TVI Express and other MLM scams caught in Chinese sweep

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Here's the translation of the official Chinese government news about their sweep of illegal MLMs, including TVI Express. The release is by Zhejiang Administration (bureau) of Industry and Commerce

http://www.zjaic.gov.cn/zjaic/jrgs/gskx/200912/t20091214_74662.htm


全省打击传销工作联席会议扩大会议今日召开
Provincial Anti-Pyramid Working Group Meeting starts today

(dated 14-DEC-2009)

作者：吕律     来源：省局新闻中心
Author: Lew Lu   Source: Provincial News Agency

组织1403次专项检查，取缔传销窝点2469个

Performed 1403 inspections, cited 2469 illegal pyramid scheme locations

浙江打击传销百日联合执法行动成效显著

Zhejiang's Anti-Pyramid Schem One-Hundred-Day Combined Operation is a great success

全省打击传销工作联席会议扩大会议今日召开

 Provincial Anti-Pyramid Working Group Meeting starts today

记者今天从正在杭州召开的“浙江省打击传销工作联席会议扩大会议”上获悉，
Reporter today, at the Zhejiang Anti-Pyramid Scheme Working Group Meeting" has learned

自今年7月份 开展全省打击传销百日联合执法行动以来，全省工商、公安等职能部门集中优势兵力，共出动执法检查人员45942人次，组织开展专项检查1403次，取缔传 销窝点2469个，依法刑事拘留613人，逮捕360人，劳动教养41人，有效遏制了传销活动在我省的蔓延势头，维护了正常的市场经济秩序。

Since July (2009), when the province-wide Anti-Pyramid One-Hundred-Day United Operation started, in the entire province, Administration of Industry and Commerce, as well as Administration of Public Security, has combined forces, and sent out inspectors total of 45942 times, performed 1403 inspections, cited 2469 pyramid operating points, detained 613, arrested 360, and sent 41 to reeducation and rehabilitation, successfully inhibited the proliferation pyramid scheme in this province, and maintained regular market economic order.

今天的大会总 结了此次专项整治行动取得的成果，并对在此次行动中荣获先进集体和个人称号的单位和个人予以表彰。
Today's meeting is to publicize the results from the entire operation, and to commend those organizations and people who have protected the people.




打传形势依然严峻
Pyramids Scheme status still serious

近年来，全省各等职能部门坚持“打早打小、露头就打”的方针，严厉打击各种传销违法行为，成效明显，
In recent years, the various provincial administrations is using the policy 'strike early, strike often' against illegal pyramid schemes, and has enjoyed success.

传销活动在浙江一直得到有效控制。从总体看，浙江的打传防传态势是稳定的，没有出现大规模的群体恶性事件，
Pyramid scheme in Zhejiang is under control, and the situation stable, with no large groups of victims.

但打传工作面临的形势依然十分严峻，各地查处的传销案件比去年有所上升。
However, the situation is still serious, and there are increases of reported cases since last year.

从全省各地开展百日联合执法行动的情况来看有以下特点：
Based on the antipyramid operation reports, there are certain things to note:

传播速度更快。
Faster spread

由于国内就业压力增大，传销组织者借机诱骗群众参与传销，传销违法犯罪蔓延势头有所加快，
Due to increasing unemployment domestically, pyramid scheme operators are using the the situation to entice desperate crowds into the scheme, and spread the fraud.

特别是利用互联网开展传销活动和高端人群参与传销的现象较为突出。
Especially by using the Internet to recruit and spread pyramids scheme, using high-end direct-sale tactics, made the phenomenon more prominent.

如温州鹿城工商部门查获的“英国TVI旅游快车”涉外网络传销大案，涉案金额高达200多万元，涉嫌构成犯罪，现此案已移交公安部门进一步调查处理。
Such as Wenzhou province, Luchen City, Administration of Industry and Commerce has investigated "TVI Express", suspected in Internet-based pyramid-scheme, a major crime with over 2 million yuan (RMB) involved, far beyond simple fraud. The case was referred Administration of Public Security for further investigation and disposition.

传销“经营”在形式上更具欺骗性。
Pyramid scheme "operation" is more deceptive than ever

违法分子往往以从事商品、服务的推销等经营活动为名，有的甚至在媒体上打广告，拉名人做宣传，
Illegal operatives often use selling products and service to cover their activities, even advertise on media, and get celebrities to endorse.

至于其经营的商品，只是象征性的“道具”，有的甚至没有任何商品或者服务，而纯粹欺骗参加者去“拉人头”，
As for the merchandise sold, are just symbolic "props", some even have no product or service, just purely trick participants to "pull heads" (recruit).

在操作上更具诱骗性，给调查取证方面造成阻碍。
thus, their operation is more deceptive, causing problems with investigations.

组织严密、危害面广。
Cell-based organization, widespread damage

今年从山西等地陆续有传销人员以推销广东梵蔻化妆品公司生产的雯丽牌化妆品为名义到金华从事传销活动，
In 2009, at Shanxi area has various sales people use the pretense of FanKuai cosmetic company from Kuangtong, who has a brand called KweiLi, started recruiting in Jinhua

要求参加者至少缴纳2900元获取入会资格，分为销售员、主管、主任、经理、总经理五个级别进行管理，
Ask participants to pay 2900 Yuan (RMB) to join, and separate into five classes, salesman, foreman, supervisor, manager, general manager.

以直销奖、差额奖、育成奖、分红奖四种奖金制度分配利益，
Using sales incentive, differential incentive, recruit incentive, and bonus pool incentive to form its compensation package.

按照发展人员数量作为获取计算报酬的依据。该传销组织组织严密，分级管理，
Mainly based on the recruit numbers to pay, this pyramid scheme is tightly formed, and cell-based

平时以分散居住、集中授课的方式逃避检查打击，只吸收贵州、四川、重庆、湖北、江西籍等人员，
usually the group lives separately, and only attend classes together, to avoid inspections and investigations, and only recruit people from Kweizhou, Chungchin, Hubei, and Jiangxi.

不吸收丽水籍本地人，无推荐人无法加入。
Does NOT accept Lisui local people, and you must have a sponsor to get in.

从收缴的网络图等证据表明，该组织参加人员众多，已经发展到几百人。大多是农民、下岗职工等弱势群体，
Based on the confiscated "recruit genealogy", such scheme has recruited hundreds of people, mostly farmers and laid-off workers, and other vulnerable groups.

80年代末、90年代初出生的年轻人也占到多数，不少是未就业的大学生。
Many were young people born in the 80's and 90's, many are unemployed university students.

他们一旦发现上当受骗，为挽回损失，又诱骗其他同学、老乡、亲友等加入，往往带出一串，形成恶性循环。
Once they found they have been deceived, in order to "make back" their loss, they drag other people in such as fellow students, friends, relatives, and causing a vicious cycle.

伴生其他犯罪。
Causing other crimes

传销违法分子聚居出租房传销，除不时发生非法拘禁、限制人身自由，脱逃跳楼致死、致伤等治安问题外，
Pyramid scheme operations often rent a house, and operate military style camps where the recruits are brainwashed, and NOT permitted to leave. Many reports were received of recruits attempting to escape by climbing out windows, and were wounded, even killed in their escape attempts.

还引发了其他刑事案件，成为违法犯罪的温床。
Other crimes were caused as well, thus pyramid scheme is a root cause of crime

传销人员唐某为获取钱财，在诸暨张四里持刀抢劫一摩托车司机，目前已被刑拘。
Pyramid scheme member Tang, was arrested for robbing (with knife) a motorcycle rider.

聚居衢州江山市的外来传销人员零某和农某2人，被骗参加传销后花光了家中寄来的二万多元钱后，竟在市区实施2起抢夺黄金项链的案件。
In KuZhou, two people were tricked into joining a pyramid scheme, and quickly spent their funds, over 20000 Yuan (RMB), and started performing strong-arm robberies in the city, targeting those wearing gold necklaces and other jewelry.

由于传销组织大都通过电话邀约亲友、QQ聊天交友等方式，骗取他人加入，且又以出租房为据点，内部藏污纳垢，
Such pyramid schemes usually use phone, QQ (Internet) chat, to recruit others, and use rental properties as their bases, in low-rent districts, which also holds undesirable elements.

一些涉恶涉毒、负案逃犯也混杂其间。
Some career criminals and fugitives from law were also found mixed in.

衢州市在今年打击传销集中行动中，就查获2名上网逃犯。
KweiZhou this year had arrested two fugitives when it was raiding for pyramid scheme.

丽水市开发区公安分局在传销窝点抓获的网上逃犯嫌疑人夏某在来浙前海曾还伙同他人在广东佛山刺伤摩托车主后，抢走摩托车，并在途中持刀威胁2名治安队员。
Lixui City's Public Security have arrested one fugitive that had previously been convicted of stabbing and robbing a motorcycle rider, and even threatened security attempting to intervene.

...

The rest of the article is about the tactics used, such as requiring background checks by landlords for renters, identify vulnerable ares and public education in those areas, establish community liaisons, and even public landlords who do not perform background checks, even monetary rewards for turning in suspected pyramid scheme organizers and training locations, as well as a list of all agencies that participated in the campaign.

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