Jan 28, 2020
Multi-level marketing (MLM) companies have been embezzling millions of taka from clients. According to the police headquarters, 34.4 per cent of the cases registered with the police stations are of the victims of financial fraud, a large part of which is through MLM businesses. However, the police records more likely do not give the accurate number of such fraud cases throughout the country. At the local level, many such fraudulent businesses are run by various organisations that neither come to the media and the victims fail to inform the police either.
According to media reports, many companies have been doing the same business under different names and ploys, even though clients have been duped by MLM companies like, Destiny, Jubok and Unipay2U.
At least two dozen companies are currently involved in this illegal business. Some of these are operating online. These companies sometimes collect money from job-seekers and seek investment from people, luring them with promises of high interest. Some firms target specific areas and run away with the people’s money. In the southwest, especially in Khulna, Kushtia, Jashore and Satkhira, MLM business has become very popular in recent times and thousands of people have complained about losing their money.
Such fraud in the name MLM business came to light after the embezzlements of Destiny and Jubok were revealed. The law enforcers became alert. However, the hundreds of victims of Destiny and Jubok did not get their money back. The offenders were not brought to trial either.
The Anti-Corruption Commission (ACC) that sued 48 men of Destiny for embezzlement and money laundering, has not settled the case yet. Nobody knows when that will happen. According to media reports, Destiny officials have misappropriated nearly 40 billion taka through MLM business. They have made their fortune with their clients’ money, bought luxury cars and laundered hundreds of thousands of taka abroad. The government has said that the cases of those who were held in the recent anti-corruption drives will be settled quickly. Then why have the trials of Destiny and Jubok, which cheated the people of millions of taka, been delayed?
The government banned pyramid marketing and selling products without specific information with packaging, not selling goods or services as promised, unreasonable pricing of goods or services, and the sale of low quality products or services by passing the Multilevel Marketing (MLM) Activities Control Ordinance 2013 along with mandatory license to conduct MLM business. But these companies have resorted to subtle ways of business.
It is very worrying that new MLM companies are emerging despite the rules. We demand an impartial and fair investigation of all the companies operating MLM businesses. The government must take necessary legal action against those responsible for embezzling people’s money. Such fraud cannot continue by any means.
