Visarev investors seek action from Governor,

Chief Minister
IMPHAL May 16: Seeking action from the state government to take up punitive measures against the
perpetrators of pyramid schemes which has looted several crores from innocent investors of the state in
recent times, Visarev Investors Association, a body in the hunt for the perpetrators and to book them
under the law approached the Governor Gurbachan Jagat and Chief Minister O Ibobi to apprise them of
the prevailing situation today.The core committee of the VIA also handed over memorandums to the two
state heads urging action from the state as well as from the centre against the culprits involved in the
crime.The team was led by convenor of VIA , N Prem and social worker K Satyajit.The memorandum
mentions that the investors of the state deposited their money to the UNI Group of companies namely
Visarev, Unipay 2 u, Unigold etc.It mentions that more than 3000 crores have been deposited to UNI
group of companies since the middle of last year.It further stated that the company failed to return the
investments for the last 7/8 months which has caused irreparable loss and injury to the depositors,
further mentioning that such financial establishments are rather frauds and only there to siphoned off or
divert money of the innocent depositors and as such a notorious abuse of faith for the innocent
depositors.It mentions that all the top agents of the companies, who were earlier available in their
respective offices and residences have also been untraceable since the end of last year without
responding to the queries of the investors and as such the investors are left with no other option than to
draw the attention of the state government.The memorandum urged the concerned government to
protect the interest of the several lakhs of citizens who were duped by implementing the Tamil Nadu
Protection of Interest of Depositors in Financial Establishment Act 1997 in Manipur by a state cabinet
decision and to take up other remedial and preventive measures as deemed fit in the interest of
justice.The memorandum will further be submitted to other ministers, MP’s and to the Union Home
Department.It may be mentioned that IFP broke the news of the fraudulent scams in December, 2010.
Since the expose, many top leaders of the companies in the state have absconded from the state and
are reportedly seeking asylum elsewhere to avoid the ire of the depositors. The mastermind of the UNI
Group is alleged to be one James, a resident of Malaysia. Till date, many top leaders including Kumar
Kom, Victor, Rk Jiranjit are outside the state with their accumulated wealth from the pyramid schemes
and the state has yet to take up any substantial actions in the regard.

VISAREV investors to lodge FIR against ‘leaders’

if Feb 12 deadline not kept
IMPHAL Feb 2: Alleged bullion-trading company VISAREV neglected to pay out investors for the last
four months and failed to meet the announced dateline for payment twice.The company promised
investors earlier that they will get returns within December 25 last which extended further upto January
31, 2011 , now the VISAREV website claims that backlog payment will be made for the month of
October 2010 within February 12.Apprehensive investors who want to remain anonymous told IFP, that
the nature of the network company has become doubtful as the company has failed to keep its word and
moreover, many ‘leaders’ of VISAREV have fled the state.The investors complained that all
clarifications of the Network Company are based on hearsay and speculation leading to confusion
amongst the investors, further the credibility of the announcement in the company website has become
doubtful as the earlier advertisement for pay outs failed to meet the commitment.The alarmed investors
in a bid to recoup their investments have chalked out a strategy in case VISAREV fails to meet the
February 12 deadline. They told IFP that the earlier reports carried by the newspaper warning that the
VISAREV company is a scam is becoming clearer day by day .Some investors have formed a group
which will collectively lodge a First Information Report (FIR) to the police against the leaders of the
state, so the real culprits can be booked under provisions of the law and the losses of the investors can
be salvaged upto a reasonable amount. The investors mainly from greater Imphal area appealed to
investors from other areas of the state to form pockets and to make list of names, so that a collective
body can be formed to press charges against the alleged scamsters. The investor pocket of greater
Imphal area stated that contact telephone numbers of the group will be notified before February 10 in
the media, so that other investors can join hands together to get justice.It may be mentioned that 12
leaders of Jitnex Company were arrested on charges of duping the public after a collective body of
investors lodged a FIR to Singjamei police station.
Speak Asia (SpeakAsiaonline.com) has been collecting large sums of money by
rapidly enrolling people with the promise of incredible payments for simply filling out online surveys. We
learn from our investigation and this has been confirmed by Speak Asia officials, that the company is not
registered in India and so cannot present any legal documentation. Now, a debate has been set off on
whether Speak Asia and its multi-level marketing (MLM) scheme can be banned under the Prize Chits
and Money Circulation Schemes (Banning) Act, 1978 (PCMCSB Act).

Only two days ago, the Manipur state government used provisions of the PCMCSB Act to ban MLM
companies. The state government said in anotification, "The MLM, though called by very attractive
names, squarely falls within the definition of 'Money Circulation Scheme' under the Act and hence is
prohibited by the Prize Chits and Money Circulation Schemes (Banning) (Manipur) Rules, 1978."

"This is to inform all the general public, government officials and others concerned that the specific
provisions under Prize Chits and Money Circulation Schemes (Banning) (Manipur) Rules, 1978, relevant
sections under cheating Section 420 of IPC, Drugs and Cosmetics Act 1940 by the Ministry of Health
and Family Welfare, Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954 are
abundantly available to be invoked and effectively check and prevent progress of such dubious floated
companies," the notification said.

"Section 3 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 bans prize chit and
money circulation schemes, or enrolment as members to any such schemes, or participation in such
schemes. Sections 4 and 5 are penal provisions and prescribe punishment. Section 6 deals with
offences committed by companies. Section 7 authorises a police officer, not below the rank of officer in
charge of a police station, toexercise power to enter and search premises and to seize things used for
such scheme. Section 8 provides for forfeiture of newspaper and publication containing money
circulation scheme. The Preamble of 1978 Act declares that it has been enacted to ban the promotion or
conduct of prize chits and money circulation schemes and for matters connected therewith and
incidental thereto," the notification said.

Not long ago, the Andhra Pradesh government also used the same Act to ban Japan Life, Amway and
GoldQuest. Shyam Sundar Matham of Corporate Frauds Watch (CFW) says, "The Andhra Pradesh
High Court stated in its judgement that the business model of Amway India attracts the provisions of the
PCMCS Act, 1978 and it asked the police to continue the investigation and file the charge-sheet in six
months. Now the case is pending in the Chief Metropolitan Magistrate's Court,
Nampally,Hyderabad under the same enactment."

The PCMCSB Act prohibits any entity from promoting, conducting any prize chit or money circulation
scheme, enrolling any member of any such chit or scheme, or participating in it otherwise, or from
receiving or remitting any money in pursuance of such chit or scheme (Section 3 of the Act). Under the
provisions of the Act, the state governments were initially required to frame rules in consultation with the
Reserve Bank of India (RBI) for winding up of the companies, which were running in contravention of
the Act.
Earlier, the RBI, after receiving a complaint or information, would examine whether there was any prima
facie case under the provision of the PCMCSB Act. The central bank would then inform the police,
advising investigation and appropriate action. This was done by using the opinion given by the RBI and
SR Hegde, the then legal advisor of the central bank, in September 2001.

However, in February 2003, the RBI issued another circular saying that it had no role to play and that its
legal opinion (provided in September 2001) should be considered null and void. In the second circular,
the RBI said that the PCMCSB Act was to be used by state governments, through consultation with their
legal advisors and not depending on the central bank.

This is fine with MLM companies who operate or have offices in a particular state. But, since Speak Asia
does not have its own office and is not registered in India, the question is which state government would
take action against it? This is why authorities in Uttar Pradesh have taken action against some
franchisees, but not against Speak Asia. It is being suggested that the union government, through the
Enforcement Directorate (ED) and the Income Tax department (I-T) could initiate proceedings against
Speak Asia. (The company says that it has remitted Rs325 crore to Singapore and distributed about
Rs250 crore to its agents in India, for filling surveys, without deducting any tax.)

According to media reports, the Ministry of Corporate Affairs (MCA) has started an investigation on
Speak Asia and is working together with the RBI and the Securities and Exchange Board of India
(SEBI). Last month, Moneylife Foundation sent a letter to Murli Deora, minister of corporate affairs, RPN
Singh, minister of state for corporate affairs, the Secretary MCA and other officials, informing them
about Speak Asia. (Click to read the letter)

Nowadays, many media organisations are even using our reports on Speak Asia in their stories and
correspondence, without acknowledging Moneylife. Its a different story that they all want to take credit
for exposing Speak Asia now, purposely forgetting that the content they are using has its origin on the
Moneylife website.

The Bharatiya Janata Party's national secretary, Kirit Somaiyaa, who has filed a case against Speak
Asia with the Economics Offences Wing (EOW), in Mumbai, too has used Moneylife reports almost
verbatim in his correspondence with the finance ministry, SEBI, RBI and EOW.

Frankly, as long as it serves the purpose we do not mind anyone taking any credit for anything. Our
humble request is at least acknowledgeMoneylife, which would boost our efforts in the fight against
frauds.
Moneylife Foundation sends representation to PM, FM and
RBI urging ban on MLM schemes
Moneylife Foundation urges the PM and others to completely ban MLM companies in India or
bring these companies under the regulation of either RBI or SEBI. Moneylife was the first to
expose the Speak Asia online survey scam on 8 October 2010

Moneylife Foundation has been writing against multi-level marketing schemes for some time now.
Following the exposé by Moneylife on Speak Asia Online Pte Ltd and its multi-level marketing
schemes, Moneylife Foundation has sent a representation to prime minister Dr Manmohan Singh,
finance minister Pranab Mukherjee, finance secretary Sushama Nath and Reserve Bank of India (RBI)
governor D Subbarao urging them to ban all MLM companies and their schemes in the country, or to
bring all MLM companies under the regulation of either the RBI or the Securities and Exchange Board
of India (SEBI), to stop them ensnaring gullible people.

According to Moneylife Foundation trustees, while the investor population in the country has fallen to 80
lakh, Speak Asia has managed to lure nearly 19 lakh people into its get-rich-quick scheme. The number
accounts for a sizeable portion of India's investor population as well as internet users.

Speak Asia requires its members or 'panellists' to deposit Rs11,000 (though the rates vary, as we have
seen in the countless posts by agents of Speak Asia on various sites) and then conduct surveys for
which the company pays Rs500 per panellist per survey. A panellist gets an addedcommission if
he recruits new members. There is no guarantee as to who will return the money if the company
collapses.

It claimed to have conducted surveys for companies like ICICI Bank, Bharti Airtel, Nestle and Bata, but
all these institutions have denied their association with Speak Asia. At a press conference held in
Mumbai on 16th May, Speak Asia formally apologised for using the names of these companies. But it
also refused to name a single client.

Singapore-based Speak Asia was previously known as Haren Technology Pte Ltd and is owned by one
Ms Harinder Kaur. The Accounting and Corporate Regulatory Authority (ACRA) of Singapore has given
it a non-compliant rating on the ACRA website for not submitting details of its AGM (annual general
meeting), annual returns report and other documents.

Haren Technology itself has frequently changed its garb. The company doesn't have a registered
address in India. Despite its claims of being the biggest online survey company in Asia, Speak Asia's
reach is limited only to India and Bangladesh. It claims to be in existence since 2006, but the website
was actually launched only on 21 January 2010.

Speak Asia's tall claims have been busted by Moneylife, and also exposed by The Economic
Times, Star News and Aaj Tak. SpeakAsia's panellists have been arrested in Bangladesh. Lot of articles
are available online on the fraudulent nature of the company.

Unlike several other countries, MLM schemes are not banned in India. Hence, schemes like City
Limousine, Stockguru and GoldQuest could escape with millions. None of the financial watchdogs in
India are responsible for monitoring such schemes, so there is every chance that Speak Asia and its
clones like Ram Survey and FLC Online can get away after cheating millions of their savings.

Moneylife Foundation hopes that the government recognises the danger such schemes pose and bans
them outright, and also put a regulator in charge to monitor such companies and their activities.