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Documentation
reveals that both the Amway
Corporation senior management and ownership were aware
that their distributor force was being defrauded and
abused in 1981-1982. Recorded
and hard copy paper documents now reveal that billionaire
founder Rich DeVos
was personally
aware of the method, manner
and scope of the fraud being perpetrated upon trusting
distributors.
Here is what Rich
DeVos acknowledged 20 years ago, in his own words,
regarding distributors being “threatened,
pressured, intimidated, coerced and scared”...
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Click On MP3 Icon To Hear Rich DeVos Confess
To The Abuses Of His Top Amway Leaders!
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The Amway Corporation
would, for the next two decades, financially
reward and shower with incentives the very Kingpin distributors
that were committing the abuses named above.
The Amway Corporation’s
level of involvement in the scheme extends far
beyond rewarding the Kingpin level distributors who
were bringing in millions
of distributors through deception. The victims needed
to be silenced for the scheme to continue culling billions
from an unknowing public.
Amway, Rich DeVos,
Kingpin distributors Dexter Yager, Bill Britt
and many others were named in countless lawsuit after
lawsuit in many states. See the “Lawsuits”
section of the “Links”
page at the end of this site. Each lawsuit revealed
the victims were defrauded in a nearly identical, systematic
fashion. Amway
hired attorneys from one of the largest firms in the
nation to work against plaintiff-victims. When caught
red handed, Amway
and/or its Kingpin distributors would deny the charges
or claim it “was
an isolated incident”
despite having
full knowledge of an ongoing, systematic fraud.
Through multiple websites, the lawsuits became public
and it began to impair North American operations. Did
Amway
step in and take action against the distributors that
were defrauding the public? No,
they took two significant steps to silence the victims
and “morph” their operation into something
the public would not recognize as Amway.
Both efforts have been a tremendous success to date,
if you consider further perpetuating fraud a “tremendous
success”.
First, the Amway
corporation worked with the very distributors who were
perpetuating the fraud to craft the “Business
Support Materials Arbitration Agreement”, referred
to as the BSMAA. This
is not even a standard arbitration agreement but one
that precludes the
victims from speaking publicly about what was done to
them. It also precludes
another class action lawsuit like the Hanrahan
lawsuit from being filed
so former distributors that have been wiped out financially
will have to face Amway’s
crack legal team alone.
The BSMAA was written with a gag order embedded
in it. Once you are forced into binding arbitration,
you are no longer able to discuss the basis of your
complaint with other litigants, or anyone else for that
matter. Jody Victor,
the mega-millionaire distributor who, by his own admission,
helped craft the BSMAA, worked with Amway
management and/or ownership to actually
have it made part of the Amway application. Incredibly
and unknowingly, one of the first
acts a new Amway distributor
commits is signing
a document taking away their right to a trial by jury
if and when they ever realize that they have been deceived.
An attorney involved in current litigation with Amway
advised me that it seemed to have been carefully crafted
to also assure that there could never
be a class-action suit brought against Amway
or its Kingpin distributors. That was a smart move,
as a single, destitute former distributor seemed to
stand no chance against an over-funded, legally advantaged
Goliath.
I reviewed tapes of a leader’s only meeting where
Kingpin level Crown Distributor
Jody Victor described the BSMAA and its purpose
as follows:
"This is an important
document. One that you will all come to know… a
BSMAA I call it. But it is an idea to be able to say
look, here it is you guys…risk reduction of your
business. In every kit that will be signed by every
distributor..."*
"The BSMAA is of course
the Business Support Material...
ahhh...Arbitration Agreement that we are drafting and
writing...You and I, distributors, to place in the kit...and
the ADA Board and the ADA Board has instructed the Company,
the Company will then collect them...as well as the
other things that are going to be...words that will
be on your actually, it’s an actual document...but
actually words...new words on your SA-88 application
and your intent to continue so that nobody can come
in and mess up this business. It virtually shuts out
the ability of a Hanrahan lawsuit but even more importantly
than that, it means that nobody is going to mess with
your kids. Their future, their business and that all
risk reduction is totally stamped out, in other words,
our goal was to do that...Well, only if we can remain
humble, only if we remain filled with integrity..."**
* Emerald Directs II GDL 97-20 Internet Services
** Ibid.
There have been several versions of the arbitration
agreement and one judge
not only threw it out, he described it as “unconscionable”.
See his ruling :
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Click On PDF Icon To Download The Judge's Ruling
On The BSMAA As Unenforceable!
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One key area of promoting Amway
versus other multi-level marketing businesses was the
emphasis our leaders placed on the Amway
Distributors Association Board (ADA.)
This group was made up of many Diamond
(and above that level) distributors that were
voted into office to represent the distributor force
on any policy changes. We were told that we were the
only company that had distributor representation on
a policy board of this nature and that this protected
our interests and futures. I was dumbfounded
to uncover and document that these
mega-wealthy distributors seemed to derive nearly all
of their income from the secretive, if not illegal,
tool business and had just crafted a document that we
were all forced to sign. The “risk reduction”
BSMAA document limited distributors’ legal options
for recourse if and when they realized they had been
robbed and deceived. The
very people who alleged to represent our best interests
just collaborated with Amway
and reduced their mutual
risk, in the event distributors discovered the deception.
Amway went
on what seems to be a corporate mission, which focused
on removing any hint of “Amway”
from Amway or its
distributors. The Amagram
magazine was a monthly magazine sent to distributors
now called Achieve.
Distributors are now called IBO’s
(Independent Business Owners). What
an incredible farce. The Amway
Distributor Association is now the IBOA
International. The Amway
Mutual Fund is now the Activa
Mutual Fund. Dexter
Yager’s bi-monthly magazine is no longer
called Dreambuilders,
but it is now called The
Business Owner. Amway
was morphed into a new parent company named Alticor.
It appears that Amway
has been broken down into smaller companies called Access
Business Group and Pyxis
Innovations. Amway, Quixtar, Access Business Group and
Pyxis Innovations
are now subsidiaries of Alticor.
It appears that Amway
ownership is expecting a huge class action suit or Federal
interdiction and skelatonized Amway’s
assets as an umbrella of protection. The Amway
North American distributor organization ceased
to exist. All the distributors became Quixtar
IBO’s. Quixtar
is an online version of Amway
under a new corporate identity,
unkown to the public. When it launched the bonus
schedule, products and
recruitment techniques were virtually identical
to Amway. There has
been a huge push for Quixtar
and its new “IBO’s.”
The sad part of it is that many people, earnestly seeking
opportunity, think they
actually have all the rights of a business owner
when they become Quixtar
Independent Business Owners. Nothing
has changed. The Quixtar
business is the bait by
which the masses still are being lured into the exact
same motivational organizations that have defrauded
the public of literally over twenty billion dollars
to date.
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