NATURAL HEALTH TRENDS CORP SCREWED, BLUED & TATOOED BY bHIP GLOBAL!
21 Dec 2007 Editors Note: This opinion by a top WatchDog Reporter has been delayed because I have been researching the information. It is my opinion that 95% of what is reported below about individuals and companies NHTC and bHIP is true! Calls to NHTC by your editor not returned. Your Editor Rod Cook
Exact copy Top WatchDog REPORTER INFORMATION SENT TO CEO OF NHTC Nov 19th 2007.
Mr. Chris Sharng, CEO
Natural Health Trends Corp.
Mr. Sharng:
As a stockholder and someone very familiar with Network Marketing, I am very upset with the recent decline in the financials of NHTC Quarter after Quarter. I was very upset to learn in August that NHTC had allowed Terry LaCore to “assume the Master Distributors Position” in March and had PAID HIM OVER $400,000 in just a few months. It is now very clear to everyone he was really spending the last six to eight months putting together BHIP Global and will be building it at the expense of NHT-Global.
My personal affiliation with Lexxus and first owning the stock goes back to 2001. I joined this company as a distributor in April 2001 because John Loghry was the Master Distributor. When Terry LaCore made a decision in mid-2001 to “terminate and get rid” of John Loghry and replace him with his buddy Steve Francisco, myself and hundreds of others left the company. We learned that Terry LaCore had done this once before, when he became President of Kaire in 1999 he did the same thing, brought Steve Francisco and his friends like Dan Cato in and put them on top of all the top leaders that had built Kaire. I personally investigated this ‘rumor’ at the time by calling the former top 3 people in Kaire and they all confirmed that this what Terry LaCore had done once he took over Kaire. As soon as this became known, the top leaders left and Kaire had a 60% (SIXTY PERCENT) REVENUE DECLINE year over year and was probably headed out of business until the opportunity to get involved with Lexxus International which was started in Florida a few months earlier.
John Loghry, known as “Big John” in the Industry was very instrumental in putting that company together and was the Master Distributor. I believe it was John who secured the “Viacreme” product and was responsible for attracting most of the leaders that brought in about 25,000 new distributors in that first six months…..I know revenue was over 20 million for the first 6 months in 2001……probably some kind of record for six months for a start up…..the flagship product, Viacreme was an immediate sensation and really why the whole thing took off so fast. But then in mid-year, when the word got around that Terry had replaced John Loghry with Francisco and all the money was being sucked out at the top (60% Cap rule) by manipulating the marketing plan…..everyone left….I mean all the top leaders that had built the company in the first 6-8 months including one of the top people who was doing their National Conference calls, Jeannie Basso. The Florida data processing company that was running the MLM software and paying out the commissions was a person by the name of Wendy Lewis. Wendy had an MLM background and knew many of the Lexxus leaders. Terry LaCore terminated her contract in mid-2001 and gave the control of the software and the commissions to his sister in Branson, MO. Wendy told many of the leaders at the time, including myself, that Terry LaCore and Lisa Grossman had been manipulating the software on a daily basis to cause the payouts to the top positions held by Lisa and others to max out the 60% so the downline distributors would receive reduced commissions. As this “got around” all the leaders building Lexxus stopped and left the company. In fact, we believe that Mark, Lisa, Terry, Steve Francisco and others stole about 6 million dollars in commissions that should have otherwise been paid out in 2001. Growth in Lexxus in the third and fourth Quarters came to a halt and the company was dead in the water in the USA and Canada by January as word got around about the Scam going on with Lexxus. We understand they lost the “Exclusive” they had with Dr. Thompson with the Viacreme product because of this huge decrease in business.
Almost immediately in 2002 Mark and Terry came out with this Skindulgence Product and the LaVie wine drink product…..neither were as exciting as the Viacreme product, but now it comes to light they had “Financial Interests” in Aloe Mfg. the company that produced these two products. The rumor going on in late 2001-2002 among the leaders that had originally built the 25,000 distributors was that Steve Francisco was kicking back money to Terry and Mark for putting him into the Master Distributor’s position. Therefore it came as no surprise to the hundreds of leaders who left in 2001,when in November 2005, it was announced that millions of dollars had been paid to Mark and Terry under the table, creating all your SEC problems. Your Company stock went down 80% as a result of this “scandal”, all of the stockholder class action lawsuits happened because of it, and then YOU and the Corporation had the audacity or lack of foresight to bring him and Mark back into the Company earlier this year? They caused all you problems in the first place!!
You allowed him to take over the “Dead Position” occupied by Terry’s co-conspirator Steve Francisco and then proceed to pay him over $400,000 in a few short months…..the total is probably up to nearly $600,000 by the time he left…..and you should now know he has really spent the last 6 to 8 months in getting BHIP Global structured…..a minimum of 6 months to build the product, infrastructure, marketing plan and leadership to launch……you guys have paid him in excess of a half million while he was putting together BHIP….shame on you and your Board of Directors. Copied from your last Quarterly SEC Report:
"On March 21, 2007, the Company entered into a temporary week-to-week agreement with Mr. LaCore to administer certain distributor positions at the top of the Company’s distribution network “tree” and commissions accrued and payable to those positions for periods beginning on and after February 12, 2007. These are the same positions held by the distributor that indirectly made the payments to Messrs. Woodburn and LaCore that were discovered by the Audit Committee’s independent investigator on November 10, 2005 (as previously disclosed). Under the temporary agreement, Mr. LaCore is expected to provide certain master distributor services and provide leadership and support to the Company’s other distributors, all of whom are “down-lines” of the positions being temporarily administered by Mr. LaCore. In return, the Company pays the commissions generated by these positions under the Company’s distributor compensation plan to Mr. LaCore, who in turn must pay some or all of the commissions to other distributors’ downline. The total amount of gross commissions that the Company will pay to Mr. LaCore for administration of these positions under this temporary arrangement is uncertain, as the amount of commissions varies from week to week. The amount of gross commissions paid to Mr. LaCore for temporary administration of these positions for the period beginning Feb. 12, 2007 and ending June 30, 2007 was approximately $432,000. The Company is currently considering various longer term arrangements with Mr. LaCore"
At the same time you are out raising an additional 3 million dollars and having a 50% decline in top line revenue, having lost about half your active reps and bleeding red ink, you give Terry over a half million dollars cash generated from a dead position that would have otherwise been not paid out…..and since March while you have been paying him he was putting together BHIP Global.
I know as a fact that as of June, July, August he was talking to people and putting together the company that has just been pre-launched as BHIP Global. I know for a fact he is “attracting and lining up people” that were previously engaged as Distributors in NHT-Global, regardless of what documents you have and his prohibition to do so…….and he intends to continue to build his company by attracting those that once were involved with NHT-Global as they expand around the World. Conversations have already taken place, plans have already been made. Corporate people like Curtiss Broome and Paul Rogers are already looking around, they see the handwriting on the wall. Don’t worry they probably won’t join Terry because they know what a crook he is…..but when they leave it will send a big message to the remaining distributors.
Mr. Shrang, I know you are not a “network marketer” and probably you do not know how these things work. Terry LaCore in starting BHIP-Global is using all the credibility of what was built by Lexxus and NHTC as his doing and in all their conference calls, emails and one on one hype would lead EVERYONE to believe the worldwide infrastructure that “was built at a cost of 30 million dollars over the past 7 years” will be the infrastructure supporting BHIP Global. He claims and other claim that Terry made 36 million dollars from Lexxus/NHT-Global. Below are two Audio links to BHIP Conference calls:
Their whole story about what Terry did from starting Lexxus out of his garage with $40K, spending his own money to open up all the countries around the world, making 36 million dollars personally is all a LIE……he says he personally made 32 people millionaires in Lexxus NHTC. If Terry indeed took 36 million out of the company, he was probably skimming off more than you realized. It WAS $6.2 million in 2001 that was manipulated away from Distributors that year, a lot of it done by manipulating the “legs” on a daily basis to cause the “Cap” to only pay out to the top…….the reason Lexxus/NHTC could never re-launch in the US or Canada to any great degree after 2002 despite the many attempts was that what happened in 2001 became “common knowledge” among network marketing professionals and leaders……once people running a company are branded crooks that will manipulate the compensation plan for personal gain, no one that has legitimate reputations in the Industry will have anything to do with them……yes, you will get some people but they are the crooks of the MLM world, like Jason Karamantis, Dan Cato, etc.
You and your Board of Directors should be taking pro-active measures to shut down Terry who has done more to destroy NHTC than anyone……instead of providing him with “marketing services” for some small fees……he did not have to take the time or spend the capital to build the infrastructure that you and NHTC are supplying him to build his company with at your expense. Again Shame on You. Please share my email with the members of your Board of Directors. I am willing to talk to you or any of them, I can give you names of others who will also talk to them. Hundreds of people “share” the same knowledge I have.
Wayne W. Tidderington Jr.
NEXT SWING IN A FIGHT BETWEEN NHTC & bHIP GLOBAL ?
Natural Health Trends Corp. Clarifies Relationship With bHIP Global, Inc.
Monday November 5, 8:00 am ET
EDITED: Press Release Dallas TX -- Natural Health Trends Corp. (Nasdaq GM: BHIP = NHTC's stock symbol), an MLM company , announced today former executive officer and director of the company NHTC, Terry LaCore, formed a new direct selling business LaCore named bHIP Global, Inc. involving an energy water product.
NHTC discussed with Mr. LaCore the use of the name "BHIP" in his new venture. In anticipation of reaching an agreement with Mr. LaCore. NHTC's subsidiary, MarketVision Communications, Inc. ("MarketVision"), is providing information services to bHIP Global, Inc. under a Service Bureau and Hosting Agreement. NHTC does not consider this material.
NHTC hasn't reached any further agreement with Mr. LaCore and bHIP Global, Inc. Other than the Service Agreement, which NHTC may terminate on 90 days' notice, the Company has no involvement in or association with bHIP Global, Inc. or its business.
NHTC says, "We are concerned that certain statements we have seen and heard regarding bHIP Global on the Internet, as well as use of our BHIP name, are causing confusion that we are affiliated with, sponsoring or connected with bHIP Global, Inc. We want to clarify that, except for the Services Agreement, we have no relationship with, and we are not providing offices, warehouses, or other infrastructure to, bHIP Global, Inc.," said Chris Sharng, President of NHTC. "Discussion with Mr. LaCore is ongoing, and we are hopeful that all concerns can be resolved in a satisfactory manner."
NHTC views unauthorized use of the name "BHIP" or its derivatives by bHIP Global, Inc. as a trade name, trademark or service mark to be a violation of rights owned by the NHTC, for which the Company may seek an appropriate remedy if continuing talks with bHIP Global, Inc. don't result in a satisfactory resolution.
NHTC also announced that it has terminated a Temporary Services Agreement under which Mr. LaCore had provided certain master distributor services to the Company.
Edited for brevity and clarity - full press release click below
OUTRIGHT WAR? OR FINANCIAL INTRIGUE ?
New BHIP Energy Drink - AND NHTC
22 Oct 2007 BACKGROUND - Mark Woodburn & Terry LaCore, founders of the old Lexxus International, have started a new energy drink MLM company named BHIP. Interestingly, that is also the stock symbol for National Health Trends Corporation (NHTC – NATURAL HEALTH TRENDS CORPORATION the old Lexxus International = viacreme) that they had a settlement agreement with after being chased out of the company over a dispute with the board of directors over the past book keeping. Questions:
1. Why was word of the new BHIP (BE HIP) MLM released before Woodburn and LaCore cashed out on their 438,455 shares of stock (around a million dollars worth) in NHTC stock? See SEC 8K Report 30-Aug-2007 below. Makes you curious doesn’t it?
EXTRACT FROM SEC 8K 30-Aug-2007
NATURAL HEALTH TRENDS CORP (NHTC), FORMERLY LEXXUS INTERNATIONAL
On August 30, 2007, National Health Trends (NHTC commonly known as the old Lexxus - Viacreme) accepted the surrender of 642,611 shares of the company's common stock by Mark Woodburn and Terry LaCore in payment of the principal and accrued interest on a promissory note to NHTC – NHTC for the principal amount of $2,500,000. The promissory note was given to NHTC – NATURAL HEALTH TRENDS CORPORATION on October 31, 2006, in connection with a settlement agreement between NHTC and Mark Woodburn & Terry LaCore. After the company's acceptance of the surrendered shares, Mark Woodburn & Terry LaCore continued to own 438,455 of NHTC shares. By the settlement above, the 438,455 shares can’t be sold, transferred or conveyed before October 31, 2007. Prior to October 31, 2007, the remaining shares will remain pledged to the company to secure the obligations of Woodburn and LaCore under the agreement made on October 31, 2006.
2. Do Woodburn and LaCore know something about NHT Global that isn’t apparent in the SEC 10Q dated June 30th 2007 below? The 10Q shows NHTC sales dropping (but still an appreciable amount).
SEC 10Q JUNE 30, 2007
NHTC – NATURAL HEALTH TRENDS CORPORATION (NHTC) SALES DROPPING
3. Then bang! Another SEC Form 8-K 22-Oct-2007 A repeat of the question above with NHTC dumping stock for cash! NHTC hurting for money? Or building up a war chest to sue the new BHIP (Be Hip) company and Woodburn & LaCore?
SEC 8K 22-OCT-2007 NATURAL HEALTH TRENDS CORP
Rod Cook Editors Note: STAY TUNED!
