What Can We Learn From The Ex Parte Application Filed By The FTC Against Vemma Nutrition Company

Certification & Declaration Of FTC Counsel Angeleque P. Linvelle In Support Of Ex Parte Application For TRO & Motion To Seal

Last week I wrote an article about the FTC filing a complaint against BK Boreyko for running a pyramid scheme called Vemma Nutritional. I titled the article “When Does Aggressive Sales Team Recruitment In MLM Become Enticement Into An Illegal Pyramid Scheme?”

After reading all the court documents, I have decided to continue to the series to see what can be learned from each court document filed by the attorneys for the FTC.

In this editorial, I want to look at the TRO Application filed by Angeleque P. Linville, the leading attorney for the FTC office out of Dallas. Ms. Linville is without a doubt a very competent legal counsel, from reviewing her background.

But, when it comes to her TRO application, I respectfully disagree with her on several points, and truly take offense o the fact that in several areas she calls “Vemma a pyramid”, rather than an “alleged pyramid.” This may seem trivial to some, except that when anyone has already made up their mind in an argument, then it becomes hard for them to separate facts from their perceived reality.

In the TRO Application, Ms. Linville also pointed that she believed Vemma to be a pyramid based on that fact Italy through the Italian equivalent of the Federal Trade Commission (Document provided by Truth in Advertising). My frustration stems from the fact, Italian law is not the same as American law. Just like Google is having issues in in Europe and a lawsuit has been filed based on their business practices, which are legal in the USA. Italy filed and found Vemma a pyramid based on their laws. Vemma later responded to the findings through Business From Home in an article titled (Vemma Responses To Italian Anti-Trust Ruling.)

BK_TomYet, Ms. Linville in her application for the TRO paints a picture of BK Boreyko, and Tom Alkazin as if they were like Joaquin “El Chapo” Guzman, seeming to claim that the Italian administrative action proves Boreyko & Alkazin would transfer funds offshore, destroy official records and possible hide additional assets so the FTC could not collect what Ms. Linville classifies as a “Large Monetary Judgement.

As I said above Ms. Angeleque Linville is without a doubt a competent legal counsel. It’s just that in this case her intentions of preserving the assets of Vemma by getting a TRO has been rendered by her own actions, and those of the receiver appointed to oversee the Vemma oppression during the TRO.

What founders and executives of companies who use what is commonly is known as the direct selling, Network Marketing, MLM Sales channel should realize from the Vemma TRO Application.

Without notice to you or your corporate team (especially your legal counsel) can request and receive an EX PARTE TRO on your corporate and personal assets, without having to show specific or immediate showing of the precise way in which the “alleged” violation of the will result in public harm. (United States v. Odessa Union Warehouse Corp. & FTC v. Warner Comm’ns)

The Court can appoint a Receiver under the TRO, who may NOT wait until a court hearing to start dismantling your business and dissipate your assets, as with the receiver placed in control of Vemma. The Vemma receiver used the company database to send an email to over 300,000 consumers and consumer/affiliates to notify them the FTC is alleging that Vemma is a pyramid. (This is all covered under the law. I am in no way alleging the Receiver is anything but honorable.)

Troy’s TruthAs founders and company executives, one of your main priorities should be to make sure you are creating and leading a culture who will not directly or indirectly violate any federal or state regulations. When you see issues, get on top of those issues ASAP.

Vemma answered the companied provided by the FTC, tweaked their business model and provided some of the most detailed income and product claim guidelines of any company in direct sales, including details for all social media platforms when making any income or product claim, as well as personal testimonials. And yet due to the continuation in part by the independent field force Vemma corporate, consumers and independent distributors in 50 countries as well as the network marketing community as a whole is affected.

 

You can review the Vemma Product & Income Claim Policy Here. 

Linville Declaration FTC vs Vemma TRO

 

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies.

His clients include start-up companies, multi-faceted public companies, billion dollar private companies, international marketing organizations and well-respected field organizations.

Dooly is a highly sought after mentor, speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network, and Christian Power Radio,

Dooly is a founding member and serves on the Board of Directors of the Association of Network Marketing Professionals, working with both companies and distributors around the world in network marketing.

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