, and earn faster.
This is the second basic characteristic of MLM: the income obtained by participants does not come from reasonable profits obtained from selling products or services, etc., but from the entry fees paid by others. Because there is no profit from the products sold, this is not a cycle of high investment and high returns; every penny invested by the lower levels of MLM will be divided up by the upper levels. The upper level of MLM, the backbone of MLM, cannot escape the eyes of the public security organs in the end.
Extended information:
Object requirements of pyramid schemes:
The object of this crime is a complex object, which not only infringes on the property ownership of citizens, but also infringes on the market Economic order and social management order. The object of this crime is the citizen's personal property, usually money.
The objective aspect of this crime is to violate national regulations, organize and engage in pyramid schemes, disrupt market order, and commit serious acts. However, not all pyramid selling activities constitute a crime. If the circumstances are ordinary, it is a general illegal act and shall be administratively punished by the industrial and commercial administration department; only if the perpetrator carries out pyramid selling activities with serious circumstances, it constitutes a crime and criminal liability shall be investigated in accordance with the law.
In addition, it is necessary to distinguish the boundaries between pyramid schemes and illegal direct selling activities. For example, there is exaggeration of the income of direct sellers in direct selling activities. Product efficacy and other deception. Misleading behavior should be subject to administrative penalties by the direct selling regulatory authorities and should not be considered a pyramid scheme crime.
The determination of the seriousness of the case should be comprehensively measured based on many factors such as the amount of money involved in the pyramid scheme, the number of people involved in the pyramid scheme, the methods used by the pyramid scheme, and the impact of the pyramid scheme.
The subject requirements of pyramid schemes:
The subject of this crime is a general subject. Any natural person who has reached the legal age of criminal responsibility and has the ability to be criminally responsible can commit this crime. This crime mainly investigates the criminal liability of pyramid schemes and planners. An active participant who has repeatedly introduced, lured, and coerced others into joining a pyramid scheme. General participants will not be held accountable.
According to Article 2 of the Supreme People's Court's "Interpretation on Several Issues Concerning the Specific Application of Laws in the Trial of Unit Criminal Cases" issued on June 18, 1999: "Companies, enterprises, and Public institutions, companies, enterprises, and public institutions whose main activity is to commit crimes shall not be punished as unit crimes." Therefore, for companies that specialize in pyramid schemes, according to the provisions of judicial interpretations, they will not be punished as unit crimes, but the natural persons among their organizers and major participants will be convicted and punished.
Subjective elements of pyramid schemes:
The subjective aspect of this crime is direct intention and the purpose of illegal profit-making.
That is, the perpetrator knows that the pyramid selling behavior he is carrying out is prohibited by state regulations, but still carries out this behavior in order to achieve the purpose of illegal profit-making. and have a hopeful and proactive attitude toward harmful outcomes.
Chinese-style MLM: It is a fake company and fake products. Everything is empty. It just allows you to attract people and extract a small commission from the entry fee or franchise fee. Or control your personal freedom, confiscate your property, so that you can't contact the outside world, study those MLM training materials every day, so that you can learn how to defraud, and then make lists, phone calls or letters to invite, showdown, follow up, until you use various methods to hand in all the entry points fee or franchise fee.
Chinese-style MLM is mainly based on mind control, that is, it allows you to be brainwashed through their MLM training, and then spontaneously go to the organization to carry out MLM; some will control your personal freedom and confiscate all your belongings. Violence makes you endorse these lies.
People's Daily Online - The secret hidden in a rental house in Linyi, Dezhou, "tea tasting with relatives" is actually a pyramid scheme