On Augest 24th, 2012 the first Federal Lawsuit was filed by Patrick Miller LLC on Behalf of Johnny Belsome, Timothy Allen, Jody Hinckley, Donald Marcel, Keith Hinkley, Starr Achinson, Edward Thiel, Brett Hunter, and Tara Belsome, on behalf of themselves, and all others simarly situated…Source ZRLawsuit.com
Patrick H. Patrick graduated from the University of South Alabama and from Tulane Law School in 1984, where he served as articles editor for the Tulane Law Review. Prior to the formation of Patrick Miller LLC, Pat was a partner at one of the largest New Orleans law firms. Pat’s practice focuses on insurance and maritime issues. He also has a commercial litigation practice that includes intellectual property and antitrust cases. Pat is admitted to the United States Supreme Court, the United States Court of Appeals for the Fifth Circuit, the United States Court of Appeals for the Sixth Circuit, and all federal and state courts in the state of Louisiana. He has handled matters before agencies such as the United States Custom Service, the United States and Louisiana Departments of Labor, the United States Trademark Trial and Appeal Board, the Louisiana Insurance Commission, the Louisiana Commission on Public Ethics, all gaming regulatory agencies in Louisiana and Mississippi, and the Louisiana Department of Public Health. He is a registered lobbyist in Louisiana. Source Patrick Miller LLC
Pierre V. Miller II received a Bachelor of Business Administration in finance degree from the University of Notre Dame in 1983 and a juris doctorate with honors from Tulane Law School in 1986. Pierre served as a law clerk for the late Earl E. Veron, United States District Judge, Western District of Louisiana. Prior to founding Patrick Miller LLC, Pierre practiced at one of the largest New Orleans law firms, where he gained invaluable experience and extensive training.
He is an experienced litigator who has handled bankruptcy, commercial litigation, and business tort cases in areas including intellectual property infringement and misappropriation, construction, contract, insurance, collections, breach of fiduciary duty, professional malpractice, maritime, and trade regulation at all levels of the state and federal court systems. Pierre handles successions and estates and related succession litigation. He advises clients on oil and gas and other transactional matters, including business formations and the negotiation and drafting of contracts and other instruments. Pierre has been named to Louisiana’s lists of Super Lawyers for Business Litigation annually since 2008. Source Patrick Miller LLC
This week’s MLM News, covers some very powerful financial numbers for ViSalus, some FaceBook numbers for Evolv (and a surprise sent to me by Garrett & Sylvia McGrath), The DSA response to Wall Street short selling David Einhorn’s questions to Herbalife which caused the stock to drop 20%, Rastelli Direct’s new Ambassador’s programs, the FDA’s warning to Natures Pearl and a MLM Legal Alert on HYIPs (High Yield Investment Programs).
MLM Legal Alert on HYIPs – High Yield Investment Programs
The SEC (Securities and Exchange Commission) the federal regulatory agency which oversees investments and investment firms has issued the following warning on HYIPs. “Warning to All Investors About
Bogus “Prime Bank” and Other Banking-Related Investment Schemes”
“Lured by the promise of astronomical profits and the chance to be part of an exclusive, international investing program, investors are once again falling prey to bogus “prime bank” scams. These fraudulent schemes involve the purported issuance, trading, or use of so-called “prime” bank, “prime” European bank or “prime” world bank financial instruments, or other “high yield investment programs” (“HYIP”s).” (click here to read)
FINRA (Financial Industry Regulatory Authority has also issued a warning on HYIPs – :HYIPs—High Yield Investment Programs Are Hazardous to Your Investment Portfolio:
“High-yield investment programs (HYIPs) are unregistered investments created and touted by unlicensed individuals. Typically offered through slick (and sometimes not-so-slick) websites: (Click here to read)
The Direct Selling Association Responds to Questions about the Purchase of Products by Direct Salespeople
FOR IMMEDIATE RELEASE
WASHINGTON, D.C.—As the association representing more than 200 leading firms that manufacture and distribute goods and services sold directly to consumers, the Direct Selling Association (DSA) would like to set the record straight in response to questions raised about the direct selling business.
Unfortunately, even though the direct selling industry has definitively demonstrated the propriety of internal consumption to the regulatory community, stock prices of Herbalife and other publicly traded direct selling companies fell as a result of inquiries by hedge fund manager David Einhorn.
First and foremost, the direct selling business model is solid and strong. After falling slightly in the wake of the Great Recession, total industry sales grew nearly one percent in 2010 and are expected to show even stronger gains when 2011 numbers are announced in early June. Most publicly traded companies reported strong earnings and income in 2011.
Nearly 16 million Americans engaged in direct selling in 2011, some as full-time entrepreneurs seeking to build a business and some as part-time representatives hoping to earn a little extra money. Others sign up as representatives simply to purchase products or services for their own use at a discount and never sell to anyone else. Regardless of their income expectations, almost all direct sellers use the products themselves. This is what is known as “internal consumption.”
As the Federal Trade Commission (FTC) stated in a January 2004 Staff Advisory Opinion, internal consumption is not considered to indicate impropriety. Instead, “the critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.”
In short, what the FTC watches for—and what the DSA Code of Ethics is designed to protect against—are compensation systems that are funded primarily or exclusively by payments made for the right to recruit other participants. Compensation must primarily be based on the sale of products and services to the ultimate consumer—whether or not that consumer is also a seller of the products.
Unfortunately, direct sellers have been targeted in the past by short sellers who have deliberately injected inaccurate information or rumors into the marketplace with the goal of driving down stock prices for financial gain. In the end, it is the millions of hardworking American direct sellers who suffer the results of these attacks while the perpetrators walk away with millions in profit. DSA exists to protect and promote the direct selling industry by educating policymakers, the business community and the general public about the nature of the industry and how it works; and ensuring DSA member companies behave ethically in all aspects of their businesses through enforcement of the DSA Code of Ethics.
ViSalus™ Momentum Continues with Record-Breaking First Quarter Sales of $136.7 Million; a 585% Increase Year-Over-Year
LOS ANGELES, May 4, 2012 /PRNewswire/ — ViSalus, the number one challenge marketing company with its Body by Vi™ 90-Day Challenge, today announced first quarter 2012 sales of $136.7 million compared to $20.0 million for the same period last year. The Company had over 92,000 independent Promoters at the end of the first quarter versus over 16,000 for the same period last year.
“ViSalus’ members continue to validate that our 90-Day Challenge business model works with their fast-paced lifestyle and helps them achieve their health goals,” stated Ryan Blair, Co-Founder and CEO of ViSalus. “Our targeted new products and services support the growth and success of our Promoters, Leaders and customers as we build ViSalus into a leading lifestyle brand together.”
“ViSalus had a very strong start to the seasonally-important first quarter for weight management and healthy lifestyle companies,” stated Robert B. Goergen, Blyth’s Chairman of the Board and CEO. “Programs such as the Body by Vi 90-Day Challenge and Rising Star that were so effective leading into and throughout 2011, were bridged successfully into 2012. Moreover, Vi-Net Mobile products and services that support Promoters as they build their businesses launched during the first quarter with very positive reception from the Field.”
“In Q1 we put a lot of focus into our social and mobile strategy,” said Blake Mallen, Co-Founder and Chief Marketing Officer. “People love sharing their Challenge results, and the simpler we can make it for them to do so, the more people they can share them with.”
ViSalus recently entered the Direct Sales Industry Top 100 Global Companies List, ranked at 47. As a result, ViSalus was awarded the prestigious DSN Bravo Growth Award by top industry trade Direct Selling News for its nearly seven-fold sales increase in 2011, from 2010. The award was presented to ViSalus Founders Ryan Blair, Nick Sarnicola and Blake Mallen on April 16.
Launched originally in 2005 as ViSalus Sciences® and known today as ViSalus, the company remains resolute on its mission to improve “Life, Health, and Prosperity”—through network marketing, premium wellness products, and a global community culture. ViSalus champions a range of personal health goals through five unique Challenge Kits designed to support individual milestones toward healthier living. The company’s recent acquisition of the domain “challenge.com” emphasizes its continued aggressive expansion in the challenge marketing space.
Learn more about ViSalus at http://www.visalus.com and http://www.bodybyvi.com.
Public Relations Contact:
VP, Public Relations
Evolve Health has launched their new FaceBook Application!
In the first 30-days over 30,000 personal e84 stories were submitted, which created over 2.5 million impressions!
Rastelli Direct has just launched a couple of incredible programs for the Rastelli field.
Thank you for giving me the time to share with you earlier, it’s always a pleasure. I wanted to further explain some of the new things we have implemented at Rastelli Direct.
First, the Lifestyle/Car Bonus for Executive Partners:
$300 monthly Allowance for Executive Partners
$450/month for Senior Executive Partners
$600/month for Chief Executive Partners
Regional Ambassador Program:
Once Accepted as an Ambassador Partners are expected to:
• Conduct two live trainings per month- open to all team leaders in the region
• Host one phone training per month – open to all teams in region to foster a sense of community for all IBP’s in the area
• Attend Live Team Call – Every Monday Night
• Attend four live corporate trainings per year
• Read and Distribute all Corporate developed Marketing Materials
• Promote and Train on all Corporate developed programs
Benefits to Becoming and Ambassador:
• Free Admission to Rastelli Direct Conference Events
• Preferred Seating at All Rastelli Direct Events
• Ambassador Gear
• Ambassador Custom Skin for Replicated Site
• First Access to New Products, Programs and Marketing Materials
• Input on Product and Program Development
• Orphan Distribution in your region
• Exclusive Regional Ambassador Events
• Regional Event Support