May 16, 2007 (LBO) – An international anti-pyramiding activist has called on Sri Lanka to be vigilant against multi-level marketing schemes that can invade the country following the arrest of top Goldquest operatives in Indonesia. “Treasure Traders International and, more recently, Canadian Diamond Traders, are similar scams that are recruiting victims worldwide,” Robert Fitzpatrick, head of the US-based Pyramid Scheme Alert told LBO.
“I hope that Sri Lanka can maintain its vigilance against these scams, despite their false claims about being legitimate ‘sales’ companies.
“These are not sales companies, but money transfer schemes that require a huge loss rate based on their designs.”
Some analysts have calculated the loss rate of the double-pyramid ‘binary compensation’ structure used by Goldquest to be as high as 98 percent, indicating that only 2 percent of the participants make money.
Its products are sold through intensive selling meetings where people are repeatedly given the same message until it is ingrained in their brains in a cult-like fashion.
Goldquest’s Quest International (QI) group Chief Executive Vijayeswaran Vijayaratnam is said to be held in ‘demi-god’ status by his