Qnet
| Company type | Private |
|---|---|
| Industry | Multi-level marketing |
| Predecessor | QuestNet, GoldQuest |
| Founded | 1998 |
| Founder | Vijay Eswaran, Joseph Bismark |
| Headquarters | Hong Kong , Hong Kong |
Area served | Worldwide (active in 25 countries) |
Key people | Malou Caluza (CEO since 2019) |
| Products | Energy supplements, weight management solutions, nutritional items, personal care goods, home care products, fashion accessories, travel and holiday packages |
| Owner | QI Group |
Qnet Ltd, previously known as QuestNet and GoldQuest, is a multi-level marketing (MLM) firm headquartered in Hong Kong and owned by the QI Group. Established in 1998 by Vijay Eswaran and Joseph Bismark, QNet markets a variety of products such as energy supplements, weight management solutions, nutritional items, personal care goods, home care products, and fashion accessories through an online platform.
Although QNet operates legally in certain regions, it has been accused of functioning as a Ponzi scheme in countries including India. Following protests and legal proceedings related to MLM regulatory breaches, the Indian government and Telecom Regulatory Authority prohibited access to its website. Despite these disputes, QNet continues its business activities across multiple markets under the ownership of Qi Group.
1998–2000
Founded in 1998 in Hong Kong by entrepreneurs Vijay Eswaran and Joseph Bismark, QNet’s origins trace back to Eswaran’s background from Malaysia and his exposure to multi-level marketing models during his studies in the United Kingdom.
The company initially operated under the name GoldQuest before transitioning to QuestNet, ultimately rebranding as QNet in 2010. Its early product line included custom-made commemorative coins, later expanding into jewellery and watches. By 1999, QNet had launched operations in Malaysia and Singapore and formed a partnership with B.H. Mayer's Mint, a minting company based in Germany. By 2002, its presence extended to India, the UAE, Indonesia, Thailand, Australia, the United Kingdom, and Eastern Europe.
QNet served as the exclusive distributor for commemorative coins commemorating the Sydney Olympic Games in 2000. It also handled distribution for FIFA's Centennial Commemorative coin series in 2004 and was associated with the 2004 Athens and 2008 Beijing Olympic Games.
2001–2018
In 2001, QNet broadened its reach to include Dubai, India, Indonesia, and Thailand. The following year, it diversified into travel and holiday packages through a collaboration with QVI Club holidays. That same year, it became the official coin distributor for the 2002 FIFA World Cup while expanding further into European markets, Australia, and Sri Lanka.
QI Group acquired British telecommunications company QI Comm in 2005 and introduced aspIRe Magazine, which reported having one million independent Qnet representatives worldwide. By 2006, QNet’s portfolio included energy products along with health and nutrition items; it also acquired Prana Resorts & Spa located in Koh Samui as well as Swiss watch manufacturer Cimier. In 2007, the company took ownership of Down To Earth (DTE), an organic health retail chain based in Hawaii; sponsored Malaysian motor racing outfit Team Meritus; and supported the Business Forum at the Commonwealth Heads of Government Meeting.
Between 2009 and 2012, QNet was a sponsor of the Asian Football Confederation during the AFC Champions League and partnered with Virgin Racing in 2010. It obtained TRUSTe Privacy Certification in 2012. Plans announced in 2013 included relocating manufacturing operations to India and establishing an office in Russia. The QI Tower in Malaysia earned the BCA Green Mark Gold Award that same year. Starting from 2014, QNet entered into a partnership with Manchester City F.C. as its official direct selling partner; this agreement was renewed in 2017 and extended to include sponsorship with the Confederation of African Football in 2018.
Although initially focused on gold and silver coin sales since its inception as Questnet in 1998, this segment was banned in various countries. Despite being registered in Hong Kong, QNet has never conducted operations there or within China; its primary markets are India along with select African nations. The company rebranded as Qnet while broadening its MLM product range. Although portrayed as an e-commerce enterprise, product purchases require referrals via independent representatives’ IDs. Several Indian government authorities blocked access to multiple QNet websites following judicial orders.
Currently active across 25 countries with offices located in Indonesia, Malaysia, Hong Kong, the Philippines, UAE, and Ireland; franchises operate within India and Turkey. Legal challenges have arisen in Egypt, Rwanda, and Sri Lanka accusing QNet of operating pyramid schemes disguised as product sales. Its Indian franchise Vihaan is under investigation; directors including Michael Ferreira have faced allegations involving cheating and forgery. Judicial bodies have characterized the business model as deceptive MLM masquerading under e-marketing.
India’s Serious Fraud Investigation Office (SFIO) identified MLM schemes such as GoldQuest and QuestNet as potential threats to national security. The government mandated prosecution under applicable Indian laws; an executive summary of SFIO’s findings is publicly available. While denying these accusations, QNet maintains its global MLM activities.
Leadership since 2019
Malou Caluza made history in 2019 by becoming Qnet's inaugural female CEO. She initially joined the organization as its first Customer Service Officer and has earned acclaim for her leadership within the direct selling sector.
Business model
Individuals can register as "independent representatives" (IRs) by purchasing a starter kit and access to an online office for $10. IRs receive a $250 commission once they introduce products to six individuals, structured into two 'legs' with three recruits on each side. When a recruited individual also becomes an IR, the original recruiter gains bonus points from one leg; however, commissions are only paid after recruitment occurs on the opposite leg.
Various governmental authorities have classified Qnet's approach as a pyramid scheme, where early participants benefit financially, but as recruitment diminishes, later entrants find it difficult to recover their investments, often resulting in the scheme's failure.
A company representative clarified that although there is no direct sign-up fee, eligibility typically requires a qualifying transaction—either selling products to retail customers or making personal purchases.
Products and subsidiaries
Qnet originated in 1998 by offering gold commemorative coins. By 2002, it diversified into travel and vacation services through collaboration with QVI Club brand holidays. The product range expanded further in 2006 to incorporate wellness, health, and nutritional items. As of 2021, Qnet's offerings cover home care, beauty and personal care, travel and holidays, education, wellness products, watches and jewelry, as well as nutritional supplements.
One of its wellness items is the Amezcua Bio Disc, promoted as generating an energy field that influences water to alleviate stress and enhance sleep quality. Although Qnet credits Dr. Ian Lyons with its creation, his qualifications and supporting research have not been independently verified. While Schott AG certifies the industrial glass manufacturing of the disc, it does not endorse the energy field claims. This product has undergone evaluation by research institutions in Germany, India, and Japan but has attracted skepticism from scientific experts and regulatory bodies.
In 2016, Qnet’s subsidiary QI Properties revealed plans for QI City in Malaysia—a mixed-use development projected to be completed by 2020. The complex features an 840-bed teaching hospital, 768 condominiums, a convention center, and a hotel with 460 rooms. Additionally, QI City hosts Quest International University’s Perak campus.
Controversies
Since its inception, Qnet has been embroiled in numerous controversies including legal actions across different nations and arrests involving many Independent Representatives linked to the company and its subsidiaries.
Gold coins
GoldQuest promoted gold coins priced at double the value of comparable items. The President of the Madras Coin Society observed that these coins were neither historical artifacts nor officially sanctioned. Several authorities—including Australian politician Cameron Thompson, Nepal’s Home Ministry, Sri Lanka’s Central Bank, and Iran’s Government—have identified GoldQuest as operating a pyramid scheme. In 2002, Australia’s Office of Consumer and Business Affairs listed the company among 61 suspected pyramid schemes. Furthermore, Egypt’s Dar al-Ifta al-Misriyyah Fatwa council ruled that Qnet’s binary transaction system is forbidden under Sharia law.
2003
In 2003, Indian officials detained two senior executives of the QI Group in Chennai and froze the company’s bank accounts following grievances from more than 50 participants. Meanwhile, in the Philippines, the Department of Trade and Industry issued a cease and desist directive prompted by a member complaint. In Cambodia, Goldquest introduced Ankor Wat commemorative coins, aiming at 500 young individuals who invested $5 for starter kits to sell these items. Richard Zinkiewicz, Managing Director, defended Questnet by asserting it was not a pyramid scheme since product sales were not mandatory for customers and emphasized the coins’ genuine worth as limited edition collectibles. Founder Vijay Eswaran maintained that QI’s opportunities had transformative potential for its members. Conversely, the Royal Monetary Authority of Bhutan classified GoldQuest as a pyramid scheme.
That same year, Nepal prohibited GoldQuest, with the foreign exchange head at Nepal Rastra Bank branding it "a hundred percent fraud." Sri Lanka followed suit in 2005, attributing a $15 million capital flight to the company’s activities. India officially labeled both Goldquest and Questnet as Ponzi schemes. These regulatory interventions substantially disrupted the company’s presence throughout Asia, underscoring difficulties in maintaining its multi-level marketing framework amid mounting regulatory pressure.
2007–2009
In 2007, Indonesia’s direct selling association APLI identified GoldQuest as a pyramid scheme. Interpol apprehended Vijay Eswaran and other company officials on fraud allegations; however, Qnet denied all accusations. After three weeks in custody, Indonesian courts released Eswaran and dismissed the charges, permitting Qnet to continue its business operations there.
By 2008, approximately 3,000 individuals rallied in Kabul protesting the temporary suspension of QuestNet’s license. The enterprise had expanded from 600 independent representatives (IRs) in 2006 to 21,000 before authorities paused its license to implement regulatory oversight.
Rwanda banned QuestNet in 2009 due to legal infringements after its central bank classified it as a pyramid scheme. QuestNet contested this ruling and was permitted to resume operations under stipulated compliance conditions. In the same year, Sudan prohibited QuestNet following complaints about substandard products and failure to deliver orders. Syria also terminated QuestNet’s activities for breaching commercial registration regulations, accusing it of running a pyramid scheme that resulted in billions of Syrian pounds being withdrawn and minimal tax contributions. This closure impacted all company branches operating within Syria.
2010–2012
Questnet entered the Turkish market in 2010 with an initial network of 150 distributors; subsequently, 42 individuals faced charges related to obtaining unfair advantages. By 2011, Turkish authorities launched investigations into Qnet after warnings from the Trade Minister that approximately 96% of participants incurred losses, with around $20 million collected from the public. Seventy-five suspects were detained for recruiting unemployed youth; new recruits paid fees ranging from $570 to $1,750 with commissions starting at $250. The product lineup included Chinese-manufactured watches and necklaces. Despite suspensions, QI Group recommenced operations in Turkey during 2011 by acquiring the Dögan Hotel in Antalya. Later arrests involved 11 members in Istanbul and 12 in Mardin connected to the Titan Happiness network, where roughly £110,000 in cash was confiscated. The business continued under the Qnet brand following QuestNet’s suspension. Investigations extended across Ankara, Çorum, Antalya, and Istanbul implicating founder Vijay Eswaran. The collapse of this Turkish network resulted in a $50 million fraud impacting some 30,000 members.
Qnet faced allegations of conducting product-based pyramid schemes across Egypt, Saudi Arabia, Indonesia, and India. In 2012, Egypt’s Dar al-Ifta issued a fatwā declaring Qnet’s business practices forbidden under Islamic law. Saudi Arabia banned Qnet in 2010 citing theft, forgery, and lack of official registration while warning citizens against participation. Iran arrested 30 Goldquest members on fraud charges involving sums exceeding five trillion rials; Goldquest had been banned there since 2005. Additionally, thirteen Qnet affiliates were detained in Tehran. GoldQuest disputed these allegations maintaining their Iranian operations conformed to legitimate network marketing standards. Journalist Donald Frazier observed in 2012 that many accusations against Qnet stemmed from questionable sources.
2013–2015
In August 2013, Indian authorities made their initial arrest connected to a 2008 case involving Qnet affiliates accused of fraudulent activities. The investigation expanded to Bangalore and Chennai, resulting in the freezing of six bank accounts linked to Qnet. Legal action was initiated against Qnet, its franchise Vihaan Direct Selling, and other parties on charges of money laundering. Around 200 Indonesian members reported being defrauded, with individual financial damages estimated between Rp 7 million and Rp 10 million. Kazakhstan imposed a ban on Qnet, while in the Philippines, Goldquest lost its operating license due to failure in submitting mandatory annual reports. In June 2014, the Chairman of the Fatwa Commission of the Indonesian Ulema Council in Riau province advised the public to steer clear of Qnet.
In June 2014, Tajikistan’s newspaper J'umhuriyat described Qnet as a financial pyramid scheme; Qnet refuted these allegations and filed a defamation lawsuit against a radio station. Religious authorities declared that Qnet’s business model contravened Sharia law because of its deceptive tactics and reliance on recruiting new buyers for profit. Key suspects in Chennai were detained by police. Mumbai authorities froze Danesh Irani’s bank account amid accusations of receiving substantial funds. In February 2014, Pushpam Appalanaidu, Managing Director of Questnet India, was arrested on multiple counts of cheating. Lookout notices were issued for Vijay Eswaran and associates Dev Wadhwani and Sachin Gupta; however, Qnet clarified that Wadhwani and Gupta were independent representatives rather than employees.
Qnet called for regulation of multilevel marketing companies in India and advocated banning pyramid schemes. The company’s Bangalore office was shut down, and a PR firm’s bank account linked to Qnet was frozen. A Mumbai radio presenter involved in conducting Qnet training sessions was taken into custody. The Economic Offenses Wing (EOW) in Mumbai issued directives preventing Qnet meetings at Café Coffee Day locations and filed a First Information Report against both Qnet and Vihaan, prohibiting workshops.
In January 2015, three independent representatives associated with Qnet were arrested; two senior independent representatives were detained in March. Four individuals were apprehended in Vijayawada with fifteen lakh rupees seized during raids. In July, Mumbai Police launched an inquiry into an alleged sponsorship arrangement between Wizcraft International Entertainment Pvt. Ltd and Qnet concerning the International Indian Film Academy Awards.
Qnet encountered accusations in Mali for misleading participants who predominantly suffered financial losses. In Russia, Quest International reported an annual turnover of £1.65 billion; enrollment required purchasing products valued at 60,000 roubles and recruiting two others who met the same criteria. Recruiters earned $250 per pair recruited; only about 14% recovered their initial investments. In September 2015, former professional tennis player Martina Hingis was appointed as Qnet’s Brand Ambassador. On March 18, 2015, Qnet declared the closure of its Tajikistan office but maintained operations through a local entity amidst ongoing allegations.
2016
In March, Mumbai police summoned a senior official from FC Goa regarding their sponsorship association with Qnet. By June, Delhi authorities took action against Vihaan Direct Selling and three representatives for running a fraudulent multilevel marketing scheme. Hyderabad police arrested four individuals linked to Qnet in September, while Mumbai Police secured ₹144 crore by freezing related bank accounts. Following a three-year probe, authorities submitted a charge sheet exceeding 55,000 pages against directors and shareholders of Vihaan, the master franchisee for Qnet in India. The Securities and Exchange Board of India advised victims to lodge complaints with appropriate agencies. The Federation of Direct Selling Association rejected Vihaan’s membership application, citing its emphasis on recruitment over retail sales.
In April 2014, Baku authorities in Azerbaijan initiated a criminal fraud investigation against Questnet after employees collected more than 27,000 Azerbaijani manat from sixteen residents during 2012–2013. By December 2016, two Questnet employees received eight-year prison sentences for defrauding approximately fifteen citizens out of over $65,000.
In Moldova, a fraud case previously closed was reopened following numerous grievances. Hundreds of Moldovan citizens faced bankruptcy after being persuaded to join Qnet with promises of substantial returns but required to purchase at least $2,000 worth of products and recruit others to earn commissions.
An independent representative in Dédougou, Burkina Faso faced legal proceedings for defrauding membership fees totaling 390,000 CFA francs. Extensive complaints led to arrests and detentions at Ziniare Prison.
In Damascus, young recruits paid membership fees to sell products and recruit others, earning $200 per pair recruited.
Sri Lankan authorities shut down Goldquest and QI operations, replacing them with Global Lifestyle Lanka Ltd. Managing Director Selvarajan Wijayaratnam along with several board members were summoned for investigations. A former defense official was investigated for allegedly accepting bribes to obstruct arrests. In Jaffna, thousands protested demanding refunds; courts issued interim injunctions and mandated public awareness campaigns conducted by Gram Sevakas.
2017
Following complaints involving firms such as Tvi and Qnet, network marketing was prohibited in Saudi Arabia.
In Georgia, numerous buyers took out loans ranging from $500 to $3,000 to acquire Qnet products, later alleging fraudulent practices.
The Central Investigation Bureau of Nepal apprehended 102 independent representatives (IRs) of Qnet on fraud allegations; some had reportedly earned up to Rs 1 million. Transactions exceeding Rs 200 million were documented.
Authorities in Algeria dismantled Qnet’s operations in Jijel province due to false promises like overseas trips. Arrests included 15 women in Annaba and three IRs in Mostaganem.
Indonesia classified Qnet as a fraudulent company. Four IRs were detained concerning the killing of a Go-Car driver, although Qnet denied any connection. In July, authorities rescued at least 19 teenagers from a shelter in Simo, Boyolali Regency, Central Java; these youths had been selling overpriced items such as Chakra for Rp 8 million. Comparable fraud incidents appeared in Sambi district. Police raided a residence in Gentan, Sukoharjo Regency, detaining 24 people including two leaders. In Jambi, law enforcement arrested 48 Qnet affiliates for causing disturbances. Numerous young individuals were recruited in Kartasura, Sukoharjo Regency.
An Indian court in Maharashtra ruled Qnet’s activities unlawful. The Delhi High Court rejected a petition seeking to dismiss an FIR that branded Qnet a scam. In March, authorities arrested 47 IRs and froze several bank accounts. The Enforcement Directorate confiscated assets valued over ₹150 crore linked to Qnet. Mumbai’s Economic Offences Wing planned to establish a refund mechanism for investors pending judicial decisions. Arrests occurred in Kerala, Thiruvananthapuram, Meerut, and Kochi; complaints were lodged in Hyderabad, Madhapur, and Mumbai.
The Karnataka High Court dismissed criminal charges against Qnet executive Naresh Balasubramaniam related to a cybercrime case. The Supreme Court of India stayed proceedings on 19 FIRs against Qnet and granted bail to Michael Ferreira and another official.
In Fardis, Iran, eight Qnet IRs were taken into custody on accusations of forgery and fraud.
France 24 conducted an investigation into Questnet’s operations.
Over 100 young individuals from Togo were reportedly held captive under the guise of Qnet activities in Côte d’Ivoire. Four IRs were arrested in Kumasi, Ghana, for recruiting 580 youths who each paid 3,100 Ghanaian Cedi as fees.
In Sri Lanka, three schemes linked to Qnet underwent investigations resulting in orders to halt their operations.
2018
Latvian television identified QN Europe as a pyramid scheme. The Ministry of Economy in Lebanon issued warnings to the public regarding Qnet. Following violent protests in Mali, authorities detained 10 Independent Representatives (IRs) accused of fraud; new recruits paid sums ranging from 400 to 6,000,000 CFA. Malian spiritual leader Chérif Ousmane Madani Haïdara denied any influence from Qnet’s medical products or association with the company.
Qnet operated across several Indonesian regions including Boyolali and Lamongan, where IRs reported losses connected to an investment firm using the Qnet brand. Legal proceedings against Qnet took place across multiple Indian states such as Chennai, Andhra Pradesh, Nagpur, Mumbai, Maharashtra, Karnataka, and Kanchipuram, involving arrests and fraud probes.
In Guinea, legal actions targeted Qnet offices in Labé and Dixinn. In Saudi Arabia, authorities arrested Qnet IRs in Mecca, Riyadh, and Najran amid intensified government enforcement. Arrests related to network marketing fraud occurred in San-Pédro, Ivory Coast. Complaints filed in Turkey resulted in Qnet being listed among nineteen pyramid schemes.
The Georgian branch of Qnet is reportedly managed by the family of parliamentarian Eka Beselia; thousands allegedly suffered financial losses there. The Fatwa Committee of Kurdistan Iraq declared participation in Qnet activities forbidden (haram). In Senegal, Qnet enlisted approximately 108,000 members who paid fees between $500 and $700; the official responsible for granting recognition was arrested. In Ghana, Qnet claimed employment of 10,000 individuals earning monthly incomes between $1,000 and $10,000. Arrests of IRs occurred in Gambia. In Kazakhstan, accusations surfaced against Qnet for making deceptive promises.
2019
Qnet encountered widespread legal challenges and arrests in numerous Indian cities such as Kukatpally, Cyberabad, Bangalore, Hyderabad, Goa, Rajasthan, Telangana, and Powai. The Cyberabad police probed allegations related to Ponzi schemes, leading to more than 70 detentions and multiple case filings. Several investors, including former technology sector employees, reportedly incurred heavy financial setbacks with investments reaching up to INR 25 lakh; some incidents were tragically connected to suicides. Investigations involved agencies like the Reserve Bank of India, Enforcement Directorate, and the Income Tax Department. Additionally, the Registrar of Companies in Karnataka initiated a winding-up petition against Vihaan Direct Selling Pvt Ltd, a Qnet franchise, while lookout notices were issued against its directors and promoters.
In Indonesia, law enforcement in Malang acted after reports emerged of individuals allegedly being confined by Qnet staff. The inquiry uncovered recruitment strategies that promised substantial earnings contingent upon initial deposits, requiring recruits to enlist others—typical of pyramid scheme methods. The director of PT Amoeba International, associated with Qnet, was apprehended for running a pyramid scheme. Officials emphasized that although product sales were used as a façade, the vast majority of participants faced financial losses.
A participant in Qnet from Kazakhstan's Karaganda region needed medical care following involvement with the company. Across Africa, authorities arrested around 100 individuals tied to Qnet in Conakry, Guinea; called for investigations in Sierra Leone; and detained company officials and representatives in Senegal. The National Agency of Financial Investigations in Chad publicly identified Qnet as a criminal organization responsible for extorting over 91 million CFA francs over a four-year period.
In West Africa, over 100 victims in Togo were misled into paying for alleged job training programs linked to Qnet, resulting in considerable indebtedness. In Ivory Coast, a fraudulent network connected to Qnet deceived 213 Malian nationals, with individual losses ranging between 300,000 and 2 million CFA francs. Approximately 50 foreign workers associated with Qnet were deported from Ghana due to improper residency documentation.
In Iran, officials in Alborz Province arrested 13 individuals engaged in recruiting for Qnet’s pyramid scheme activities; each had invested roughly 200 million Iranian rial and were subsequently incarcerated.
See also
- Qnet Open – women's tennis tournament sponsored by the company