Sunday, June 23, 2019

Just how much of MLM is smoke and mirrors (and illusions of wealth)?

Recently, an article on BehindMLM caught my attention. The title was "Wakaya Perfection Field Leader sentenced to prison for fraud".

It's not the fraud itself though, but the circumstances that caught my attention.

According to the article, Andre Vaughn *had* an illustrious MLM career MLM.

In an article in Networking Times, Vaughn claimed to have found MLM on "February 24, 2005".

In 2012 Youngevity brochure, Vaughn was named as one of the "million dollar earners"

In 2014, he was cited as "Senior Vice Chairman," and "Marketing Director" of Youngevity.

Vaughn jumped ship to Wakaya Perfection in late 2015 when the existing leader left the company with several top "officers". This resulted in Youngevity and Wakaya suing and countersuing each other.

He was cited as "Founding Member" and "Gold Member Billionaire's Inner Circle" in Wakaya. His current rank is believed to be "Blue Diamond Ambassador" (among the highest") which I presume, comes with a hefty paycheck.

Then I learned that Vaughn pled guilty to bankruptcy fraud... Fraudulently declaring bankruptcy together and separately with his wife Monique (with twins) in

  • April 2005
  • June 2012
  • July 2013
  • April 2015. 

Now let's put that in perspective by lining up the events, just those we can document. And that doesn't even include any of his Wakaya titles.

  • Joined MLM in February 2005
  • Declared bankruptcy in April 2005
  • Joined Youngevity sometime prior to 2012 (probably 2009?)
  • Million dollar earner in Yougevity in 2012
  • Declared bankruptcy in June 2012
  • Declared bankruptcy in July 2013
  • Senior Vice Chairman, Marketing Directory of Youngevity in 2014
  • Declared bankruptcy in April 2015

Either this guy declares bankruptcy at a whim to cheat his creditors, or MLM doesn't pay NEARLY enough and his "million earner" status was an illusion. The truth is probably somewhere in between.

In fact, even Vaughn's accomplishments at Youngevity is in doubt. In the lawsuit between Youngevity and Wakaya, Youngevity alleged that then-president Andreoli "force qualified" Vaughn and his wife (i.e. they got the rank WITHOUT meeting the required goals) resulting in them getting paid more without actually bringing in more sales.

Either MLM attracts this sort of people... or encourages this sort of behavior.