Banned MLM business runs in various names

Mahabub Alam

24th November, 2020 10:53:21 printer

Banned MLM business runs in various names

Banned Multi-Level Marketing (MLM) business continues unabated in various names in the guise of e-commerce, cheating hundreds of people.  

The cupidity of Multi-Level Marketing business draws those people, who want to make a quick buck, and ultimately defrauds them of a huge sum.

Under the Multilevel Marketing (Control) Act 2013, a company can run product-based MLM business after taking licence.

But unscrupulous people are running the pyramid style MLM business in the country, alluring people of providing them with huge profits.

Everything from opening account to money transaction through the so-called e-commerce is being done online. MLM companies are enticing people to earn a huge amount of money just by small investment 

Asked about the operation of such illegal business under the very nose of lawmen, a top Criminal Investigation Officer said they will launch drive against such companies soon.

CID additional Deputy Inspector General Sheikh Rejaul Haider told the Daily Sun that law enforcement agencies are in difficulty to find out these companies as they run businesses in various names.

“The pyramid style companies are now operating under various names, and so it is very difficult to locate them,” he said.

The clients of such companies are deceived after reaching 15th stage or above, he said.

Law enforcers busted at least four such companies in the capital since August which embezzled several hundred crores of taka from more than 22.65 lakh people, according to DMP and CID.

The companies were A1 Health Care Ltd or A1 Bazar Ltd, Sopan Products Ltd (SPL) and SPC World Express Ltd.

But the authorities of the companies have kept their activities up through social media.

In September 2013, the government outlawed the pyramid style trade in a bid to check fraudulence.

Pyramid scheme offers money to its clients simply through recruiting people. This system benefits the members at the top of the pyramid.

Amar Bazar Ltd owned by one Moniruzzaman has been operating the pyramid style MLM business since September 2010.

The members of his online-based company are increasing as Moniruzzaman has contracts with 92 renowned companies.

According to the offer, if anybody buys 100 points with a Tk1,600, they can earn Tk30,000 monthly and if anyone buys 500 points with a Tk7,500, they can earn Tk1.5 lakh monthly.

Through a Youtube channel, the company claimed that more than 5,00,000 people joined it.

On November 2, Cyber and Special Crime Division of Dhaka Metropolitan Police arrested SPC World Express Ltd’s MD and CEO Al Amin Prodhan and its executive officer Mohammad Jasim from Mohammadpur.

The company embezzled over Tk268 crore from more than over 22 lakh people within just 10 months.  After the arrest of Al Amin, the company was busted.

But some members of the company have already opened different sites—RST World Express Ltd, DDSM Ltd, ABCL BD Ltd, DDSM.LMT and many others and making offers like those of SPC. 

RST World Express Ltd is giving an offer through online that one can earn Tk20,000 to Tk30,000 monthly just by investing Tk1,300.

For this, one has to open an account on the site of the company for which one requires a Gmail account and mobile number, photo, reference ID and Tk1,300.

DDSM Ltd, ABCL BD Ltd and DDSM.LMT are also conducting the pyramid style trade.

Like the aforementioned so-called companies, a large number of companies are found on social media alluring people to make money through easy means.

Contacted, Walid Hossain, deputy commissioner (media and public relations) of Dhaka Metropolitan Police, told daily sun they are monitoring such companies mushrooming on the social media and action would be taken against them.

He added that such kind of business is totally banned.