Exposing the "multi-level" scheme of New Star International Corporation: Insider's voice!

(Baonghean) - To deceive customers, New Star International Joint Stock Company has worked hard to polish its "brand" and draw out "benefits" to attract people to participate in "multi-level marketing contracts". However, that deception is being "exposed" by the people involved...

Polishing the "brand"...

New Star International Joint Stock Company has a website with the domain name vinanewstar.net. To access the personal page, Ms. NVA logs in to the Office - Distributor section; enters her ID number 605104896576, password 182436051, and confirmation code 4NHZX. The personal page appears, on which, in addition to information about commission bonuses, there is a pyramid-shaped table of the "line" system of 27 multi-level sales staff (arranged in chronological order) that Ms. NVA has invited. Also on the website, New Star International Joint Stock Company promotes a lot of information about functional foods originating from the US with "super" uses. Such as New Sexual care Men - a functional food for men, helps to nourish the kidneys, strengthen yang, prevent cancer, benefit blood pressure, cardiovascular, strengthen the immune system against aging; New - Women Care - a functional food that helps women be beautiful from the inside, connects cells, stimulates metabolism, improves frigidity, and helps women's lives always flourish; Osteo Complex - a functional food that helps strengthen tendons and bones; Excellent Cordyceps Extract - a premium cordyceps...

New Star International Joint Stock Company's headquarters is at House 5, Lot 2A, Vu Pham Ham Street, Cau Giay District (Hanoi).

But especially attractive is the promotion of strategic goals and compensation regime. Accordingly, New Star International Joint Stock Company will build offices and branches in all 3 regions of the North, Central and South to distribute many "health care and beauty products imported from the US". The conditions to become a distributor of New Star International Joint Stock Company are extremely simple, just need to have a sponsor (the first person to pick up the next person), have an ID card, 2 personal photos 3x4 and participate in one of the product packages with Gold code (worth 11,900,000 VND), Silver (worth 5,900,000 VND), or Bronze (worth 2,900,000 VND). When becoming a distributor, you will own an ID code; participate in free training courses on computers, internet, presentation skills, MC negotiation skills...; Participate in outdoor activities and tours organized by the company; buy goods at preferential prices and receive services; especially, receive commissions when building a business system with the company nationwide; inherit contract value.

Regarding the commission payment regime, if a "distributor" invites 2 people to participate in purchasing a Bronze code product package, he/she will be directly rewarded 1.2 million VND; with a Silver code package, he/she will be rewarded 2.5 million VND; with a Gold code package, he/she will be rewarded 5 million VND. When a "distributor" has 30 couples (60 people) participating in the Gold code package, in addition to the direct commission, he/she will receive a balanced couple commission (an additional 1 million VND/couple), a shared commission (10% of the adjacent upper line), a dropped code commission (100 thousand VND/code) and an insurance worth 100 million VND and is called a "Tam Sao businessman". If there are 50 couples participating in the Gold code package, he/she will be recognized as a Tam Sao Deputy Manager, receiving a salary of 5 million VND/month/3 months; if there are 100 couples participating in the Gold code package, he/she will be recognized as a Tam Sao Manager, receiving a salary of 10 million VND/month/3 months; 120 couples participating in the Gold code package will be recognized as VIP with a total income of 120 million VND; if they reach VIP for the second time, in addition to receiving 240 million VND in income, they will be recognized as a 1-star International Diamond, and will receive 10% of the company's profits divided equally nationwide; if they reach VIP for the third time, in addition to receiving 360 million VND in income, they will be recognized as a 2-star International Diamond. And similarly, if they reach 59-star International Diamond, they will be honored, go on a trip, and receive a house bonus of 5 billion VND...

Searching for information related to New Star International Joint Stock Company, we were quite surprised when the owner of this company, "businessman" Nguyen Tuan Lan, was once "on" the cover of a magazine published in early 2015. Also in this magazine, there was a rather thick "reportage", honoring this person as the person "Connecting dreams". Accordingly, "businessman" Nguyen Tuan Lan started his career in oriental medicine, then switched to the real estate business. Although he switched to a new field at a time of "economic crisis", thanks to his understanding and skillful application of "Sun Tzu's Art of War", he "achieved success beyond imagination, making many people admire him". After that, "businessman" Nguyen Tuan Lan realized that "social trends are changing" so he switched to the functional food sector because "this will be the main business model in the future"; "Over time, with the increase in the number of product users, business people will have increasingly large incomes". And 2014 was a successful year for "businessman" Nguyen Tuan Lan, when he led New Star International Joint Stock Company to many successes; won many prestigious awards such as the award to honor typical good Businessman - Enterprise - Manager; Entrepreneur with heart - talent - intelligence - courage; Typical Enterprise for industrial development; Golden Cup for talented director...

The reality of “empty barrels...”

To verify the "brand" of New Star International Corporation, on July 29, 2015, we had a business trip to Hanoi. When we went to the transaction office address stated in the contract, the company was not there. When we asked the people around, they only knew that it had "moved" but did not know where it was going. Contacting Ms. NVA, she said that through a "similar situation" named Nhan (in Thanh Hoa), she had talked to General Director Nguyen Tuan Lan, and was "scheduled" by him to meet in Hanoi on July 30. We went with Ms. NVA to the "new" headquarters of New Star International Corporation located at the 3-storey house number 5, lot 2A, Vu Pham Ham street, Cau Giay. Because the signboard was quite old, and the advertising billboard was shabby and torn, the appearance of New Star International Corporation was not as "impressive" as the information on the website or the magazine. In the "guest lobby", there is a sofa, a small cabinet displaying some functional food boxes, a transaction counter, in addition, the "wall paintings" are mainly decorated with pictures of the General Director; signs of internal regulations, slogans like "Prestige - Quality - Loyalty - Repayment"... The staff here is quite boring, seeing the "guests" (us) they don't even bother to ask. Only when Ms. NVA asked to meet the General Director, a male employee who was glued to a video game on the computer answered superficially: "The Director has something to do in the morning and won't come". When asked how to meet him, he pointed inside...

Although not yet licensed to operate, New Star International Corporation has implemented many multi-level sales contracts.

Entering the inner room, we met a female employee named Duyen. Duyen did not seem surprised to see Ms. NVA "I remember you. You are from Nghe An, you have been here several times, right...". After Ms. NVA expressed her frustrations about the company's and the General Director's behavior, Duyen said: "We also do not understand how the director does business but has no money, no goods to deliver to everyone. Many people like you come here to demand money from the company...". And she recounted: "Every day, there must be dozens of people from the provinces coming to demand money. Many of them curse a lot. There was a woman who cursed so much that she even lay on the chair in the lobby, and when she was tired of lying down, she got up and cursed... There were many days when we had to close the door because we actually had no authority, money matters had to be met with the director but the boss was always away, he was not here!...". So how could we meet the General Director? According to Duyen, we should contact the General Director by phone to make a specific appointment, or come back to the headquarters at around 2pm and she introduced us to meet a young man named Trung - the company's Distribution Director to ask more questions...

Before meeting Trung, here, we were shown the Business Registration Certificate (2nd change registration) of New Star International Joint Stock Company, issued by the Business Registration Office, Department of Planning and Investment of Hanoi on January 13, 2015. Accordingly, this enterprise has code number 0106640151, first registered on September 16, 2014. In the business line section, besides trading in household appliances, fabrics, non-alcoholic beverages, food..., there is also wholesale of functional foods (permitted by the state); retail of functional foods (permitted by the state) in specialized stores. Therefore, when we met, we asked Trung to clarify the source of functional foods, the organization of multi-level sales staff contracts... Trung corrected his position as Director, because "the company is in a difficult period. The General Director asked me to do it but I have not accepted; and I will only accept when the company's financial situation is clarified and resolved". According to Trung, the company has not been allowed to directly import functional foods but must go through another company, so "when there is no money, there are no goods". Regarding the multi-level sales staff contract, Trung acknowledged that the company has not been granted a license to operate multi-level sales, but "the General Director said that the Ministry of Trade is reviewing it, it will be available within this week". Talking to Trung, functional foods are a conditional business item; when not licensed, the company's widespread multi-level sales staff contracts are a violation of the law. Trung replied: "What you said is correct, but now there are hundreds of businesses operating multi-level marketing but none of them are licensed. Regarding this, you should contact the General Director for a clearer explanation...".

At this time, Ms. NVA contacted "businessman" Nguyen Tuan Lan, and was asked to meet him at the headquarters at 2:00 p.m....

Nhat Lan - Viet Long