Joseph A. and Sari F. Deihl - Page 6

                                        - 6 -                                         
               In keeping with KareMor’s nature as a multilevel marketing             
          organization, a primary focus of the entity’s operations was on             
          motivating its distributors.  To that end, KareMor sponsored                
          large-scale conventions and also conducted smaller training and             
          meeting events at locations throughout the country.  Extensive              
          use was likewise made of prizes and awards as motivational                  
          incentives, many of which were given away at the conventions.               
          For instance, during the years in issue, a convention was held              
          each calendar quarter and typically lasted 3 days.  The schedule            
          would include substantive sessions devoted to training and                  
          informational or motivational speakers, as well as entertainment            
          portions featuring musical performers, dancers, celebrities,                
          prizes, etc.  Featured prizes might be cash, Rolex watches,                 
          cruises, and so on.                                                         
               Petitioners and members of their extended family played a              
          prominent role in interacting personally with distributors at               
          KareMor events.  In these interactions, petitioners believed that           
          it was critical for every aspect of their lives, from their                 
          attire and personal grooming to their residence, to portray an              
          appearance of extreme affluence and success.  Petitioners felt              
          that distributors who were impressed to the point of being                  
          overwhelmed with what could be achieved through multilevel                  
          marketing would be encouraged to build their own downline                   
          networks in hopes of reaping similar benefits.                              






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011