Organized Crime Expert - Amway Just Like MafiaAmway knew it was in trouble when
internet arrived and
details about
company’s pyramid schemes began appearing online. A memo dated Dec 19, 1997, that surfaced in a lawsuit, contains
details of a voice message sent out to
Amway leadership, by then Vice President, Ken MacDonald, that reveals just how desperately Amway tried to control
flow of information on
internet.
MacDonald said ... "This message is on
internet ... we’ve hired consultants and been working very diligently on all of
secret computer language that helps
search engines pick a site and because of that we’ve moved
positive Amway sites quite a bit up in
web search engines, and some of
negative sites down. And lastly, that we are working to provide very soon, for all those who qualified Emeralds and above ... their own personal homepage so we will have tons of positive Amway information on
web," he said.
There is one particular document that
company has gone to great lengths to stop people from reading on
internet. In fact, on June 12, 1998, Amway went to court and got a Protective Order in attempt to keep this specific report hidden from public view.
Professor G Robert Blakey was retained as an expert witness for
plaintiffs in
1998 Procter & Gamble v Amway lawsuit to render an opinion on Amway's business practices. He is one of
nation's foremost authorities on organized crime. Blakey was directly involved in drafting and implementing RICO-type legislation in 22 of
more than 30 states that enacted racketeering laws.
After studying Amway’s business structure and functions, Blakey, wrote a damning report that stated: “It is my opinion that
Amway business is run in a manner that is parallel to that of major organized crime groups, in particular
Mafia. The structure and function of major organized crime groups, generally consisting of associated enterprises engaging in patterns of legal and illegal activity, was
prototype forming
basis for federal and state racketeering legislation that I have been involved in drafting. The same structure and function, with associated enterprises engaging in patterns of legal and illegal activity, is found in
Amway business.”
For those not familiar with
RICO Act, it "was passed by ... Congress to enable persons financially injured by a pattern of criminal activity to seek redress through
state or federal courts," according to
Rico Act website. Amway has been sued hundreds of time under
RICO Act.
Blakey Report Outed
In
early spring of 2004, Amway became extremely upset when
full Blakey Report began appearing on
world wide web. The company’s attorneys flew into action trying to suppress it.
Initially, they successfully used
protective order to force websites to remove
report. For example, on March 11, 2004,
MLM Survivor website reported that
Quixtar Blog had removed
Blakey Report from its servers and said "... according to
site owner, Amway's lawyers are frantically trying to find out who leaked. They assert
report is confidential, and covered by a protective order."
However, Amway was not as successful with getting it removed from other sites. MLM Survivor reported that company attorneys also contacted MLM, to demand that they remove
report from its website because it was sealed under a protective order.
Survivor’s response to Amway was, “We can't remove what we don't have. MLM Survivor does not now, nor has it ever, had a copy of
report on its website. Link, yes. Copy, no,"
website said.
This must be like deja vu to MLM. The website had already been hit with one SLAPPer lawsuit by Amway. SLAPP is
abbreviation for Strategic Lawsuits Against Public Participation. According to
First Amendment Center, “SLAPPers do not sue to achieve a litigation outcome; rather, they file to silence their opposition. Generally,
mere filing of
suit — or just
threat of suit — accomplishes that purpose;” www.firstamendmentcenter.org
However, it looks like
SLAPPer failed to obtain its objective with Survivor because
site is still alive and well on
internet. In fact, Survivor had this to say about
lawsuit. "I have to admit that I've been waiting for about six years (as long as this site has been in existence) for Amway/Quixtar/Alticor to slap me with a lawsuit for one trumped-up thing or another. I never expected my first-ever lawsuit to be such a farce," it said.
In another futile attempt to have
report removed from a site, on March 2, 2004, Amway Attorney Griffin, sent a letter with a copy of
court order, to a research professor by
name of David Touretzky. On March 21, 2004, he wrote back to Attorney Griffin and stated: My reading of this order leads to
following observations:
Paragraph 16 says that
terms of
order shall remain in force "to
extent that
information in such material is not or does not become known to
public..." Since I obtained my copy of
Blakey Report from a publicly accessible web page,
information clearly has become known to
public. The order therefore no longer applies to this document.
Paragraph 16 also says that
protective order is "binding upon all persons to whom confidential information is disclosed hereunder." The information was not disclosed to me under
terms of this order. I was never a party to this litigation, nor do I have any relationship of any kind with Amway, or Proctor & Gamble, or their respective attorneys, agents, or consultants. The protective order was never intended to apply to totally unrelated parties like me, or
news media, and it is not binding upon me now.
Touretzky’s reasoning would apply to
copy of
report that I obtained as well. When I discovered my copy a while back, it was already published on a number sites. It is currently posted on just about every Amway website out there.
The entire report can be read on
www.merchantsofdeception.com website of Eric Scheileber, a former Amway Distributor, who wrote
book, Merchants of Deception, that prompted
current FBI investigation of Amway, and an expose by NBC’s Dateline. (The book discloses Amway’s close ties to
Republican party and both Bush administrations and can be downloaded free, for a limited time, on
website)
Why Was Amway So Worried?
Why was Amway so worried about people reading
report? Probably because it very specifically explains how
Amway Corporation’s family-business structure is just like
mafia. According to Blakey, Amway has a family structure nearly identical to those found in organized crime.
The company has remained a privately held company since it was founded by Jay Van Andel and Rich DeVos in 1959, Blakey notes. But control of
corporation has now shifted to
sons of
founders, Richard DeVos, Jr and Steve Van Andel, he says.