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The report also describes
Amway pyramid schemes. "The Amway Corporation primarily provides various products and services that serve as a backdrop for pyramid-type recruitment and motivational schemes undertaken in Amway business."
As evidence of mafia-like family structure, report points out that Amway's Policy Board consists of family members Richard DeVos, Sr, Steve Van Andel, Richard DeVos, Jr, Jay Van Andel, Cheri DeVos Vander Weide, Dave Van Andel, Doug DeVos, Nan Van Andel, Dan DeVos and Barb Van Andel Gaby.
On June 7, 2002, shift of control in authority that Blakey mentioned in 1998, was further confirmed by a press release that announced that Doug DeVos would become president of Amway’s parent company, Alticor,* after retirement of Rich DeVos.
Upon taking office, Doug DeVos, in true mafia lingo, was quoted as saying: "It’s humbling to be asked to step into a job that has been done so well for past 43 years, first by my dad and then by my brother."
Further confirmation of control being passed down, was fact that Doug DeVos joined Chairman Steve Van Andel (Van Andel’s son) in Office of Chief Executive, extending dual leadership structure first established by company co-founders Rich DeVos and Jay Van Andel, according to press release.
Blakey explains that family members are drawn in to business as a matter of right, with family members being given responsibilities that outweigh their capability. The basis for this assertion is with Amway itself. As an example, Blakey refers to deposition testimony of Jay Van Andel's 2 children, David and Nan Van Andel, in P&G lawsuit.
When deposed, they both held high positions with company. Yet Blakey says, their testimony reflected a complete lack of knowledge and business experience. It was obvious that neither obtained their position on merit, nor would they have been permitted to continue in their position in an regular company. “Placing unqualified family members in high positions is also common in Mafia,” Blakey reports.
What About Other Amway Families?
Amway stresses that once you are involved, you are a member of Amway family, and your upline and downline are part of your family. “Amway becomes a way of life for its participants, much like those involved with Mafia,” Blakey notes.
He describes how, "You are to "edify" or honor your upline, and "counsel" with them regularly," and claims, "The "upline" assume virtual "parental" control, and distributors are urged to "counsel" on all aspects of their life, including topics such as which car to buy or how to handle marital problems," Blakey wrote.
According to report, distributors are even told how to dress. For example, "Wilson women" (those in Don Wilson family) at functions do not show ankles, thighs or cleavage, he notes.
The absolute control is also evidenced by Amway Distributors Association Board. At time of Blakey’s report, Board consisted of 30 distributors who were elected. However, 15 were chosen off a list of nominees compiled by Amway. The Board is led by Executive Committee which also includes family leaders, which all but guarantees that family leaders, or their designees, will get elected and retain control of Amway.
Although DeVos and Van Andel families control corporation, Blakey says a 1996 Amway Corporate Culture Document shows there are at least 8 other lines of family sponsorship that control distributors groups. Every participant is considered to be a member of a family, with one individual positioned at top of a chain of command.
In 1998, Dexter Yager family had largest organization in North America, and Bill Britt family was enormously comprised of over 149,000 distributorships.
However, it should be noted that Bill Britt has since been booted out of Amway and is under investigation for a host of scams. According to an August 12, 2004, letter from Robert FitzPatrick, President of Pyramid Scheme Alert, to North Carolina's Attorney General, requesting an investigation of Bill Britt organization, "Last year, it was reported that Bill Britt was involved in what authorities consider perhaps largest single financial fraud case in North Carolina history in terms of amount of dollars that disappeared," letter stated. The August 8, 2003 edition of The Triangle Business Journal reported that in spring, 2001 Bill Britt invested $5 million in a fraudulent investment scheme perpetrated by Cornerstone Management, a company under investigation and prosecution by SEC since 1999, according to letter.
At time of Blakey report, other “Amway families” included: Childers (team of six Diamonds); Stewarts; Gooch family; Bryans (Down East); Wilsons (WOW); Puryears (World Wide Dreambuilders); Hays (International Connection); Matz family ( International Diamond Association); Dornans (Network 21); Strehlis (Creative Life Styles); and INA (International Networking Association), run by a group of seven families.
According to report, each family is involved in Amway business, in terms of using Amway Sales and Marketing Plan, and is also involved in Business Support Materials (BSM), or "tools," which include books, tapes, and rallies, Blakey determined.
However, each family kingpin rules his own Amway distributor pyramid and his own tool pyramid. But even though these pyramids are all separate corporate entities, they all work together to promote Sales and Marketing Plan and tools business, report found.
What Else Is Amway Hiding?
What else is Amway hiding? Most likely Blakey’s assertion that "The Mafia uses "omerta" and violence for control," and "Amway has other methods, with similar effect."
Blakey claims, "Distributors must always honor their upline. No negative talk or action is permissible. A distributor who steps out of line is punished. ... serious offenders may be dealt with by having portions of their business taken away - e.g. they can no longer appear at rallies, or downline distributors are "re-routed." There are also reports of violence against those who attempt to take action against Amway, report maintains.
(Part 2 of this article will discuss specific incidents of this "omerta" and violence and other information contained in report that Amway fought so hard to keep hidden.)
* Alticor was announced in October 2000 as parent company for Amway (direct selling), Quixtar (e-commerce); www.alticor.com.
By Evelyn Pringle e.pringle@sbcglobal.net Miamisburg, OH
Evelyn Pringle is a columnist for Independent Media TV and an investigative journalist focused on exposing corporate and government corruption.
