Joe Guadagno and Susan Beth Rishel Guadagno - Page 7

                                        - 6 -                                         
          regard, petitioners compiled an extensive list of family members,           
          friends, and acquaintances that they used to identify and recruit           
          potential downline Amway distributors.  Typically, petitioners              
          made contact with these individuals either by telephone or by               
          traveling to wherever these individuals lived to meet with them.            
          Nothing in the record suggests that petitioners made any effort             
          to develop a profile of a successful downline distributor on                
          which basis they would recruit; instead, petitioners recruited              
          family, friends, and acquaintances.                                         
               Petitioners’ attempts to recruit downline distributors also            
          consisted of describing the Amway business plan to friends and              
          acquaintances at gatherings in petitioners’ home or at                      
          restaurants where food and beverages were routinely consumed.               
          Petitioners recruited 26 downline distributors in 1996, 37 in               
          1997, and 12 in 1998.  The record does not disclose how many, if            
          any, of these downline distributors were in a familial or                   
          preexisting social relationship with petitioners.                           
               The relationship between petitioners and their downline                
          distributors was, at best, informal.  There were no contracts or            
          minimum sales agreements.  Downline distributors were free to               
          leave petitioners’ distribution network at will, and, if they               
          desired, could even join another Amway distributorship under a              
          different upline distributor.  Petitioners were not assigned a              
          sales territory, and, like their downline distributors, they                

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011