| | Fast forward…. We invested nearly a decade of our lives in building “our” Amway business working directly with the super wealthy Amway Double Diamonds Fred and Linda Harteis from Harrisburg, Pa . In building our business we have worked hundred hour weeks and traveled to many states in the US. One or both of us have gone to Canada, South America, Japan and the Philippines. Our organization even expanded into Europe. We were on stage as motivational speakers speaking to thousands of distributors at a time and were featured in Amway’s national magazine for achieving a level of “success” that a small fraction of less than one percent do.
We met many of the religious, business and political leaders of our time. We spent time with TV Evangelist Robert Schuller, Oliver North, Newt Gingrich, Senator Rick Santorum and his wife, Dave Thomas (Wendy’s), current Bush Presidential senior strategist Ralph Reed (Century Strategies) and others. The kingpin level Amway Diamond distributors around us seemed to becoming more and more wealthy. We watched our upline Diamonds lead emotional worship services and tearfully thank God for their success and for being in a position where they can bless and help so many others around the world with their Amway business. We brought in family members and friends we cared for deeply.
Despite this there was something terribly wrong.…. What comes next is a most difficult task as I need to summarize thousands of hours of investigation, research and documentation in a few brief pages. To fully understand the method, manner and twenty billion dollar scope of the fraud you will need to download and read your free copy of Merchants of Deception now. Do not hesitate as Amway’s legal army will descend upon me immediately and attempt to shut this site down. Do not wait. Download it now and then come back and read the rest of the site.
I received a call from a close friend that we had sponsored. He was livid. He is a man of character yet he was shouting at me like a man possessed. I could hardly understand what he was talking about but when he finally calmed slightly he said “I know about the whole fraud!!” I asked him what he was talking about and he was incredulous as he thought I was “in on it.” He said, “look up Brig Hart” on the internet and hung up. Brig Hart is a young, super wealthy beach bum turned Amway Diamond. He had filed a public lawsuit against Diamond level members of his upline for essentially stealing his “system” money (money from books, tapes and seminars.)
What I learned next floored me. The lawsuit claimed that they had lost $50,000,000 as a result of the defendants RICO violations. The lawsuit also estimated Dexter Yager’s income from his tool business at $40,000,000 annually. This was shocking beyond comprehension as we had been advised repeatedly that the tool business was run at break even or a loss. It looked like nearly all of the wealthy Diamond’s incomes came not at all from Amway but from their secretive motivation businesses. This would be a complete fraud if true, as 100% of the recruitment process was predicated upon the wealth, freedom and financial success that the diamonds attributed to their Amway businesses.
I had been listening to the tapes daily for nearly ten years and had to get off them to even begin to think clearly. What I was learning absolutely could not be true. For this to be a fraud, literally hundreds of diamond couples would all have to lie in exact unison from all of the seminars and tapes. The organization of over well over 1,000 people we had sponsored into Amway had consumed millions of dollars in books, tapes, seminars, videos and Amway products. If this was a fraud, their blood would be on my hands as they had trusted me. I began doing superficial research on the internet. There were other lawsuits being posted alleging all types of fraud and deceit involving Amway Diamonds, Rich DeVos, Amway, Dexter Yager, Bill Britt and others. Some allegations of cultism and organized crime arose and other issues that seemed too far fetched for me to even consider.
I couldn’t think clearly until I got off the tapes for several months. Once I began to emerge from the system induced fog, I was both shocked and devastated by what I began to learn. An incredible book, Amway Motivational Organizations: Behind the Smoke and Mirrors, was published by Ruth Carter, a former distributor and employee of a prominent Amway Diamond. As a former federal auditor, I was stunned by the revelations of the book. Of this Diamond’s near $3,000,000 in income for the year, $130,000 came from Amway bonuses… less than 5%!!! The rest all came from books, tapes, seminars and speaking fees. As a matter of simple forensic accounting, if this particular Diamond did not have his secretive “system” income, he would lose hundreds of thousands of dollars a year. At the supposed pinnacle of Amway success as a Diamond, he would have a huge net loss every year from his Amway business.
The fog continued to wear off the longer I was off the tapes. We had been instructed to use a specific “goal sheet” (see Case Study Fred Harteis) to help all in our organization track and set goals. It consists almost entirely of tracking how many people were sponsored into the organization, and how many bought books, tapes and seminar tickets. We had been told all along that a profitable Amway business always tracked these figures as the “most educated” people succeeded. This looked now like a total fraud. I began to ask many of our leaders what their net income was. Nearly all looked shocked and embarrassed to reveal that they were losing money. Some had lost tens of thousands of dollars. I read stories on the internet of multiple divorces, bankruptcies and foreclosures. This just couldn’t be true… we had brought so many good people into this. I resisted each new revelation with every fiber of my being as it was too painful to comprehend.
I began to ask what must have been too many questions as a prominent Amway distributor leader told me face to face what gun he would use to kill me if I “messed’ with Amway Double Diamond Fred Harteis. This was quickly turning our life into a surreal movie. Our leaders were all being pushed to spend well over $1,000 to fly to some bogus “leadership” seminar. I now knew where all this money was going. I had to break the news to them before they dumped more money down the drain.
As a former Federal auditor, I compiled a 50 page packet of documentation and a detailed apology as I explained that we had all been collectively scammed and used as pawns to scam others. I also sent a copy of the packet to our distributor coordinator Bob Leatherman in Amway management. He shared it with Dan Bailey who is the head of Amway Rules and Conduct. I thought they would be glad that this was revealed to them as I knew the founders were honorable Christian men and would never stand for this sort of abuse in their distributor force. To my shock, they played “good cop bad cop” with me with Dan Bailey being the bad cop. Bailey eventually took over and actually threatened me with sanctions if I had contact with “anyone not personally sponsored by me and spoke disparagingly of my upline." Apparently, telling the people that I loved that I had worked with for near ten years that they were being defrauded was “disparaging” to Mr. Bailey.
Long story short, Amway management worked in concert with my upline to place massive pressure on me to be silent. They shut off my sole income in an effort to starve me into submission. Ironically, myself and millions of others had been led to believe we were independent business owners and had no conception that we could work for a decade and have Amway simply shut off our income. The pressure was intense. We lost our medical insurance and fell behind in our mortgage payments (we had perfect credit prior to Amway and had done well investing in real estate). My wife and young son received terrifying death threats on the telephone. I began working with the FBI and a tap and trace was put on our telephone line.
Viscous lies were told to explain our sudden exodus, as leaders, from the Harteis Amway motivational organization. People were told I had become a drug addict - some were told I was addicted to crack while others were told I was seen making cocaine buys on the street. I happened to be the adult Sunday school teacher at our church and the President the Parent Teacher fellowship at the small Christian school that our children attended. The hardest drug I was using was aspirin and when I heard these idiotic rumors I called a good friend who was a physician and had him order a blood test with full drug screen and had the results sent to him for safe keeping. This was getting insane and was soon to get worse. Who threatens to kill a woman and a child? There obviously was a great deal at stake here.
Click Here To Go To Part Two Of "Research Reveals...The Fraud Is Exposed."
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