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B. Cell Tech
Around 1995, petitioner purchased and began using some
health care and nutritional products sold by the Cell Tech Co.
(Cell Tech). Petitioner liked the Cell Tech products he used.
Cell Tech directly marketed and distributed its products to
the public through outside sales representatives. The Cell Tech
sales representative who sold petitioner these products asked him
whether he wanted to become a Cell Tech sales representative. As
a Cell Tech sales representative petitioner could earn
commissions on: (1) Customer orders of Cell Tech products placed
through him; and (2) customer orders placed through other Cell
Tech representatives recruited by petitioner and other Cell Tech
representatives recruited by them and their recruits. The Cell
Tech sales representative told petitioner that she knew of
several Cell Tech representatives who earned sizable commissions.
Petitioner became a Cell Tech representative in June 1995.
Cell Tech was his first independent business venture. Petitioner
was interested in engaging in an activity that would supplement
or eventually replace his income from the Probation Department.
Petitioner believed that his income from direct marketing would
increase sufficiently to eventually replace his wages from the
Probation Department.
The sales representative told petitioner that to get started
he would need to spend about $2,000 for: (1) Cassette tapes and
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