Qnet Ltd, formerly known as QuestNet and GoldQuest, is a
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
-based
multi-level marketing
Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling th ...
(MLM) company owned by the QI Group. QNet was founded in 1998 by
Vijay Eswaran
Vijay Eswaran (born 7 October 1960) is a Malaysian businessman and the executive chairman of the QI Group, headquartered in Hong Kong.
Early life
Eswaran was born in Penang, Malaysia to Penangite Indian parents of minority Ceylonese Tam ...
and Joseph Bismark. The company's products include
energy
In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of heat a ...
,
weight management
Weight management includes the techniques and physiological processes that contribute to a person's ability to attain and maintain a certain weight. Most weight management techniques encompass long-term lifestyle strategies that promote healthy ...
,
nutrition
Nutrition is the biochemical and physiological process by which an organism uses food to support its life. It provides organisms with nutrients, which can be metabolized to create energy and chemical structures. Failure to obtain sufficient n ...
,
personal care
Personal care or toiletries are consumer products used in personal hygiene, personal grooming or for beautification.
Products
Personal care includes products as diverse as cleansing pads, colognes, cotton swabs, cotton pads, deodorant, eye lin ...
,
home care Homecare (also spelled as home care) is health care or supportive care provided by a professional caregiver in the individual home where the patient or client is living, as opposed to care provided in group accommodations like clinics or nursing ho ...
and
fashion accessories
In fashion, an accessory is an item used to contribute, in a secondary manner, to an individual's outfit. Accessories are often chosen to complete an outfit and complement the wearer's look. They have the capacity to further express an individual ...
on an
e-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
platform.
The company operates legally in some countries, but has been charged as a
Ponzi scheme
A Ponzi scheme (, ) is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. Named after Italian businessman Charles Ponzi, the scheme leads victims to believe that profits are comin ...
and multi-level marketing in countries like India.
The government of India and the
Telecom Regulatory Authority of India
The Telecom Regulatory Authority of India (TRAI) is a regulatory body set up by the Government of India under section 3 of the Telecom Regulatory Authority of India Act, 1997. It is the regulator of the telecommunications sector in India. ...
banned the site in the country after a protest spread in Bangalore.
History
![Qitower](https://upload.wikimedia.org/wikipedia/commons/4/48/Qitower.jpg)
QNet was founded in 1998 in Hong Kong by Malaysian businessmen
Vijay Eswaran
Vijay Eswaran (born 7 October 1960) is a Malaysian businessman and the executive chairman of the QI Group, headquartered in Hong Kong.
Early life
Eswaran was born in Penang, Malaysia to Penangite Indian parents of minority Ceylonese Tam ...
and Joseph Bismark. Though born and brought up in Malaysia, Eswaran undertook his higher education in the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
where he learned how multi-level marketing schemes work.
The company was first known as GoldQuest and then QuestNet before the name was shortened to QNet in 2010.
In the beginning, it made custom-commissioned
commemorative coins
Commemorative coins are coins issued to commemorate some particular event or issue with a distinct design with reference to the occasion on which they were issued. Many coins of this category serve as collectors items only, although some countries ...
and later began selling jewellery and watches.
In 1999, Qnet expanded its operations to Malaysia and Singapore and began a partnership with B.H. Mayer's Mint, a German-based mint coin facility.
By 2002, the company was active in India, the United Arab Emirates, Indonesia, Thailand, Australia, the United Kingdom, and Eastern Europe.
In 2000, Qnet was the official distributor of the
Sydney Olympic Games
The 2000 Summer Olympics, officially the Games of the XXVII Olympiad and also known as Sydney 2000 (Dharug: ''Gadigal 2000''), the Millennium Olympic Games or the Games of the New Millennium, was an international multi-sport event held from 1 ...
commemorative coins, and would later be named a distributor at the
2004 Athens Olympic Games and
2008 Beijing Olympic Games
The 2008 Summer Olympics (), officially the Games of the XXIX Olympiad () and also known as Beijing 2008 (), were an international multisport event held from 8 to 24 August 2008, in Beijing, China. A total of 10,942 athletes from 204 Nati ...
.
The company expanded its operations to Dubai, India, Indonesia and Thailand in 2001. Qnet started to diversify its products in 2002 into travel and vacations by partnering with QVI Club brand holidays.
During this time, the company also announced that it was the official coin distributor for the
2002 FIFA World Cup
The 2002 FIFA World Cup, also branded as Korea Japan 2002, was the 17th FIFA World Cup, the quadrennial Association football, football world championship for List of men's national association football teams, men's national teams organized by ...
and an expansion into Europe, Australia and Sri Lanka.
In 2005, QI Group acquired QI Comm, a British telecommunications company.
That same year, the company introduced ''aspIRe Magazine'' and announced that there were one million Qnet independent representatives around the world.
In 2006, Qnet began marketing energy, health and nutritional products.
That same year, QI Group acquired Prana Resorts and Spa, a vegetarian holiday resort in Koh Samui.
QI Group also acquired the Swiss watchmaker, Cimier. In 2007, the QI Group acquired Down To Earth (DTE), a vegetarian organic health store chain in
Hawaii
Hawaii ( ; haw, Hawaii or ) is a state in the Western United States, located in the Pacific Ocean about from the U.S. mainland. It is the only U.S. state outside North America, the only state that is an archipelago, and the only stat ...
.
The company announced its sponsorship of
Team Meritus
MY QI-Meritus.Mahara is a Malaysian motor racing team, primarily competing in the GP2 Asia Series
The GP2 Asia Series was a form of open wheel motor racing as a result of a spin-off from the GP2 series.
The series was officially announced duri ...
, a Malaysian motor racing team, and became a sponsor for the Commonwealth Heads Of Government Meeting Business Forum in 2007. From 2007 and 2012, Qnet's direct sales increased by 70%.
From 2009 to 2012, Qnet was an official sponsor of the Asian Football Confederation during the
AFC Champions League
The AFC Champions League (abbreviated as ACL) is an annual continental club football competition organised by the Asian Football Confederation, and contested by Asia's top-division football clubs. It is the most prestigious club competition ...
. In 2010, the company partnered with
Virgin Racing
Virgin Racing (subsequently Marussia Virgin Racing) was a Formula One racing team which was under management of Manor Motorsport, Wirth Research and Richard Branson's Virgin Group and competed in with a British licence and in with a Russian ...
. Qnet received the TRUSTe Privacy Certification in late 2012. Qnet announced its intention to shift its manufacturing operations to India and to open an office in Russia in 2013.
The company's QI Tower in Malaysia received the 2013 Building and Construction Authority (BCA) Green Mark Gold Award. In 2014, Qnet started a three-year partnership with
Manchester City
Manchester () is a city in Greater Manchester, England. It had a population of 552,000 in 2021. It is bordered by the Cheshire Plain to the south, the Pennines to the north and east, and the neighbouring city of Salford to the west. The tw ...
football club to become the club's official direct selling partner.
The deal was then expanded in 2017, and signed a similar deal with the
Confederation of African Football
The Confederation of African Football, or CAF for short (french: link=yes, Confédération Africaine de Football, ar, link=yes, الاتحاد الأفريقي لكرة القدم, al-Ittiḥād al-Afrīqī li-Kurat al-Qadam), is the administ ...
in 2018.
Since it opened in 1998, Qnet (Questnet at the time) promoted gold and silver coins. The coin collection business was outlawed in some countries. Though registered in Hong Kong, the company has never operated there or in China. Its majority customer base remains in India and a few African countries. A few years later Questnet changed its name to Qnet and offered additional products via the MLM system. It promotes its products using claims "that would not pass official muster in much of the world."
Despite claiming to be an
e-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
based business, an ordinary retail customer can purchase a product only if they have a referrer ID of an independent Qnet representative. Qnet used websites such as www.Qnetindia.in, www.Qnetindia.net, www.Qnet.net and www.questnet.net to conduct its business. These were blocked by Indian
Computer emergency response team
A computer emergency response team (CERT) is an expert group that handles computer security incidents. Alternative names for such groups include computer emergency readiness team and computer security incident response team (CSIRT). A more modern ...
(CERT) following a court order. Other websites like portal.Qnetindia.net, are under investigation.
The company continues to operate in countries including India, and sells its products using a
multi-level marketing
Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling th ...
model, whereby independent representatives refer the products to consumers and receive compensation based on the sales volume of their referrals and the sales volume of other independent representatives in their teams.
The company has operations in 25 countries worldwide with offices in
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
,
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
,
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
,
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
,
United Arab Emirates
The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...
, and
Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
. The company also has franchise companies in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
and
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
.
It was sued by
Egypt
Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. It is bordered by the Mediter ...
,
Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...
,
and
Sri Lanka
Sri Lanka (, ; si, ශ්රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
for allegedly operating a product-based pyramid scheme. The company and its franchise Vihaan are under investigation in
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
.
The Bombay High Court denied the anticipatory bail plea of the directors of Vihaan Direct Selling Pvt Ltd., a franchise of Qnet, which included world amateur billiards champion
Michael Ferreira
Michael Ferreira (born 1 October 1938 in Bombay [now Mumbai]), nicknamed "the Bombay Tiger", is notable amateur player of English billiards from India, and a three-time Amateur World Champion. He participated in the Indian National Billi ...
after it was earlier rejected by Sessions Court. They were facing charges of cheating and forgery The court observed that "the deceit and fraud is camouflaged under the name of e-marketing and business".
The Delhi High Court also called it a multi-victim scam and refused to quash FIR against the directors of Indian franchise of Qnet, Vihaan Direct Selling Private Limited.
The
Serious Fraud Investigation Office
The Serious Fraud Investigation Office (SFIO) is a statutory corporate fraud investigating agency in India. Initially, it was set up by a resolution adopted by the Government of India on 2 July 2003 and carried out investigations within the exist ...
, in its report on GoldQuest and QuestNet India has called multi-level marketing (MLM) schemes run by overseas operators as "a potential threat to national security". The Government of India ordered the
Serious Fraud Investigation Office
The Serious Fraud Investigation Office (SFIO) is a statutory corporate fraud investigating agency in India. Initially, it was set up by a resolution adopted by the Government of India on 2 July 2003 and carried out investigations within the exist ...
to file prosecution against GoldQuest International and QuestNet Enterprise under the Companies Act and Indian Penal Code. A brief executive summary of the SFIO report is now available in the public domain. The company has denied the allegations.
In 2019, Malou Caluza was announced as Qnet's new CEO, becoming the first female to hold the position.
Business model
![Multi-level marketing tree diagram](https://upload.wikimedia.org/wikipedia/commons/2/21/Multi-level_marketing_tree_diagram.png)
Customers can choose to become "independent representatives" (IRs) of the company by paying $10 for a starter kit and an online office. IRs receive $250 commission after they introduce the products to six people, placing three people on their left and three people on their right, described as two 'legs'. When an IR introduces a new customer who then becomes an IR themselves, the original IR benefits (by receiving bonus points) from the success of their recruit. These bonus points build up on only one of the IR's legs. The IR must then find recruits for the other leg in order to receive commissions.
Many government entities described Qnet's business model as a
pyramid scheme
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products. As recruiting multiplies, recruiting becomes quickly im ...
: early entrants earn money, and as the number of Independent Representatives (IRs) increases, finding more IRs to join becomes difficult or impossible; IRs that join late do not earn enough to cover their first outlay and the model collapses.
As per an official spokesperson, even though sign-up fees are not charged, a purchase might be required. This may be in the form of the sale of a qualifying product to a retail customer or by the new representative making a qualifying purchase.
Products & subsidiaries
The company markets many unbranded products including air purifiers, cosmetics, soaps and detergents and commemorative coins. Initially the company sold gold commemorative coins.
Qnet expanded its products to include travel in 2002.
By 2006, Qnet had transitioned to marketing and selling "aspirational products", which claim to boost energy, health and nutrition.
According to Eswaran, these types of products account for 30% of Qnet's sales.
The company introduced "life-enhancing products" such as a portable water filtration system and an air purifier, which Qnet claims can fix pollution issues in homes.
Some of its products fall under a "wellness" brand, such as the ''Amezcua Bio Disc'' (also spelled BioDisc and BioDisk). According to Quest Net's advertisement, the disc creates a 'water-impacting' energy field that 'helps to reduce stress, improve sleep'. The company claims that it was invented by Dr Ian Lyons, but his antecedents and research publication are not known. Schott AG is the only industrial glass manufacturer that certifies production of Biodisc, but does not reflect Qnet's advertising that it is 'creating an impact energy field'. The Amezcua Bio Disc has been evaluated by research facilities in Germany, India and Japan. The product has received scrutiny from various scientists, media commentators and watchdogs.
The subsidiary QI properties announced in 2016 that it would begin construction of QI City, a mixed-use development in
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
. It was due to be completed in 2020, consisting of an 840-bed teaching hospital, 768 condominium units, a convention center, and a 460-bed hotel. The development is the location of Quest International University's Perak campus.
Controversies
Qnet has faced controversies since soon after its founding. It has faced litigation in many countries and hundreds of IRs working for it and/or its many subsidiaries have been arrested.
Gold coins
GoldQuest marketed a gold coin at a 100% premium over similar coins. The President of the Madras Coin Society warned that the Goldquest coin was neither a period coin nor it was from an authorized body. Australian politician
Cameron Thompson, the Nepalese Home Ministry, the Sri Lankan Central Bank, and the Iranian Government described GoldQuest as a pyramid scheme. In 2002, the Australian Office of Consumer and Business Affairs listed the company as one of 61 alleged pyramid schemes.
The
Fatwa
A fatwā ( ; ar, فتوى; plural ''fatāwā'' ) is a legal ruling on a point of Islamic law (''sharia'') given by a qualified '' Faqih'' (Islamic jurist) in response to a question posed by a private individual, judge or government. A jurist i ...
council at
Dar al-Ifta al-Misriyyah
Egypt's Dar al-Ifta ( ar, دار الإفتاء المصرية ) is an Egyptian Islamic advisory, justiciary and governmental body established as a centre for Islam and Islamic legal research in Egypt in 1313 AH / 1895 CE. It offers Muslims r ...
declared that the binary form of transaction adopted by Qnet is prohibited under
Sharia
Sharia (; ar, شريعة, sharīʿa ) is a body of religious law that forms a part of the Islamic tradition. It is derived from the religious precepts of Islam and is based on the sacred scriptures of Islam, particularly the Quran and the H ...
law.
2003
In 2003, Indian police arrested two QI group senior managers in Chennai and froze the company bank account after receiving complaints from more than 50 of its members. In
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
, the Department of Trade and Industry issued a cease and desist order after a complaint from a member. In
Cambodia
Cambodia (; also Kampuchea ; km, កម្ពុជា, UNGEGN: ), officially the Kingdom of Cambodia, is a country located in the southern portion of the Indochinese Peninsula in Southeast Asia, spanning an area of , bordered by Thailand t ...
Goldquest organized the launch of Ankor Wat commemorative coins among 500 young Khmers who had paid $5 to attend and pick up a starter kit to help them sell. Managing Director, Richard Zinkiewicz, insisted that Questnet was not a pyramid scheme, because customers were never obligated to sell products and the product had real value. He said that the coins' high value was because they are limited edition collectibles. Eswaran claimed that the opportunities offered by QI could change members' lives.
Royal Monetary Authority of Bhutan
The Royal Monetary Authority of Bhutan ( dz, བྲུག་རྒྱལ་གཞུང་དངུལ་ལས་དབང་འཛིན་) is the central bank of Bhutan and is a member of the Asian Clearing Union. It is also the minting aut ...
asserted that GoldQuest was a pyramid scheme.
Nepal banned the company from operating there in 2003, while Bahadur Manandhar, chief of the foreign exchange department of the
Nepal Rastra Bank
The Nepal Rastra Bank (NRB) ( ne, नेपाल राष्ट्र बैंक) was established April 26, 1956 A.D. (Nepali Date: Baisakh 14, 2013 B.S.) under the Nepal Rastra Bank Act, 1955, to discharge the central banking responsibilit ...
, said GoldQuest was "a hundred percent fraud".
Sri Lanka banned GoldQuest in 2005, claiming that the company had caused 15 million dollars to leave the country.
India declared both Goldquest and Questnet to be Ponzi scheme companies.
2007-2009
In 2007, APLI, the direct selling Association of Indonesia, called GoldQuest a pyramid scheme.
Interpol
The International Criminal Police Organization (ICPO; french: link=no, Organisation internationale de police criminelle), commonly known as Interpol ( , ), is an international organization that facilitates worldwide police cooperation and cri ...
arrested Eswaran and other company officials for fraud. Qnet responded that the allegation was unfounded.
After three weeks, Indonesian courts released Eswaran and dismissed the charges soon afterward.
Qnet continued to operate there.
In 2008, around 3,000 people marched on the presidential palace in
Kabul
Kabul (; ps, , ; , ) is the capital and largest city of Afghanistan. Located in the eastern half of the country, it is also a municipality, forming part of the Kabul Province; it is administratively divided into 22 municipal districts. Acco ...
to demonstrate against the temporary withdrawal of QuestNet's license to operate. The business launched with around 600 IRs in 2006 and had expanded to 21,000 when the government temporarily withdrew the license to enable it to write operating laws.
Rwanda
Rwanda (; rw, u Rwanda ), officially the Republic of Rwanda, is a landlocked country in the Great Rift Valley of Central Africa, where the African Great Lakes region and Southeast Africa converge. Located a few degrees south of the Equator ...
banned QuestNet in 2009 for legal violations after The
National Bank of Rwanda
The National Bank of Rwanda ( rw, Banki Nkuru Y'u Rwanda, french: Banque Nationale du Rwanda) is the central bank of Rwanda. The bank was founded in 1964. The current governor of the bank is John Rwangombwa.
Location
It is quartered at the N ...
described the company as a pyramid scheme.
Questnet appealed and was granted relief on condition that it follow the country's laws.
That year
Sudan
Sudan ( or ; ar, السودان, as-Sūdān, officially the Republic of the Sudan ( ar, جمهورية السودان, link=no, Jumhūriyyat as-Sūdān), is a country in Northeast Africa. It shares borders with the Central African Republic t ...
banned QuestNet after allegations were made relating to poor product quality and the non-receipt of products.
The same year, Syria shut down QuestNet for violating its commercial registration, stating that the company had operated a pyramid scheme and withdrawn billions of
Syrian pound
The Syrian pound or lira ( ar, الليرة السورية, al-līra as-sūriyya; abbreviation: LS or SP in Latin, ل.س in Arabic, historically also £S, and £Syr; ISO code: SYP) is the currency of Syria. It is issued by the Central Bank o ...
s from the country, while paying few taxes.
The shutdown applied to all company agencies.
2010-2012
In 2010 Questnet opened in
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
with 150 distributors. Police subsequently charged 42 of them with gaining an unfair advantage.
In 2011, the country investigated Qnet.
The Trade Minister warned citizens against such structures, claiming that 96 percent of members. About 20 million dollars were collected from the public. 75 people were taken into custody in Qnet offices. They were accused of contacting unemployed young people. New members paid $570-$1750 to join. A commission for each new member started at US$250. Members sold Chinese goods such as watches, necklaces. In 2011, QI Group resumed operations in Turkey with the acquisition of the Dögan Hotel in
Antalya
Antalya () is the List of largest cities and towns in Turkey, fifth-most populous city in Turkey as well as the capital of Antalya Province. Located on Anatolia's southwest coast bordered by the Taurus Mountains, Antalya is the largest Turkish cit ...
.
Eleven members were taken into custody for questioning. The
Mardin
Mardin ( ku, Mêrdîn; ar, ماردين; syr, ܡܪܕܝܢ, Merdīn; hy, Մարդին) is a city in southeastern Turkey. The capital of Mardin Province, it is known for the Artuqid architecture of its old city, and for its strategic location on ...
Security Directorate arrested 12 people including a leader from
Iran
Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...
working QuestNet's Titan Happiness chain. About 110 thousand pounds of
cash
In economics, cash is money in the physical form of currency, such as banknotes and coins.
In bookkeeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-imm ...
were reported to have been seized. They continued operating as Qnet after QuestNet was suspended. 53 people working for Questnet were detained in
Ankara
Ankara ( , ; ), historically known as Ancyra and Angora, is the capital of Turkey. Located in the central part of Anatolia, the city has a population of 5.1 million in its urban center and over 5.7 million in Ankara Province, maki ...
,
Çorum
Çorum () (Medieval Greek: Ευχάνεια, romanized: Euchaneia) is a northern Anatolian city that is the capital of the Çorum Province of Turkey. Çorum is located inland in the central Black Sea Region of Turkey, and is approximately from ...
,
Antalya
Antalya () is the List of largest cities and towns in Turkey, fifth-most populous city in Turkey as well as the capital of Antalya Province. Located on Anatolia's southwest coast bordered by the Taurus Mountains, Antalya is the largest Turkish cit ...
and
Istanbul
Istanbul ( , ; tr, İstanbul ), formerly known as Constantinople ( grc-gre, Κωνσταντινούπολις; la, Constantinopolis), is the List of largest cities and towns in Turkey, largest city in Turkey, serving as the country's economic, ...
. An investigation was initiated against Eswaran. 30 thousand members lost money in a 50 million dollar
fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
when the
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
leg of the network collapsed.
Egypt
Egypt ( ar, مصر , ), officially the Arab Republic of Egypt, is a transcontinental country spanning the northeast corner of Africa and southwest corner of Asia via a land bridge formed by the Sinai Peninsula. It is bordered by the Mediter ...
,
Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
,
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
and
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
accused Qnet of operating a product-based pyramid scheme.
Dar al-Ifta issued Qnet a
fatwā
A fatwā ( ; ar, فتوى; plural ''fatāwā'' ) is a legal ruling on a point of Islamic law (''sharia'') given by a qualified '' Faqih'' (Islamic jurist) in response to a question posed by a private individual, judge or government. A jurist i ...
in 2012 stating Qnet's business in Egypt is
haram
''Haram'' (; ar, حَرَام, , ) is an Arabic term meaning 'Forbidden'. This may refer to either something sacred to which access is not allowed to the people who are not in a state of purity or who are not initiated into the sacred knowle ...
(forbidden under
Islamic law
Sharia (; ar, شريعة, sharīʿa ) is a body of religious law that forms a part of the Islamic tradition. It is derived from the religious precepts of Islam and is based on the sacred scriptures of Islam, particularly the Quran and the ...
).
In 2010 Saudi Arabia banned Qnet, accusing the company of theft, falsification, and failure to register, while warning citizens to avoid involvement in fraudulent schemes, mentioning Qnet specifically.
Iran announced the arrest 30 of Goldquest members on charges of defrauding people of more than 5 trillion rials. Goldquest had been banned in 2005. Thirteen Qnet members in Tehran were arrested. GoldQuest disputed Iran's findings, claiming that their Iranian operations were simply network marketing. Journalist Donald Frazier said in 2012 that the charges against Qnet "tend to originate in apocryphal, anonymous or debunked sources".
2013-2015
In August 2013, India made its first arrest in a case that began in 2008.
Members were arrested for cheating. Investigations reached
Bangalore
Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...
and
Chennai
Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
. Six of Qnet's bank accounts were frozen. A case of money laundering was registered against Qnet, its franchise Vihaan Direct Selling, and a few others. About 200 members of PT Qnet
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
alleged fraud. Losses were estimated to be between Rp 7 million – Rp 10 million per person.
Kazakhstan
Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
banned Qnet. In Philippines Goldquest failed to submit its annual report for the years 1999–2000, 2002–2003, 2007–2013 and 2009–12, as required by the Corporation code and had its license revoked. In June 2014, Chairman of the Fatwa Commission of the
Indonesian Ulema Council
Indonesian Ulema Council ( id, Majelis Ulama Indonesia, ar, مجلس العلماء الإندونيسي, abbreviated MUI) is Indonesia's top Islamic scholars body. MUI was founded in Jakarta on July 26, 1975 during the New Order era. The council ...
(MUI) Riau province, appealed to citizens to avoid the business.
In June, 2014,
Tajikistan
Tajikistan (, ; tg, Тоҷикистон, Tojikiston; russian: Таджикистан, Tadzhikistan), officially the Republic of Tajikistan ( tg, Ҷумҳурии Тоҷикистон, Jumhurii Tojikiston), is a landlocked country in Centr ...
newspaper 'J''umhuriyat'' attacked Qnet as a dangerous financial pyramid. The company claimed the accusations were false. In September, Qnet sued private radio station and journalist Orzu Isoyev to protect its reputation after the station called the company the next pyramid. Religious leaders stated that the company's activities violated Sharia law. This was because the activity involved deceiving people and because the work combined two transactions into one, in that the member must make a purchase and at also agree to find new buyers. In addition, the member can make profits at someone else's expense. In India the key accused in
Chennai
Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
was arrested. In 2014,
Mumbai police
The Mumbai Police (Marathi: मुंबई पोलीस, IAST: ''Mumbaī Pulīs'', formerly ''Bombay Police'') is the police department of the city of Mumbai, Maharashtra. It is a part of Maharashtra Police and has the primary responsibiliti ...
froze the bank account of Danesh Irani after it was alleged that he had received lakhs of rupees. In February 2014, the Managing Director Pushpam Appalanaidu of Questnet India was arrested on 21 cases of cheating. Lookout notices against
Eswaran and his business associates Dev Wadhwani and Sachin Gupta were issued. Qnet claimed that Wadhwani and Gupta were independent representatives and not employed by the company at any of their offices. Qnet advocated for the regulation of Indian multilevel marketing companies and for banning pyramid schemes.
The Qnet office in
Bangalore
Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...
was shuttered. The bank account belonging to a PR firm dealing with Qnet was frozen. A radio announcer who had held training sessions to attract investors to Qnet was arrested in
Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
. In October 2014,
Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
Economic Offenses Wing sent notices to
Café Coffee Day
Café Coffee Day (CCD) is an Indian multinational chain of coffeehouses headquartered in Bengaluru, Karnataka. It is a subsidiary of Coffee Day Enterprises Limited. Internationally, CCDs are present in Austria, Czech Republic, Malaysia, Nepal a ...
to not allow Qnet representatives to hold meetings at their outlets. In 2014 the Economic Offences Wing (EOW) of the Mumbai Police filed a
First Information Report
__NOTOC__
A first information report (FIR) is a document prepared by police organisations in Indian subcontinent and Southeast Asian countries including Myanmar, India, Bangladesh and Pakistan when they receive information about the commissio ...
against Qnet and its Indian subsidiary Vihaan and barred them from holding workshops and training sessions.
Three independent representatives of Qnet were arrested in January 2015. In March two senior Qnet IRs were arrested. Four Qnet associates were arrested at
Vijayawada
Vijayawada, formerly known as Bezawada, is the second largest city in the Indian state of Andhra Pradesh and is a part of the state's Capital Region. It is the administrative headquarters of the NTR district. Its metropolitan region comprises NT ...
. Fifteen lakh were seized. In July the Mumbai Police started a probe into an alleged deal with Wizcraft International Entertainment Pvt. Ltd that linked the
International Indian Film Academy Awards
The International Indian Film Academy Awards, popularly known as IIFA, is an annual awards ceremony for Bollywood. Produced by Wizcraft International Entertainment Pvt. Ltd, the winners of the awards are decided by fans, who vote online for th ...
and Qnet.
In
Mali
Mali (; ), officially the Republic of Mali,, , ff, 𞤈𞤫𞤲𞥆𞤣𞤢𞥄𞤲𞤣𞤭 𞤃𞤢𞥄𞤤𞤭, Renndaandi Maali, italics=no, ar, جمهورية مالي, Jumhūriyyāt Mālī is a landlocked country in West Africa. Mali ...
Qnet was accused of tricking people to join Qnet, even though most lost money. In Russia Quest International had an annual turnover of 1.65 billion pounds. To join Qnet IR's had to buy 60,000 roubles worth of company products and then recruit two others who do the same. For every two recruits, the recruiter receives $250. Only 14% of those in the pyramid got their 60,000 rubles. The company partnered with former professional tennis player
Martina Hingis
Martina Hingis (, sk, Martina Hingisová; 30 September 1980) is a Swiss former professional tennis player. Hingis is the first Swiss player, male or female, to win a major title and attain a world No. 1 ranking. She spent a total of 209 weeks a ...
in September 2015 and announced her as a Brand Ambassador. Qnet announced the liquidation of its office in
Tajikistan
Tajikistan (, ; tg, Тоҷикистон, Tojikiston; russian: Таджикистан, Tadzhikistan), officially the Republic of Tajikistan ( tg, Ҷумҳурии Тоҷикистон, Jumhurii Tojikiston), is a landlocked country in Centr ...
on March 18, 2015, continuing its activities through a local company amidst accusations.
2016
In March
Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
police issued summons to a top official of
FC Goa
Football Club Goa is an Indian professional football club based in Goa, that competes in the Indian Super League, the top flight of Indian football. The club was established on 26 August 2014. Nicknamed as '' Gaurs'', the club plays their ho ...
to inquire about their sponsorship by Qnet. In June 2016
Delhi
Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, primarily its western or right bank, Delhi shares borders w ...
moved against Vihaan Direct Selling and three independent representatives for fraudulently operating a MLM scheme. Hyderabad police arrested four Qnet associates in September.
Mumbai Police
The Mumbai Police (Marathi: मुंबई पोलीस, IAST: ''Mumbaī Pulīs'', formerly ''Bombay Police'') is the police department of the city of Mumbai, Maharashtra. It is a part of Maharashtra Police and has the primary responsibiliti ...
recovered 144 crore by freezing bank accounts. After a three-year probe, they filed a 55,000-page charge sheet against Vihaan directors and shareholders, which was Qnet's master franchise in India. The
Securities and Exchange Board of India
The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...
advised victims to file complaints with appropriate authorities. The Federation of Direct Selling Association rejected Vihaan's application, stating that Vihaan was in the recruitment business rather than retailing. It claimed that recruiting revenues were so large because recruiting rather than selling was the focus.
In April 2014,
Baku
Baku (, ; az, Bakı ) is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. Baku is located below sea level, which makes it the lowest lying national capital in the world a ...
,
Azerbaijan
Azerbaijan (, ; az, Azərbaycan ), officially the Republic of Azerbaijan, , also sometimes officially called the Azerbaijan Republic is a transcontinental country located at the boundary of Eastern Europe and Western Asia. It is a part of th ...
opened a criminal fraud case against Questnet. In 2012 and 2013, Questnet employees had taken money totaling more than 27 thousand
Azerbaijani manat
The manat ( ISO code: AZN; sign: ₼; abbreviation: m) is the currency of Azerbaijan. It is subdivided into 100 ''gapiks''.
The first iteration of the currency happened in the times of the Azerbaijan Democratic Republic and its successor, the Az ...
from 16 residents. In December 2016, two Questnet employees were sentenced to eight years in prison for defrauding some 15 citizens of over $65,000.
In
Moldova
Moldova ( , ; ), officially the Republic of Moldova ( ro, Republica Moldova), is a Landlocked country, landlocked country in Eastern Europe. It is bordered by Romania to the west and Ukraine to the north, east, and south. The List of states ...
, a once-closed fraud case was reopened based on numerous complaints. Hundreds of Moldovans, eager to get rich overnight, went bankrupt after they were convinced by friends and relatives to join Qnet. They were promised thousands of Euros per week, but had to first buy at least $2000 of goods from the company. The newcomersfurther had to convince two more people to buy $2000 from Qnet to get a commission of $250.
An IR in
Dédougou
Dédougou is a city located in western Burkina Faso. It is the capital city of Mouhoun Province and Boucle du Mouhoun Region. The main ethnic groups are the Marka and the Bwa. The population of Dédougou was 37,793 in 2006; 18,778 were male and ...
,
Burkina Faso
Burkina Faso (, ; , ff, 𞤄𞤵𞤪𞤳𞤭𞤲𞤢 𞤊𞤢𞤧𞤮, italic=no) is a landlocked country in West Africa with an area of , bordered by Mali to the northwest, Niger to the northeast, Benin to the southeast, Togo and Ghana to the ...
was prosecuted for fraud totaling 390,000
West African CFA franc
The West African CFA franc ( French: ''franc CFA'' or simply ''franc'', ISO 4217 code: XOF; abbreviation: F.CFA) is the currency used by eight independent states in West Africa which make up the West African Economic and Monetary Union (UEMOA; ' ...
of membership fees. Hundreds of complaints were received. Each IR paid 450,000 CFA as member fees. Project officials were arrested and detained in
Ziniare Prison and Correction Center.
Young people in Damascus were recruited by friends to join and pay the membership fee. They are given products to sell and taught to recruit others. Recruiters earn $200 for each pair of recruits.
Sri Lanka
Sri Lanka (, ; si, ශ්රී ලංකා, Śrī Laṅkā, translit-std=ISO (); ta, இலங்கை, Ilaṅkai, translit-std=ISO ()), formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an ...
shut down Goldquest and QI. They were replaced by Global Lifestyle Lanka Ltd. Managing Director Selvarajan Wijayaratnam, Eswaran's brother-in-law and several board members were summoned. A former defence official was probed for allegedly receiving money to prevent Eswaran's arrest. In
Jaffna
Jaffna (, ) is the capital city of the Northern Province of Sri Lanka. It is the administrative headquarters of the Jaffna District located on a peninsula of the same name. With a population of 88,138 in 2012, Jaffna is Sri Lanka's 12th most ...
thousands of people protested for refunds. A court there issued an interim injunction. The magistrate ordered a public awareness campaign and instructed Gram Sevakas to conduct awareness meetings.
2017
In
Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
, network marketing was banned after complaints about companies including Tvi and Qnet.
Many
Georgians
The Georgians, or Kartvelians (; ka, ქართველები, tr, ), are a nation and indigenous Caucasian ethnic group native to Georgia and the South Caucasus. Georgian diaspora communities are also present throughout Russia, Turkey, G ...
took credits from commercial banks to buy Qnet products ranging from $500-$3,000 and claimed that they were defrauded.
The
Central Investigation Bureau The Central Investigation Bureau (CIB) is the national investigation agency of Nepal which is run under Nepal Police. It is sometimes referred as Central Investigation Bureau of Nepal Police. The Central Investigation Bureau (CIB) of Nepal Police ai ...
of
Nepal
Nepal (; ne, नेपाल ), formerly the Federal Democratic Republic of Nepal ( ne,
सङ्घीय लोकतान्त्रिक गणतन्त्र नेपाल ), is a landlocked country in South Asia. It is mai ...
in June, arrested 102 Qnet IRs on fraud charges. Some IRs received had as much as Rs 1 million.
The
Jijel
Jijel ( ar, جيجل), the classical Igilgili, is the capital of Jijel Province in north-eastern Algeria. It is flanked by the Mediterranean Sea in the region of Corniche Jijelienne and had a population of 131,513 in 2008.
Jijel is the administra ...
province of
Algeria
)
, image_map = Algeria (centered orthographic projection).svg
, map_caption =
, image_map2 =
, capital = Algiers
, coordinates =
, largest_city = capital
, relig ...
dismantled Qnet's network, alleging that recruits were promised trips abroad. 15 women suspected to belong to Qnet were arrested in
Annaba
Annaba ( ar, عنّابة, "Place of the Jujubes"; ber, Aânavaen), formerly known as Bon, Bona and Bône, is a seaport city in the northeastern corner of Algeria, close to the border with Tunisia. Annaba is near the small Seybouse River ...
State. In
Mostaganem
Mostaganem ( ber, Mustɣanem; ar, مستغانم) is a port city in and capital of Mostaganem province, in the northwest of Algeria. The city, founded in the 11th century lies on the Gulf of Arzew, Mediterranean Sea and is 72 km ENE of Ora ...
three IRs were arrested.
Indonesia included Qnet on its list of bogus companies. Four Qnet IRs were arrested for the murder of a Go Car driver. Qnet claimed that the company was not involved. In July 2017, at least 19 teenagers who had joined Qnet were evacuated from a shelter in Simo
Boyolali
Boyolali ( jv, ꦧꦺꦴꦪꦭꦭꦶ, Boyalali, Don't forget) is a regency ( id, kabupaten) in the eastern part of Central Java province in Indonesia. It covers an area of 1,015.10 km2, and had a population of 930,531 at the 2010 census and 1 ...
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
and returned to their parents. They had been attempting to sell worthless products such as Chakra for Rp 8 million. Similar cases of alleged
fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
occurred in Sambi district. Police raided a rented house in Tray district, finding 20 men and 4 women. Two of their leaders were questioned by the police. In
Jambi
Jambi is a province of Indonesia. It is located on the east coast of central Sumatra and spans to the Barisan Mountains in the west. Its capital and largest city is Jambi. The province has a land area of 50,160.05 km2, and a sea area of 3, ...
City detained 48 Qnet members for disturbing neighbors. Dozens of youth were recruited in
Kartosuro
Kartosuro (also spelled Kartasura) is an Indonesian subdistrict ''(Kecamatan)'' in the Sukoharjo Regency, Central Java. Kartosuro is a Surakarta's satellite city, and a junction of Surabaya-Solo-Yogyakarta and Solo-Semarang highway. It can be re ...
Sukoharjo Regency
Sukoharjo Regency is a regency ( id, kabupaten) in the Central Java province in Indonesia. It covers an area of 466.77 km2 and had a population of 824,238 at the 2010 Census and 907,587 at the 2020 Census. Its capital is Sukoharjo, about 10 km sou ...
.
In
Maharashtra
Maharashtra (; , abbr. MH or Maha) is a states and union territories of India, state in the western India, western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the List of states and union te ...
a Court stated that Qnet operations were not legal. In February
Delhi
Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, primarily its western or right bank, Delhi shares borders w ...
High Court, dismissed a petition to quash a
First Information Report
__NOTOC__
A first information report (FIR) is a document prepared by police organisations in Indian subcontinent and Southeast Asian countries including Myanmar, India, Bangladesh and Pakistan when they receive information about the commissio ...
describing Qnet as a scam. In March forty-seven IRs were arrested and multiple bank accounts were frozen. In April the
Enforcement Directorate
The Directorate of Enforcement (ED) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue, Ministry of Finance, Gover ...
provisionally seized Qnet properties worth over 150 crore. In May, the Economic Offences Wing Mumbai announced that a unit would be formed to compensate Qnet investors pending a court order. IRs were arrested in
Kerala
Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South ...
, Thiruvananthapuram,
Meerut
Meerut (, IAST: ''Meraṭh'') is a city in Meerut district of the western part of the Indian state of Uttar Pradesh. The city lies northeast of the national capital New Delhi, within the National Capital Region and west of the state capital ...
and
Kochi
Kochi (), also known as Cochin ( ) ( the official name until 1996) is a major port city on the Malabar Coast of India bordering the Laccadive Sea, which is a part of the Arabian Sea. It is part of the district of Ernakulam in the state of K ...
. Complaints were lodged in
Hyderabad
Hyderabad ( ; , ) is the capital and largest city of the Indian state of Telangana and the ''de jure'' capital of Andhra Pradesh. It occupies on the Deccan Plateau along the banks of the Musi River (India), Musi River, in the northern part ...
, Madhapur and Mumbai.
In February, 2017 the Karnataka High Court quashed criminal proceedings against QNet executive Naresh Balasubramaniam in a cybercrime case over alleged fraud. In March, 2017 the Supreme Court of India stayed further proceedings in all the 19 FIR's filed against Qnet and its stake holders across the country and granted bail to Michael Ferreira, former world champion in billiards, and another official of the firm's India franchise in a cheating case.
In
Fardis
Fardis (Persian: فردیس) is a city in Alborz Province, Iran.
Gallery
2nd square of Fardis.jpg, Second square of main blvd. of Fardis
See also
* Karaj
References
* Malard
Malard ( fa, ملارد, also Romanized as Malārd and Melā ...
Iran
Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...
eight Qnet IRs were arrested for counterfeiting and
fraud
In law, fraud is intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right. Fraud can violate civil law (e.g., a fraud victim may sue the fraud perpetrator to avoid the fraud or recover monetary compens ...
.
France 24
France 24 ( in French) is a French state-owned international news television network based in Paris. Its channels broadcast in French, English, Arabic, and Spanish and are aimed at the overseas market.
Based in the Paris suburb of Issy-les-M ...
television investigated Questnet.
More than 100 youth from
Togo
Togo (), officially the Togolese Republic (french: République togolaise), is a country in West Africa. It is bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, where its c ...
were taken hostage under the banner of Qnet in
Côte d'Ivoire
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
.
Four Qnet IRs were arrested for allegedly recruiting 580 youth in
Kumasi
Kumasi (historically spelled Comassie or Coomassie, usually spelled Kumase in Twi) is a city in the Ashanti Region, and is among the largest metropolitan areas in Ghana. Kumasi is located in a rain forest region near Lake Bosomtwe, and is the ...
Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...
. The recruits were asked to pay 3,100
Ghanaian Cedi
The cedi ( ) (currency sign: GH₵; currency code: GHS) is the unit of currency of Ghana. It is the fourth historical and only current legal tender in the Republic of Ghana. One cedi is divided into one hundred pesewas (Gp).
After independenc ...
.
In Sri Lanka three Qnet-related schemes were investigated. The company was ordered to stop its activities.
2018
Latvia television reported that QN
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
was a pyramid scheme. The Ministry of Economy of
Lebanon
Lebanon ( , ar, لُبْنَان, translit=lubnān, ), officially the Republic of Lebanon () or the Lebanese Republic, is a country in Western Asia. It is located between Syria to the north and east and Israel to the south, while Cyprus li ...
warned the public about Qnet. In Mail following a violent protest, 10 IRs were arrested for fraud. New members paid 400 to 6,000,000 CFA. Malian spiritual guide,
Chérif Ousmane Madani Haïdara stated that none of Qnet's medical products, had any effect and denied involvement with them. In Indonesia, Qnet operated in
Boyolali
Boyolali ( jv, ꦧꦺꦴꦪꦭꦭꦶ, Boyalali, Don't forget) is a regency ( id, kabupaten) in the eastern part of Central Java province in Indonesia. It covers an area of 1,015.10 km2, and had a population of 930,531 at the 2010 census and 1 ...
, Simo, Banyudono, Mojosongo, Andong and Ngemplak, and in Teras District. Three IRs in
Lamongan
Lamongan Regency is a regency ''(kabupaten)'' of East Java, Indonesia. It has a total land area of approximately or + 3.78% of the area of East Java Province. With a length of along the coastline, the sea area of Lamongan Regency is about , if ...
reported losses of Rp 76 million to investment company Pt Amoeba International that used the Qnet logo. Action was taken against Qnet in
Chennai
Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
,
Andhra Pradesh
Andhra Pradesh (, abbr. AP) is a state in the south-eastern coastal region of India. It is the seventh-largest state by area covering an area of and tenth-most populous state with 49,386,799 inhabitants. It is bordered by Telangana to the ...
,
Nagpur
Nagpur (pronunciation: Help:IPA/Marathi, aːɡpuːɾ is the third largest city and the winter capital of the Indian state of Maharashtra. It is the 13th largest city in India by population and according to an Oxford's Economics report, Nag ...
,
Mumbai
Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...
,
Maharashtra
Maharashtra (; , abbr. MH or Maha) is a states and union territories of India, state in the western India, western peninsular region of India occupying a substantial portion of the Deccan Plateau. Maharashtra is the List of states and union te ...
,
Karnataka
Karnataka (; ISO: , , also known as Karunāḍu) is a state in the southwestern region of India. It was formed on 1 November 1956, with the passage of the States Reorganisation Act. Originally known as Mysore State , it was renamed ''Karnat ...
and
Kanchipuram
Kanchipuram ('; ) also known as ''Conjeevaram,'' is a city in the Indian state of Tamil Nadu in the Tondaimandalam region, from Chennaithe capital of Tamil Nadu. Known as the ''City of Thousand Temples'', Kanchipuram is known for its temple ...
.
In
Guinea
Guinea ( ),, fuf, 𞤘𞤭𞤲𞤫, italic=no, Gine, wo, Gine, nqo, ߖߌ߬ߣߍ߫, bm, Gine officially the Republic of Guinea (french: République de Guinée), is a coastal country in West Africa. It borders the Atlantic Ocean to the we ...
, action was taken against Qnet in
Labe and
Dixinn
Dixinn is an urban sub-prefecture in the Conakry Region of Guinea and one of five in the capital Conakry
Conakry (; ; sus, Kɔnakiri; N’ko: ߞߐߣߊߞߙߌ߫, Fula: ''Konaakiri'' 𞤑𞤮𞤲𞤢𞥄𞤳𞤭𞤪𞤭) is the capital and ...
. In
Saudi Arabia
Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...
Qnet IRs were arrested in
Mecca
Mecca (; officially Makkah al-Mukarramah, commonly shortened to Makkah ()) is a city and administrative center of the Mecca Province of Saudi Arabia, and the Holiest sites in Islam, holiest city in Islam. It is inland from Jeddah on the Red ...
,
Riyadh
Riyadh (, ar, الرياض, 'ar-Riyāḍ, lit.: 'The Gardens' Najdi pronunciation: ), formerly known as Hajr al-Yamamah, is the capital and largest city of Saudi Arabia. It is also the capital of the Riyadh Province and the centre of the R ...
and Najran. In
Ivory Coast
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
Qnet IRs were arrested in
San-Pédro. Complaints led
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a list of transcontinental countries, transcontinental country located mainly on the Anatolia, Anatolian Peninsula in Western Asia, with ...
to list Qnet as one of 19 pyramid companies. The
Georgia
Georgia most commonly refers to:
* Georgia (country), a country in the Caucasus region of Eurasia
* Georgia (U.S. state), a state in the Southeast United States
Georgia may also refer to:
Places
Historical states and entities
* Related to the ...
Qnet office is managed by parliamentarian Eka Beselia's family. Thousands of people who joined the Qnet network lost money invested in the company. The Fatwa Committee of
Kurdistan
Kurdistan ( ku, کوردستان ,Kurdistan ; lit. "land of the Kurds") or Greater Kurdistan is a roughly defined geo-cultural territory in Western Asia wherein the Kurds form a prominent majority population and the Kurdish culture, Kurdish la ...
Iraq, issued a statement denouncing the activity of Qnet as haram. In
Senegal
Senegal,; Wolof: ''Senegaal''; Pulaar: 𞤅𞤫𞤲𞤫𞤺𞤢𞥄𞤤𞤭 (Senegaali); Arabic: السنغال ''As-Sinighal'') officially the Republic of Senegal,; Wolof: ''Réewum Senegaal''; Pulaar : 𞤈𞤫𞤲𞤣𞤢𞥄𞤲𞤣𞤭 ...
Qnet recruited 108,000 members charging between 500 and 700 dollars. The official who issued document of official recognition to Qnet was arrested. In
Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...
Qnet claimed that its network employs 10,000 people who earn between 1000 and 10000 dollars per month. In
Gambia
The Gambia,, ff, Gammbi, ar, غامبيا officially the Republic of The Gambia, is a country in West Africa. It is the smallest country within mainland AfricaHoare, Ben. (2002) ''The Kingfisher A-Z Encyclopedia'', Kingfisher Publicatio ...
IRs were arrested. In
Kazakhstan
Kazakhstan, officially the Republic of Kazakhstan, is a transcontinental country located mainly in Central Asia and partly in Eastern Europe. It borders Russia to the north and west, China to the east, Kyrgyzstan to the southeast, Uzbeki ...
Qnet was accused of making false promises.
2019
In India Qnet faced legal action and/or arrests in
Kukatpally
Kukatpally is a suburb located in north western part of Hyderabad in the Indian state of Telangana. It is the headquarters of Balanagar mandal in Malkajgiri revenue division of Medchal-Malkajgiri district. It was a municipality prior to its mer ...
,
Cyberabad
The Hyderabad Information Technology and Engineering Consultancy City, abbreviated as HITEC City, is an Indian information technology, engineering, health informatics, and bioinformatics, financial business district located in Hyderabad, Tel ...
,
Bangalore
Bangalore (), officially Bengaluru (), is the capital and largest city of the Indian state of Karnataka. It has a population of more than and a metropolitan population of around , making it the third most populous city and fifth most ...
, Hyderabad,
Goa
Goa () is a state on the southwestern coast of India within the Konkan region, geographically separated from the Deccan highlands by the Western Ghats. It is located between the Indian states of Maharashtra to the north and Karnataka to the ...
,
Rajasthan
Rajasthan (; lit. 'Land of Kings') is a state in northern India. It covers or 10.4 per cent of India's total geographical area. It is the largest Indian state by area and the seventh largest by population. It is on India's northwestern si ...
,
Telangana
Telangana (; , ) is a States and union territories of India, state in India situated on the south-central stretch of the Indian subcontinent, Indian peninsula on the high Deccan Plateau. It is the List of states and union territories of India b ...
and
Powai
Powai (Pronunciation: əʋəiː is an upscale residential neighbourhood located in central Mumbai, Maharashtra, India. It is situated on the banks of Powai Lake, and is bound by the hills of Vikhroli Parksite to the south-east, Chandivali t ...
.
Cyberabad
The Hyderabad Information Technology and Engineering Consultancy City, abbreviated as HITEC City, is an Indian information technology, engineering, health informatics, and bioinformatics, financial business district located in Hyderabad, Tel ...
police began investigation of the suicide of a former techie owing to alleged losses suffered after investing
Indian Rupee
The Indian rupee ( symbol: ₹; code: INR) is the official currency in the republic of India. The rupee is subdivided into 100 ''paise'' (singular: ''paisa''), though as of 2022, coins of denomination of 1 rupee are the lowest value in use wh ...
25 Lakh in Qnet Ponzi scheme. He had enrolled six members and was under extreme pressure to enroll more members, his family claimed. The police have written to several investigating agencies including
Reserve Bank of India
The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible for ...
,
Enforcement Directorate
The Directorate of Enforcement (ED) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. It is part of the Department of Revenue, Ministry of Finance, Gover ...
,
Income Tax Department
The Income Tax Department (also referred to as IT Department or ITD) is a government agency undertaking direct tax collection of the government of India. It functions under the Department of Revenue of the Ministry of Finance. The Income Tax De ...
,
Serious Fraud Investigation Office
The Serious Fraud Investigation Office (SFIO) is a statutory corporate fraud investigating agency in India. Initially, it was set up by a resolution adopted by the Government of India on 2 July 2003 and carried out investigations within the exist ...
,
Registrar of Companies, India
The Registrar of Companies (ROC) is an office under the Indian Ministry of Corporate Affairs that deals with administration of the Companies Act, 2013, The Limited Liability Partnership Act, 2008, The Company Secretaries Act, 1980 and The Chartere ...
about how the firm was running Ponzi schemes and have created thousands of investors across the country. A man in
Chennai
Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...
committed suicide after being tricked to invest INR 8 Lakhs in Qnet multi level marketing company by his cousin. A software engineer in
Navi Mumbai
Navi Mumbai (), is a planned city situated on the west coast of the Indian subcontinent, located in the Konkan division of Maharashtra state, on the mainland of India.
Navi Mumbai is part of the Mumbai Metropolitan Region (MMR). The city is ...
allegedly committed suicide although his brother refuted his friends claims that he was depressed following losses from an investment of INR 2.5 Lakhs in Qnet. The Registrar of Companies in
Karnataka
Karnataka (; ISO: , , also known as Karunāḍu) is a state in the southwestern region of India. It was formed on 1 November 1956, with the passage of the States Reorganisation Act. Originally known as Mysore State , it was renamed ''Karnat ...
had inspected the books of Vihaan Direct Selling Pvt Ltd, a franchise of QNet, and based upon the report, it had filed winding up petition before the National Company Law Tribunal.
Ministry of Corporate Affairs
The Ministry of Corporate Affairs is an Indian government ministry primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008, and the Insolvency and Bankruptcy Code, 201 ...
official communication stated that Lookout circulars were issued against 12 persons associated with the company as directors or promoters. 70 people were arrested and 38 cases registered against the company in different police stations. People in
Odisha
Odisha (English: , ), formerly Orissa ( the official name until 2011), is an Indian state located in Eastern India. It is the 8th largest state by area, and the 11th largest by population. The state has the third largest population of ...
had registered a complaint with the Economic Offences Wing against QNet for allegedly cheating them of lakhs of rupees. A former member of QNet who launched his own multi-level marketing firm after he lost 13 lakhs rupees in QNet scheme was arrested by
Cyberabad
The Hyderabad Information Technology and Engineering Consultancy City, abbreviated as HITEC City, is an Indian information technology, engineering, health informatics, and bioinformatics, financial business district located in Hyderabad, Tel ...
police for running a money circulation scheme. Three persons in
Kerala
Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South ...
were arrested by
Payyanur
Payyanur, , is a municipal town and a taluk, a sub-district administrative unit, in the Kannur district of Kerala, India. On 10 March 2018, Kerala Chief Minister Pinarayi Vijayan inaugurated Payyanur as the fifth taluk in the district. Payyan ...
police after complaint was filed by a person who was asked to invest in the company.
In
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
, in
Malang
Malang (; ) is a landlocked List of regencies and cities of Indonesia, city in the Indonesian Provinces of Indonesia, province of East Java. It has a history dating back to the age of Singhasari, Singhasari Kingdom. It is the second most popul ...
in separate incidents, police rescued individuals allegedly held captive by Qnet personnel. Six youths claimed to be victims of QNet multi level marketing business who were promised of job placement with a salary of Rp 3 million per week but first had to deposit an initial capital of Rp 9.5 million per week to join QNet. They revealed that they were taught to recruit at least two downlines in order to reap profits but the money paid to join cannot be withdrawn later.
Lumajang
Lumajang Regency is a Regency (''kabupaten'') located in the East Java province of Indonesia. It covers an area of 1,790.90 sq. km, and had a population of 1,006,458 at the 2010 Census and 1,119,251 at the 2020 Census. It shares its land bo ...
Police arrested the director of PT Amoeba International affiliated with PT QNet for running business as a money game system using the pyramid mechanism. New members who joined Qnet were required to find two new members in which each left and right leg of the pyramid will continue to branch off.
Lumajang
Lumajang Regency is a Regency (''kabupaten'') located in the East Java province of Indonesia. It covers an area of 1,790.90 sq. km, and had a population of 1,006,458 at the 2010 Census and 1,119,251 at the 2020 Census. It shares its land bo ...
Police Chief explained that in a pyramid scheme, even if there are goods, actual sale of goods is just a cover. Almost 87 percent people lose their money, which is why it is prohibited in many countries. Thousands of people along with dozens of victims of QNet pyramid scheme descended on the roads to support the police chief and the cobra team to investigate the fraud.
Channel 31 (Kazakhstan)
Channel 31 is a Kazakh nationwide broadcast television station that is based in Almaty, Kazakhstan and are owned and operated by CTC Media anNational Media Group
The channel was launched on 24 October 1992, and during its official start, it ha ...
reported that in
Karaganda
Karaganda or Qaraghandy ( kk, Қарағанды/Qarağandy, ; russian: Караганда, ) is the capital of Karaganda Region in the Republic of Kazakhstan. It is the List of most populous cities in Kazakhstan, fourth most populous city in Kaza ...
region one person had to undergo treatment after joining Qnet. In
Conakry
Conakry (; ; sus, Kɔnakiri; N’ko: ߞߐߣߊߞߙߌ߫, Fula: ''Konaakiri'' 𞤑𞤮𞤲𞤢𞥄𞤳𞤭𞤪𞤭) is the capital and largest city of Guinea. A port city, it serves as the economic, financial and cultural centre of Guinea. Its p ...
, Guinea, 100 people were arrested for involvement with Qnet. In
Sierra Leone
Sierra Leone,)]. officially the Republic of Sierra Leone, is a country on the southwest coast of West Africa. It is bordered by Liberia to the southeast and Guinea surrounds the northern half of the nation. Covering a total area of , Sierra ...
investigations of Qnet were demanded by IRs claiming they had been defrauded. In
Senegal
Senegal,; Wolof: ''Senegaal''; Pulaar: 𞤅𞤫𞤲𞤫𞤺𞤢𞥄𞤤𞤭 (Senegaali); Arabic: السنغال ''As-Sinighal'') officially the Republic of Senegal,; Wolof: ''Réewum Senegaal''; Pulaar : 𞤈𞤫𞤲𞤣𞤢𞥄𞤲𞤣𞤭 ...
a dozen IRs were arrested along with two company executives. In a public press conference, the Director, National Agency of Financial Investigations in
Chad
Chad (; ar, تشاد , ; french: Tchad, ), officially the Republic of Chad, '; ) is a landlocked country at the crossroads of North and Central Africa. It is bordered by Libya to the north, Sudan to the east, the Central African Republic ...
declared Qnet as a criminal enterprise and asked the public to remain vigilant. The pyramid scheme had extorted 91 million
Central African CFA franc
The Central African CFA franc ( French: ''franc CFA'' or simply ''franc''; ISO code: XAF; abbreviation: F.CFA) is the currency of six independent states in Central Africa: Cameroon, Central African Republic, Chad, Republic of the Congo, Equator ...
from vulnerable groups in over 4 years.
Over 100 people from
Togo
Togo (), officially the Togolese Republic (french: République togolaise), is a country in West Africa. It is bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, where its c ...
became victim to a big scam called Qnet. They were told by friends that they found jobs in
Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...
with a monthly salary of 300,000
CFA franc
The CFA franc (french: franc CFA, , Franc of the Financial Community of Africa, originally Franc of the French Colonies in Africa, or colloquially ; abbreviation: F.CFA) is the name of two currencies, the West African CFA franc, used in eight Wes ...
but were instead made to pay 500,000
CFA franc
The CFA franc (french: franc CFA, , Franc of the Financial Community of Africa, originally Franc of the French Colonies in Africa, or colloquially ; abbreviation: F.CFA) is the name of two currencies, the West African CFA franc, used in eight Wes ...
for training. The victims without knowing the name of the company, sold things, mobilized the money and went into debt, only realizing later that they have joined Qnet against their will. 213 nationals belonging to
Mali
Mali (; ), officially the Republic of Mali,, , ff, 𞤈𞤫𞤲𞥆𞤣𞤢𞥄𞤲𞤣𞤭 𞤃𞤢𞥄𞤤𞤭, Renndaandi Maali, italics=no, ar, جمهورية مالي, Jumhūriyyāt Mālī is a landlocked country in West Africa. Mali ...
were found to be victims of a scam network in
Abidjan
Abidjan ( , ; N'Ko script, N’ko: ߊߓߌߖߊ߲߬) is the economic capital of the Ivory Coast. As of the Demographics of Ivory Coast, 2021 census, Abidjan's population was 6.3 million, which is 21.5 percent of overall population of the country, ...
in
Ivory Coast
Ivory Coast, also known as Côte d'Ivoire, officially the Republic of Côte d'Ivoire, is a country on the southern coast of West Africa. Its capital is Yamoussoukro, in the centre of the country, while its largest city and economic centre is ...
where each Malian had paid the sum of 3,00,000 to 20,00,000
CFA franc
The CFA franc (french: franc CFA, , Franc of the Financial Community of Africa, originally Franc of the French Colonies in Africa, or colloquially ; abbreviation: F.CFA) is the name of two currencies, the West African CFA franc, used in eight Wes ...
. In
Ghana
Ghana (; tw, Gaana, ee, Gana), officially the Republic of Ghana, is a country in West Africa. It abuts the Gulf of Guinea and the Atlantic Ocean to the south, sharing borders with Ivory Coast in the west, Burkina Faso in the north, and To ...
about 50 foreigners who were employees of Qnet, were deported for not having resident permits.
Police in
Alborz Province
Alborz Province ( fa, استان البرز, ''Ostān-e Alborz'') is one of the 31 provinces of Iran.[Iran
Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...]
arrested 13 members of the pyramid company Qnet who were recruiting people where each invested 200 million
Iranian rial
The rial ( fa, ریال ایران, riyâl-è Irân; sign: ﷼; abbreviation: Rl (singular) and Rls (plural) or IR in Latin; ISO code: IRR) is the official currency of Iran.
There is no official symbol for the currency but the Iranian standar ...
. They were later sent to prison.
See also
*
Qnet Open – A women's tennis tournament sponsored by the company.
References
{{Multi-level marketing
Pyramid and Ponzi schemes
Multinational companies
Multi-level marketing companies
Online retailers of Hong Hong