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socrateaser, Attorney
Category: Business Law
Satisfied Customers: 37868
Experience:  Retired (mostly)
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Mr. Hayes: Your SereniGy IBO Distributorship has been suspended

Customer Question

Mr. Hayes:
Your SereniGy IBO Distributorship has been suspended due to violating various provisions of SereniGy's Policies and Procedures and your Confidential Agreement entered into between you and Ms. Delgado.
The first policy and procedure violated is section VB (9), DISPARAGEMENT:
(9) Disparage, demean, degrade, de-edify, criticize or make negative remarks about the Company, other IBOs, products, compensation plan, officers, directors, or employees. IBO’s making Disparaging comments about the Company, executive and/or support staff and other IBO’s can be very damaging to the Company. As a result, it is in the best interest, the duty and responsibility of the IBO hearing of any such disparaging (negative) comments to report to their upline and compliance department ([email protected]) the IBO(s) making such comments; Consequently, such conduct by an IBO will not be tolerated but will be dealt with swiftly.
You have sent "Disparaging" correspondence to a member of your SereniGy downline, Ms. Danelle Delgado, as evidenced by messages forwarded to my office from you to Ms. Delgado. This is a direct violation of section VB (9) of SereniGy's Policies and Procedures, which has resulted in suspension of your SereniGy Distributorship and your direct sponsorship of Ms. Delgado being removed.
You have also been found to have violated the January 26, 2013 executed "Confidential Agreement" in which you agreed to the following; more particularly section 9, stated in pertinent part:
9. Both IBO’s agree that they must continue to adhere to the policies and procedures of SG, which includes, among other things, no disparagement and negative comments towards SG, against each other, to any member of their teams, or any IBO’s in SG. Failure to abide by these rules will result in severe sanctions and possible termination of their IBO status in SG. Both IBO’s are to conduct themselves in a positive manner providing the requisite bona fide support to their perspective teams in SereniGy.
Your disparaging communication to Ms. Delgado is also a direct violation of this agreement as well.
Additionally, it has been determined that you have failed to provide the prerequisite bona fide support as stated in section VA(5), of SereniGy's policies and procedures and the terms of your "Confidential Agreement" by not providing "bona fide" support to your sales team. This is clearly evidenced by the fact that you failed to attend or promote the last two (2) trainings the Founder and CEO of SereniGy, Mr. Jay Noland, has done in Colorado. There could not be clearer evidence of lack of bona fide support than this.
Pursuant to the participation terms of the "Confidential Agreement", Mr. Noland respectfully XXXXX XXXXX Ms. Delgado contact you to discuss your lack of bona fide support and provide you with an option of either receiving final payment from SereniGy of $3,300 or you relinquishing direct sponsorship of Donna Herskind-Ehrlich (ID: 135710). Instead of responding respectfully XXXXX XXXXX you responded to Ms. Delgado in such a "disparaging" fashion that my office was forced to suspend your distributorship and take more aggressive action in this regard. As a result of the facts as taken as a whole, it is clear that you have no sincere intention of supporting your SereniGy downline. It is also clear that you do not know how to positively treat other SereniGy IBOs, namely Ms. Delgado.
Ms. Delgado has also expressed to this office that you have "verbally abused" her on multiple occasions and she feels threatened. This type of behavior is totally unacceptable and is considered “criminal behavior" in your jurisdiction. It would be in your best interest to immediately stop this threatening and offensive behavior.
As a result of the aforementioned violations and other information, my office will provide you with the following 2 options:
1. You agree to voluntarily resign your distributorship with SereniGy and sign an Affidavit that you will move on without any type of negative behavior towards SereniGy or SereniGy IBOs in any shape, form, or fashion. If you do so, then SereniGy will within 7 business days of receiving your signed and notarized Affidavit pay you the remaining $3,300 owed to you by Ms. Delgado. Should you choose this option, this office will forward you the appropriate Affidavit.
2. Be involuntarily terminated by SereniGy. Therefore, you will receive no further payment from SereniGy.
Keep in mind, that if you intend to cause SereniGy and its IBOs additional damage, SereniGy will legally do everything within its power to protect its interests including but not limited to seeking redress against you personally. I will give you until the end of the business day Tuesday, May 28, 2013 (Eastern Standard Time) as Monday is a Holiday, to choose one of the two options. If my office does not hear from you by then, I will enforce
can an MLM company simply move/remove a leg of business from your of business legally?
Submitted: 3 years ago.
Category: Business Law
Expert:  socrateaser replied 3 years ago.

What question can I "justanswer" for you today about your circumstances?
Customer: replied 3 years ago.



Customer: replied 3 years ago.

can an MLM company simply move/remove a leg of business from your legs of business legally?


Expert:  socrateaser replied 3 years ago.

I apologize, because I do see that you asked your question originally. It was just buried beneath your lengthy post, so I missed it. Anyway, you asked: can an MLM company simply move/remove a leg of business from your legs of business legally?

A: Contract agreements controls between parties where no public policy is violated. Assuming that you are prohibited from disparagement of a certain kind to certain persons, then proof of that disparagement would be grounds to terminate the contract. It would not be grounds to forfeit payments due you, because contractual forfeitures violate public policy. So, to the extent that the author of the letter threatens to cut off money already earned and owed to you, that threat is unenforceable under contract law.

Also, because the threat of a loss of earnings is coupled with a demand that you maintain silence about the MLM business operations, that, in my humble opinion, is [are you sitting down] felony criminal extortion. Colo. Rev. Stat. 18-3-207.

So, the answer here is that while you may have breached the contract with the MLM operators, the method by which they appear to be vindicating themselves appears to be criminal conduct.

I can't promise that the district attorney will agree with my analysis, but if I were in your shoes, I would contact the DA's office and ask to speak to someone who investigates white-collar crime.

Hope this helps.

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