- 5 - programs.3 At trial, petitioner described several of these programs: And the first business I got into, in multi-level marketing, was marketing electricity. I paid $1,250 for the worldwide rights for the Los Angeles--well, the United States rights. And * * * it all went down the drain. They could never deliver electricity.[4] * * * * * * * I was in one that I’m still in, called Life Plus, which has every disease known to mankind, and what particular product in Life Plus to take for that. * * * * * * * THE COURT: * * * So we take it then that just about anything and everything under the sun is part of your ministry? PETITIONER: No, no. THE COURT: No? PETITIONER: Only the things that I’ve actually joined, Your Honor. And I gave you one of those, set up-- 3 As we understand them, these multi-level marketing programs were essentially pyramid arrangements characterized by various tiers and chains of “distributors”, each of whom was interested less in the selling of “product” and more in the recruiting of “downline distributors”. See, e.g., Nissley v. Commissioner, T.C. Memo. 2000-178, for a description of the “pyramid” incentive system maintained by Amway Corp. 4 Petitioner’s testimony occasioned the following colloquy: THE COURT: You were going to be kind of like your own Enron Corporation? PETITIONER: Well, something like that. Anyone who came in, anyone in the United States was supposed to be under the people who originally got it started. Then they could never deliver electricity.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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