[Beijing Direct News Network May 7th] (Social Finance)Not long ago, social finance and economics noted on China judicial document network that a criminal ruling of the second instance of organizing and leading MLM activities by Cheng, Xiao and Liang showed that the people's Court of Louxing District, Loudi City, Hunan Province tried the case of the people's Procuratorate of Louxing District, Loudi City, Hunan Province, accusing the defendant of the crime of organizing and leading MLM activities by Cheng, Xiao, Zhang and Liu. In 2019 On November 29, 2018, the criminal judgment of (2018) xiang1302 Jingchu 627 was issued. After the sentence was pronounced, the defendants in the original trial, Cheng and Xiao, were not satisfied and appealed.

In addition, social finance searched 207 judgment documents of "three-level distribution" through the keyword of China's judgment document network (as of May 4, 2020), including 152 criminal cases, including 174 judgments and 33 rulings. The top three provinces adopting three-level distribution cases are Hunan Province (36), Guangdong Province (28), Shandong Province and Jiangsu Province (24 each), covering 26 provinces in the country, with a concentrated outbreak The year of is 2019, a total of 108. Therefore, the characteristics of three-level distribution mode suspected of MLM are: wide coverage, concentrated outbreak, high crime frequency.

Hunan marvelous biology was sentenced to death for "three-level distribution"

According to the judgment, on December 19, 2014, Zhou and Yang Mouliang (both of the two have been adjudicated) registered and established "Hunan wonderful Bioengineering Co., Ltd." (hereinafter referred to as "wonderful company") in Changsha, Zhou served as the chairman of wonderful company and Yang Mouliang as the legal representative of wonderful company. Zhou Mou Kai and Yang Mouliang two people rely on wonderful company, operate "three level distribution" mode through the Internet plus WeChat platform.

The specific rules of the "three-level distribution" mode: first, implement the membership system, and the formal members of Marvel company are divided into four levels: inspiration, fashion, charm and marvel. Members must be recommended by online members to join, and the recommendation relationship is determined by scanning the wechat QR code of online members, and the recommendation relationship is arranged in the member system to form a hierarchy. After the recommendation of the online members, WeChat's official account of the wonderful company and the purchase of 398 yuan merchandise can become an inspirational member and get the qualification to develop offline and rebate. The number of development personnel is one of the conditions for members to be promoted to a higher level. Inspirational members are promoted to fashion members, and the total number of their first level offline members is up to 30; Fashion members are promoted to glamour level members, and the total number of their first level (first branch), second level (second branch) and third level (third branch) offline members directly or indirectly developed is up to 1000; The total number of offline members in the first tier, second tier and third tier who develop directly or indirectly is 5000.

According to the level, members can get one to three kinds of rebate dividends. First, "order Commission", all members can get 10%, 10% and 20% of the consumption points of the first, second and third tier offline members; second, "performance dividend", fashion, charm and wonder members get 1% of the total consumption points of their fourth to sixth, fourth to ninth and fourth to tenth tier offline members respectively; The third is "global dividend". Fashion, glamour and magic members can equally distribute 3%, 2% and 1% of the total consumption points of the company's members every day. Members can get 10% of the rebate as the shopping currency and 5% as the travel currency, and can't withdraw. The rest points can be exchanged for cash from magic company in the proportion of 1:1.

As of the crime, the organization has 5143106 members, with a total of 158 levels of membership structure.

Why do enterprises take the risk to adopt the "three-level distribution" mode?

On April 29, the people's Court of Lengshuitan District, Yongzhou City, Hunan Province, also showed that: ZHONGZU group (Shenzhen) Co., Ltd. (hereinafter referred to as "ZHONGZU group company") has developed a large number of members and businesses (regional businesses, agents, distributors) with the slogan of "recharge, save money, promote and make money". In the operation of ZHONGZU group company, it takes Zhongyou card as a fuel package Name, promotion and development of subordinates. In the end, many people of the company were sentenced to criminal for the crime of organizing and leading pyramid selling.