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FTC RIPPED OFF BY INTERNAL FRAUD!
Federal Prosecutors said, “Harold Hughes, a supply clerk for the Federal Trade Commission. In April 2009, just two months after he went to work, Hughes started using FTC money to make illegal purchases.” When the illegal theft was discovered, Hughes had stolen FTC funds valued at $218,636.Hughes dumb trick, prosecutors said, “was to order items and sell them for cash at a discount.” Editors note: This guy will be locked up for a long time, especially considering they will probably get him for tax evasion too!
NUSKIN WAREHOUSE RIPPED OFF!
Editor's Opinion Note: NuSkin is good to its distributors and we never hear about terminations. Here are some video notes about their warehouse being hit by con artists.
FDA - FTC HITS - FROM DISTRIBUTOR'S WEBSITES
ILLEGAL CLAIMS MEDICINE & MONEY
June 2009
Brief History Sample of few survivors
(not many -most companies hit die)
1. NEWAYS - under old regime (Tom Mower) a Distributor put illegal medical claims on website = $2.5 million fine negotiated out of disclosure statement below (New Vision). Mower himself was wild about claims from the stage and conference calls. New regime that bought Neways much smarter.
2. One that deserved an FDA hit: FORMOR hyping their colloidal silver. They had little green men and women running around from ingesting too much of the "crp". You could walk into an MLM Mastermind and spot Formor Distributors right away - green blue skin... Colloidal silver my "##$$" also played into colloidal silver played into the Sea Silver hit below a little.
3. NuSkin hit by FTC different times - it was almost a joke the FDA - FDA would whack them for $2.5 million or so. I think it was close to new budget time and the bureacrats wanted to show income to the government so they could ask for a bigger budget.
4. Neways Tom Mower and their weight loss rub on product or was that the first company? Then they changed the name to Neways. This was cheap about $1.2 million.
5. NEW VISION - Most terrible to good company.. Abuse over kill stupid! Distributor = Gods recipe cureall on Distributor website FDA - FTC hit for $1 million. KILLER was that New Vision had to have new signups sign a disclosure statement about the "FTC hit" for 2 years. This killed their growth at $500 million and resulted in a decline. The Founder Ben Boreyko (good guy) was killed by this I swear (another reason to hate FDA - FTC he was good guy). His son BK Boreyko has built a new monster with Vemma and they are very careful.
6. SEA SILVER - The worst company ever for making nutritional medical claims. Worse yet some were on radio infomercials sold to.......Sea Silver to Distributors to run on local stations. You can read about them put Sea Silver in the google search box above. This was a guns drawn, lock the doors, federal marshall, FTC, and FDA hit. Of course the owner Bela Burkes was making illegal claims the day he was born I swear.
5. more coming as I line them up... a lot of new companies just went up in a puff of smoke......
WATCHDOG SUMMARY: Government officials love surfing the web and getting paid for it. On medical claims you have the FDA investigators working Away. If they figure they can extort enough money the call the FTC (the enforcers) and kill the company. The FTC surfs look for earnings claims.
ARE MLM COMPANIES BEING SCAMMED BY MEDICAL PROFESSIONALS?
or ARE THEY TOO DUMB TO HIRE A GOOD FDA ATTORNEY?
June 2006 - Beneficial therapeutic treatment results from medical and scientific studies that were done at universities and medical centers by the world’s most highly credentialed doctors keep showing up in the MLM world. These studies that are sometimes commissioned (paid for) by nutritional companies are worthless. If a study indicates that there is a therapeutic effect, it must be put into the FDA drug testing program in order to be classified as a drug. That takes 2–7 years and millions of dollars so you can compete with big pharmaceutical companies and their billions in advertising.
Research revealing beneficial therapeutic treatment effects of a nutritional product may not legally be distributed by a nutritional company to a nutritional purchaser as informational literature. Research about the therapeutic treatment effects of a dietary supplement, when it is given by a company to customers, as part of a scheme to sell the supplements, legally transforms the nutritional product into an unapproved new drug in the eyes of the FDA.
The FDA bans (will not approve) therapeutic treatment claims for dietary supplements. In addition, they only approve very few (see below) nutrient-disease risk reduction claims. Consequently, you can not put in print (or on the Internet) therapeutic claims for a nutritional product as part of the promotion for that product without running afoul of the FDA’s ban on such claims for supplements. The FDA would deem a product promoted in that way as an unapproved new drug.
Nutrient-disease risk reduction studies and claims must be approved by the FDA before they can be used by a company. Generally, the model is for a nutritional that produces a nutrient disease risk reduction to be made available for producers of that product to use (see Special Note below). Examples of this type of risk reduction claims that have been approved through the FDA are:
1. Selenium – Claim 1:
"Selenium may reduce the risk of certain cancers. Some scientific evidence suggests that consumption of selenium may reduce the risk of certain forms of cancer. However, FDA has determined that this evidence is limited and not conclusive."
Selenium - Claim 2:
"Selenium may produce anticarcinogenic effects in the body. Some scientific evidence suggests that consumption of selenium may produce anticarcinogenic effects in the body. However, FDA has determined that this evidence is limited and not conclusive."
SPECIAL NOTE: The research submitted to the FDA that resulted in this claim being allowed was over six (6) feet tall with positive university and medical studies that selenium does reduce the risk of cancer. This battle, fought by Dr. Wallach (from Youngevity) with the FDA took over three years and cost over $500,000. Every company can use this claim.
2. Claim Omega 3 – “Supportive, but not conclusive research shows that consumption of EPA and DHA omega-3 fatty acids may reduce the risk of coronary heart disease. One serving of [name of food] provides [x] grams of EPA and DHA omega-3 fatty acids. [See nutrition information for total fat, saturated fat and cholesterol content.]
SPECIAL NOTE: The research submitted to the FDA that resulted in this claim being allowed was over ten (10) feet tall with positive university and medical studies that Omega absolutely does reduce the risk of heart attack. This battle done by Dr. Wallach (from Youngevity) and ??????????????? with the FDA, took over three years, and cost over $500,000.
IS THE WATCHDOG PLAYING SHERIFF?
1. Yes – why should innocent distributors stick around an MLM company that is dumb enough to put illegal product claims on their company website? Get out before the hammer drops! Our reporters are helping you, not hurting you.
2. The Distributor Rights Association is still fighting to get more companies and distributors to support the H.R. 2117 that would allow valid scientific evidence to be used in the promotion and selling of nutritional products. The FDA works for big pharmacy companies, we have to fix this so truthful information can save lives.
FTC, FEDERAL TRADE COMMISSION, FDA, FEDERAL FOOD AND DRUG ESTIMATION
FTC THEFT
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