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February 9, 2004
Who is G. Robert Blakey and what did he say?
By QBlog in
UPDATE: I've recently learned that The Blakey Report is under a Protective Order. If I had known the report was under seal, I never would have posted it. This post explains why I've removed the report from my servers. Thanks for understanding.
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According to a bio page from Notre Dame, Professor G. Robert Blakey is the nation's "foremost authority on the Racketeer Influenced and Corrupt Organization Act (RICO)."
Blakey�s extensive legislative drafting experience resulted in the passage of the Crime Control Act of 1973, the Omnibus Crime Control Act of 1970 and the Organized Crime Control Act of 1970, Title IX of which is known as "RICO". He has been personally involved in drafting and implementing RICO-type legislation in 22 of the more than 30 states that have enacted racketeering laws. He frequently argues in or consults on cases involving RICO statutes at both the federal and state levels, including several cases before the United States Supreme Court.What is the RICO Act?
I know, you're probably asking "What exactly is RICO?" Well, in a nutshell the RICO Act "was passed by the United States Congress to enable persons financially injured by a pattern of criminal activity to seek redress through the state or federal courts" (from the extremely informative RICO Act site).
So what does Blakey have to do with Quixtar?
Blakey was retained by Proctor & Gamble to provide "expert opinion" in the case styled Proctor & Gamble Company, et al, v. Amway Corporation, et al, Case No. H-97-2384. Blakey provided his opinion to P&G in the form of a report simply titled, "Report of Professor G. Robert Blakey."
Now, I have read through all of the report and have pulled a few interesting quotes with the hope that you'll read the entire report when you have time.
Introduction to The Blakey Report
The introduction of Blakey's report states that:
(page 4) It is my opinion that the Amway business is run in a manner that is parallel to that of major organized crime groups, in particular the Mafia. The structure and function of major organized crime groups, generally consisting of associated enterprises engaging in patterns of legal and illegal activity, was the prototype forming the basis for federal and state racketeering legislation that I have been involved in drafting. The same structure and function, with associated enterprises engaging in patterns of legal and illegal activity, is found in the Amway business.Blakey defines a "Syndicate"
Later, as Blakey describes the definition of "organized crime" he makes this interesting observation of a "syndicate."
(page 6-7) A "syndicate," therefore, is a cartel or business organization. It fixes prices for goods and services, allocates markets and territories, acts as a legislature and court, sets policy, settles disputes, levies "taxes," and offers protection from both rival groups and legal prosecution.Blakey compares Amway to "organized crime"
After describing "organized crime" in detail Blakey begins to make a comparison to Amway on page 14.
(page 14-15) The Amway business has a "family" structure parallel to that found in organized crime. With respect to both organizations, the family orientation is twofold. First, every participant in the business is considered a member of a "family," led by a particular individual at the top of the chain of command. Second, the business stresses involvement by participant's family members, such that wives and children are drawn into the business to perpetuate their family influence over time. Family dynasties result that may be passed from generation to generation.Blakey describes the "association-in-fact" between the Amway Corporation, the "independent contractors" (IBOs) and the Tool Business.
(page 18) ...in the early 1980's DeVos and Van Andel saw the tremendous income and power accruing to large family leaders through their tool businesses. The income from the tool business of the major uplines reportedly far eclipses their income from the Amway plan. DeVos spoke strongly against this over-emphasis on tools, and warned that it might damage the Amway business as a whole. DeVos and Van Andel were apparently hamstrung, however, in taking action because the large distributors such as Yager could simply take his downline out of Amway, with potentially devastating results...Blakey's "14 Families" graphic
In the report Blakey submits this graphic outlining "14 Families" in Amway. His use of the graphic is to demonstrate what he perceives to be similarities between the "families" in Amway and the "families" in organized crime.
As always, if you have any info that would help explain, clarify or correct what has been presented please contact me immediately. Also, I make no claims about this document. It is the opinion of Blakey, and does not necessarily represent my opinion. It's just interesting to read what the author of the RICO Act has to say about Amway (which later became Quixtar... sort of).
Comments
Let me get this straight-a lawyer for P&G compares Amway to the mob. I wonder if P&G has anything to gain by putting out this info. Give me a break. Next you'll be saying Quixtar is run by satan worshippers.
"Next you'll be saying Quixtar is run by satan worshippers."
or they might come up with something crazy like "The Green River Killer was in Amway".
What? The Green River Killer was in Amway? Oops...bad example.
http://mlmblog.typepad.com/blog/2004/02/the_green_river.html
I hear Saddam sold his WMDs to Quixtar IBOs.
No, Dwighty, you got it wrong.
Amway sold the WMDs to Saddam, who used them during the nineties.
You see, when Amway/Quixtar dropped off during the late nineties, they became unable to supply Saddam. That's why Saddam didn't have anything by the time the US invaded -- he bought them...
As I read all these comments about Quixtar and Amway I have to say it appears like allot of wining going on. Everyone has the right to say no when someone presents something to them if they choose not to ssay no then it is there own fault. I tried Quixtar because I wanted to see for myself if all is what is being said is true. I have found out thus far the negative feedback posted is not true. I find Quixtar to be legitimate business. My observation says to me that the people saying negative feedback is looking for a get rich over night answer. If that would happen Quixtar would be the greatest thing to slice bread. TO be successful you have to work and work hard at times. I have been lucky and have not worked that hard yet but I am making money from Quixtar. I understand sometime you have to lead a horse to drink to get them to think out of the box and sometimes it takes creative ways to do it. Ask yourself this question, is McDonalds illegal. McDonalds is franchised out and offers products for our consumption, so if I say to a friend hey would you like an opportunity to buy into a McDonald's franchise and the friend comes it does not make McDonalds a bad Franchise, does it. Or if I choose to buy my own burgers vice buy Wendys does it make me a bad person? If you say I saw a really great movie to a friend and he goes you just made that movie money. If I say I have a really great website to shop from and my friend does that does not make the company a bad company does it. I find Quixtar gives people options that is all it does not hurt anyone. Some people need helping making the business work so they provide ways to make it work. Some business use traditional advertising on TV spending over $2mil or more a slot at times when they can use the Quixtar word of mouth methos save money and decrease cost to consumer and perhaps give them a check walking out the door after purchase. If you are going to knock Quixtar at least try it the right way and if it does not work as the model they show tells you then knock it. If you can not get 75 people in on the same concept do not do it . If you go try something and you are not successful it is not the company fault, it was just not your expertise, move on gracefully and do not make things bad for the company because you were unsuccessful.
Darrel,
I was only in the 4,000 PV area when I was in Amway/Quixtar so you can call me a whiner and quitter, but how do you explain a Diamond quitting?
http://www.amquix.info/bo_short_discussion.html
oOOOoooo a Diamond! Whaoaaoaoaoaoaoah! Suddenly I'm amazed! ALMOST as amazed as I was when I found out that pin levels dont mean jack.
lol:) the boss of my friend in his "normal" job is a one of the bosses of the gang called Siemens. He is working hardly for little money. His boss is not working too hardly as my friend, but he has higher sallary. Another boss, from the top management, has dramatically higher sallary, than these two boys together, and his boss (general director?) has 10 - 50x more money than average sallary here. This means Siemens is a gangster organization?
I've never heard whining so bad in all my life. Hey Dwighty, if pin levels "don't mean jack" then I suppose rank in the military doesn't mean jack either. Hey, why don't fortune 500 companies just let janitors make policy decisions since we're all equal.
Pin levels don't mean jack to your primary bonus check, dip. It's about the math, not the honor code. This is not the Military. You are not the Commander. You are my Ho. Go make me some money, Ho.
They (Amway) tell you to think outside the box, yet they force you to live inside their box and make them richer. Who's the idiot here? Once you get the idea of copycatting and exponential growth, why must it be Amway? Why must we live on their commission? No wonder those diamonds will do anthing to make sure everybody in this world are motivated enough to sell or use their products.
New recruits are left with lesser idiots, so will they succeed?
There's no suprise when I found out that DD (diamonds) and above actually making more money from the seminars and tools. The more the idiots (distributors) failed to sell/recruit, the more they have to attend seminars and buy tapes/books. Theres one person ended up losing 30K from their savings in order to be 'fully charged' at all time as an Amway 'business partner'. How idiot can that be? Well, from ther statistic, only 1% of Amway members will be able to make it to the top. Brilliant scheme isn't it?
Just would like to say that I think this site is great for people either in the business or thinking about it. Bo Short and his journey is a great story. I commend the guy for standing up for his morals. I was looking at the business for third time with a positive outlook. I don't care what a business gives you financially, if it decreases your morals then be gone with it. Amen Bo
I don't get why there is so much negative comments about this business. It is just that, a business, with a great potential to make money.
No one forces you to get into it, and no one forces you to attend seminars and buy tapes. They are not needed to be successful. What is needed, like any other business, is a good level of intelligence and the willingness to be a little less then fair in order to attain wealth. Yes, just like most wealthy people, you have to step on the toes of others to become wealthy, this is a fact of life.
Now when I say that I don't mean ruining their life...I have read reports of people that have lost tens of thousands of dollars a year in this business without seeing any results. That is not the businesses fault, it is the persons fault for being so gullable and lacking a certain degree of intelligence. No one asks why they should spend all this money on training tapes and what not, they just go out and do it.
It is very plausible to succeed in this business without the tapes and such, and one must admit it is an excellent vehicle for generating wealth. Now I must admit that some people are very unfair in how they present this business to others, they make this seem like a get rich quick scheme; it obviously is not, such a thing does not exist in todays structured markets.
I present this business to others as exactly what it is. A business! You will not get filthy rich in under five years, but there is the potential to replace the income you would have been making at your normal job. If you are not willing to work hard, you will not make money. This is not a 'rags to riches' business as it has been called, it is something that you can use to become financially secure.
I am personally involved in the business, and do not buy tapes and attend the functions, much to the discontent of my 'upline'. I build this as an Independent Business, meaning I do it independently. I don't tell people to spend hundreds a month to get as rich as possible. I tell them they can make some respectable money if they work hard. I tell them this is a business, all businesses involve risk, and most fail. However, if they are willing to put the effort in they will be pleased with the results. If they are not the level of intelligence I am looking for or do not have a healthy level of analytical skills I am not interested in them, as they will be eaten alive by the people that give this business a bad name.
Now, with that said I am not in any way bashing this site that I have stumbled across in my continual readings on this business concept (which I happen to find quite amazing). You do not need tapes and meetings to be successful, and you do not need to spend tons of money buying product to be successful. What you need is a group of individuals that buy the basic products from themselves, and will not be duped into the system this business has in place. Every institution is subject to a system, it is those that can see past the system and use whatever vehicle we have to its potential that will become wealthy.
Please do not knock this business, only those that deceive gullible people into believing that if they are not putting huge amounts of money into this business they will not get huge amounts out.
It is these people that are gullible that 'lose their shirts' in this business, at no ones fault but there own. There are risks, there are benefits. Upon my analysis, I believe that the benefits, both social and financial, of this business far outweigh its risks.
Remember, knowledge is power and power is wealth. Keep educated and question everything, including what I have just said here. This business is not bad, people make it that way. If you get suckered by a dishonest IBO then you are the one to blame, as they are using you to generate wealth, rise above that and see this business for what it is and the potential that lies in it.
John
So you pay a fee to become an IBO. Then go online and pay 20 to 50% more for things like tooth paste and lotion and soap then pay shipping.
It doesn't make sense to pay fees to be an IBO, just to have to pay more money for basic household items. So you will have to convince lots of your friends and family to do the same thing so you can make money. In order to do that you have to learn to sell it right. Spin is what they call it in politics. So you go to conferences and buy tapes and listen to the top one percent tell you how they did it. Seems to me if it is a good solid idea people would just hop on board without all the selling.
If you have good products and good prices and a chance to make money people would not need to be sold. JUST TOLD.
First I wanted to make sure who Robt Blakey was. His credentials are well established, but I'm not so sure that his obsessions haven't gotten the best of him. I've found additional information in which he also associates the entire tobacco industry with the Mafia (but only since 1953) and, according to Blakey, even the Church itself uses Mafia-like tactics in its organization of protest against abortion. The Warren Commission, on the assassination of JFK, has been closed, but there has never been widespread acceptance of its findings. I've located links detailing investigators' disagreements with Blakey when he served with the Commssion. And, although I may agree with the intent of the RICO statutes, there are aspects which seem to directly contradict the US Constitution. In my personal opinion, G. Robert Blakey is a crackpot who is so given to the pervasiveness of organized crime that he sees it in everyone's living room. As such, I cannot take his obsessions seriously.
My brother and his wife had lost a million Indian rupees in the business. They have been brainwashed to such an extent they are now monomaniacs at the cost of family and friends. They have attitude problems, health problems, and above all they are in the process of losing the affection and love of family and friends. They are even prepared to be parasites. It is pathetic. This legally illegal pyramid scheme has ruined our family. That is despite many friends and relatives forewarning them about the perils of Amway. May God help the gullibles thanks to websites like yours.
After being associated with this "business" for approx. 13 years, i think I would have more expertise than most people out there. Now here's the deal, let's do a quick analysis of why people are atrracted to it:
1. Money-what I think is absolutely pathetic, demoralizing, and inhuman is the way money is flashed around and thrown in peolpe's faces. Before every function, a multimedia presentation of cars, houses, etc are shown off. Little do people realize how easy yet stupid it is to be flashy with your money. Money is a tool morons, in the business, you constantly chase money and work for it, the idea to amassing wealth is letting your money work for you, not you working for money.
2. A system-most entrepenuers and business owners are unsuccessful due to a lack of an implemented and tested automation of conducting one's business. Trial and error costs time and money, hence, when most people fail, they quit and do not realize that there are thousands of ideosyncrecies in implementing an effective system. Understand that out of 300 million people in america, there are only 275 billionaires, 400 people worth over 750 million, and about 2.5 million people who are considered "millionaires" (understanding that recent levels of real estate values have skyrocketed causing valuations of individuals to balloon to unrealistic paper millionaires). Less than 1% are millionaires, and when it seems so easily accessible through the mouths of the Quixtar elite, it sounds tempting.
3. A practiced and somewhat polished (only on the surface, without actually digging your teeth into it) bussiness plan/proposal. Guess what, these people have been at it for years, and practiced, so obviously what comes out of their mouths sounds incredible to the average person. To the average person, if someone sounds like they know what they're talking about, its taken for granted that yes, that person is successful and knowledgable, which is not the truth. Most are amateurs in the real game of life and are purely diletantes and charlatans of finance.
In the end, you must realize, there are winners and losers in every arena of life. Also understand that the road to riches statistically and historically is the path less taken, and that it is a fight that is harder than most others. Work hard, but work smart., educate yourselves, and see what works best for you. A great starting place is a book by Robert Kiyosaki, "Rich Dad, Poor Dad." Understand key concepts, and understand that you must train your mind to see money, only then will you truly be successful. Best wishes to you all. If you need any advice, feel free to reply and leave an email address. Best of luck to you on your journeys.
OH MY GOD!!!! Amway has a family system?! Why, that's the worst idea since...since homeschool!
Posted by: Dwighty | February 10, 2004 9:14 AM