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What you may find most
shocking in regards to the billions in fraud culled
by the Amway & Quixtar
motivational organizations is the fact that the
Federal Trade Commission
has been made aware of it during both
the Clinton and Bush administrations.
Myself, consumer advocates and Bruce
Craig, the former US
Assistant Attorney General of Wisconsin (who
prosecuted Amway)
have petitioned the
FTC for a formal review. Here is the letter to
the FTC submitted with my own testimonial during the
previous administration to then Chairman
Robert Pitofsky:
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Click On PDF Icon To Download The Letter To The
FTC Chairman Exposing The Amway Fraud!
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In addition, I contacted
the PA Attorney General’s
Office as both a
former Federal auditor and high level whistle blower.
I offered to train their staff and gain them immediate
access to the organization at my own time and expense.
One of the most influential Amway
Kingpin distributors runs his operation 10 miles
from the PA Attorney General’s
offices. The Pa Attorney
General’s Office refused
to take any action because the FBI
was involved. Even though it appears these offices did
not communicate with one another, jurisdictional
politics seemed more important than protecting the citizens
of the commonwealth of PA.
Senator Rick Santorum (R.–PA)
came and spoke to thousands of cheering distributors
at Hershey arena just
prior to being elected. His support staff was literally
jumping up and down back stage at the rousing applause
he drew as a conservative speaker. I would later send
a FedEx box of documentation to Rick
Santorum advising that his credibility might
have been used to unknowingly defraud his constituents.
Included in the box was an 8*10 photo (see
section "GOP For Sale" on this site)
of he and his wife and my wife and I together.
I never heard
from Mr. Santorum
or his staff nor would they return calls. I had voted
for him twice and could not understand this. Subsequent
research into his donation records revealed countless
donations from the perpetrators of this scheme,
as detailed in Merchants
of Deception. It is strange that his staff would
lose a four pound FedEx box of documentation yet somehow
be able to open every letter and endorse and cash donation
after donation of funds that may have come directly
from this fraud. Perhaps donations and critical correspondence
from constituents go to different addresses?
Full, printed copies of Merchants
of Deception, which is filled with supporting
documentation, were sent to the following critical staff
members at the FTC.
They were sent with individual letters by a consumer
advocate (by registered mail) to each of the following:
Attorney James Davis •
Attorney David Fix • Mr. Frank Gorman • Investigator
Robert Ireland
Mr. Gary Ivens • Attorney Ira Kaye • Attorney
James Kohm • Attorney Elaine Kolish
Attorney K. Michelle Roden • Attorney Mona Spivack
• Attorney Steven Toporoff
Sr. Economist Peter Vandernat • Attorney Brad Winter
• Attorney Robert Frisby
Not a single
one of these individuals
responded with as much as a form letter, even after
receiving documentation that appears to expose
perhaps the largest consumer fraud in history.
I called Attorney
James Kohm at the FTC
at 1:25 PM on March 29, 2004. He was very polite and
advised it is "in
the hopper" but they “do not have the resources
to go after it now but maybe in the future...”
This clearly means absolutely
nothing is happening.
Again, I urge you to draw your own conclusion once you
have read Merchants
of Deception in its entirety,
as the FTC
appears too busy to do so.
The New York Attorney
General’s Office,
headed by Elliot Spitzer,
has been a real pit bull in terms of consumer rights.
They are, from a consumer protection perspective, perhaps
the most tenacious and effective Attorney General’s
Office in the nation. I made contact with the New
York Attorney General’s Office
by the way of a gentleman through Bureau
Chief Thomas G. Conway.
Mr. Conway works at both his offices in Albany New York
and shuttles to the New York City offices.
I explained the fraud in detail in a letter and advised
that I had multiple victims in New York who were willing
to give their testimonials. In
a telephone conversation on January 13, 2004, I told
him I could arrange to deliver specific documentation
of the fraud to him. To
my shock, he advised they were “looking
at it internally”
and asked that I specifically not
send him the documentation at this time. He knew I was
both a high level whistleblower and a former Federal
Auditor and had victims in New York who wanted to tell
their stories. Has the New
York Attorney General’s Office
been neutered?
If you ran through the streets of Texas
ten years ago saying
Enron is a fraud perhaps
you would have been thought a fool. If you ran through
Mississippi
seven years ago and said WorldCom
is a fraud you would
have been laughed at. If you went to Exeter,
New Hampshire five years
ago and said Tyco
was a scam you would have been run from town. If you
had gone to Coudersport,
PA four years ago and
voiced the opinion that Adelphia
had billions in financial irregularities, you would
not have been warmly received. Billion
dollar frauds were perpetrated within these organizations
and continued long past when they should have because
they were so large people thought it not possible. There
was a sense of credibility by magnitude.
Amway
has used this same tactic globally when questioned or
out right caught with their pants down with claims of
fraud. This response just came from Amway
in South Africa when they
were accused of the exact, systematic fraud delineated
in Merchants
of Deception:
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Click On PDF Icon To Download The Amway Response
To Allegations Of Fraud!
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This typifies the “we
are big therefore we are legitimate” smokescreen
that has worked to date for them. What Amway
does not
let out to the public is that
they are fully aware that when audited, the top 1% of
distributors had a net income of -$900.
Can you imagine if McDonalds
used promoters to sell franchises with tremendous income
representations if they knew that “the
top 1% of franchisees had a net income of -$900”?
They would be shut down
tomorrow. The FTC
wouldn’t permit this for another day.
“The Truth will set you free….”
- Amway Double
Diamond Fred Harteis
This will not take some huge allocation of resources
to document the truth. If the FBI
and/or FTC want to find
the truth in short order, they could within seven days.
All they have to
do is subpoena the tax returns of the reported income
of all of the Diamonds on the IBOAI and they will find
out what Amway has known for decades… almost none
of their lifestyle or income utilized to recruit the
masses comes from Amway or Quixtar.
The tax returns
will actually show that without the secretive tool incomes,
most would probably lose money on their businesses even
though they are touted as being at the pinnacle of success.
They are not hard to find,
they are all listed at
If they randomly select 1,000 who were recruited into
the business twelve months ago, they
will be hard pressed to find more than a handful with
a net income over a dollar.
What they will find is almost 1,000 people who have
dumped millions into Amway
products, books, tapes and seminars.
Better yet, just get the tax returns of the Diamonds
on the “Legal and Ethics” committee
as they must certainly
be the most representative of solid business ethics.
Give them the benefit of a doubt. They are all listed
by name at
Despite the overwhelming
failure of the above listed
Federal and State agencies (to date) to protect the
consumer, there are two organizations that are doing
their jobs well. They should be commended for doing
so. The FBI
has received, for years, countless
listings of recruitment meetings and seminars. They
have a large cache of tapes, videos and paper documentation
detailing the fraud. Both the FBI
and Criminal Investigation
Division of the IRS have
interviewed and taken documentation from multiple former
distributors and former employees of more than one Amway
Diamond. Although, they
appropriately, could tell me no more, both my contact
agent at the FBI
and U.S. Assistant
Attorney Wayne Samuelson
recently confirmed an ongoing investigation.
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