MLM WatchDog Indictes Stan Van Etten International Heritage, IHI

OWNER OF SUCCESS MAGAZINE INDICTED!

4 Nov 2002 Stan Van Etten, Former CEO of International Heritage (IHI) has been indicted by a Federal Grand Jury on charges of conspiracy, fraud and money laundering. Almost four years ago in 1997 IHI was hit by the SEC and the State of Carolina for illegal pyramiding. After the 1998 bandrupcty shutdown of IHI Van Etten bought Success magazine out of bankruptcy and published 2 editions.

The Charges brought by a Federal Grand Jury, against the people below, centered primarily about charges they "cooked the International Heritage (IHI) books" and lied to people when selling them IHI bonds at a reported up to $100,000 apiece. The bonds were primarily sold to distributors and relatives. Also it appears there are charges of money laundering associated with hiding money offshore.

INDICTMENTS

NOTE THAT DISTRIBUTORS WERE INDICTED

Distributor Founder: Claude William Savage, 65, of Charlotte, NC. He and Smith below were top distributors in "Gold Unlimited" a gold coin pyramid scheme taken down by Feds (see watchdog Archive article: Fugitives from justice David and Martha Crowe, Gold Unlimited Owners, finally being arrested).

Distributor Founder: Larry G. Smith, 57, of ????? has been in hiding since the SEC wanted him for pyramid scheme charges. Smith was arrested last week at a northern Kentucky airport by Federal Officers and detained as being a "Flight Risk." Rumors to the MLM WatchDog are that he has been acting as a scam/quick money consultant to new pyramids. Maybe this will help clean up some of the ##$% confusing people in our fine MLM industry!

Former IHI CEO Stan Van Etten: After the 1997 SEC hit on IHI, Van Etten bought his way out of the SEC action by paying $150,000 and forfeiting a $3.5 million bond while not admitting guilt. He then bought "Success" magazine put out two issues. He also bought a hockey team and other property. He plead poverty during the SEC trial, the WatchDog surmises that is where some the the money laundering (hiding $ offshore came from) charges came from.

Certified Public Accountant: Davin Brown, 48, who was the outside accountant for IHI. He and Andersen Accounting are now headlingers!

Former COO IHI: John Brothers, 36, now living in Plano, Texas.

HERE IS JAIL TIME THEY CAN GET

NOTE: DISTRIBUTORS GET THE SAME TIME AS PRINCIPALS

Each defendant is charged with:

1 count of conspiracy to commit fraud, carrying a maximum five years' imprisonment

4 four counts of securities fraud, with maximum five-year and 10-year sentences

6 counts of wire fraud, each carrying a maximum five-year sentence

48 counts for conspiracy to commit money laundering - maximum 20-year sentence

Editors Note: Pick Your pyramid scheme carefully! You can end up like these defendants. Also note that the Feds had the IHI books in their hands after the shut down. Once the Bond fraud charges floated up, the Feds said, "AHAA we have them!" Rod Cook.