There is an old saying…
“You can’t put lipstick on a pig.”
Back in July of 2010, we raised the red flag about the Trump Network.
My concern at the time was the fact that Trump’s name was being added to an outdated compensation plan with ineffective products and poor management all the while Trump was speaking taking money to endorse another MLM (ACN).
Now, the Trump Network (which actually appears to have very little to do with Donald Trump as I suspected) looks to be in bad financial shape.
Tom Mower, the owner of Sisel and founder of Neways loaned The Trump Network (and it’s owners with no mention of Donald Trump) $270,000 back in October of 2011 and it looks like The Trump Network is defaulting on paying the loan.
From the lawsuit:
BACKGROUND ALLEGATIONS
10. In the fall of 2011, Plaintiff became interested in the possibility of acquiring Ideal Health and/or TTN dba THE TRUMP NETWORK.
11. In exploring the possibility of acquiring Ideal Health and/or TTN dba THE TRUMP NETWORK, Plaintiff learned that Ideal Health/TTN was in need of financing to pay current commissions due to its distributors.
12. To assist Ideal Health/TTN and to further explore the possibility of acquiring Ideal Health and/or TTN dba THE TRUMP NETWORK, Plaintiff and Defendants entered into an Agreement on October 31, 2011, whereby Plaintiff agreed to lend Ideal Health/TTN $270,000 as “bridge financing” upon the following terms:
a. Ideal Health/TTN would only use the loaned funds to pay current commissions due to distributors based on Ideal Health/TTN’s commission plan;
b. Ideal Health/TTN would repay the $270,000 including 8% interest compounded annually from funds flowing through Ideal Health/TTN’s Discover and American Express accounts. These payments were to be immediately transferred to Plaintiff’s account upon receipt of funds in the Discover and American Express accounts (at least three times a week).
The lawsuit continues:
20. Ideal Health/TTN have nevertheless breached the Agreement by failing to pay Plaintiff the amounts due under the Agreement.
21. Upon information and belief, Ideal Health/TTN have further breached the Agreement by, without limitation, using the bridge financing for purposes other than to pay the current commissions due to distributors based on Ideal Health/TTN’s commission plan, by failing to establish a joint bank account with Plaintiff into which all of the funds from the Discover and American Express accounts would be deposited, by failing to provide Plaintiff a daily reconciliation through its CFO to account for the funds flowing into the business and the portion forwarded to Plaintiff pursuant to the terms of the Agreement, by failing to enter into good faith negotiations with Plaintiff for the potential purchase of Ideal Health/TTN by Plaintiff, and by promoting or discussing the sale of its business or stock in the business to other parties.
22. As a result, Plaintiff has been damaged in an amount to be determined at trial but not less than $260,476.75, plus interest accruing at the rate of 8% from November 1, 2011 until the entry of Judgment.
Ted Nuyten is reporting that over 20 Trump Diamonds left the company in January . Ted also reported (then pulled the blog post) that Trump was late with payments to it’s distributors. But it looks like Ted’s original report is true as he is now saying that over 2/3 of the reported 21,000 reps have left since compensation stopped.
Ty…seriously… you really ought to check out your info before you publish…very sensational but totally inaccurate…Google Tom Mower and you’ll know more about the person and then you might be able to ascertain a trend or a motive in his effort to obtain the Trump brand…Didn’t work…Everybody caught on… We’re good…Not worried about his right to claim whatever…Any idiot can hire a lawyer..New day…. And what about Customized Vitamins produced by metabolic testing, not available anywhere else being poor quality? Where’d that come from? Doctors and healthcare providers are flocking to it. It’s the most impressive item in the health and wellness business… the skin care is one of the rare few that meets the most stringent international requirements… One lady lost 150# with our weight management products….PUH LEEZE
So Price, you are OK with not being paid for 6 months (or maybe they paid you and not the distributors). Oct, Nov, Dec, no pay, now they are making Jan and Feb one pay month because they don’t have money to pay anyone in January. You are not too bright.
Did you know that TTN is out of stock on most of their custom formulas and has been for months. Your custom vitamins are what they have in stock. TTN prints the sleeves over the boxes. DUH. You think they have funding to keep 48 custom formulations in stock when you have to order each formula in Bulk from Douglas Labs?
They can’t pay the field, so they are not paying their vendors either.
My whole team of professionals, business owners, and people of standing in the community ALL have tremendous confidence in where this organization is going.. We were kept informed of all the activity and none of us needed the money to survive…It’s all being paid to us…It was MY IDEA to provide the January/February super month, combined with getting caught up on monies we felt like we were owed… Again, the whole team loved the idea…Everything is ready to ship once the deal is done…Once again, you are spouting off at the mouth with no reliable information and obviously are too embarrassed to identify yourself…probably went to sisel..
Troy Dooley posted this about it on his blog… http://mlmhelpdesk.com/breaking-mlm-news-the-trump-network-still-going-strong-despite-the-rumors-according-to-marketer-advisory-board-member-peggy-brochman/
Price, some people have kids to feed and NEEDED to leave. That’s great that you were able to keep the faith while not being paid. That didn’t work for me. Business is business and Trump Network was bad business.
http://healandlivewell.mysisel.com/en/US/home.htm
Any doubt to the legitamacy should contact Provo Utah federal court to confirm, as I did.
the marketers that left did so because they haven’t been paid- pure and simple.( I know people have had their homes foreclosed on because of this). As the saga unfolds it seems many false promises were made and nothing came to fruitation.
To hang in and wait more months to get a check is silly. A promise of partial back pay was made for the end of january but put off until the end of Feb, if it actually happens.
The handwritting as they say is on the wall.
Wow never expected this from Donald Trump.. I actually thought the product seemed pretty cool when my friend invited me to their open meeting but after hearing this I am not sure what to think
Surely Trump deserve some credit for not blowing the money his father started him off with, but he is clearly an attention getting baffoon who should stick to what he knows, Real Estate.
By the way, statistically, few people with an Ivy league graduate education would not be able to turn a million dollars into a billion, so Trump is not as impressive a businessman as he would like people to believe. I still give him his props though.
Really? On what planet?