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Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 1 of 35

Gregory Y. Porter, pro hac vice pending


gporter@baileyglasser.com
James L. Kauffman, pro hac vice pending
jkauffman@baileyglasser.com
BAILEY & GLASSER LLP
910 17th Street NW, Suite 800
Washington, DC 20006
Telephone: 202.463.2101
Facsimile: 202.463.2103

James E. Magleby (7247)


magleby@mgpclaw.com
Jennifer Fraser Parrish (11207)
parrish@mgpclaw.com
MAGLEBY & GREENWOOD, P.C.
170 South Main Street, Suite 850
Salt Lake City, Utah 84101
Telephone: 801.359.9000
Facsimile: 801.359.9011

Attorneys for Plaintiffs and the Putative Class


______________________________________________________________________________
IN THE UNITED STATES DISTRICT COURT
DISTRICT OF UTAH, CENTRAL DIVISION

KELLY JESSOP, an individual, on behalf


of himself and all others similarly situated,

CLASS ACTION COMPLAINT


JURY TRIAL DEMANDED

Plaintiff,
v.
DALLIN LARSEN, an individual, HENRY
MARSH, an individual, RANDY LARSEN,
an individual, MACHIEL KENNEDY, an
individual, RALPH CARSON, an
individual, AMY COWLEY, an individual,
MARK RAWLINS, an individual,
PORTER HALL, an individual, STEPHEN
J. HALL, an individual, DOES 1-10, and
BANKERS TRUST COMPANY, a
Delaware corporation,

Case No. 2:14-cv-00916-BSJ


Honorable Bruce S. Jenkins

Defendants.

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Plaintiff Kelly Jessop (Plaintiff), by his undersigned attorneys, alleges upon personal
knowledge, the investigation of his counsel, and upon information and belief as to all other
matters, as to which allegations they believe substantial evidentiary support will exist after a
reasonable opportunity for further investigation and discovery, as follows:
INTRODUCTION
1.

Plaintiff was a corporate trainer employed by MonaVie, LLC (MonaVie).

Plaintiff is vested in MonaVies Employee Stock Ownership Plan (ESOP). In recent months,
Plaintiff was locked out of his online ESOP account and is unable to view documents related to
the ESOP or obtain any information about his shares. As alleged below, Plaintiff and the Class
he seeks to represent have been cheated out of their hard-earned retirement benefits as a result of
violations of the fiduciary duties and prohibited transactions under the Employee Retirement
Income Security Act of 1974 (ERISA) by Bankers Trust Company (Bankers Trust or
Trustee) and such other persons who may have served as fiduciaries to the ESOP, and the
knowing participation by the Individual Defendants named herein (all Defendants other than
Bankers Trust) in these violations of ERISA.
2.

MonaVie is a privately held company that manufactures and distributes products

made from blended fruit and vegetable juice concentrates, powders, and purees through a multilevel marketing business model. On November 17, 2010, MonaVie (and/or its principal
shareholders) sold an unknown percentage of its shares for $186 million to the ESOP (the
ESOP Transaction or Transaction). Bankers Trust represented the ESOP as Trustee in the
2010 ESOP Transaction. The ESOP Transaction allowed MonaVie and its principal shareholders
to unload thousands of shares in MonaVie at grossly inflated values and saddle MonaVies own
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employees with a crushing loan to finance the Transaction. Bankers Trust, as Trustee for the
ESOP, completely failed to fulfill its duties to the ESOP and ESOP participants like the Plaintiff.
3.

In the years prior to the ESOP Transaction, MonaVie was mired in negative

headlines and lawsuits with consumers, competitors, and distributors. MonaVie was accused of
false and misleading advertising, questionable business practices in their multi-level marketing
scheme, and other practices that called into question the value of the companys stock. In this
environment, MonaVie and the selling shareholders knew they could not secure bank financing
for a loan to the ESOP to acquire shares of MonaVie because the collateral for the loan would be
near worthless MonaVie stock. Instead, MonaVie and the selling shareholders, with Bankers
Trusts cooperation, caused MonaVie to loan the money to the ESOP. Bankers Trust allowed the
ESOP to borrow $186,496,985 payable in full over fifteen years at a rate of ten percent (10%)
per annum, a rate that was more than twice the 4.25% rate for similar financing. Thus the selling
shareholders saddled the ESOP and MonaVie employees with $186 million of debt, payable to
MonaVie and the selling shareholders, at more than double the going interest rate and unloaded
thousands of shares in MonaVie at grossly inflated values. Bankers Trust should never have
allowed this. It failed utterly to perform its duties
4.

The numerous red flags about MonaVie and its principal shareholders and

distributors from readily available public sources would have alerted any reasonable financial
institution to the defects in a high-stakes transaction in MonaVie stock. Indeed, MonaVie was in
a bitter litigation against Amway Corp. over false and deceptive sales practices and illegal
recruiting of Amway distributors. The public record in this lawsuit cast serious doubts on
MonaVies business practices and future. Thoroughly reviewing and evaluating a critical lawsuit

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is basic due diligence in any financial transaction. But Bankers Trust ignored this record and
numerous other warning signs and failed completely in its due diligence and duties as ESOP
Trustee.
5.

The ESOPs MonaVie stock lost just over one third of its value, $66 million,

within 44 days after the Transaction, showing that the Transaction was a get-rich-quick scheme
for the selling shareholders at the expense of MonaVie employees.
6.

As of January 2014, the ESOPs MonaVie shares were only worth 6 cents a share,

$774,000, a loss of 99.95%. But the ESOP still owes MonaVie and the selling shareholders over
$265 million.
7.

Defendant Bankers Trust caused the ESOP to pay substantially more than the fair

market value for MonaVies stock, relied upon inflated financial projections and a flawed
valuation report in valuing MonaVies stock for the 2010 ESOP Transaction, and failed to give
appropriate consideration to material adverse facts about MonaVie widely available to the
public. Further, Bankers Trust failed in its fiduciary obligation to seek to mitigate the losses to
the ESOP. Currently, ESOP participants cannot even obtain a statement of the value of their
shares and their shares are believed to be currently worthless.
8.

MonaVies founders, principal shareholders, and Board (Individual Defendants)

knowingly participated in Bankers Trusts breach of duty. Each of them was intimately familiar
with the aforementioned news headlines and litigation challenging MonaVies multi-level
marketing model as a Ponzi scheme. Each of them knew that MonaVies days were numbered
because virtually all sales of its products were to downstream distributors as opposed to real
consumers, and downstream distributor sales were rapidly decreasing. Many of these Individual

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Defendants were plan fiduciaries in their own right or controlled the plan's fiduciaries. Once the
Ponzi scheme collapsed, the individual defendants escaped by unloading their stock onto their
own employees ESOP. The Individual Defendants walked away with millions of dollars for
nearly worthless stock and saddled the ESOP with a $265 million liability.
JURISDICTION AND VENUE
9.

This action arises under Title I of ERISA, 29 U.S.C. 1001 et seq., and is

brought by Plaintiff to enjoin acts and practices that violate the provisions of Title I of ERISA, to
require Defendants to make good to the Plan losses resulting from fiduciary violations, to restore
to the Plan any profits that have been made by the breaching fiduciaries and parties in interest
through the use of Plan assets, and to obtain other appropriate equitable and legal remedies in
order to redress violations and enforce the provisions of Title I of ERISA.
10.

This Court has subject matter jurisdiction over this action pursuant to ERISA

502(e)(2), 29 U.S.C. 1132(e)(2).


11.

Venue is proper in this District pursuant to ERISA 502(e)(2), 29 U.S.C.

1132(e)(2), because some or all of the events or omissions giving rise to the claims occurred in
this District, the ESOP is administered in this District, and several of the Individual Defendants
reside or may be found in this District.
PARTIES
12.

Plaintiff Kelly Jessop is a participant, as defined in ERISA 3(7), 29 U.S.C.

1002(7), in the ESOP. Kelly Jessop resides in Salt Lake City, Utah. Kelly Jessop was employed
by MonaVie as a corporate trainer and is vested in MonaVie shares via his account in the ESOP.
The value of his MonaVie shares in his ESOP account has declined dramatically since he
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received them. As of November 2014, Plaintiff was locked out of has been unable to obtain any
information regarding his MonaVie shares or his ESOP account. When Plaintiff called customer
service for the ESOP online portal, he was told that MonaVie is evaluating the stock price and
was given no estimated date when that evaluation will be complete.
13.

Defendant Bankers Trust is and was the Trustee of the ESOP during the 2010

ESOP Transaction. Bankers Trust at all relevant times was a fiduciary under ERISA because it
was named as the Trustee. As Trustee, Bankers Trust had exclusive authority to manage and
control the assets of the ESOP and had sole and exclusive discretion to authorize the 2010 ESOP
Transaction. Defendant Bankers Trust at all relevant times was also a party in interest under
ERISA 3(14), 29 U.S.C. 1002(14). Defendant Bankers Trust is a Delaware corporation
headquartered in Iowa.
14.

At all relevant times, Dallin Larsen (D. Larsen) was the Chief Executive Officer

and Chairman of MonaVie. D. Larsen was responsible for MonaVies strategic development,
creation of its products, and services distribution channel. D. Larsen has a Bachelor of Science
degree in Finance from Brigham Young University. D. Larsen was a principal shareholder of
MonaVie and owned, upon information and belief, at least 17% of MonaVies stock prior to the
2010 ESOP Transaction. Thus, at all relevant times, D. Larsen was a party in interest as to the
ESOP as defined in ERISA 3(14), 29 U.S.C. 1002(14). D. Larsen stepped down as Chairman
and CEO in 2014. D. Larsen has an 8,900 square foot mansion in Key Largo, Florida, and also
resides in Wasatch County, Utah.
15.

Prior to founding MonaVie, D. Larsen was the vice president of sales for

Dynamic Essentials, a Florida-based company selling fruit juice called Royal Tongan Limu,

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where D. Larsen claimed to increase revenue by 300%. During D. Larsens tenure at Dynamic
Essentials, the Food and Drug Administration (FDA) warned Dynamic Essentials the claims
on the companys website that its juice could treat various diseases such as cancer, arthritis, and
attention deficit disorder were illegal. In 2003, the FDA oversaw the destruction of 90,000
bottles of Royal Tongan Limu.
16.

At all relevant times, Randy Larsen (R. Larsen) was the Director and Senior

Vice President of Marketing of MonaVie. R. Larsen is the brother of D. Larsen. R. Larsen was
responsible for MonaVies product and service development, development of marketing
strategies and new market identification, and company image development. R. Larsen has a
Bachelor of Science degree in Business Management from Brigham Young University. R.
Larsen was a principal shareholder of MonaVie and owned, upon information and belief, at least
11% of MonaVies stock prior to the 2010 ESOP Transaction. Thus, at all relevant times, R.
Larsen was a party in interest as to the ESOP as defined in ERISA 3(14), 29 U.S.C.
1002(14). R. Larsen resides in Las Vegas, Nevada.
17.

At all relevant times, Henry Marsh (Marsh) was the Director and Executive

Vice President of Sales of MonaVie. Marsh was responsible for MonaVies recruitment and
management of its product and service distribution channels, management of its sales associate
compensation program, product and service development and public presentations. Marsh has a
Bachelor of Science degree in Economics from Brigham Young University and a Juris Doctor
degree from University of Oregon, School of Law. Marsh was a principal shareholder of
MonaVie and owned, upon information and belief, at least 11% of MonaVies stock prior to the

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2010 ESOP Transaction. Thus, at all relevant times, Marsh was a party in interest as to the
ESOP as defined in ERISA 3(14), 29 U.S.C. 1002(14). Marsh resides in Bountiful, Utah.
18.

At all relevant times, Machiel Mike Kennedy (Kennedy) was the Chief

Medical Officer and Vice President of Professional Services of MonaVie. Kennedy was
responsible for MonaVies strict adherence to medically supported product and program
development, product and services design, corporate and government consulting, medical
community relationships and on-line patient services. Kennedy held medical licenses in Indiana
and Florida. Kennedy has a Bachelor of Science degree in Biology from Central State University
and a medical degree from Indiana University, School of Medicine. Kennedy was a principal
shareholder of MonaVie and owned, upon information and belief, 10% of MonaVies stock prior
to the 2010 ESOP Transaction. Thus, at all relevant times, Kennedy was a party in interest as
to the ESOP as defined in ERISA 3(14), 29 U.S.C. 1002(14). Kennedy resides in Clearwater,
Florida.
19.

At all relevant times, Ralph Carson (Carson) was the Chief Science Officer and

Vice President of Product Development of MonaVie. Carson was responsible for establishing
and monitoring scientific guidelines for the development of MonaVies products and services,
sales associate training product presentations, and corporate educational consulting. Carson has a
Bachelor of Science degree in Pathology from Duke University, a Bachelor of Science degree in
Food & Nutrition from Oakwood College and a PhD degree in Nutrition from Auburn
University. Carson was a principal shareholder of MonaVie and owned, upon information and
belief, 10% of MonaVies stock prior to the 2010 ESOP Transaction. Thus, at all relevant times,

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Carson was a party in interest as to the ESOP as defined in ERISA 3(14), 29 U.S.C.
1002(14). Carson resides in Morristown, Tennessee.
20.

At all relevant times, Amy Cowley (Cowley) was the Vice President of Finance

of MonaVie. Cowley was responsible for financial management, corporate administration and
human resources. Cowley has a Bachelor of Science degree in Accounting from the University
of Utah and is a Certified Public Accountant. Cowley was a principal shareholder of MonaVie
and owned, upon information and belief, 10% of MonaVies stock prior to the 2010 ESOP
Transaction. Thus, at all relevant times, Cowley was a party in interest as to the ESOP as
defined in ERISA 3(14), 29 U.S.C. 1002(14). Cowley resides in North Salt Lake, Utah.
21.

At all relevant times, Mark Rawlins (Rawlins) was a Director of MonaVie.

Rawlins was responsible for supervising corporate governance and the long-term strategic
direction of the MonaVies financial performance. Rawlins has a Bachelor of Science degree in
Information Technology from Utah State University. Upon information and belief, Rawlins was
a principal shareholder of MonaVie and owned MonaVies stock prior to the 2010 ESOP
Transaction. Thus, at all relevant times, Rawlins was a party in interest as to the ESOP as
defined in ERISA 3(14), 29 U.S.C. 1002(14). Rawlins resides in Orem, Utah.
22.

At all relevant times, Porter Hall (P. Hall) was a Director of MonaVie. P. Hall

was responsible for supervising corporate governance and the long-term strategic direction of the
MonaVies financial performance. P. Hall has a Bachelor of Science degree in Accounting from
Brigham Young University and is a Certified Public Accountant. Upon information and belief, P.
Hall was a principal shareholder of MonaVie and owned MonaVies stock prior to the 2010

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ESOP Transaction. Thus, at all relevant times, P. Hall was a party in interest as to the ESOP as
defined in ERISA 3(14), 29 U.S.C. 1002(14). P. Hall resides in Sandy, Utah.
23.

At all relevant times, Stephen Hall (S. Hall) was a Special Advisor to the Board

of Directors of MonaVie. S. Hall was responsible for consulting with the Board of Directors on
supervising corporate governance and the long-term strategic direction of the MonaVies
financial performance. S. Hall has a Bachelor of Science degree in Marketing from Boise State
University. Upon information and belief, S. Hall was a principal shareholder of MonaVie and
owned MonaVies stock prior to the 2010 ESOP Transaction. Thus, at all relevant times, S. Hall
was a party in interest as to the ESOP as defined in ERISA 3(14), 29 U.S.C. 1002(14). S.
Hall resides in Park City, Utah.
24.

Doe Defendants 1-10 are individual fiduciaries, principal shareholders, and board

members.
FACTUAL ALLEGATIONS
25.

MonaVie is a Utah limited liability company headquartered in South Jordan,

Utah. MonaVie manufactures and distributes fruit juice beverages. MonaVies business model is
to distribute its product through multi-level marketing, resembling a pyramid scheme of
distributors. MonaVie was founded by D. Larsen in January 2005.
26.

MonaVie products allegedly combine the juice from aai berry with the juices of

eighteen other fruits and berries, including pomegranates, grapes, pears, cranberries, and
blueberries. MonaVie products are priced at $39 for a bottle of MonaVie original juice. The
bottle contains approximately 25 ounces and has the shape of a wine bottle.

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27.

MonaVie sells its products through a multi-level marketing distribution system.

MonaVie ranks its distributors and provides incentives as a distributor progresses through the
ranks in the following ascending order of prestige: Star, Bronze, Silver, Gold, Ruby, Emerald,
Diamond, Blue Diamond, Hawaiian Blue Diamond, Black Diamond, Royal Black Diamond,
Presidential Black Diamond, Imperial Black Diamond, and Crown Black Diamond. MonaVie
promotes that its juices contain antioxidants from aai or other fruits in its blends.
28.

MonaVies 2007 Statement of Policies and Procedures (Policies and

Procedures) provide for income disclosure to distributors and prospective distributors, through a
developed Income Disclosure Statement (IDS). According to MonaVies policies and
procedures, the IDS was designed to convey truthful, timely, and comprehensive information
regarding the income that MonaVie distributors earn. Further, the MonaVie policies and
procedures required an IDS be provided to all prospective distributors, as well as any time
distributor compensation was discussed. The IDS also was required to be produced anytime an
income claim or earnings representation was made, including statements that refer to average
earnings, ranges of earnings, for example our average Black Diamond distributor makes XXX
per month.
29.

MonaVies Policies and Procedures provide that distributors of MonaVies

products cannot use any sales or marketing aids without prior, written authorization of MonaVie.
Only those distributors who attained the ranking of Black Diamond or higher were allowed by
MonaVie to create and publish their own marketing materials, but MonaVies policies and
procedures required that any marketing or sales items must be reviewed by MonaVie and bear
the appropriate review seal before being disseminated or displayed.

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30.

MonaVies Policies and Procedures also allowed distributors to utilize Internet

web pages to promote their business, however, all distributors were required to do so through
MonaVies official website or through replicating already approved MonaVie websites.
Distributors who reached the rank of Black Diamond or higher were allowed to develop their
own websites, but could only use text found on MonaVies official website and were prohibited
from supplementing their websites with text from any source other than MonaVie.
31.

In 2007, the FDA issued a Warning Letter to MonaVie distributor Kevin Vokes

for misleading promotional materials claiming that MonaVie was an effective treatment for
inflammation, high cholesterol, and muscle/joint pain. Amidst serious criticism, MonaVie issued
a statement that many of its distributors may have unwittingly violated its internal advertising
practices.
32.

According to MonaVie's 2007 Income Disclosure Statement, a federally required

printout of their distributor earnings, most of the sales were generated by selling MonaVie juices
to its own salesforce. More than 90 percent were considered "wholesale customers," whose
earnings are mostly discounts on sales to themselves.
33.

In July 2008, MonaVie, and several of its top level distributors were sued in this

Court by Quixtar, Inc.(Quixtar) and Amway, Corp. (Amway) for unfair competition and for
raiding the sales forces of Quixtar and Amway through false and misleading statements
regarding MonaVies products and the health benefits associated with MonaVies products.
34.

The lawsuit by Quixtar and Amway named top level MonaVie distributors and

particularly described false or misleading sales tactics. Two distributors, John Brigham (Brig)
and Lita Hart (collectively with Brig as the Harts), were promoted by MonaVies website as

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having achieved the rank of Imperial Black Diamond Executive and featured the Harts in at
least documentary videos. Quixtar and Amway named the Harts individually in their suit,
alleging that each had held recruitment meetings across the country where the Harts tried to
recruit and promote sales of MonaVie products through the promotion and circulation of false
and misleading statements about the products health benefits. According to the lawsuit, videos
of some of the Harts recruitment meetings were posted on internet websites, including
YouTube.com.
35.

The Quixtar and Amway Complaint alleged one marketing video featured John

Brigham interviewing a purported MonaVie customer identified as Chris Sanders from Melrose
in the following exchange:
Brig: Okay, well, how long have you been on the product?
Sanders:

Three weeks.

Brig: And how much you drinking?


Sanders:

Three ounces in the morning and three ounces in the afternoon

Brig: Praise God. That always does my heart good. Okay, whats happened since you
been at it?
Sanders:

Dropped my blood pressure down to 135 over about 85. It was 190 over

120. Lost five pounds -Brig: (whisper) Come on.


Sanders:

And my sister-in-law just called me tonight. She has fibromyalgia. She

had one bottle.


Brig: (whisper) This is good.

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Sanders:

And her neck and arm stopped hurting, and shes been off it for two days,

and now shes begging for another bottle.


36.

According to the Quixtar and Amway Complaint, repeatedly in the Harts sales

meetings, potential MonaVie customers and distributors were told that MonaVie products reduce
blood pressure and relieve the symptoms of fibromyalgia despite the fact that MonaVies
products were not approved by the FDA for medicinal use.
37.

The 2008 Quixtar and Amway Complaint also named Jason Lyons (Lyons) and

Carrie Palmieri (Palmieri) for similar marketing tactics employed by the Harts. In one sales
meeting, captured on video and available on the Internet according to the Complaint, Jason
Lyons introduced Dr. Lou Niles (Niles) to promote MonaVie products in the following
exchange:
Lyons:

Folks, also we have a doctor in the house. You wanna give youre your

best three minutes on MonaVie and come in here and share a little bit about it? Dr. Lou
Niles.
Niles: I am the guy you dont want to really know because I am the doctor of last
resort it seems, and I am usually dealing with end-stage cancers . . . I very reluctantly
got involved in MonaVie. I only got involved in it when I realized there that something
else was going on in the combination of the juices that Dr. Carson put together. And its
more than just fruit juices its the combination that seems to be working. So, I have
never lost a cancer patient yet . . . The reason is that MonaVie is so loaded with
antioxidants and anti-inflammatories that it immediately scrubs all the smoke that is
being produced by the body and it immediately stop and slows down oxidation. It cant

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[prevent oxidation] at 100%, but it slows it down, and if you drink MonaVie on a regular
basis for the rest of your life and it becomes part of your menu, you will have put in your
body enough antioxidants to keep from aging at a rapid pace. What it also does is it also
allows your T-killer cells, which are your immune cells, to arrest a virus, bacteria, fungus
or loose cancer cells. That is why it is such a cool product. There is no other food on the
planet that can do this.
38.

The 2008 Quixtar and Amway Complaint also alleged that Dr. Niles outrageous

misrepresentations of the healing effects of MonaVie products were found on Club MonaVie
Radio via the internet at www.blogtalkradio.com/live2a120/2007/12/09/MONAVIEFEATURING-OPTI-ACAI.
39.

Yet another distributor, Dr. Farid Zarif (Zarif), was sued in the 2008 Quixtar

and Amway Complaint for misrepresenting that MonaVie products helped cure cancer and
rheumatoid arthritis. Dr. Zarifs comments were captured in videos available to the public on the
internet. In those videos, Dr. Zarif recommended at least four ounces of MonaVie juice per day
and that MonaVie could help cancer patients, chemotherapy patients, and treat diseases including
Osteoporosis and Alzheimers.
40.

The 2008 Quixtar and Amway Complaint also alleged that Dr. Zarif advertised

MonaVie products on the website www.mymonavie.com/drzarif, where Dr. Zarif falsely


represents that MonaVie products can treat inflammation, heart disease, cancer, arthritis, obesity,
diabetes, asthma, Alzheimers and allergies. According to the Complaint, these
misrepresentations were made freely available to the public.

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41.

An inventory of many of the outrageous, bogus, and false health claims made by

top MonaVie distributors and representatives, all of which were well-documented before the
2010 ESOP Transaction was executed, is attached as Exhibit 1 hereto.
42.

On or about April 30, 2008, Quixtar provided notice through certified mail to

MonaVie and its distributors, including the Harts, Lyons, Palmieri, Niles, and Zarif, of the
deceptive, misleading and false advertising practices of the MonaVie and its distributors.
Quixtars notice requested that MonaVie and the individual distributors cease making false
statements, to take steps to remove false statements from all forms of media, and to publish
adequate corrections within ten days.
43.

Several reporters and columnists, including Tony Dokoupil of Newsweek, Jonny

Bowden of The Huffington Post, Carolyn Susman of Palm Beach Post, and Tom Harvey of Salt
Lake City Tribune, have been critical of the misleading promotional efforts and testimonials of
MonaVie distributors.
44.

In August 2008, Forbes published an article by Emily Lambert and Klaus Kneale

that described MonaVie as a pyramid atop a pyramid. According to the article, MonaVie
recruits distributors on the lure of a sustainable entrepreneurship, selling their distributors
motivational lectures and multi-level marketing tools which purportedly helped to increase their
sales of MonaVie products. The article explained that MonaVies business model takes
advantaged of ambiguities in the Federal Trade Commissions regulation of pyramid schemes
and that only 1% of distributors make any money from their involvement in MonaVie.
45.

In 2008, MonaVie was named as a defendant in a false advertising and trademark

infringement suit and was in a multi-issue legal battle with Quixtar/Amway. The lawsuit by

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Quixtar, a sister company of Amway, alleged that MonaVie unfairly competed with it by making
false claims about its products and that former Amway distributors, now MonaVie distributors,
were violating non-compete agreements with Amway. In 2009, similar lawsuits were filed by
Oprah Winfrey and Dr. Mehmet Oz against MonaVie alleging false advertising.
46.

In 2009, Orrin and Laurie Woodward were found liable in arbitration for

soliciting other distributors to resign from Quixtar to join MonaVie, and were ordered to pay
$12,736,659. Several other MonaVie distributors were ordered to pay over $13 million.
47.

MonaVie experiences high turnover of distributors, with only a small percentage

of distributors earning enough to make a living. Most distributors become disillusioned with
MonaVies multi-level marketing, and the turnover rates are estimated to be above 50% per year.
In 2009, 85% of MonaVies active distributors received commission checks averaging $35 a
week or less. In 2009, R. Larsen acknowledged in an article with Bloomberg News that the
company is struggling with independent distributors who promote the juice as a miracle drug.
2010 ESOP Transaction
48.

MonaVie is the Sponsor of the ESOP within the meaning of ERISA 3(16)(B),

29 U.S.C. 1002(16)(B). MonaVie adopted the ESOP effective on or about January 2, 2010.
Bankers Trust, in its capacity as Trustee of the ESOP, purchased the common stock of MonaVie
from the Selling Shareholders (or entities controlled by them) in consideration for payment of
$186 million. The sale was seller-funded by a loan agreement where the ESOP financed the
buyout and owed $186,496,985 effective November 17, 2010. Presumably, no other lender was
willing or would be willing to make this loan based on the questionable value of the collateral
stock, therefore MonaVies employees were stuck with the financing.

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49.

Prior to the sale of MonaVie stock to the ESOP, 100% of MonaVie stock was

owned by the Selling Shareholders or entities that they controlled. After the sale it is unknown
what percentage of MonaVie stock is owned by the ESOP or the Selling Shareholders or entities
that they controlled.
50.

MonaVie appointed Bankers Trust as Trustee of the ESOP in 2010 for the

purpose of representing the ESOP in the proposed 2010 ESOP transaction. It is unknown
whether Bankers Trust hired anyone as its financial advisor for the proposed 2010 ESOP
Transaction.
51.

The Selling Shareholders resorted to seller-financing because there were

presumably unable to arrange bank financing for the proposed. Any prospective bank lenders
would have been troubled by the fact that the proposed ESOP transaction would be 100%
leveraged. No reasonably prudent bank would have financed the transaction at the $186 million
dollar value without conducting robust due diligence on the loan, including reviewing public
information and the Amway lawsuit, to ensure that the collateral pledged, the stock, was actually
worth $186 million. Because the Selling Shareholders could not obtain, or knew they could not
obtain, bank financing for the transaction, they financed the transaction themselves with a 10%
note. The 2010 ESOP Transactions interest rate was more than double the customary rate of
4.25%, which was the then-available rate for issuance of debt with similar terms.
52.

Bankers Trust either failed to conduct adequate due diligence or ignored the facts

that were readily available both publicly and within MonaVie in acting as trustee for the 2010
ESOP Transaction. For example, a review of MonaVies IDS over the previous years would have
demonstrated that MonaVies distributors were not earning as much as they had in the past.

18

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 19 of 35

Because MonaVie sells its products entirely through multi-level marketing, reduced
commissions earnings for its distributors would directly correlate to reduced sales. Bankers Trust
could have readily obtained the IDS reports because even prospective distributors with no
relationship to MonaVie were purportedly provided a current copy of the IDS whenever
distributor earnings were discussed in the recruiting process.
53.

Further, Bankers Trust either failed to conduct adequate due diligence regarding

the mounting criticism of MonaVie, its principals, and its top-level distributors. Even a cursory
search on the Internet would have revealed scathing articles from such widely read publications
as Forbes, The Huffington Post, Palm Beach Post, or the Salt Lake City Tribune. This skeptical
view of the benefits of MonaVies products was widely reported in 2008, and could have been
easily discovered by Bankers Trust in 2010.
54.

Even if Bankers Trust ignored or disregard the numerous articles that describe

MonaVies problems, Bankers Trust due diligence review should have included a review of
pending and past litigation. Again, an Internet search in federal or state courts would have
revealed the lawsuits filed by Qixtar, Amway, Oprah Winfrey, and Dr. Mehmet Oz against
MonaVie, not to mention the numerous lawsuits against MonaVies distributors.
55.

Despite this sea of red flags, Bankers Trust initially valued the ESOPs stock at

$186,496,985 and agreed to a loan agreement for a period of fifteen years, on behalf of the ESOP
for this same amount on November 17, 2010. The loan bore an interest rate of ten percent (10%)
per annum, with a fair value on the note payable of $265,764,839, determined using an interest
rate of 4.25% for then available rates for the issuance of debt with similar terms, maturity dates,
and nonperformance risk.

19

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 20 of 35

56.

The interest rate on the loan was exorbitant. The accountants for the ESOP

determined that a fair interest rate for similar private debt transactions was 4.25%. 2010 5500
Financial Statement Note G. Thus not only did the Bankers approve the acquisition of MonaVie
stock at vastly inflated values, it also approved a note that was more than double the going rate
and that was paid to the very same Selling Shareholders who unloaded the vastly overvalued
stock.
57.

In fact, the ESOP is going deeper in the hole on the note. The Selling

Shareholders decide at their sole discretion how much to contribute to pay down the note. Not
once have the annual contributions been sufficient to service the interest on the note, let alone
pay down principal. Bankers Trust essentially blessed a transaction that was doomed to fail and
saddled
58.

Within 45 days, the value of the ESOP stock plummeted and lost over $62 million

in value. As of December 31, 2010, the ESOPs stock was valued at $122,001,163.
59.

Given the precipitous decline in the value of MonaVie stock, it is implausible that

Bankers Trust reviewed or analyzed MonaVies earning statements, such as the IDS, which was
provided to all prospective distributors and would necessarily be made available to every
MonaVie distributor marketing the products and recruiting other distributors. Moreover, Bankers
Trust failed to prepare a due diligence review of MonaVies growing revenue and liability issues.
If Bankers Trust had followed up with MonaVie regarding these revenue and liability issues or
conducted sufficient due diligence, Bankers Trust would have learned that MonaVies revenues
were dwindling while liabilities were piling on.

20

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 21 of 35

60.

Bankers Trust almost certainly did not undertake an independent investigation of

MonaVies dwindling revenues, legal trouble and potential liabilities prior to the proposed ESOP
transaction. Bankers Trust, inter alia, did not obtain or did not consider information about
previous or pending lawsuits, claims against the company, or internal documents, such as the
IDS which would demonstrate dwindling sales for MonaVie products as part of Bankers Trusts
due diligence review of the proposed Transaction.
61.

As of January 3, 2014, the ESOPs stock was valued at 6 cents per share, which

values the ESOPs stock at under $772,000, which is less than 0.05% of the original $186
million purchase price. In 2014, the ESOPs stock value has continued to decline and is now
essentially worthless.
62.

Currently, ESOP participants are unable to obtain any information concerning the

value of their shares, while MonaVie conducts an evaluation of the stock price.
63.

During the period since the Transaction, Bankers Trust has not adequately sought

to remedy the overpayments caused by the acts and omissions described above.
CLASS ACTION ALLEGATIONS
64.

Plaintiffs bring the First and Second Claims for Relief for violations of ERISA

502(a)(2) and 502(a)(3), 29 U.S.C. 1132(a)(2) and 1132(a)(3), as a class action pursuant to
Fed. R. Civ. P. 23 (a) and (b), on behalf of all persons who were participants in the ESOP on
February 1, 2008, or at any time thereafter, and/or beneficiaries of ESOP participants on
February 1, 2008, or at any time thereafter (hereinafter Plaintiff Class). Excluded from the
Plaintiff Class are the Individual Defendants, and their immediate families; the officers and

21

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 22 of 35

directors of Defendant Bankers Trust or of any entity in which a Defendant has a controlling
interest; and legal representatives, successors, and assigns of any such excluded persons.
65.

The Plaintiff Class is so numerous that joinder of all members is impracticable.

Although the exact number and identities of Class Members are unknown to Plaintiff at this time,
the ESOPs form 5500 filing for 2013 indicates that there are 458 participants in the ESOP.
66.

Questions of law and fact common to the Plaintiff Class as a whole include, but

are not limited to, the following:


i.

Whether Defendant Bankers Trust engaged in a prohibited transaction


under ERISA by permitting the ESOP to purchase MonaVie stock for
more than adequate consideration;

ii.

Whether Defendant Bankers Trust engaged in a prudent investigation of


the proposed purchase of MonaVie stock by the ESOP;

iii.

Whether Defendant Bankers Trust breached its duty of loyalty by making


commission or bonus payments to Bankers Trust employees only if the
ESOP transaction was consummated;

iv.

Whether Defendant Bankers Trust breached a fiduciary duty to ESOP


participants by causing the ESOP to purchase MonaVie stock for more
than fair market value;

v.

Whether Defendant Bankers Trust breached its fiduciary duties to ESOP


participants by failing to adequately investigate and remedy the
overpayment by the ESOP in the 2010 ESOP Transaction;

22

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 23 of 35

vi.

Whether the Selling Shareholders knowingly participated in Bankers Trust


violations of ERISA;

vii.

Whether the Selling Shareholders were fiduciaries for the ESOP in the
course of the ESOP Transaction;

viii.

Whether the Selling Shareholders are liable under ERISA for monetary
and nonmonetary equitable remedies even if they are not fiduciaries for
the ESOP;

ix.

The amount of damages suffered by the ESOP and its participants as a


result of Defendants fiduciary violations.

67.

Plaintiffs claims are typical of those of the Plaintiff Class. For example, Plaintiff,

like other ESOP participants in the Plaintiff Class, suffered a diminution in the value of his
ESOP account because the ESOP plunged in value after purchasing MonaVie stock for more
than fair market value, and he continues to suffer such losses in the present because Defendants
have failed to correct the overpayment by the ESOP.
68.

Plaintiff will fairly and adequately represent and protect the interests of the

Plaintiff Class. Plaintiff has retained counsel competent and experienced in complex class
actions, ERISA, and employee benefits litigation.
69.

Class certification of Plaintiffs Claims for Relief for violations of ERISA is

appropriate pursuant to Fed. R. Civ. P. 23(b)(1) because the prosecution of separate actions by
individual Class members would create a risk of inconsistent or varying adjudications which
would establish incompatible standards of conduct for Defendants, and/or because adjudications

23

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 24 of 35

with respect to individual Class members would as a practical matter be dispositive of the
interests of non-party Class members.
70.

In addition, Class certification of Plaintiffs Claims for Relief for violations of

ERISA is appropriate pursuant to Fed. R. Civ. P. 23(b)(2) because Defendants have acted or
refused to act on grounds generally applicable to the Class, making appropriate declaratory and
injunctive relief with respect to Plaintiff and the Class as a whole. The members of the Class are
entitled to declaratory and injunctive relief to remedy Defendants violations of ERISA.
71.

The names and addresses of the Plaintiff Class are available from the ESOP.

Notice will be provided to all members of the Plaintiff Class to the extent required by Fed. R.
Civ. P. 23.
CLAIMS FOR RELIEF
FIRST CLAIM FOR RELIEF
Breach of Fiduciary Duty Under ERISA 502(a)(2) and (a)(3),
29 U.S.C. 1132(a)(2) and (a)(3)
72.

Plaintiff incorporates the preceding paragraphs as though set forth herein.

73.

ERISA 404(a)(1), 29 U.S.C. 1104(a)(1), requires, inter alia, that a plan

fiduciary discharge his or her duties with respect to a plan solely in the interest of the participants
and beneficiaries and with the care, skill, prudence, and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and familiar with such matters would
use in the conduct of an enterprise of a like character and with like aims. The fiduciary duty of
loyalty entails a duty to avoid conflicts of interest and to resolve them promptly when they occur.
A fiduciary must always administer a plan with an eye single to the interests of the participants
and beneficiaries, regardless of the interests of the fiduciaries themselves or the plan sponsor.

24

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 25 of 35

74.

ERISA 409, 29 U.S.C. 1109, provides, inter alia, that any person who is a

fiduciary with respect to a plan and who breaches any of the responsibilities, obligations, or
duties imposed on fiduciaries by Title I of ERISA shall be personally liable to make good to the
plan any losses to the plan resulting from each such breach, and additionally is subject to such
other equitable or remedial relief as the court may deem appropriate, including removal of the
fiduciary.
75.

ERISA 502(a)(2), 29 U.S.C. 1132(a)(2), permits a plan participant to bring an

action for relief under ERISA 409.


76.

ERISA 502(a)(3), 29 U.S.C. 1132(a)(3), permits a plan participant to bring an

action to obtain appropriate equitable relief to enforce the provisions of Title I of ERISA or to
enforce the terms of a plan.
77.

Defendant Bankers Trust breached its duties under ERISA 404(a)(1), 29 U.S.C.

1104(a)(1). These breaches include but are not limited to the following:
i.

Bankers Trust failed to take reasonable steps to determine that it received


complete, accurate and current information necessary to value MonaVies
stock;

ii.

Bankers Trust failed to conduct a reasonable inquiry as to whether the


individuals responsible for providing MonaVies financial projections: (a)
had a conflict of interest in regards to the ESOP; and (b) served as agents
or employees of persons with such conflicts;

25

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 26 of 35

iii.

Bankers Trust did not adequately investigate or evaluate the


reasonableness of the financial projections considered in the proposed
Transaction;

iv.

Bankers Trust did not take reasonable steps necessary to determine the
prudence of relying on MonaVies financial statements provided to them,
especially in light of the wealth of public information about the company
that cases doubts on the valuation;

v.

Bankers Trust caused the ESOP to pay more than fair market value for
MonaVie stock;

vi.

Bankers Trust failed to conduct a thorough and independent review and


adequately consider whether the 2010 purchase of MonaVie stock from
the Selling Shareholders or the was in the best interests of the ESOP
participants;

vii.

Bankers Trust caused the ESOP to take on excessive debt in connection


with the 2010 ESOP Transaction;

viii.

Bankers Trust failed to undertake an adequate and independent valuation


of the MonaVie stock prior to the 2010 ESOP Transaction;

ix.

Bankers Trust failed to adequately consider all material facts in


negotiating the 2010 ESOP Transaction;

x.

Bankers Trust failed to adequately remedy the ESOPs overpayment for


MonaVie stock at any time between January 2010 and the present.

26

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 27 of 35

78.

ERISA 410 prohibits agreements that purport to relieve a fiduciary from

responsibility or liability for any fiduciary duty. 29 U.S.C. 1110(a). Specifically, 410 states
that any provision in an agreement or instrument which purports to relieve a fiduciary from
responsibility or liability for any responsibility, obligation, or duty under this part shall be void
as against public policy. 29 U.S.C. 1110(a).
79.

Any indemnification agreement between Bankers Trust, on the one hand, and

MonaVie or the ESOP, on the other hand, violates ERISA 410 and is therefore null and void.
Defendants acts and omissions caused millions of dollars of losses to the Plan and its
participants in an amount to be proven more specifically at trial.
SECOND CLAIM FOR RELIEF
Engaging in Prohibited Transactions Forbidden by ERISA 406(a)-(b),
29 U.S.C. 1106(a)-(b)
80.

Plaintiffs incorporate the preceding paragraphs as though set forth herein.

81.

ERISA 406(a), 29 U.S.C. 1106(a), requires that a plan fiduciary shall not

cause the plan to engage in a transaction, if he knows or should know that such transaction
constitutes a direct or indirect sale or exchange, or leasing of any property between the plan and
a party in interest, or a transfer to, or use by or for the benefit of, a party in interest, of any
assets of the plan.
82.

ERISA 406(b), 29 U.S.C. 1106(b), mandates that a plan fiduciary shall not

act in any transaction involving the plan on behalf of a party (or represent a party) whose
interests are adverse to the interests of the plan or the interests of its participants, or deal with
the assets of the plan in his own interest or for his own account, or receive any consideration

27

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 28 of 35

for his own personal account from any party dealing with such plan in connection with a
transaction involving the assets of the plan.
83.

ERISA 408(e), 29 U.S.C. 1108(e) provides a conditional exemption from the

prohibited transaction rules for sale of employer securities to or from a plan if a sale is made for
adequate consideration. ERISA 3(18)(B) defines adequate consideration as the fair market
value of the asset as determined in good faith by the trustee or named fiduciary. ERISAs
legislative history and existing case law make clear that ERISA 3(18)(B) requires that the price
paid must reflect the fair market value of the asset, and the fiduciary must conduct a prudent
investigation to determine the fair market value of the asset.
84.

Defendant Bankers Trust engaged in a prohibited transaction in violation of

ERISA 406(a)-(b), 29 U.S.C. 1106(a)-(b), in the 2010 ESOP Transaction, and the
prohibited transaction did not meet the conditional exemption requirements of ERISA 408(e),
29 U.S.C. 1108(e). Defendant Bankers Trust failed to ensure that the ESOP paid no more than
fair market value for the MonaVie stock purchased by the ESOP from the Selling Shareholders,
all parties in interest to the ESOP, in 2010. Specifically, the ESOP paid more than fair market
value for shares sold by the Selling Shareholders.
85.

Defendant Bankers Trust engaged in a prohibited transaction in violation of

ERISA 406(a)-(b), 29 U.S.C. 1106(a)-(b), by causing the ESOP to purchase MonaVie


stock for greater than adequate consideration in 2010; causing the ESOP to borrow funds for the
2010 ESOP Transaction, even though the purchase price was inflated; and causing the ESOP to
take on excessive debt in connection with the 2010 ESOP Transaction.

28

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 29 of 35

86.

Specifically, the ESOP paid more than fair market value for shares sold by the

Selling Shareholders, and Bankers Trust failed to conduct an independent and prudent
investigation into the fair market price before entering into the stock purchase agreement with
MonaVie and the Selling Shareholders.
87.

ERISA 409, 29 U.S.C. 1109, provides, inter alia, that any person who is a

fiduciary with respect to a plan and who breaches any of the responsibilities, obligations, or
duties imposed on fiduciaries by Title I of ERISA shall be personally liable to make good to the
plan any losses to the plan resulting from each such breach, and additionally is subject to such
other equitable or remedial relief as the court may deem appropriate, including removal of the
fiduciary.
88.

ERISA 502(a)(2), 29 U.S.C. 1132(a)(2), permits a plan participant to bring a

suit for relief under ERISA 409.


89.

ERISA 502(a)(3), 29 U.S.C. 1132(a)(3), permits a plan participant to bring a

suit to obtain appropriate equitable relief to enforce the provisions of Title I of ERISA or to
enforce the terms of a plan.
90.

Defendant Bankers Trust has caused millions of dollars of losses to the ESOP by

the prohibited transactions in an amount to be proven more specifically at trial.


THIRD CLAIM FOR RELIEF
Knowing Participation in Violations of ERISA
91.

Plaintiffs incorporate the preceding paragraphs as though set forth herein.

92.

ERISA 502(a)(3) permits a claim against parties-in-interest for knowing

participation in a fiduciarys violations of ERISA.

29

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 30 of 35

93.

The Individual Defendants knew of and participated in Defendant Bankers Trusts

violations of ERISA, which are detailed in Plaintiffs First and Second Claims for Relief.
94.

Specifically, each of the Individual Defendants knew before and at the time of the

2010 ESOP Transaction that MonaVie was in dire financial condition, as detailed above. Each of
the Individual Defendants knew that: (1) sales of MonaVie products were declining; (2)
MonaVie had been widely criticized in various media outlets; (3) several of its top distributors
had multi-million dollar judgments entered against them; (4) several of its top distributors and
representatives had engaged in routine and repeated false and misleading health claims about
MonaVie products; (5) MonaVie was mired in several costly and bitter lawsuits; and (6) virtually
all of its sales were to wholesale distributors who left the distribution chain rapidly, rather than to
retail consumers.
95.

Despite their knowledge that the ESOP was essentially insolvent and worthless on

day one, the Individual Defendants hired Bankers Trust to represent the ESOP as Trustee and
knowingly participated in Bankers Trusts violations of ERISA.
96.

The Selling Shareholders reaped millions from the ESOP Transaction.


PRAYER FOR RELIEF

Wherefore, Plaintiffs pray for judgment against Defendants and for the following relief:
As to the First Claim for Relief:
A.

Certify this action as a class action pursuant to Fed. R. Civ. P. 23, certify the
named Plaintiff as class representative and his counsel as class counsel;

B.

Declare that Defendant Bankers Trust breached its fiduciary duties to the Plaintiff
Class;

30

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 31 of 35

C.

Enjoin Defendant Bankers Trust from further violations of its fiduciary


responsibilities, obligations, and duties;

D.

Issue a preliminary and permanent injunction removing Bankers Trust as


fiduciary and Trustee of the ESOP and barring Defendant Bankers Trust from
serving as fiduciary or Trustee of the ESOP in the future, and appointing a new
independent fiduciary as Trustee of the ESOP;

E.

Order that Defendant Bankers Trust make good to the ESOP and/or to any
successor trust(s) the losses resulting from its breaches and restoring any profits it
has made through use of assets of the ESOP;

F.

Order that Defendant Bankers Trust provide other appropriate equitable relief to
the ESOP, including but not limited to surcharge, providing an accounting for
profits, and imposing a constructive trust and/or equitable lien on any funds
wrongfully held by Defendant Bankers Trust;

G.

Declare that any indemnification agreement between the Defendant Bankers Trust
and MonaVie or the ESOP violates ERISA 410, 29 U.S.C. 1110, and is
therefore null and void;

H.

Award Plaintiff reasonable attorneys fees and costs of suit incurred herein
pursuant to ERISA 502(g), 29 U.S.C. 1132(g), and/or for the benefit obtained
for the common fund;

I.

Order Defendant Bankers Trust to disgorge any fees it received in conjunction


with the 2010 ESOP Transaction as well as earnings and profits thereon;

J.

Order Defendant Bankers Trust to pay prejudgment interest; and

31

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 32 of 35

K.

Award such other and further relief as the Court deems equitable and just.

As to the Second Claim for Relief:


A.

Certify this action as a class action pursuant to Fed. R. Civ. P. 23, certify the
named Plaintiff as class representative and his counsel as class counsel;

B.

Declare that Defendant Bankers Trust has breached its fiduciary responsibilities to
the Plaintiff Class;

C.

Enjoin Defendant Bankers Trust from further prohibited transactions and


violations of its fiduciary responsibilities, obligations and duties;

D.

Issue a preliminary and permanent injunction removing Defendant Bankers Trust


as fiduciary and Trustee of the ESOP and barring it from serving as fiduciary or
Trustee of the ESOP in the future, and appointing a new independent fiduciary as
Trustee;

E.

Declare that Defendant Bankers Trust engaged in a prohibited transaction in


violation of ERISA 406(a)-(b), 29 U.S.C. 1106(a)-(b), by causing the ESOP to
purchase MonaVie stock for more than adequate consideration;

F.

Order that Defendant Bankers Trust make good to the ESOP and/or to any
successor trust(s) the losses resulting from its breaches and restore any profits it
has made through use of assets of the ESOP;

G.

Order that Defendant Bankers Trust provide other appropriate equitable relief to
the ESOP, including but not limited to surcharge, providing an accounting for
profits, and imposing a constructive trust and/or equitable lien on any funds
wrongfully held by Bankers Trust;

32

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 33 of 35

H.

Order Defendant Bankers Trust to disgorge any fees it received in conjunction


with the 2010 ESOP Transaction, as well as an earnings and profits thereon;

I.

Order Defendant Bankers Trust to pay prejudgment interest;

J.

Award Plaintiff reasonable attorneys fees and costs of suit incurred herein
pursuant to ERISA 502(g), 29 U.S.C. 1132(g), and/or for the benefit obtained
for the common fund; and

K.

Award such other and further relief as the Court deems equitable and just.

As to the Third Claim for Relief:


A.

Certify this action as a class action pursuant to Fed. R. Civ. P. 23, certify the
named Plaintiff as class representative and his counsel as class counsel;

B.

Declare that the Individual Defendants knowingly participated in Defendant


Bankers Trust violations of ERISA;

C.

Enjoin the Individual Defendants from taking any actions with respect to the
ESOP and consistent with any additional orders entered by the Court;

D.

Order that the Individual Defendants disgorge to the ESOP and/or to any
successor trust(s) the all monies received by them in connection with the ESOP
Transaction and any profits they made through the use of such monies;

E.

Order that the Individual Defendants provide other appropriate equitable relief to
the ESOP, including but not limited to surcharge, providing an accounting for
profits, and imposing a constructive trust and/or equitable lien on any funds
wrongfully held by the Individual Defendants;

33

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 34 of 35

F.

Declare that any indemnification agreement between the Defendants and


MonaVie or the ESOP violates ERISA 410, 29 U.S.C. 1110, and is therefore
null and void;

G.

Award Plaintiff reasonable attorneys fees and costs of suit incurred herein
pursuant to ERISA 502(g), 29 U.S.C. 1132(g), and/or for the benefit obtained
for the common fund;

H.

Order the Individual Defendants to pay prejudgment interest; and

I.

Award such other and further relief as the Court deems equitable and just.
JURY DEMAND

Wherefore, Plaintiffs demand a trial by jury on all issues raised by the Complaint and so
triable.
DATED this 18th day of December, 2014.
Respectfully submitted,
MAGLEBY & GREENWOOD, P.C.

James E. Magleby (7247)


magleby@mgpclaw.com
Jennifer Fraser Parrish (11207)
parrish@mgpclaw.com
MAGLEBY & GREENWOOD, P.C.
170 South Main Street, Suite 850
Salt Lake City, Utah 84101
Telephone: 801.359.9000
Facsimile: 801.359.9011

34

Case 2:14-cv-00916-BSJ Document 2 Filed 12/18/14 Page 35 of 35

OF COUNSEL
Gregory Y. Porter, pro hac vice pending
gporter@baileyglasser.com
James L. Kauffman, pro hac vice pending
jkauffman@baileyglasser.com
BAILEY & GLASSER LLP
910 17th Street NW, Suite 800
Washington, DC 20006

Attorneys for Plaintiffs and the Putative Class

35

Case 2:14-cv-00916-BSJ Document 2-1 Filed 12/18/14 Page 1 of 21

Exhibit 1

Case
Case
2:08-cv-00204-BSJ
2:14-cv-00916-BSJDocument
Document
1398-4
2-1 Filed
Filed
12/18/14
06/04/10Page
Page
2 of
2 of
2116
AppendixB

Stmt
Statement
SourceofStatement
No.
1 BrigHart:HereswhatIknow.Ihadmesomebackpain,andIaintgotnobackpainnomore.Ihadmealittlebitofcancer,aint CP2765NewDistributorOrientation
gotnocancernomore.Now,Imnotsayingthisproductdidit,butIwilltellyouthis:Ididntdoanythingdifferentotherthan
(HART0001)at3:554:03.
drinkingthisproduct.Now,Idrankalotofit.
2

PatriciaAtcheson:Twentyyearsago,Iwasdiagnosedwithdegenerativearthritis.TheAaiActiveBlendisthefirstproductEVER CP2753WhyDoIneedMonavieDailyat
XANGO0205.218208.
thathastotallyamazedmebeforeIhadfinishedthefirstbottlemypainwastotallygoneinthosejointsthathadbeensobad.
PatriciaAtcheson,Virginia
CP2754,Super19Fruitsat
XANGO0205.230577.

SusanAllen:Iama56yearoldformernursewhohassufferedfromserious,chroniclowbackpainandsciaticasinceIwas29.I
wasonmorphineinjections(30mgs,5aday)andoxycontin(40mgs,3aday).IwasintroducedtotheAaiBlendonlyrecently
andhavehadamazingresults.Inoticedwithinaweekthatmypainlevelhadreducedby80%,andIwasusinghardlyany
morphine
SusanAllen,MelbourneAustralia

CP2753WhyDoIneedMonavieDailyat
XANGO0205.218208.

Mywrists,elbowsandkneesseemedwornoutfrominjuriesandyearsofhardwork.Thenaforkliftrammedbybackand3
monthsofmiserybegan.Within18hoursandjust3oz.ofthismiraculouselixir,Iawokefeelinglikeanewwoman.Imbackto
myoldselfagain.
A.C.,Iowa

CP2753WhyDoIneedMonavieDailyat
XANGO0205.218208.

CP2754,Super19Fruitsat
XANGO0205.230579.

CP2754,Super19Fruitsat
XANGO0205.230579.

ScottOlsen:IunderwentmajorsurgerytorepairacompletelycrushedpelvisWhentheAaiBlendbecameavailableinJanuary CP2753WhyDoIneedMonavieDailyat
2005,IstoppedallmymedicationsandreplacedthemwiththeAaiActiveBlendbefore3weekshadgonebyallofmypainhad XANGO0205.218208.
vanished.
CP2754,Super19Fruitsat
ScottOlsen,Utah
XANGO0205.230579.

Page1of15

Case
Case
2:08-cv-00204-BSJ
2:14-cv-00916-BSJDocument
Document
1398-4
2-1 Filed
Filed
12/18/14
06/04/10Page
Page
3 of
3 of
2116
AppendixB

Stmt
Statement
SourceofStatement
No.
6 MonaViecuresoraidsinallofthefollowingbasedonitsingredientprofile:cancer,riskofstroke,heartdisease,memoryloss,anti CP2753WhyDoIneedMonavieDaily.
aging,antibacterial/viral,antiinflammatory,arterialFlexibility,brainhealth,skinhealth,eyeHealth,cardiovascularhealth,gastric CP2754,Super19Fruits.
health,inhibitingprostatecancer,DNAdamage,eyeproblems,controllingcholesterol,reducingtriglyceridesintheblood,age
relatedmaculardegeneration,binding/removingcolontoxins,preventingcolonandprostateCancer,bloodsugarcontrol,
protectingDNAfromfreeradicals,inhibitingskincancer,sexualhealth,chronicfatigue,headaches,highbloodpressure,arthritis,
diabetes,visionproblems,circulatoryProblems,insomnia,sexualdysfunction,skin/complexionIssues,dehydration,
arteriosclerosis,allergenicsupport,preventbloodclots,heartdisease,energy/stamina,mentalfocus,Alzheimers,digestion,
sexualfunction,immunesystemsupport,antiagingsupport,amenorrhea,angina,bladderstones,blooddisorders,bruising,
capillarystrength,chronicfatigue,collagenformation,coughs,diarrhea,digestivediscomfort,fightinginflammation,glaucoma,
gout,hemorrhoids,restoring/promotingcollagen,heartattacks,rheumatoidarthritis,ulcers.
7

IhavesufferedfromPerniciousAnemiaforalmost12years.Iamtheposterchildforinflammation.AwhilebackIhadan
accidentwhereIherniatedtwodiscsinmybackanddislocatedmyrighthip.For25weeksIcouldnotfunctionwithoutintense
pain.IwassimplyattheendofmyropewhenafriendgavemeabottleofMonaVieActive.Withinanhour,Inoticedmy
handswerenotasswollen.OverthefirsttwodaysIprettymuchfinishedthebottleand,amazingly,waspainandmedication
free!PraiseGod!EmmyLilholt,Wellington,Florida

CP2754,Super19Fruitsat
XANGO0205.230579.

BrigHart:[exampleofwhattosaytoprospects]Peoplearedrinkingit,feelingit,sharingit,seeingresults.Backpain,neckpain,
psoriasis,dadada,whenyouhear,diabetes,thattypething.Peopleareseeingamazingresults....

CP2766NewDistr.Orientation
(HART0002)at1:04:591:05:11

BrigHart:[whathesaidtoprospectoverphone]IsaysLarry,youwouldntbelievethisthing.Peopleareseeingresults.Back
CP2766NewDistr.Orientation
pain,neckpain,arthritis,diabetesevensomecancer.Youwouldntbelievewhatsgoingon.Immakingnoclaims,Imjusttelling (HART0002)at41:0641:17.
himwhatsgoingon.

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Statement
No.
10 C.Sanders(toB.Hart):ChrisSandersfromMelrose.
B.Hart:Okay,well,howlonghaveyoubeenontheproduct?
C.Sanders:Threeweeks.
B.Hart:And,howmuchyoudrinking?
C.Sanders:Threeouncesinthemorningandthreeouncesintheafternoon.
B.Hart:PraiseGod.Thatalwaysdoesmyheartgood.Themoreyoudrink,thebetterIfeel.Okay,whatshappenedsinceyou
beenonit?
C.Sanders:Droppedmybloodpressuredownto135overabout85.Itwas190over120.Lostfivepounds
B.Hart:(whisper)Comeon.
C.Sanders:Andmysisterinlawjustcalledmetonight.Shehasfibromyalgia.Shehadonebottle.
B.Hart:(whisper)Thisisgood.
C.Sanders:Andherneckandarmwasstoppedhurting,andshesbeenoffitfortwodays,andnowshesbeggingforanother
bottle.
11

SourceofStatement
CP2767,AX00034,QMVCD0067:CD
VideoBrigHartSolicitedTestimonialsat
1:0942.

CP2767,AX00034,QMVCD0067:CD
C.Bagley(toB.Hart):ImCindyBagleyand,oh,ImfromPlano,Texas.Andabout,oh,eightmonthsago,Iwasdiagnosedwith
VideoBrigHartSolicitedTestimonialsat
rheumatoidarthritis....And,Iwastakingpainmedicationaswellasotherdrugstwotimesaday.Iwastakinganti
inflammatory.And,myfriendLillianintroducedmetothisandwithintwodays,Icutmypainmedicationinhalf.Andattheend 1:492:45.
oftheweek,IstoppedtakingitcompletelyandIhaven'thaditsince.Andmyswellinghasgonedownmuchmorethanevenwhen CP0192,AX391,MONO0760B.Hart
Iwastakingtheantiinflammatorywhichwasfantastic,butwhatwasevenbetteristherheumatoidarthritismademeverytired website.
andIwascrashingaboutoneoclock.Andnow,ImabletogothewayIusedtobetileightornineoclockatnight.And,the
otherthingisinmyfirstmonthIlostsixpoundsandImveryconsistentinmyweight.So,thatwasjustanotheraddedbenefit.

Page3of15

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SourceofStatement
No.
12 J.Purvis(toB.Hart):MynameisJoannaPurvisandImfromClaxton,Georgia,andIstartedwithMonaVieMarchthefifteenthof CP2767,AX00034,QMVCD0067:CD
thisyear.And,sincethattime,Ihaverecoveredfromtwostrokesthatreallyputmeonbedrest.
VideoBrigHartSolicitedTestimonialsat
6:117:28.
B.Hart:Really?
J.Purvis:And,Ihadnoenergy,nomybodywasntfunctioningproperly.Itaffecttherightsideofmybody.IhadtheBellPalsy
symptoms.Icouldntevenholdsomethingwithoutdroppingitinmyhand.
B.Hart:Comeon.
J.Purvis:And,also
B.Hart:Youretooyoungforallthis.
J.Purvis:Iturned49lastMonday.
B.Hart:Well,myGod.Whatareyoudoingwithstrokes?Whatyoudotolivedidyouinheritthat,orwhat?Imean
J.Purvis:No.Itwasjustalotofstress.Iusedtobeajudge.
(Generallaughter)
B.Hart:ImsorryforanythingI
J.Purvis:And,Ialsowithinthatsameperiodoftime,they,thedoctorfoundcancercells,spotsonmyleftmyrightovaryandmy
rightbreast.And,Brendahadcametomyhouse,didthefirstmeetinginClaxtonandshetoldme,shesaid,Donthavethe
surgeryyet.DrinktheMonaVie
B.Hart:(whisper)MyGod.Youtoldherthat?
J.Purvis:Giveitsometime.Threeandahalfweekslater,thedoctorsofficecalled.Wantedmetogoinandsetupthetimefor
thesurgery.ItoldthemIfeltsomuchbetter.Thatthereweresomanythingsmybodycoulddothatitwasntallowingmetodo
before.And,soIwentbackandhadsometestsdone.Thereisnocancercellsanywhereinmybody.
13

Idrankabottleintwodays...Within48hours,whenIwokeup,mybackpainwasliterallygone.Ididn'tfeelit.Igotupand
wentstraighttothechiropractor.Igotupthatmorning,onaWednesdaymorning,andIhadnobackpain.ZeroYouknow
whathappenedFridaymorningtwodaysoffoftheproduct?Godunhealedme.Mybackpainwasback,about50%ofitI
sluggeddownabout46ounces,Iliterallywatchedmybackpaindissipate.

14

BrigHart:IgottwokidsthatarekindaADD,youwouldntbelievewhatthisproducthashelpedthemsettledownandallthat.Im CP2774,QMVCD0140,CDdated
11/16/2007(Video)BrigHart
notsayingitstheproductyoucantdothat,allsIcantellyouisitstheonlythingdifferentweweredoing.
PresentationNebraska11162007at
1:34:4555.

15

BrigHart:Mymomisseventythree,nowseventyshellbeseventysixthisyear.Mymomsawtheproduct.Hadosteoarthritis
sobadherhandswerecrippledback.Shesawtheproduct.Onebottleofproductsheopenedherhandsupbypressingthem
withnopain.Twobottlessheopenedthemuponherown.Mymomisnow,shellfinishninetydaysinMaui,Hawaii.Swimming
everyday,walkingthebeachandallthat.Shewasreadytogiveuponlifethreeyearsago.Butshehasdonenothingmorethan
drinkthisproduct.

Page4of15

CP2774,AX0040,QMVCD00140,
R3GlobalTeamSupportVideofrom1116
2007at1:19:001:21:44and1:23:1739.

CP2776,QMVCD0142:CDdated
2/15/2008(Video)R3GlobalLLCBrig
HartPresentationOpenWebCast02
152008at12:2452.

Case
Case
2:08-cv-00204-BSJ
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Statement
No.
16 SteveMerritt:Thesecondthingyouwanttoknowabouttheacaiberryisthatitisthenumberoneantiinflammatoryfruityou
couldpossiblytakeuh,andinflammationisthecauseofmostpainanddisease.So,uh,whodoesnt,who,anybodyknow
someonewhomighthaveabackpainorkneepainthatmightwanttofeelbetter?Ok?Aheadacheortwo?Ah,thinkaboutit.
Takeaproduct,insteadoftakinguh,uh,anibuprofenor,or,ora,apharmaceuticaldrugyoucantakeanallnaturalproduct.

SourceofStatement
CP2778,QMVCD0144CDdated
3/12/2008(Video)R3GlobalLLCBrig
HartPresentationOpenWebCast03
122008at25:0939.

17

CharlieKalb:Inoticedthosethingsprettyquick.Inoticedmy,youknow,jointsandthingsthatIhadhowmanyofyouknow
whenyougetalittleolder,especiallywhenyouvebeeninvolvedinsports...so,Ihadsomelittleachesandpains,anduh,
starteddrinkingthejuice,andInoticedgosh,IusedtocrawlupthestepsandIcanactuallywalkupthem.

CP2780,AX00046,QMVCD0148,CD
dated5/14/2008(Video)BrigHart
Presentation05142008at13:5914:22.

18

BrigHart:IwenthomeandIdranktheproduct.Andwhathappenedinlessthanfortyeighthours,mybackpainwasgone....I
hadbeengoingtoachiropractorforeightandahalfmonths....Iwaswearingtwodiodeswithabatterypackthatshockedme
whenthepaingottoobad.Becauseifyoueverhaveasciaticnervethatisfullypinched,whichIhad,thepainisunbearable....I
comehome,drinkthis,getuponaWednesday...Ihadnobackpain....Irealizedinaboutanhourandahalf,now,Imtelling
you,Ifeltsomethinginmybody,andIfeltmypaindissipate...Isaidbaby,yourenotgoingtobelievethis,butIsaiddrankthis,I
drankthisagain,mypainwentaway.Ifeltitgoaway.

CP2781,QMVCD0151:CDdated
7/1/2008MonaViePresentation0701
2008,Part1at8:2736,8:5256,9:0515,
9:4457,17:5918:07,18:2230.

19

Brig:TheycamebackhomeafterhearingDr.Schausssignsbehindtheproduct.Hearingmotivationaltalksfromthefolksthat
CP2796,QMVCD125,CDdated7/7/2005
understoodwhythisbusinesswasdoingwhatitwasdoing.Theproductwassobackedupbypeoplethatgavetestimonybeyond (Audio)MonaVieShowcaseUtterbach
anythingthatIveeverseen.Amputeesthathavenophantompain;peoplewhosecholesterollevelswerebalanced;childrenthat 200577Brigat25:5126:28.
wereADDwereoutwardcalm.Peoplethatwerehavingsymptomsthatallofasuddennaturalproductsdoingsomethingmore
for.TheinflammationdealthatDr.Carsontalksabout.Allofasuddenweareconnectedandrealizingthatnowallswehaveto
doisplugin.

Page5of15

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Statement
SourceofStatement
No.
20 Brig:IdidnotletDallinknowthatIwasgoinginforlowerbackcortisoneshots.Ihadblewmybackout,Imnow52yearsyoung CP2902,QMVCD100,SpecialShowcase
withDarrellUtterbach2005228Brigat
andbeenintheindustry,beensemiretiredfor7years,hadn'tusedmybackawholelotsoIwasoutdoingsomeworkonmy
property,blewmybackouthadtogotothedoctoreveryday.Icouldnotmove,Iwasintremendouspain.IhadaMondayLast 48:4650:27.
MondayIhadanappointmentwithaspecialisttoinjectmybackwithcortisonebecausethepainwassogreatIcouldnotstandon
myfeetforafewhoursatatime,thepainbroughttearstomyeyes,agrownmancrying.Mywifecalledmeasissybutthe
cortisoneshotswouldatleastalleviatethepainandguesswhatIgottheActiveandguesswhatItooktheActive2daysstraight,I
waslikeIsaidthatMondayandlikeIsaidthatwasaSaturday,took,bySundayIrolledoutofbedandsaidhey,look1of2things
justhappened.GodhaseitherfullyhealedmeorelseImsonumbandIcantfeelitthatIminbigtrouble,Iprobablyhurtmyself
again.IdidnotsuspectorevenrealizeitwastheActivethathaddonesomething.Nowwatch,Ihavebeentakingitnowforthe2
weeks.Iwentinformyappointment,Ididnotgetthecortisoneshot,ImstillontheActive.TotestthistheoryIgotoffofitfor2
daysIwastravelingmybackstartedhurtingagain,gotrightbackhomegotonit,Imnottakingtheshot,justthoughtIdletyou
knowthat.Greatjobteam,Dr.Carson,Dallin,youhavedoneawonderfuljobwiththisproduct.Thebeliefoftheproduct
certainlyhelpsustotakethismessageandthemethodinwhichweregoingtodoitIamfullyexcitedaboutbecauseofthe
simplicityofthenewgenerationbinary.
21

RonPrudhomme:Hesaid,Itstopspain,hewentintothispainthing,Isaid,Illtakeit.BecauseIwasinpainthatday...thisis CP2867,QMVCD00145:Videoof
MonaViePresentationOpenWebCast
notalie,thisisnota,youknow,Imnotclaiming,Imnotmakingclaimsabouttheproduct,youhavetounderstandthis,but
realityis,intwelvedays,ahonebottle,thispainIdhadforfouryearswasgone.
date03/17/2008at3:1218,3046.

22

CP2867,QMVCD00145:Videoof
BrendaPrudhomme:AndIknowwecantmakeclaims,butIhadalotofinflammationinmyrightknee.Twoweeksmy
inflammation,mythrobbingknee,mypainsubsided,andthatwasgone.Ivehadmigrainesfortwentyyears;um,theproductput MonaViePresentationOpenWebCast
date03/17/2008at8:0727.
mybodybackinbalance.Aftertwentyyearsafterfiveweeksontheproductmymigraineshaddisappeared.

23

Hart:Idrankabottleintwodays.In48hoursmybackpainwasfullygone.

24

CP2773,Oct.26,2007,WestPalmBeach,
Hart:ThatbottleIdrank,mykidsdranktwobottlesandIgavemymotherabottlewhohasosteoarthritisrealbad,wellguess
what,soIwasoutofproduct.SoThursdaywasagoodday.Friday,Iwokeup,interestinglyenough,mybackpainwasabout50% FLLiveWebcastonBrighart.comat
back.
approx.17:3017:45.

CP2773,Oct.26,2007,WestPalmBeach,
FLLiveWebcastonBrighart.comat
approx.14:5615:05.

Page6of15

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Statement
No.
25 Hart:IwasonautoshipanditcameinFriday.NotreallythinkingabouttheproductsomuchotherthanImissedit.Mybody
misseditandIknewitdid.SoIuncorkedit,Iwasn'tevencoldandsluggeddownabout36ounces....Isatdownafterdrinking
thatbottleandfeltmybackpaingoawayafteraboutanhourandahalfandIsatdown,Litawalkedbyandsaidwhatareyou
doingIsaysbaby,youaintgoingtobelievethis,Istarteddrinkingthisproductandmybackpainwentawayagain.Shessays
Really?Soshesays,"Whatareyouthinkingabout?Isaid,"Imthinkingabouthowrichweregonnabe."

SourceofStatement
CP2773,Oct.26,2007,WestPalmBeach,
FLLiveWebcastonBrighart.comat
approx.18:5419:03;20:5121:12.

26

Hart:Mymom[who,remember,hasosteoarthritis]sawresultsafter2bottlesopenedupherhandsforthefirsttime.

CP2773,Oct.26,2007,WestPalmBeach,
FL,WebcastonBrighart.comatapprox.
21:4146.

27

Hart:IhadgivenabottletomymomwhohasosteoarthritisShedrankabottleinaweekInthenextbottle,sheopenedher
handsupforthefirsttimein9years.Shesaidshedidnthaveanypain.Shesoffallmedication.

CP2774,Nov.16,2007Omaha,NE,
WebcastonBrighart.comatapprox.
1:25:001:27:06.

28

Hart:Igaveit[theMonaVieproduct]tomydaughterwhohadherwisdomteethout,thattheinflammationwentalmost
immediatelyaway.

CP2774,Nov.16,2007Omaha,NE,
WebcastonBrighart.comatapprox.
1:31:211:31:26.

29

Hart:Igave[MonaVieproduct]ashousewarminggiftsto7ofmyneighbors,Youknow,afteraweekeveryoneofthem,itwas CP2774,Nov.16,2007Omaha,NE,
withinabout2to3daysallofthemendedupatmyhouseaskingmequestionsaboutwhatwasinthisstuffAll7ofthemcame WebcastonBrighart.comatapprox.
andtheyweretellingmethings,thatImtellingyou,Icantevenhardlybelieve,youknow,wedontmakeanyclaimsaboutthis
1:31:301:34:22.
productwecant.andbythewaythisisnotFDAapprovedTheyweretellingmetheireyeswerebetter,theyweregrowing
hair,theyweresayingallkindsofweirdthings,manmypainisgone,oneofthemwasgettingcortisoneshots,knees,ankles,legs,
toes.Shedrankthenextbottle,sheranovertomyhouseafterthesecondoneandshetoldmeshedidntgetanyshots,andshe
hadbeengettingthemforyears.She'ainthadanyfor2years.

30

Hart:Within48hoursofmefindingthisproductIhadnobackpainleft.Now,Iallowedtotellyouthat.Why?Becausethats
whathappened.48ofhoursafterIgotofftheproductbecauseIranout,mybackpainwasbackabout50%.

Page7of15

CP2776,Feb.15,2008OpenOpportunity
Meeting,WebcastonBrighart.comat
approx.6:587:09.

Case
Case
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Statement
SourceofStatement
No.
31 Hart:Sevenoutofseven,thefirstsevenIgaveitasahousewarminggift.Theyallsawresults,andtheyallwithininaweekcame CP2776,Feb.15,2008OpenOpportunity
tomyhousewithoutmeaskingaskingwhatwasintheproduct,IsaidItsjuice.MyGod,itsfruitjuicetheystartedtellingme Meeting,WebcastonBrighart.comat
thingsthatImnotallowedtorepeat.Becauseifwestartmakingclaimsthatitcuresanythingwegetindeep,deeptrouble.The approx.56:3458:11.
FTCcancomeandsayyouremakingclaimsnowweregoingtocallitadrug.No,itsafruit.Imtellingyou,itsounded,if
youveneverbeentoaBennyHinnhealingcrusadeorOralRobertsmiracleserviceyoudonotknowwhatImabouttotalkabout.
ButtheystartedtellingmethingsandIwasevengoingYouhavegottobekiddingme.Youarentgettingcortisoneshots
anymore,youthrewyourglassesawaybecauseyoucansee,youhavehairgrowingwherehairdontgrow

32

Hart:Afteronebottle,[Hartsmother,whohasosteoarthritis]andshepressedherhandsopenandsaidthisisincredible,Iwant CP2777,Feb.26,2008OpenOpportunity
Meeting,WebcastonBrighart.comat
anotherbottleofthatShedrankthesecondbottle,openedherhandsuponherown.
approx.24:3824:54.

33

Hart:Howmanyofyousawsomeresultswithabottle?Idid.Now,thereasonwhyIknewitwasntpsychosomaticorplacebois CP2777,Feb.26,2008OpenOpportunity
becauseIranoutoftheproductandmybackpaincameback2daysafterIwasofftheproductsoIgottheproduct,drankit,and Meeting,WebcastonBrighart.comat
Ifeltmypaindissipate.
approx.58:4059:01.

34

Hart:Forme,itwasunderstandingthatthisproductdidsomething.Whenmymomopenedupherhands,whenmydaughter
witharootcanalafterjustonedayontheproductaftershehadherwisdomteethpulledoutandherjawwaslikeachipmunk,
youveseenhowthathappens,inonedayontheproductshewasbacktalkingitstheantiinflammatory.

CP2777,Feb.26,2008OpenOpportunity
Meeting,WebcastonBrighart.comat
approx.59:2759:52.

35

Hart:Itsgotmoreanthocyaninsthanredwinethereare30xmoreanthocyaninsinthisproductthaninredwine.

CP2779,May6,2008OpenOpportunity
Meeting,WebcastonBrighart.comat
approx.8:358:55.

36

Hart:HereIdrankthestuff,andmybackpaindissipatedandthatwasonWednesdayonFriday,guesswhat?Godunhealed
me.Youknowwhathappened?Iwasoutofproductwhenit[MonaVie]cameinonFridayalittleafternoonIuncorkedthe
thing,IsluggeditdownIdontknow,46ozIdrankthisproductonthatFridayandinanhourandahalfstimeIliterallyfelt
mybackpainandthatthrobbingpaininmyleg,mysciaticnerve,goaway.

CP2779,May6,2008OpenOpportunity
Meeting,WebcastonBrighart.comat
approx.20:0723:34.

37

CP2779,May6,2008OpenOpportunity
Hart:ButIsawsuchresults.Isays[sic],youknow,at73herosteoarthritiswashurtingsobad,herhandswereSteve,you
remembermymomsheallshriveledupAfterthefirstbottle,oneweek,onebottleyouknowwhatshedid,shetookherhands Meeting,WebcastonBrighart.comat
andpressedthemopenshewantedanotherbottlesheopenedherhandsuponherownat76sheismoreactivethanshewas approx.1:21:281:24:52.
at73sheisonnomedicationwhatsoever.

Page8of15

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2:14-cv-00916-BSJDocument
Document
1398-4
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1010
ofof
2116
AppendixB

Stmt
Statement
No.
38 Hart:SoIdrinktheproduct,mypaingoesaway.Itmovesfrommyheadtomyheart,I'minthebusiness.Ilistentothe7people
thattellmetheysawresults,mymomsgoingnuts,osteoarthritis,opensherhandsupafter2bottles,shesbeenonnopain
medication.She,asamatteroffact,mymom'sspending$500600amonthonmedications,nowallshebuysisthis.

SourceofStatement
CP2781,July1,2008OpenOpportunity
Meeting,WebcastonBrighart.comat
approx.26:3726:58.

39

Hart:HejustgotthebottlelastweekandhesflippedoutbecausehesgotnopaininhislegsandhessaysIvetakeneverydrug CP2951,QMVCD0233AB,Nov.2,2009,
knowntomankindandhesayswhatthatdoesismessesmeup.Idrankthisbottle.IquittakingthedrugandIhavenopaininmy Irvine,CALiveWebcastonBrighart.com
legs.
at9:1527.

40

Hart:WecannedthemottoDrinkit,Feelit,whichIdid,and48hoursIhadnopaininmybackandallthat.In3.5monthsIhad
miraculousthingshappen,whichImnotallowedtosharewithyou,butithappeneddealwithit!AndthenShareIt.

41

Hart:InsteadofeatingpomegranatesandprunesandallthatstuffbecausethatshowIfoundtheproduct.TheysaidIhadtoeat CP2951,QMVCD0233AB,Nov.2,2009,
thatstufftobuildmyimmunesystemtofightoffthisdiseaseandIsaidIwasntgonnadoitanditwasveryexpensive.But$24
Irvine,CALiveWebcastonBrighart.com
dollarsaday.Areyoukiddingme?Illtellyouwhatsexpensive:Heartbypass.Okdontdothiswellseeyouinthehospitals,
atapprox.27:5228:22.
youknow,acouldhundredthousanddollars.Skindiseases.Arthritis.Allkindsofohmygosh.Andpeoplearepoppingpillsthey
dontevenknowwhatsinthem.

42

Hart:Thegreenbottleisforallthosefolksthathaveachesandpains.Green.Active.Redcameout,pulse,thatswiththeplant
sterolsandallthat.Youdrinkenoughofthateachdayandexerciseonaregularbasisandyoucanreducecholesterol.

CP2951,QMVCD0233AB,Nov.2,2009,
Irvine,CALiveWebcastonBrighart.com
atapprox.46:3946:52.

43

Hart:WhenIfounditandsawresultsin48hoursofdrinkingtheproduct:myachesandpainsdissipated.Andthatseven
somethingwecanclaimbecausetheumtheglucosamineandesterfivefattyacidsontopofthose19fruitsaddedtoit.

CP2950(PartI),Nov.18,2009,
Jacksonville,FLLiveWebcaston
Brighart.comatapprox.6:366:52.

44

Hart:Liquidglucosamine.Oneofthereasonsin48hoursdrinkingitmybackpaindissipated.Becauseitwasliquid.Yourbody
absorbsitquicker.Itgoesrighttotheproblem.

CP2950(PartI),Nov.18,2009,
Jacksonville,FLLiveWebcaston
Brighart.comatapprox.7:087:19.

45

Hart:Drankabottle.48hoursmybackpainisgone.Icallbackoutthere[toUtah]andtalkedtoDr.Carson.Iranoutofthe
product,mybackpaincameback,gotitbackin.That'swhenMonaViewentfrommyheadtomyheart.Idrankitevenwhenit
waswarm..Now,whenIdrankitaftermybackpaincame,andIdidntrealize..Ifeltmybackpaindissipate.Thatswhen
MonaViegotmyheart.

CP2950(PartI),Nov.18,2009,
Jacksonville,FLLiveWebcaston
Brighart.comatapprox.10:4111:16.

Page9of15

CP2951,QMVCD0233AB,Nov.2,2009,
Irvine,CALiveWebcastonBrighart.com
atapprox.19:319:48

Case
Case
2:08-cv-00204-BSJ
2:14-cv-00916-BSJDocument
Document
1398-4
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Filed
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Page
1111
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AppendixB

Stmt
Statement
SourceofStatement
No.
46 Hart:Asamatteroffact,thisisanalarmingstatistic,butatrueone:10yearsago,1outof75peoplehadcancer,someformof
CP2950(PartI),Nov.18,2009,
cancer.anykind...4yearsago,1outof4,3yearsago1outof3.Thisistheyeartheyareclaiming1outofevery2humanbeings, Jacksonville,FLLiveWebcaston
planetearth,willhavesomeformofcancer..KnowinghowGodbuiltbybody,ifIputtherightstuffin[holdsupMVbottle],my Brighart.comatapprox.14:4315:48.
bodycanfightitoff.
47

JulieReed(HighLevelDistributor,introducedbyHart):Hismomhashealthproblemsandsoshewaskindaourguineapig.AndI CP2950(PartI),Nov.18,2009,
said,letsgiveittoyourmom,andso,shedidntdie.She'sfine....WeknewthatshehadhealthproblemsandsoGeorgejustsaid Jacksonville,FLLiveWebcaston
mom,Iwantyoutodrinkthis,dontcallusforaweek,justdrinkthis,drinkabottleadayifyouhaveto,andliterallythatswhat Brighart.comatapprox.30:4731:38.
shedid.AndIllneverforgethercallingusupandshewasalmostintears,shewasjustlike,George,Idontknowwhatsinthis
juice,butImserious,itslike,Placa,WD40forourjoints,thatstheonlywaywecandescribeit,buttheglucosamine,theliquid
glucosamine,gotrighttohersystem.AnditwasliterallylikeWD40forherjoints.andsheslikeIthinkImgonnagetoffmy
medications.

48

Hart:Iftheactiveproduct,whichisgoodforlubricatingyourjoints,andforachesandpains,everyoneneedsthat.Thepulse.
Whodoesntneedcholesterolbeinglowed?Gettingyourheartinshape,yourbloodinshape?So,we'vegotanounceofeachof
thatinthere.

49

BobKitchens:StartedonMonaVieinNovember.MydaughterandsoninlawChrisandStacyinthebackstartedusonitformy CP2767,Hart'sSolicitedHealthClaims
shoulder.Ihadproblemswithmyshoulder.Abouthere,inexcruciatingpain,nowitslikeIcanscratchthemiddleofmyback
(AX00034/QMVCD0067)at0:150:49.
withouthurting.And,myaunthadcripplingarthritis.Inhercase,andtalkedtoherabout2weeksaftershegotitandsaidits
greattogetoutofbed,putmyfeetonthefloorwithoutpain.

50

DennisWatts:Withinaweek,mybloodsugarhadcamedownfrom180un,itwasunstable,anditcamedowntoabout125.So, CP2767,Hart'sSolicitedHealthClaims
nowImonlyon3medicationsinsteadof12.
(AX00034/QMVCD0067)at3:013:26.
Hart:Andyouknowwhatwewant,wewantanupdateinthenextcoupleweeksastowhatsgonnahappenwiththattoo.You
watchitclose.Becauseheresthedeal,youregonnafindoutsomething,thisisgoingtobetheleastexpensivethingyouever
did.

Page10of15

CP2950(PartI),Nov.18,2009,
Jacksonville,FLLiveWebcaston
Brighart.comatapprox.39:4740:00.

Case
Case
2:08-cv-00204-BSJ
2:14-cv-00916-BSJDocument
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1398-4
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Statement
No.
51 JimEllston:IhaveMS,andIdonthurtlikeIusedto.AndIthankDennyWatson.CauseIwentfishingandhecametomeand
saidIgotsomething,wouldyoutryit?AndIsaid,yeah,Idontmindit.Ifitsgonnahelpme,helpme.And,hegavemeabottle
ofit,andIdrankit.ButIdidnt,Iwasntdrinkingno2ounces,Ijustturneditup.
Hart:Upyourdosage,baby.
AndIdrankit.
Hart:Thewholething?
No,notthewhole,notrightthen,inabouttwoweeks,whatever.Iwenttofeelingawholelotbetter.AndIdont,likeIsaidI
donthurtlikeIusedto,Idontcrampup,andthedoctortellmethebloodpressure
Hart:Youhaventdoneanythingdifferent?
Ellston:Nothingdifferent.
Hart:Yourbloodpressuresbetter?
Ellston:Theystoppedwiththebloodpressure;Idonttakeitnomore.
Hart:Youdonttakeanybloodpressuremedicine?
Ellston:Idonttakebloodpressurenomore
Hart:Idontlikethatstuffanyway,baby
Ellston:AndIdont,Ihaventtookashotintwomonths.
Hart:Comeon!
Ellston:ForMS.
Hart:Comeon!
52 RitaKitchens:ImthebanddirectoratthemiddleschoolinCrawsville,andlastDecemberIcouldnotmarchtheChristmasparade
withmyband.Ihadtograbholdoftherunningboardsonthetruck.SoheregoesmybandleavingmeandImhobblingalong
withmycaneandcryingeverynight.
Hart:Honestly,youwalkedwithacane?
Kitchens:YesIdid.Asamatteroffact,5daysfromtodayImscheduledtogohaveatotalkneereplacement...Ihadallthe
cortisoneshots,Ihadtheroosterconeshots,Ididthe$2000worthofshots,nothinghelped.Mydoctorsaidnothingsgoingto
help.Staceycalledandsaid,Mom,Iwantyoutotrythis,Iwantyoutobeaguineapig.AndIsaidwellgee,thanksyouknow.
Andwetriedit.And,Imgonnatellyou,Imgoingtobehonestwithyou,Ididnothavea2weekresult.ThefirstmeetingIwent
towithMonaViewashereinKnoxvilleandeverybodywassaying,oh,2weeksandIthinkRonwasreallyalittleperturbedand
sayingwhatswrongwithyouyouweirdwoman.Ittookabout6weeksandonedayImwalkingdownthestepsatmyhouse
andImhollered:Honey,comeherelook,honey,honey!Liketoscaredhimtodeath.Ididnthavetoscootdownthestepson
mybottom,Icouldwalkdownthestepslikeyoucan.Andtoday,Itookmybandona3milehikeinthewoodsandIlefteveryone
ofthembehind.

Page11of15

SourceofStatement
CP2767,Hart'sSolicitedHealthClaims
(AX00034/QMVCD0067)at3:284:27

CP2767,Hart'sSolicitedHealthClaims
(AX00034/QMVCD0067)at4:386:07.

Case
Case
2:08-cv-00204-BSJ
2:14-cv-00916-BSJDocument
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Statement
SourceofStatement
No.
53 PamHendricks:IvebeenInMonaViesinceFebruary,andIwasdiagnosedwithdiabetesayearago.AndIhadhighcholesterol. CP2767,Hart'sSolicitedHealthClaims
AndthelasttimeIhadallmybloodworkdoneeverythingwasnormal.
(AX00034/QMVCD0067)at7:378:12.
Hart:Ohmyhowlongdidyoudrinktheproductandhowmuch?
Hendricks:Justtwoouncesaday,andafter3weeksmykneesdidnthurtanymore,soyouknow,Icouldtellitwashelping.
Hart:Areyousleepingbetter,yourkneesarebetter,allthat?
Hendricks:Yes,yes.
54

CatherineBorrowski:Myironlevelwas6tenthsofapointabovewheretheywouldtransfuseme.So,nothing.Ihavehadno,I
cantwaittogogetmybloodtesttoseewhatitis.Assoonasshemademetryit,IwasupandaboutandmovingandIcouldnt
believeit.

CP2767,Hart'sSolicitedHealthClaims
(AX00034/QMVCD0067)at8:499:28.

Hart:Howlong?"Howlong?"
Borrowski:Anhour
Hart:Nowlook,somepeopleamonthandahalf,someanhour.Imjustgonnatellyousomethingfolks,yourbodyisgoingto
reactdifferent,aintnotwoofyoualike.Allthatyouvebeenputtinginthisbodyalltheseyears.Youknow,3040yearsof
riotouslivingaintgoingtobecuredinanounce.Butsomepeoplearentatsuchcrucialpoints.Everyonesatdifferentlevelsin
thisthing.That'swhyyoudrinkituntilyouseeadifference,andanhourworks.
55

TonyMiller:Afteraboutaweek,Ifeltkindastrange.And,Ivebeenhavingtroublesleepingforthelastcoupleofyears,andI
CP2767,Hart'sSolicitedHealthClaims
(AX00034/QMVCD0067)at10:1211:03.
wokeupandsaidsomethingswrongwithmetoday.And,afteralittlebitIfiguredoutIwasrestedandIwasnthurtingno
more.
Hart:Iwasstartingtoaskwhatsgoingon?OK.Youknow,wetendtolearntodealwithpain.Andlivingthatway.Thatswhat
wedo.Wepainmanageourselves.
*****
Miller:Myelbowsdonthurt,myhandsdontswellup

Page12of15

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SourceofStatement
No.
56 KayDenton:Ihavewhatiscalledthekeyloidscars.And,thatisthemainthingthatIamsohappyabouttheproduct...Inever CP2767,Hart'sSolicitedHealthClaims
dreamedthatitwoulddoanythingforthat,becauseIwasthinkingaboutthethingsinthebulletinthatitwassupposedtohelp, (AX00034/QMVCD0067)at11:3913:20.
butthosescarsarebeginningtofadeout.Ihavetowear2camisolestokeepthemfromshowingthroughmyclothes,soImreal
happyaboutthat.Ithinkoveraperiodoftimetheywillgoawaycompletely.
Hart:Youknow,theycallitagedefyingbeauty.Andanybodywithskinconditionsyououghttogivethemthisproduct.
Anything,fromeczema,andeven,mydaughterhadahorrible,youknow,justmytypeskin,shewouldbreakout.Shehadnthad
abreakoutsinceshesbeenonthisproduct.None.And,youknow,allthemedicinestheyputontheirfaces,andyouknow,
teenagedaughters,andallthatkindofstuff,nobreakouts,andallthat.NowIknowthatsstrange,butmyothernextdoor
neighbor,eczemahas,hereczemaisgone,Imeanliterallygone.Andthethingis,shesneverseen,herskinislikeababys,its
beautiful.Shecantbelieveit.So,yourskinsgetting
OtherLady:Thescarsstartedclearinguponherinlessthan2weeks.
Hart:In2weeks.Andhowmuchdoyoudrink?
Denton:3ouncestwiceaday.
Hart:3ouncestwiceaday.Upyourdosageandwatchthemgoaway.
57

WebLodge:Ivebeentakingabout3or4months.Wereunderneathyou,right?ThethingthatIveseenisIhavealotofbursitis CP2767,Hart'sSolicitedHealthClaims
(AX00034/QMVCD0067)at13:2914:21.
inmyshoulders,andIcouldntexerciseordopushupsanymore.
Hart:Forhowlong?
Lodge:Oh,probablyayear,yearandahalf.Ihadshouldersurgeryabout4yearsago,youknow,therotatorcuff,justripped
everythingapart.Andnow,Imbackuptodoing3543pushupsanightwithoutthepaininthemorning.Um,doingalotmore
Hart:Whendidyouseethedifference?Whendidyouseethepainwasnotlikeitwasandyoucouldhavethemovementthat
youhavenow?
Lodge:Youknow,becauseIwaswiththismanforawhileandhegavemesomeencouragement.Ididntseeimmediateresults
for2or3weeks,butIknewifIjustkeptupwithitIwould.Andso,justonthatfaith,Ijustkeptdoingit.Andso,itwasprobablya
monthorsixweeksbeforeIfeltwellenoughtodothat.But,Imfeelingbettereveryday.

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SourceofStatement
No.
58 Hart:Howlongyoubeentakingtheproduct?
CP2767,Hart'sSolicitedHealthClaims
KennethAllen:Twomonths
(AX00034/QMVCD0067)at14:3015:05.
Hart:Howmuchyoudrinking?
Allen:Twoouncesaday.
Hart:Twoouncesaday.Whatshappenedsinceyoubeenonit?
Allen:Ihadprostateproblems.Icouldnturinate.And,Ihadtogetupevery2hoursandgotothebathroomatnight.Idontdo
that.AndImurinating.And,Ihadskincancersonandtheyredriedup.And,cholesterol,Idonttakethatnomore.
Hart:Listen.Nowlisten.Wearenotclaimingthatthisisdoingthis,but,isthistheonlythingyouredoingdifferent?
Allen:TheonlythingImdoingdifferent.
59

CP2767,Hart'sSolicitedHealthClaims
Hart:Howlongyoubeenontheproduct?
(AX00034/QMVCD0067)at15:0715:25.
RobertJohnson:Ivebeenonitforonemonth.
Hart:Howmuchyoudrinking?
Johnson:Itake2ouncesaday.
Hart:Whatshappened?
Johnson:IvebeentakingZantacfortwoandahalfyears,oneaday,justsoIcantolerateeveryday.IhavenottookaZantacin3
weeks.Afteroneweekofusing.

Page14of15

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Statement
No.
60 Hart:Howlongyoubeenontheproduct?
TonyGlad:3weeksnow.
Hart:3weeks,andwhatyoudrinking?
Glad:24ouncesaday.
Hart:Andwhatshappened?
Glad:Minesjustabadback.Alotofbackpain.AndIwokeupthe3rddaypainfree.
Hart:3rdday,thatwasthesamethingthathappenedtome.Icouldnthardlybelieveit.
Haveyoutestedit?Haveyougottenofftheproductorareyoustillonit?Toletthepaincomeback?
Glad:Youknow,notreally.Idontwantittocomeback.
Hart:Notreally.Dontwantittocomeback?AndthatswhatItryalotofpeoplesayImnotsureitstheproduct,butandI
say,well,Icanshowyouhowtodoit,justgivemeallofyourproduct.Andyouknowwhathappens?Painllcomeback.You
knowwhy,itdoesnthealyouimmediately,itsdoingwhatitneedstodo.Itsjustlikefood,yougottokeepnourishingyour
body.So,youhavelittletonobackpain?
Glad:None,none,none.
Hart:Nonewhatsoever.Youexcitedaboutthat?
Glad:Imveryexcitedaboutthat.
Hart:Didyoulookatthisforthehealthbenefitsorthebusinessbenefits?
Glad:Iwasskeptical,soIwasjustgoingintoseewhatitwoulddotomefirst
Hart:Ok,soitdid,andnowyoureonthebusinessside?
Glad:Yes.

SourceofStatement
CP2767,Hart'sSolicitedHealthClaims
(AX00034/QMVCD0067)at15:3216:29.

61

BrigHart:Youknow,foraboutabuckanounce,todowhatitdoesforyou,forbetterhealthphysically,financially,emotionally
andspiritually.But,toheretogetyourservingsof13fruitsin2to4ouncesadayofthisstuffsothatyoucansleepbetter,have
moreenergy,morefocus,achesandpainsdissipated,theBrazilianViagrathat'sworthitallanyways,ifyou'remarriedthatis.

62

CP2942,QMVCD0222,IrvineWebcast11
BrigHart:Isawresultswithin48hours.WednesdayIwokeup.Nobackpain.Eightandahalfmonthssciaticnerve,fully
[inaudible],goingtotherapyeverydaytorelievethatpain.I'mgonnatellyouwhat'sgonnahappenforalotofyou.Withinand 1008at16:1819:43.
hourandahalf'stime,Ifeltthepaininmybackthathadcomebackdissipate.Itwentrightaway.

Page15of15

CP2940,QMVCD0220,JeffBoyer
WebcastwithHart1117at8:389:03.

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SourceofStatement
No.
1 Lyons:Folks,alsowehaveadoctorinthehouse.YouwannagivethemyourbestthreeminutesonMonaVieandcomeinhere CP2791/AX764,Nilesvideo,Part1
QMVCD0173at0:031:33.
andsharealittlebitaboutit?Dr.LouNiles.
Dr.LouNiles:Wow.Alright.Well,Igottastandnearyouhere.Iamtheguyyoudon'twanttoreallyknowbecauseIamthe
doctorof"lastresort"itseems,andIamusuallydealingwithendstagecancers.And,asyouknow,sugarisafoodofcancerand
soit'scounterindicativetogivejuicetocancerpatients.So,IveryreluctantlygotinvolvedinMonaVie.Ionlygotinvolvedinit
whenIrealizedtherewassomethingelsegoingoninthecombinationofthejuicesthatDr.Carsonputtogether.Andit'smore
thanjustfruitjuicesit'sthecombinationthatseemstobeworking.So,IhaveneverlostacancerpatientyetandsoIthrewthis
juiceintotheformulainthe"protocol",andithashadatremendouseffectoneveryonethatIaminvolvedwith,andeverybody
thatisinvolvedwithcancerisbecomingadistributorbyan"actoflastresort"sortof,buttheyareallembracingthejuiceandit
hasreallyhelpedthemthroughthehealingprocess.
Thereisabigstorybehindthiswedon'thaveenoughtimetonighttogointoit,butifyoueverwanttogetaholdofmeandtalk
aboutit,IcangothroughthespecificsofwhyMonaVieworks.Itisaprettyamazingstory.That'saboutitforthreeminutes.

Lyons:"YouknowthereisnothingbetterthanpersonaltestimonialsandthatskindofwhatIveseen.YouknowIvebeen
CP2792/AX0766,LyonsVideoQMVCD
involvednowforabout11monthsanditsjustabsolutelyincrediblethetestimonialsIknowaboutandeverythingthatsgoingon 0211at0:581:44.
withthis.It'sgettingalotofexposure.AndwhatmakesMonaViesopotentandsopowerful,becausealotofpeoplewillsayoh
theresAcaioutthereyoucanbuyinpowderform,pillformandliquidformandyoucanyoucangotoGNCandalotofthese
storesandyouwillfindit.ButwhatmakesMonaviesospecialisfirstofall,it'sascientificblend,developedbyabunchof
scientistsanddoctors.ThreeyearsindevelopmentstagestheCompanyhasbeenaroundnowforalittleover2yearsandits
gettingphenomenalratingsandeverythingthatsgoingonbutitshelpingpeoplewitharthritis,diabetes,cholesterol,highblood
pressure,achesandpains,energylevels,sleeping,justnumerousailmentsoutthereandwhatitisdoingforpeopleanditsjust
anawesomeproductoverallandwhatsgoingonthere."

JasonLyons:"So,Imeanit'sjustit'scrazywhat'sgoingon.Nextlevel,BlueDiamondExecutivewehadhitthatlevelin41/2 CP2792/AX0766,LyonsVideoQMVCD
monthskindofgotstuckthereforawhile.$2,500aweekor$500,000ayear.Wejustwenttothenextlevelhererecentlyso 0211at27:2728:15.
wewerestuckatbluefrom41/2monthsto10months.Itwasn'tabadplacetobestuckbecausewemakeanywhere,atthat
time,weweremakinginbetween$7to$12,000perweek.Again,whenItellyouthemoneyI'mnotbraggingtoyou,I'mjust
lettingyouknow.Italmostdoesn'tseemreal,butitis.So,justthelastfewmonths,wewenttoBlackDiamond,making
anywherefrom$14to$16,000perweekthat'swhatwearenow,BlackDiamondsinthebusiness,thecoolthingislastFriday
night,deliveredabrandnewMercedestoourhouse.AnybodythathitsalevelofBlackDiamondyouwillgetabrandnew
Mercedesthat'spartofthesame.Sothat'sprettyawesome."

Page1of5

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SourceofStatement
No.
4 JasonLyons:"ButwhatIwantaask,isthereanypersonaltestimoniesanyonethat'sbeenontheproductforaweek,two
CP2792/AX0766,LyonsVideoQMVCD
weeks,amonth,sixweeks,thathasanytestimonieswecanshare?
0211at28:3330:09.
[Someoneresponds]:Hey
JasonLyons:Howdoyoudo?
Jim:I'mJim.I'minSunShine(inaudible)andaboutamonthago,Alissainvitedmewell,Iwasdoingsomeworkhereandshe
hadme...
JasonLyons:HeyI'mnottryingtogettooclosetoyoubutyougotthemikeoverherthough.[LAUGHTER]
Jim:ShewasweweretalkingaboutdifferentjuicesthatImakeeverydaywhenIgohomejusttostayhealthyandsheasked
meifIeverhadheardofMonaVieandIsaidno.Sosheinvitedmetocomeinthatevening,IcamebyandIsignedupwithLouie.
Anyways,Istarteddrinkingthejuicejustbecauseitwasit'ssupposedtobegoodformeIwasn'tworriedaboutthemoney
partofit.About21/2weeksintoitInoticedthatmybackwasn'tbotheringanymorebecauseIhadaverybadbackfor25
years,I'vealowerlumbarjointthatisdeteriorated,2and1/2weeksIstartednoticingthatjustwasn'tthereanymore,andafter3
weekstherewasjustliketotallygone,andI'mlikeblownaway.Totallyblownaway.
JasonLyons:That'sawesome.Imeanyouhearstufflikethatohyou'renotdone?
Jim:No,becauseI'vebeendrinkingitforfourweeksnow,andit'sjustlikenomorebackpain,nomoredoctors,$4,000...
JasonLyons:Soyou'lldrinkitregardlessofifyoumakemoneyornot.
Jim:Iwillyeah.Imeanitjustworks.

Jared:"I'mJaredIstarteddrinkingMonaVieabout3weeksagoandafriendofminegotmeintodrinkingtheproductUpuntil CP2792/AX0766,LyonsVideoQMVCD
then,Iwastakingpharmaceuticalstosleep,IwastakingAmbienandIstarteddrinkingthisandIusedtowakeupat11inthe
0211at30:2054.
morning,getmydaygoing.ForsomereasonnowI'mdrinkingthatsoI'mwakingupat7:30or8o'clockinthemorning,sleeping
allnightlong,nottakinganythingtosleepotherthantheshotofMonaViebeforeIgotosleepandIfeelthatIhavemoreenergy
thanI'vehadinalongtime,soitjustseemstobeworkingforme.AndI'mahappycustomer."

Page2of5

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SourceofStatement
No.
CP2792/AX0766,LyonsVideoQMVCD
6 Todd:"Yeah,Icantellyou,HimynameisTodd...UhDouglasLettrelladearfriendofmine,whoLouieactuallyputinthe
0211at32:1333:49.
businessstartedtocallmeabouttwomonthsago.Hecalledmeeverydaytotellmeaboutjuice.Isaid,I'vegotnointerestin
juice,mylife'stoobusy;thankyouverymuch.Hekeptcallingandcalling.Afteraboutthreeweeks,hewentoutandhegota
newcellphone.(TheGod'shonesttruth.)HecalledmeupandIlookedatthenumberanddidn'tknow.AndIansweredthe
phone,andhegoes"Igotya."AndIgo,ohlisten,here'sthe$39bucks,here'smycreditcard,justsendthefreakin'craptomy
houseI'llstartdrinking.WellIdrankitfor5daysandIdidn'tsleepawink.I'dbeenupoverahundredhoursandIsaid,Idon't
thinkIcandrinkthisjuiceanymore.OnthesixthdayIsleptlikeIwasinacomaandIgotupandIhadthisgreatR.E.M.sleep
andwaslike,oh,thisisalright,Ifeelprettygood.Idrankitontheeighthday,InoticedthatIhadinjuredmyleftelbowabout5
yearsagoliftingweightsandIhadtornatendonoffandI'vehadtremendouspainandIevenlookedatsurgeryandalternatives.I
endupbuyingaprostheticcastthatIworeforsixmonthsandthathelpedtoeasealotofthepainbutIwasstill,hadalwayshad
itaftertheeighthday,thatquitentirely.ThetenthdayI'dhadafootsurgery2yearsagoandthatevenquitbotheringmeso
youknowIwashookedatthatpoint.Iwasaskepticaboutthebusinessand,youknow,nowI'minitbasicallyfourweeks.Uh,
haveabout30peopleinit.I'vemadeabout$600inmyfirsttwoweeks,soyouknow,I'mhopingtogetmygoal,togetto$1,000
aweekinarelativelyshortperiodoftime.But,again,Ican'tsayanythingbutpositivethingsaboutit."
7

JasonLyons:"TheyrelikeJasonyoureallygottotakealookatthis.So,IsaidguysImoutofhere.BobRobinsongoesJasonIm CP2792/AX0766,LyonsVideoQMVCD
making20,000aweek.Isaidcomeonin,letstalkaboutthejuice.So100%Igotinvolvedbecauseofthemoney,notthatitsa 0211at6:327:10.
badthing,butIgotinitforthemoney.Iheard$20,000,youknow,aweekthatwillgetsomebodysattentioncauseBobsbeen
anelectricianhiswholelife.IthinkhisbestyearinlifeBobsmade69or70,000youknowworkingasanelectrician.Notabad
salarybutyouknowhesalwaysbeenlookingforsomethingelse.SoImthinking20,000,wellthefirstthingIthought,youdont
havetotellme20,000totryandgetmeinvolved,Ithoughthewaslyingtobehonestwithyou.Hehadtocomeinandshowme
onthecomputer,whenheshowedmethatIsaidsignmeup."

JasonLyons:"So,makealongstoryshort,gotmyMomonthejuice.Shegotarthritis,suffersfromitinherhandsprettybad.
Everymorningshewakesupherhandsarestiffandeverythingelse.Well,3daysafterherbeingonthisproductIgetaphone
call.ImupinOcowasheslikeJasonIdontknowwhatsinthisstuff,sothefirstthingyouthinkis:ohmyGosh,shemusthave
brokeoutinarashorsomething.Ididntevenletherfinish.Shegoes,"Thisisabsolutelyincredible."Isaid,"Whatsup?"She
goes,"IsufferwitharthritiseverydaywhenIwakeupinthemorning."Shegoes,"Iwokeupthismorningandmyhandsdont
hurtnomore."

Page3of5

CP2792/AX0766,LyonsVideoQMVCD
0211at7:588:26.

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SourceofStatement
No.
9 JasonLyons:"Imlikereally,youknowyouveheardthisbutdontreallybelieveituntilyougetsomethingthathitshome.So,
CP2792/AX0766,LyonsVideoQMVCD
cometofindout,andwhatmostpeopledontrealize:inflammationisthestemofmostproblemswithourbodyandmost
0211at8:279:09.
diseases.Inflammationinyourheartisheartdisease.Inflammationofthelungsisasthma.Inflammationinyourjointsis
arthritis.So,whenyouputanantiinflammatoryandthishassuchhighantiinflammatoriesinyourbodyyourbodytendsto
react.Now,itaffectseverybodydifferently.Theresallkindsofpersonaltestimoniesoutthereofwhatsgoingon,butittended
ithelpedherbigtimerightaway.Now,somepeoplearentgoingtofeelaresponsethatfast.Ifyoureahealthypersonyou
mightnotfeelaresponseatallbutitsawellnessproduct.Youreputtingagoodthingintoyourbodysoit'shelpingyou
regardless,butpeoplewithailmentstendtofeelalotofresultsveryquick."
10

JasonLyons:"Butthenextbestthingtohappen,andwhyIknowthisproduct'sreal...themostincredibletestimony...oneofmy CP2792/AX0766,LyonsVideoQMVCD
bestfriendsBrianThayer,BrianandJackieThayerBlueDiamondsinthebusiness,rollingwithit.Oneofmybestfriends;not
0211at9:3511:30.
onlyhasitchangedhisfinancialstatus,butalsothehealthoftheirdaughterbigtime.Hehas4littledaughters:Keely,Kylie,
KarlyandKayla.WellKeelyat3yearsoldwasdiagnosedasaType1Diabetic,whichisterrible.Thatstheworstdiabetesyou
canhave.Itusuallydoesnthappenuntillaterinlife,butType1diabeticmeansyourpancreasproducesnoinsulinatall.Shegot
thisat3yearsold.Wellshesbeengoingthroughthis,shes5now,whenwegotinvolved,beentaking4to5insulinshotsdaily,
hersugarlevels(nowImnotadoctor,Imalandscaper,soIdontknowtheexactnumbers)buttheywererunninginthehigh4
hundreds,450,500,takingshotsconstantlyandeverythingelse.So,shesusedtotaking4to5shotsaday.Foralittlekid,thats
terrible,youhatetoseeit.Well,10monthsago,11monthsagowhenwegotinwegotherontheproduct.Theresactiveand
theresoriginal.TheonlydifferenceistheActivehasaddedglucosamineandceladrine,whichisgoodforyourjoints,muscles,
kindoflubesyouupandthat'swhatmakesyoufeelgood.Um,prettymucheverybodydrinkstheActive,exceptchildren12and
underandpregnantornursingwomen.Sowegotherontheoriginal.Jackie,hermother,shegoestoSt.Mark'sCatholicSchool
overthere.Everydaytheteacherwouldtestherwithalittletester,callJackieupandsayheyyouknowthisishernumbers.
Jackiewouldhavetogoinandgiveherherdailyshotandeverythingelse.Wellafter4orsoweeksofbeingonthisproduct,
teachercallsupandsayshey,hernumbersaredown.Jackieslike,wowthatsodd,youknow,causeshedidntreallyrealize
whatshappening.Wellthiswentonforafewdays.Jackiewouldgoinandsureenoughhernumberswerefine,shedidnthave
togiveherhershot.Tomakealongstoryshort,thejuicehelpedher.Hernumberswentfrominthehigh4sdownto150to
200s.Thebestthingaboutthis,shewentfrom4to5insulinshotsdailyto2.Itsprettymuchheldstableeversince.Weve
beeninvolved11monthsnow,sotoseealittlegirlgofrom4to5shotsadaydownto2,thatsallworthitinitself."

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Case
Case2:08-cv-00204-BSJ
2:14-cv-00916-BSJ Document
Document1398-6
2-1 Filed
Filed
12/18/14
06/04/10
Page
Page
21 of
6 of
216
AppendixC

Stmt
Statement
SourceofStatement
No.
11 Lyons:YouknowthereisnothingbetterthanpersonaltestimonialsandthatskindofwhatIveseen.YouknowIvebeen
CP2792LyonsVideo(AX766)at0:59
involvednowforabout11monthsanditsjustabsolutelyincrediblethetestimonialsIknowaboutandeverythingthatsgoingon 1:17,1:2644,23:0312
withthisandwhatmakesMonaViesopotentandsopowerful,becausealotofpeoplewillsayohtheresAcaioutthereyoucan
buyinpowderform,pillformandliquidformandyoucan....ThreeyearsindevelopmentstagestheCompanyhasbeenaround
nowforalittleover2yearsanditsgettingphenomalratingsandeverythingthatsgoingonbutitshelpingpeoplewitharthritis,
diabetes,cholesterol,highbloodpressure,achesandpains,energylevels,sleeping,justnumerousailmentsoutthereandwhatit
isdoingforpeopleanditsjustanawesomeproductoverallandwhatsgoingonthere.
***
We'vepersonallyin11monthssponsored46people.Itmaysoundlikealottoyou,it'sreallynot.Whenyougetsome
testimonialsandeverythingandseewhat'sgoingonwiththisproduct,it'sprettyeasytodo.

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