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distributor for Renaissance, she engaged Ms. Clark to review her
Renaissance business plan as well as other materials provided by
Renaissance. This review was confined to the merits and legality
of the tax strategies sold as part of the Renaissance tax
package. After reviewing the documents Mrs. Smith provided, Ms.
Clark advised that the tax strategies promoted by the product
were legal. Ms. Clark also purchased the Tax Relief System for
herself and briefly became a distributor for Renaissance. Ms.
Clark testified that she ceased selling for Renaissance because
it was taking too much time and because Renaissance was shut down
by Kansas State authorities.
Ms. Clark did not provide any business advice to Mrs. Smith
apart from her tax advice. Aside from the vague business plan
provided to Ms. Clark with respect to Renaissance, Ms. Clark did
not review any of Mrs. Smith’s other business plans. Further,
Ms. Clark did not prepare or review any financial statements or
budgets with respect to any of Mrs. Smith’s marketing activities.
As Ms. Clark testified, her advice was largely confined to tax
advice.
Mrs. Smith also sought advice from her upline distributor,
Ms. Walsh. Ms. Walsh’s counsel focused primarily on sales and
product training. Ms. Walsh did not review any financial
statements with Mrs. Smith, nor did she discuss how Mrs. Smith
might stem the losses she was experiencing or how long it might
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Last modified: November 10, 2007