Qnet Reports & Reviews (1)
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SCAMPULSE
If you know any contact information for Qnet, help other victims by adding it!
Total money lost $1,000
Type of a scam Investment
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 Department of Trade and Industry issued a cease and desist order after a complaint from a member. In Cambodia 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.[52][67] Royal Monetary Authority of Bhutan asserted that GoldQuest was a pyramid scheme.[68][69]
Nepal banned the company from operating there in 2003, while Bahadur Manandhar, chief of the foreign exchange department of the Nepal Rastra Bank, said GoldQuest was "a hundred percent fraud".[70] Sri Lanka banned GoldQuest in 2005, claiming that the company had caused 15 million dollars to leave the country.[41][43][71][72] In 2005, Iran banned GoldQuest, after prosecutors found that company activities had "led to the exit half of a billion dollars from Iran".[73]
India declared both Goldquest and Questnet to be Ponzi scheme companies.[74][75][76][77]
2007
In 2007, APLI, the direct selling Association of Indonesia, called GoldQuest a pyramid scheme.[78] Interpol arrested Eswaran and other company officials for fraud.[79] Qnet responded that the allegation was unfounded.[80] After three weeks, Indonesian courts released Eswaran and dismissed the charges soon afterward.[12] Qnet continued to operate there.[81]
2008
In 2008, around 3,000 people marched on the presidential palace in Kabul 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.[82]
2009
Rwanda banned QuestNet in 2009 for legal violations after The National Bank of Rwanda described the company as a pyramid scheme.[83][84] Questnet appealed and was granted relief on condition that it follow the country's laws.[38][85][86]
That year Sudan banned QuestNet after allegations were made relating to poor product quality and the non-receipt of products.[87][88] 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 pounds from the country, while paying few taxes.[89] The shutdown applied to all company agencies.[90]
2010
In 2010 Questnet opened in Turkey with 150 distributors. Police subsequently charged 42 of them with gaining an unfair advantage.[91] In 2011, the country investigated Qnet.[92] The Trade Minister warned citizens against such structures, claiming that 96 percent of members. About 20 million dollars were collected from the public.[93] 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.[94] In 2011, QI Group resumed operations in Turkey with the acquisition of the Dögan Hotel in Antalya.[95][96] Eleven members were taken into custody for questioning.[97] The Mardin Security Directorate arrested 12 people including a leader from Iran working QuestNet's Titan Happiness chain. About 110 thousand pounds of cash were reported to have been seized. They continued operating as Qnet after QuestNet was suspended.[98] 53 people working for Questnet were detained in Ankara, Çorum, Antalya and Istanbul. An investigation was initiated against Eswaran. 30 thousand members lost money in a 50 million dollar fraud when the Turkey leg of the network collapsed.[99][100]
2010–2012
Egypt, Saudi Arabia, Indonesia and India accused Qnet of operating a product-based pyramid scheme.[101][102][103][104] Dar al-Ifta issued Qnet a fatwa in 2012 stating Qnet's business in Egypt is haram (forbidden under Islamic law).[105][106] 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.[107][108]
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.[109] Thirteen Qnet members in Tehran were arrested.[110] GoldQuest disputed Iran's findings, claiming that their Iranian operations were simply network marketing.[111]
Journalist Donald Frazier said in 2012 that the charges against Qnet "tend to originate in apocryphal, anonymous or debunked sources".[112]
2013
In May 2013, Salma Sabahi, daughter of politician and Egyptian Presidential candidate Hamdeen Sabahi was accused of fraud for her involvement with Global Ad Mart. During the prior two years she doubled the size of her network, selling counterfeit watches and energy bracelets.[113][114][115]
In August 2013, India made its first arrest in a case that began in 2008.[116] Members were arrested for cheating. Investigations reached Bangalore and Chennai. Six of Qnet's bank accounts were frozen.[117][118] A case of money laundering was registered against Qnet, its franchise Vihaan Direct Selling, and a few others.[119]
About 200 members of PT Qnet Indonesia alleged fraud. Losses were estimated to be between Rp 7 million – Rp 10 million per person.[120]
Kazakhstan banned Qnet.[121]
2014
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.[122]
In June 2014, Chairman of the Fatwa Commission of the Indonesian Ulema Council (MUI) Riau province, appealed to citizens to avoid the business.[123]
In June, 2014, Tajikistan newspaper 'Jumhuriyat attacked Qnet as a dangerous financial pyramid.[124][125] The company claimed the accusations were false.[126] In September, Qnet sued private radio station and journalist Orzu Isoyev to protect its reputation after the station called the company the next pyramid.[127] 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.[128]
In India the key accused in Chennai was arrested.[129] In 2014, Mumbai police 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.[130] Lookout notices against Eswaran and his business associates Dev Wadhwani and Sachin Gupta were issued.[131][132][133][134] Qnet claimed that Wadhwani and Gupta were independent representatives and not employed by the company at any of their offices.[135] Qnet advocated for the regulation of Indian multilevel marketing companies and for banning pyramid schemes.[26][136][137] The Qnet office in Bangalore was shuttered. The bank account belonging to a PR firm dealing with Qnet was frozen.[138] A radio announcer who had held training sessions to attract investors to Qnet was arrested in Mumbai.[139][140] In October 2014, Mumbai Economic Offenses Wing sent notices to Café Coffee Day to not allow Qnet representatives to hold meetings at their outlets.[141]
In 2014 the Economic Offences Wing (EOW) of the Mumbai Police filed a First Information Report against Qnet and its Indian subsidiary Vihaan and barred them from holding workshops and training sessions.[142][142][143]
2014–2015
Three independent representatives of Qnet were arrested in January 2015.[144] In March two senior Qnet IRs were arrested.[145] Four Qnet associates were arrested at Vijayawada. Fifteen lakh were seized.[146] 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 and Qnet.[147]
In Mali Qnet was accused of tricking people to join Qnet, even though most lost money.[148]
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.[149]
The company partnered with former professional tennis player Martina Hingis in September 2015 and announced her as a Brand Ambassador.[150][151]
Qnet announced the liquidation of its office in Tajikistan on March 18, 2015, continuing its activities through a local company amidst accusations.[152]
2016
In March Mumbai police issued summons to a top official of FC Goa to inquire about their sponsorship by Qnet.[153][154] In June 2016 Delhi moved against Vihaan Direct Selling and three independent representatives for fraudulently operating a MLM scheme.[155] Hyderabad police arrested four Qnet associates in September. Mumbai Police recovered 144 crore by freezing bank accounts.[156] 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.[157][158] The Securities and Exchange Board of India advised victims to file complaints with appropriate authorities.[159][160] 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.[161]
In April 2014, Baku, Azerbaijan opened a criminal fraud case against Questnet. In 2012 and 2013, Questnet employees had taken money totaling more than 27 thousand Azerbaijani manat from 16 residents.[162] In December 2016, two Questnet employees were sentenced to eight years in prison for defrauding some 15 citizens of over $65,000.[163][164]
In Moldova, a once-closed fraud case was reopened based on numerous complaints.[165] 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.[166]
An IR in Dédougou, Burkina Faso was prosecuted for fraud totaling 390,000 West African CFA franc of membership fees.[167] 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.[168]
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.[169]
Sri Lanka 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.[170][171][172][173][174][175][176][177] In Jaffna thousands of people protested for refunds.[178] A court there issued an interim injunction. The magistrate ordered a public awareness campaign and instructed Gram Sevakas to conduct awareness meetings.[179]
2017
In Saudi Arabia, network marketing was banned after complaints about companies including Tvi and Qnet.[180]
Many Georgians took credits from commercial banks to buy Qnet products ranging from $500-$3,000 and claimed that they were defrauded.[181]
The Central Investigation Bureau of Nepal in June, arrested 102 Qnet IRs on fraud charges. Some IRs received had as much as Rs 1 million.[182][183][184]
The Jijel province of Algeria dismantled Qnet's network, alleging that recruits were promised trips abroad.[185] 15 women suspected to belong to Qnet were arrested in Annaba State.[186] In Mostaganem three IRs were arrested.[187]
Indonesia included Qnet on its list of bogus companies.[188][189][190][191] Four Qnet IRs were arrested for the murder of a Go Car driver.[192][193] Qnet claimed that the company was not involved.[194] In July 2017, at least 19 teenagers who had joined Qnet were evacuated from a shelter in Simo Boyolali Indonesia and returned to their parents.[195][196][197] They had been attempting to sell worthless products such as Chakra for Rp 8 million.[198] Similar cases of alleged fraud occurred in Sambi district.[199][200] Police raided a rented house in Tray district, finding 20 men and 4 women. Two of their leaders were questioned by the police.[201][202] In Jambi City detained 48 Qnet members for disturbing neighbors.[203] Dozens of youth were recruited in Kartosuro Sukoharjo Regency.[204]
In Maharashtra a Court stated that Qnet operations were not legal.[205] In February Delhi High Court, dismissed a petition to quash aFirst Information Report describing Qnet as a scam.[206] In March forty-seven IRs were arrested and multiple bank accounts were frozen.[207] In April the Enforcement Directorate provisionally seized Qnet properties worth over 150 crore.[208][209] In May, the Economic Offences Wing Mumbai announced that a unit would be formed to compensate Qnet investors pending a court order.[210] IRs were arrested in Kerala,[211][212] Thiruvananthapuram,[213] Meerut[214] and Kochi.[215] Complaints were lodged in Hyderabad, Madhapur[216] and Mumbai.[217]
In February, 2017 the Karnataka High Court quashed criminal proceedings against QNet executive Naresh Balasubramaniam in a cybercrime case over alleged fraud.[218] 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.[219]
In Fardis Iran eight Qnet IRs were arrested for counterfeiting and fraud.[220][221]
France 24 television investigated Questnet.[222]
More than 100 youth from Togo were taken hostage under the banner of Qnet in Côte d'Ivoire.[223]
Four Qnet IRs were arrested for allegedly recruiting 580 youth in Kumasi Ghana. The recruits were asked to pay 3,100 Ghanaian Cedi.[224][225]
In Sri Lanka three Qnet-related schemes were investigated. The company was ordered to stop its activities.[226]
2018
Latvia television reported that QN Europe was a pyramid scheme.[227]
The Ministry of Economy of Lebanon warned the public about Qnet.[228]
In Mail following a violent protest, 10 IRs were arrested for fraud.[229][230][231] New members paid 400 to 6,000,000 CFA.[232][233] Malian spiritual guide, Chérif Ousmane Madani Haïdara stated that none of Qnet's medical products, had any effect and denied involvement with them.[234]
In Indonesia, Qnet operated in Boyolali, Simo, Banyudono, Mojosongo, Andong and Ngemplak, and in Teras District.[235][236] Three IRs in Lamongan reported losses of Rp 76 million to investment company Pt Amoeba International that used the Qnet logo.[237]
Action was taken against Qnet in Chennai,[238] Andhra Pradesh,[239][240] Nagpur,[241][242] Mumbai,[243][244] Maharashtra,[245] Karnataka[246][247][248][249][250][251] and Kanchipuram.[252]
In Guinea, action was taken against Qnet in Labe[253][254][255] and Dixinn.[256][257]
In Saudi Arabia Qnet IRs were arrested in Mecca,[258][259] Riyadh[260][261] and Najran.[262][263][264]
In Ivory Coast Qnet IRs were arrested in San-Pédro.[265][266][267]
Complaints led Turkey to list Qnet as one of 19 pyramid companies.[268][269]
The Georgia Qnet office is managed by parliamentarian Eka Beselia's family.[270][271] Thousands of people who joined the Qnet network lost money invested in the company.[272]
The Fatwa Committee of Kurdistan Iraq, issued a statement denouncing the activity of Qnet as haram.[273][274]
In Senegal Qnet recruited 108,000 members charging between 500 and 700 dollars. The official who issued document of official recognition to Qnet was arrested.[275][276]
In Ghana Qnet claimed that its network employs 10,000 people who earn between 1000-10000 dollars per month.[277]
In Gambia IRs were arrested.[278]
In Kazakhstan Qnet was accused of making false promises.[279]
2019
In India Qnet faced legal action and/or arrests in Kukatpally,[280] Cyberabad,[281][282][283][284][285][286][287][288] Bangalore,[289][290][291][292][293] Hyderabad,[294] Goa,[295] Rajasthan,[296] Telangana[297] and Powai.[298] Cyberabad police began investigation of the suicide of a former techie owing to alleged losses suffered after investing Indian Rupee 25 Lakh in Qnet Ponzi scheme. He had enrolled six members and was under extreme pressure to enroll more members, his family claimed.[299][300] The police have written to several investigating agencies including Reserve Bank of India, Enforcement Directorate, Income Tax Department, Serious Fraud Investigation Office, Registrar of Companies, India about how the firm was running Ponzi schemes and have created thousands of investors across the country.[301] A man in Chennai committed suicide after being tricked to invest INR 8 Lakhs in Qnet multi level marketing company by his cousin.[302] A software engineer in Navi Mumbai 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.[303][304] The Registrar of Companies in Karnataka 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.[305] Ministry of Corporate Affairs official communication stated that Lookout circulars were issued against 12 persons associated with the company as directors or promoters.[306] 70 people were arrested and 38 cases registered against the company in different police stations.[307] People in Odisha had registered a complaint with the Economic Offences Wing against QNet for allegedly cheating them of lakhs of rupees.[308] 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 police for running a money circulation scheme.[309][310] Three persons in Kerala were arrested by Payyanur police after complaint was filed by a person who was asked to invest in the company.[311]
In Indonesia, in Malang in separate incidents, police rescued individuals allegedly held captive by Qnet personnel.[312][313][314] 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.[315][315] Lumajang 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.[316][317][318] Lumajang 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.[319][320] 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.[321][322]
Channel 31 (Kazakhstan) reported that in Karaganda region one person had to undergo treatment after joining Qnet.[323]
In Conakry, Guinea, 100 people were arrested for involvement with Qnet.[324]
In Sierra Leone investigations of Qnet were demanded by IRs claiming they had been defrauded.[325]
In Senegal a dozen IRs were arrested along with two company executives.[326][327]
In a public press conference, the Director, National Agency of Financial Investigations in Chad declared Qnet as a criminal enterprise and asked the public to remain vigilant. The pyramid scheme had extorted 91 million Central African CFA franc from vulnerable groups in over 4 years.[328][329]
Over 100 people from Togo became victim to a big scam called Qnet. They were told by friends that they found jobs in Ghana with a monthly salary of 300,000 CFA franc but were instead made to pay 500,000 CFA franc 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.[330][331]
213 nationals belonging to Mali were found to be victims of a scam network in Abidjan in Ivory Coast where each Malian had paid the sum of 3,00,000 to 20,00,000 CFA franc.[332][333][334]
In Ghana about 50 foreigners who were employees of Qnet, were deported for not having resident permits.[335][336][336]
Police in Alborz Province of Iran arrested 13 members of the pyramid company Qnet who were recruiting people where each invested 200 million Iranian rial. They were later sent to prison.
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