HSBC bosses agree to pay $1.9 billions fine and are put on probation

http://www.bbc.co.uk/news/business-20673466

http://uk.reuters.com/article/2012/12/11/hsbc-settlement-idUKL4N09L1YE20121211?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews

UK-based HSBC bank is the biggest in Europe (by market capitalisation). It declared pre-tax profits of $12.7bn for the first half of 2012.

After an astonishing US Senate investigation (published earlier this year, 2012) concluded that  HSBC had 'been a conduit for drug kingpins and rogue nations,' the current bosses of HBSC have now announced that they have agreed to pay the US authorities a staggering $1.9 billions (the largest penalty ever imposed on a bank) to avoid facing money laundering charges. This means that although some of the most-serious financial crimes imaginable have been committed by certain corporate officers and employees and HSBC, no individual or corporate structure will face the slightest criminal charge. Although, financial penalties imposed on banks for perpetrating crimes have been described as'fines' it would, therefore, be a far more accurate use of English to describe these payments as 'expenses.' Indeed, I am reliably informed that, since financial penalties imposed on banks reduce their profits, they are tax-deductible.

In the case of HSBC, and various other banks which continue to be caught engaged in large-scale money laundering, these jaw-dropping events are particularly baffling, since large-scale money laundering is, by its very nature, always part of a pattern of major racketeering activity (as defined by the US federal Racketeer Influenced and Corrupt Organizations Act, 1970), in that large-scale money-laundering is the process of using labyrinths of legally-registered corporate structures, generally pursuing lawful enterprises, to disguise the proceeds of ongoing major organized crime so that this money cannot be linked to unlawful enterprises. Indeed, US RICO legislation provides severe penalties ($250 000 fines and 20 years prison, per racketeering count) for all persons (including attorneys and bankers) proved to have been engaged in a pattern of ongoing major racketeering activity. Yet, predictably, RICO has not yet been invoked by US prosecutors, and the latest bosses of HSBC and their attorneys, have simply been allowed to pretend that the bank's was only guilty of having 'poor money laundering controls' which they are now in the process of reforming. Oh, and they have offered their 'apologies.'

We accept responsibility for our past mistakes... We have said we are profoundly sorry for them.' Current HSBC group CEO, Stuart Gulliver.

Somewhat belatedly, HSBC officials have recently said that they have reserved $290 millions to improve their money laundering controls and that they have taken back some 'bonuses' (payments linked to unlawful profits) paid to senior executives in the past.

HSBC has also announced that it is due to reach a similar (deferred) criminal-charge avoidance agreement with the UK's Financial Services Authority. Indeed, last month HSBC said that it had set aside $1.5 billions to pay for any settlement or fines.

This latest HBSC news followed the announcement of a similar settlement with UK-based Standard Chartered bank. Its bosses have so far agreed to pay $300m in fines for violating US sanctions.

Ironically, the regular sale to banksters of what are effectively 'Get of Jail' cards, has been described as being part of a 'crackdown on money laundering and sanctions violations being led by federal government agencies and New York state authorities,' following the release of a report by the US Senate which concluded that:

• 'HSBC in the USA had not treated its Mexican affiliate as high risk, despite the country's money laundering and drug trafficking challenges'
• 'The Mexican affiliate had transported $7billions in US bank notes to HSBC in the USA, more than any other Mexican bank, but had not considered that to be suspicious'
• 'HSBC had circumvented US safeguards designed to block transactions involving terrorists drug lords and rogue states, including allowing 25,000 transactions over 7 years without disclosing their links to Iran'
• 'HSBC had provided US dollars and banking services to some banks in Saudi Arabia despite their links to terrorist financing'
• 'In less than 4 years HSBC had cleared $290m in obviously suspicious US travellers' cheques for a Japanese bank, benefiting Russians who claimed to be in the used car business'

The report suggested that it was obvious that HSBC accounts in Mexico and the USA were being used by drug barons to launder mountains of cash. Interestingly, other qualified-observers have suggested that bank officers became blinded to reality in a desperate attempt to generate profits after making catastrophic investments in Mexico. However, the Senate report also stated that HSBC regularly dodged restrictions on dealings with Iran, North Korea and other states subject to US trade sanctions. 

Thus, HSBC bosses were more than happy to sign a 'Deferred Prosecution Agreement' in which they have effectively been placed on probation after effectively pleading guilty to a corporate-breaching of the 'US Bank Secrecy Act' and the 'Trading with the Enemy Act' as well as to committing a catalogue of money laundering offences. Yet had HSBC been indicted for any of these offences, then the US (and other) government(s) automatically would no longer have been permitted to conduct business with the bank.

Bob Werner

In a predictable move reminiscent of 'MLM Income Opportunity' racketeers, HSBC has announced that it has now bought the services a former senior US federal regulator who will work as 'Head of Financial Crime Compliance' (a post which, tellingly, did not exist previously).

Until recently, Bob Werner headed the US Treasury's Office of Foreign Assets Control (OFAC) - the agency responsible for enforcing US sanctions on countries including Iran.

David Brear (copyright 2012

 

 

Herbalife Side Effects

Some people experience unpleasant side effects when using various Herbalife products.

Bloating:

If you experience bloating, try changing the portion size to reduce this feeling. Enjoy healthy snacks during the day and smaller meals to assist your digestion. If you are using the shake mix as a meal replacement you may want to reduce the portion size or frequency.

Dry Mouth:

Some people report that their mouth is dry after black or fruit tea. Detox products often produce thirst so you can try increasing your intake of water. Dryness from using the shakes can be caused by acid reflux since it contains guar gum and psyllium husk. These have expanding properties, which can cause reflux. Guar bean is high in protein and oil and guar gum is used worldwide in many beverages, foods and supplements. In significant quantities, guar gum dehydrates the body and can cause some serious side effects. However, it is regulated by the FDA who only permits extremely small quantities of it in food. Guar gum in the shake mix is used to emulsify or bind the particles and has been determined to be of insignificant quantities.

Heart Palpitations:

Palpitations may be from caffeine sensitivity. The tea does have caffeine in it so you could either stop using the tea or eventually you will get used to caffeine and the palpations should recede. The shake mix does not contain any caffeine.
In the nineties it was found that Ephedra caused increased heart rate and Herbalife discontinued using Ephedra in any of its products.

Upset Stomach, Headache and Fevers:
In the first few days, many years of accumulated toxins and waste in the body begin to be expelled. Diarrhea, headaches, fever or nausea can arise.
These are temporary symptoms and will subside whether you continue the diet or not. The discomfort is not very common but happens to some people. Once you are detoxified you should feel great however. The body has toxins or free radicals surrounded by fat molecules, and when burning these fat molecules, the toxins are released into the bloodstream for elimination. They circulate through the body and are filtered out by the kidneys and liver. This can take up to 2 weeks. Areas where toxins and pollutants are expelled from the body can display reactions. You can first use a detoxification program to cleanse your system before starting the weight loss program if you wish.
Unpleasant-Smelling Urine or Perspiration:
This is another possible reaction to the body cleansing that is not caused by the products, but the waste you are cleaning out. The products are working just as they should.

Allergic Reaction and Blocked Sinuses:
People who are very allergic to fish need to know that some Herbalife products contain fish oil. See a medical specialist to determine if this is an allergic reaction. Sinuses are especially sensitive because they are soft tissue. Sinus irritations should clear in 1 to 3 weeks but if they get worse, discontinue using the product and consult a medical professional.

Malnutrition:
Beware of nutrient deficiency when losing weight. The Herbalife ShapeWorks program recommends that along with the 2 shakes and one healthy meal, you should add the Multivitamins and Cell Activator to ensure that you are getting enough nutrition. Cell Activator helps increase your nutrient absorption from food.

Stimulants:

Caffeine in green tea is not the same as in coffee. It is slower-acting and has a calmer quality. But if you feel too stimulated try half a cup instead of a whole cup for a while.

Swollen Legs:

This might indicate an allergic reaction to an ingredient in the Herbalife products. Please show your doctor the product labels and ask his advice. It would be best to discontinue using the product until you know what the cause of your swelling is.

Stomach Acidity:

If you are using Cell-U-Loss, try discontinuing it and see if that reduces your symptoms. If so, then Cell-U-Loss is not for you. If acidity persists when you are not taking it, there is some other cause. Cell-U-Loss contains 3 ingredients which may be causing the acidity: Apple Cider Vinegar, Vitamin C and Iron. It also contains herbs that have diuretic properties such as couch grass and corn silk extract.

Pregnancy:

Total Control (the metabolism booster) carries a warning to not be used by the pregnant, lactating (or those that want to get pregnant). Rapid weight loss and stimulants during breastfeeding can release too many toxins into your blood stream and thus into your milk. This can cause a decrease in your milk supply and be unhealthy for your baby. Avoid the stimulants in Total Control and the Herbal Tea, which contain caffeine. Herbalife products have nutrition labels that show warnings to guide women who are pregnant, nursing or who may become pregnant.

Rashes:

These are the most commonly reported side-effects that happen when the body is de-toxifying. Redness, blotchy skin and irritation can arise. Your skin being the largest organ, has the most cells to repair and also discharges toxins. It takes about 2 weeks to cleanse the blood stream and during this time the departing toxins can be irritating. Exercise produces sweat and will release toxins that can irritate the skin. Herbal Aloe Soothing Gel can provide symptomatic relief.

General Detoxing Effects:

It is very well known that at the beginning of a diet or fast there may be some adverse side effects. These usually subside within a few weeks however. If you detoxify for a few days using plain water, fruit or vegetables you will also experience some side effects. When we have better nutrition, or when toxic substances such as coffee, tea, chocolate, tobacco, salt, and pepper are discontinued, amazing changes take place. Our bodies discard the lower grade materials and tissues to make room for newer, healthier ones.
Weight Gain:
An ideal weight-loss rate is between 3 and 5 pounds per week. If you lose weight gradually and are getting proper nutrition, it will stay off. Moderate exercise like walking is necessary to get the fat burning process going. Adequate hydration (drinking water regularly) is essential to flush the toxins.
Do not try to stop any Herbalife side effects by taking drugs. Either let the healing take its natural course or stop using the product if you experience an allergic reaction.
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If you’ve just started taking Herbalife to lose weight, or you’re considering it, you may be wondering if there are any Herbalife side effects. It’s a reasonable question for anyone who is unfamiliar with the program.
Herbalife has a broad product range for health, nutrition and weight loss. The core product offering is the Formula 1 Nutritional Shake Mix. This is a protein based shake mix designed to be used as a meal replacement. The program also includes certain herbal supplements and vitamins to target specific weight loss needs, such as supporting metabolism, reducing fluid retention, burning fat and building energy.

Herbalife Side Effects

Certain ingredients in some of the Herbalife products may cause Herbalife side effects for various people. Fortunately the USDA requires that any such warnings be included on the Herbalife product labels. Herbalife aside, you should always inspect the product label for any over the counter weight loss supplement.
Here are three ingredients that could possibly cause side effects:

Caffeine – Some Herbalife products contain caffeine as a metabolism booster. Caffeine can cause nervousness, headaches and higher blood pressure. A typical cup of coffee has about 85mg of caffeine per cup. Per serving, Herbalife teas, tablets, and effervescent products have between 65-75 mg of caffeine per serving. If you are allergic to caffeine you should avoid the products that include caffeine. Some of these are: N-R-G Tablets and Liftoff energy drink. Check the product labels on other products for the ingredients.
Protein and/or Soy – Some people are allergic to concentrated protein. Although the body has protein in our cells, the problem occurs when too much protein upsets the balance in the body’s ability to process protein. Again, check the product labels for each Herbalife product you are considering.
Shellfish – According to Herbalife certain products contain shellfish, so if you are allergic to shellfish, you may want to avoid these products:

Herbalifeline®, Tri-Shield®, Joint Support.


Herbalife side effects should not be confused with the normal detoxification process our bodies go through as a result of the healthy nutrients we’re now consuming. Also, consider the side effects from prescription drugs. Just listen to the end of any commercial or read the small print. It can be enough to scare you half to death! So, put any Herbalife side effects that you may experience into perspective.
Something else to consider when discussing Herbalife side effects is that especially for children and pregnant or lactating women, you should consult a physician or dietitian before considering any weight control program.
Finally, when your body becomes dehydrated, it can cause numerous side effects. As with any weight loss program, it is important that your body does not become dehydrated, so as you begin your weight loss program, it is important to consume enough water throughout the day.
Source: Blog healthy diet online

 

Kerala Crime Branch seizes Rs 3 crore worth goods, two Multilevel Marketing executives arrested

The Economic Offences Wing of the Crime Branch, Kozhikode, conducted raids and seized goods worth Rs 3 crore from offices of three multi-level marketing companies operating here on Monday.

According to Crime Branch officials, cases have been registered against these companies for violating the Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

The police officials said that raids were conducted at the offices of Modicare in Kathrikkadavu, K Link in Palarivattom and DXN on Old Railway Station Road.

Sunil Augustine, manager of K Link, has been arrested. Regil, a native of Thalassery, who is the manager of Modicare in Kerala too has been arrested. The representatives of DXN, a Malaysia-based company having its presence in over 40 countries, are out of station, and they will soon be taken into custody.

The Crime Branch officials seized goods worth Rs1.12 crore from DXN offices, while goods worth Rs 1.10 crore and Rs 37 lakh were seized from the offices of Modicare and K Link, respectively.

After examining the documents, the Crime Branch has learnt that DXN conducted a business of Rs.13 crore in the last one year. K Link and Modicare conducted a business of Rs. 6 crore and Rs. 4 crore, respectively, in 2012. A case against DXN has been registered with the Kasaba police station, Kozhikode, while cases have been registered with the Kozhikode Town police station and the Kannur police station against K Link and Modicare, respectively. The Crime Branch has sealed the offices after examining the documents and goods stocked here.

P A Valsan, Superintendent, Economic Offences Wing, Kozhikode, has said that operations of these companies had been monitored for the last several months, and that cases were registered as they received evidence that against the company for violating the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. “These company sell products like cosmetics, food supplements, kitchen products, medicine, garments and agricultural products at exaggerated price. Each agent has to sell the products by adding two persons to his network. He gets a commission when the two persons add more to their network,” he said.

The accused have been taken to Kozhikode. They will be produced before the Chief Judicial Magistrate Court in Kozhikode.

Good work done by Corporate "Frauds" Watch
 

Tupperware indulges in illegal multilevel marketing

Tupperware is another American company which set foot in India in the name of direct selling after liberalization was introduced in the country. It also claims like other members of Indian Direct Selling Association (IDSA)that it is a good business opportunity and the consumers would get benefit through this business model.
Like the products of all these direct selling association members, the products of Tupperware are also exorbitantly priced and one has to become a member by paying certain amount. Never ask the question why should anybody become a member to purchase products. That is the racket behind the business model.
But there is a difference in this business model. The Tupperware targets women, that too, upper middle class women, all over world. Generally, they are all housewives with 'disposable' income. They are induced with the pep talk of easy and quick money and good business opportunity sitting at home.
Once they fell for the trap, they are encouraged to make their friends and relatives to buy products by becoming members. The members who introduced the new members would also be rewarded with commission.
The women try their hand to enroll new members and sell the products to them. But it would be very difficult to sell a plastic water bottle for Rs. 250 though it is guaranteed to last for a life time. By the time they realised that it is not easy, they would be losing some thousands of rupees by way of buying kitchen plasticware.
Anyway, they do not realise that they are cheated. They believe that they could not do that 'wonderful business' like everybody and they themselves are to be blamed for the failure. They never realised that the scheme itself is cheating. On the other hand, they are afraid that their husbands would scold them if they learnt about it. Moreover, their friends and relatives who were joined into the scheme by them would never trust them again. Vijayawada-based Corporate Frauds Watch filed a criminal case against the Tupperware. So far, the police could spare no time to investigate into the scam. Already several millions of Indian were duped into the scam and several hundreds of crores of rupees were siphoned out of our country