Organo gold is a multilevel marketing corporation offering coffee and health supplements. Their focus areas include type two diabetes, hypertension and weight loss. Organo Gold boasts regional offices on five continents.

Holton Buggs and Barry Cocheu were found liable by a jury for misappropriating trade secrets, breach of fiduciary duty, unjust enrichment, fraudulent transfer and conspiracy. On appeal, appellants claim the district court erred when providing jury instructions.

Product

Organo Gold is a network marketing corporation offering products to treat various health conditions, including type two diabetes and hypertension, as well as offering weight loss programs. Their supplements contain Ganoderma lucidum mushrooms which have been shown to significantly enhance quality of life for many individuals, and it offers an impressive compensation plan which rewards distributors who bring new customers on board. They have been in operation for an extended period of time without becoming scams.

According to the complaint, defendants violated federal Racketeer Influenced and Corrupt Organizations Act (RICO), which prohibits fraudulent business practices by employing intimidation, threats, or false statements in conducting business activities. They allegedly committed wire fraud by making misleading income claims to potential recruits; their actions have caused substantial losses for the plaintiff.

However, ORGANO remains popular with many Guyanese, particularly those unable to make ends meet at their current jobs. With offices on five continents and products being distributed globally through its network of independent distribution partners – although please note that ORGANO strictly forbids its Independent Distributors from including references or approbation from ORGANO within any electronic messages they communicate to third parties or otherwise indicate support by ORGANO in these communications.

Legal action has been filed against this company on allegations of fraud and tax evasion, breaching contracts with various distributors, as well as failing to disclose ingredients properly.

Marlin Johnson filed the suit on behalf of his son, who experienced severe complications after having gastric bypass surgery as a result of using Organo Gold products. According to Johnson’s suit, Organo Gold acts in bad faith and should be held liable for damages.

Defendants’ conduct allegedly violates both FTC regulations and the Wire Fraud Act; however, the court found that Plaintiffs have failed to allege sufficient facts that can support a claim for wire fraud; specifically they allege misrepresentations regarding income potential from Organo Gold businesses; furthermore there was no causal connection between their misconduct and any actual harm suffered by Plaintiffs.

Compensation plan

Network marketing businesses – known as independent representatives (“IRs”) – earn commissions off both product sales and those made by recruits they recruit. According to allegations made against defendants by Rasmussens’ downstream IRs, defendants recruited them away from Titan Global and onto Organo Gold instead. According to court findings, these allegations establish wire fraud violations under section 1964(c) of RICO Act.

Cocheu began engaging in what AmeriSciences believed was improper conduct while employed as an account manager at AmeriSciences. At that time, the company used the distributor list provided by Cocheu for marketing its product line despite legal department warning that such use violated confidentiality clause in his employment agreement. He transferred this list without the company’s knowledge or consent and began promoting Organo Gold while making income claims that did not match up with his work at AmeriSciences.

According to the complaint, defendants acted with malicious intent by misleadingly representing income opportunities and misrepresenting product value, depriving IRs of their right to fair hearing by failing to disclose information during recruitment processes, using misleading income representations in business presentations, and using unlawful retaliatory tactics against those reporting losses to the Federal Trade Commission (FTC).

Organo Gold operates differently from pyramid schemes by being unregistered in Guyana and evading taxes, making its operation illegal. Instead, weekly colloquiums at various venues in Guyana serve to promote its products and recruit new members for Organo Gold.

The company has also been accused of operating as a pyramid scheme in other regions. According to reports, members reportedly receive both financial and personal benefits, such as free merchandise and travel rewards. Furthermore, its strong social media presence serves as evidence that its network marketing model may be fraudulent.

Reputation

Organo Gold purports to be a multi-level marketing enterprise, yet in truth is more of a pyramid scheme. They place more importance on recruiting new salespeople than selling their products and charge steep start-up fees as well as engaging potential sellers through high-pressure motivational events – it would be wiser for you to avoid joining this venture unless you have significant funds at your disposal.

Guyana-based startup company Q-Trendz initially launched in June 2012 but failed to receive the anticipated response from the public. Last year however, they reappeared, holding weekly colloquiums to promote their products. Furthermore, it evades taxes by not being registered as a business.

ORGANO collects both personal and demographic data on users of its site. This data includes any communications between you and other site members, ORGANO-facilitated transactions or your purchases; you may only disclose such data with third parties when expressly agreed by both you and ORGANO.

Court records showed that Cocheu signed an agreement acknowledging AmeriSciences’ distributor list was confidential information, promising not to use or disclose it without approval from AmeriSciences, then provided it without compensation from them to Buggs without receiving consideration in return. Appellants argue the expert’s methods were unreliable but this decision by the district court was upheld; ultimately a jury awarded damages totalling $3.5 Million dollars against Cocheu’s defendants; this case serves as a cautionary tale about businesses claiming to be multi-level marketing businesses!

Legality

Organo Gold is a network marketing business with years of experience on the market. Their core products focus on improving a range of health conditions such as type two diabetes and hypertension. Organo Gold products promote weight loss while offering distributors an attractive compensation plan, with over 30 regions around the world serviced by them. Some people may be suspicious of Organo Gold, however. Here are some tips that may help avoid an Organo Gold scam: Always utilize a secure Wi-Fi connection when shopping online. Hackers can track public Wi-Fi networks and use them to steal personal information from you, making payments on public Wi-Fi potentially more vulnerable than making purchases from within your own office or home using VPN services.

This case involves a plaintiff who filed a class action in Delaware Superior Court at New Castle County against Organo Gold Coffee company for violating consumer protection laws by selling products containing Ganoderma Lucidum which could cause harmful side effects to users, misrepresenting ingredients in its product and failing to disclose these on packaging.

The district court rejected Organo’s motion for judgment as a matter of law and granted summary judgment to the plaintiff, along with their request for specific instructions to the jury regarding fraudulent transfer claims. As a result, the jury returned an award against Holton Buggs, Organo Gold International, and Organo Gold Enterprises for trade secret misappropriation, tortious interference with contracts, unjust enrichment, and fraudulent transfer.

The Fifth Circuit upheld the verdict of the district court. In its opinion, the court noted that district courts have considerable latitude when framing jury instructions; it found that these adequately addressed issues presented and did not abuse its discretion. Furthermore, they found that the jury correctly interpreted statutes and did not err when finding that AmeriSciences transferred distributor list and WMS software with intent to delay, hinder, or defraud creditors.