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Mogadishu Somalia
Surprised how Indians are falling for this scam
Apr 07, 2008 01:24 AM 6471 Views

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Surprised how Indians are falling for this scam


A couple of weeks ago I received a letter from a man, John, who said to be a representative of a company called QuestNet Ltd. In the letter John said that QuestNet is a well-established interactive world-wide marketing company. He is the head of the division focused on marketing the company in Africa, and that they are about to start business in Somalia. John has already gathered a couple of Somali people that are interested in and he asked me to join to “build a strong Somali group. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public. Pyramid schemes are illegal because they inevitably must fall apart. No program can recruit new members forever. Every pyramid scheme collapses because it cannot expand beyond the size of the earth's population. When the scheme collapses, most investors find themselves at the bottom, unable to recoup their losses.


In the letter I got John wrote that he already successfully had established â network teams in several African countries, such as Kenya and Uganda, and he was now targeting Somalia, which he claims to have great potential! This got me really worried so I accepted a meeting with him in order to find out more. I met him in their fancy office downtown, and everything looked very professional. Since I didn't wanted him to suspect my intentions I put on the role as a naive, ambitious young lady, this way I hoped I could get as much information as possible  which Somalis were involved, what are the plans for Somalia? To my relief QuestNet haven't opened up anything yet in Somalia, however mr John is planning to visit Mogadishu anytime soon. Their goal is not only Somalia, but also Somali people in the Diaspora.


They are currently scamming people in Cambodia, Somalia, Tanzania and Vietnam. They deliberately target poor countries because the legal systems are outdated(pyramiding is therefore very often not a crime), the law enforcement authorities corrupt(when action is eventually contemplated, authorities can be bribed) and the people gullible and innocent not having encountered these schemes(which are often touted as'poverty alleviation' and "self employment" schemes . GoldQuest used this ploy in Sri Lanka to defend themselves when the Central Bank tried to take action.


I fail to understand how Indians are falling for this scam. Indians are respected as educated intelligent people worldwide. How can they not figure out that this is a scam.


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