Wealth Masters International in Financial Troubles?

by Ted Nuyten on November 16, 2011

Delayed Payments

Wealth Masters International seems to be in heavy weather. Several sources confirms the company "Is super delayed in paying their members – 21+ days past due and even later". Earlier Top Earner Michael Hamburger resigned

Patrick Combs, a hired speaker for an event on his Facebook: "Seeking a lawyer to collect around $10,000 from Wealth Masters International (Ironic, I know). Anyhow, they owe me for keynotes I did for them more than 6 months ago in Puerto Rico. A signed contract and collection calls haven't prompted them to pay."

After several leaders resigned, delayed payments are a strong sign the company could be going down. The SEC has placed WMI under investigation:

Below you find part of a letter from the UNITED STATES SECURITIES AND EXCHANGE COMMISSION To Wealth Masters International:


October 7, 2011

Wealth Masters International (MFW-03629)

The staff of the Securities and Exchange Commission is making inquiry into certain issues relating to the matter identified above. The staff therefore asks that you voluntarily comply with the requests below.

I. DOCUMENT PRESERVATION
The staff requests you maintain all documents in your possession relating in any way to Wealth Masters International ("WMI"). "Documents" mean documents in any form, including handwritten or printed notes, letters, agreements, memos, and e-mails or other electronically generated and preserved documents.

II. DOCUMENT AND INFORMATION REQUESTS
The staff also requests that you voluntarily produce the following documents, as defined above, in your possession to the staff, care of Kathleen Galloway, Enforcement Attorney, at 801 Cherry Street, Suite 1900, Fort Worth, Texas 76102, on or before Wednesday, October 19, 2011. Please note that, if you prefer, you may send us photocopies of the original documents, but the Commission cannot reimburse you for the copying costs. The copies must be identical to the originals, including even faint marks or print. If you choose to send copies, you must keep the originals in a safe place. The staff will accept the copies for now, but may require you to produce the originals later.

1. Any documents relating to any complaint or disagreement by any member or employee of WMI (including by you) regarding any aspect of WMI.

2. Any documents provided to members of WMI, including, but not limited to, other documents provided at any Wealth Conferences hosted by WMI or in connection with any other WMI member meeting or telephone calls, as well as any investment letters,
including the Vertical Research Advisory.

3. Any notes you took during any WMI meeting or telephone call.

4. Any documents relating to any security or other investment recommended by WMI to its members.

5. Any documents relating to Falcon Oil & Gas.

6. Any documents showing WMI's formation, ownership structure, and percentages owned.

7. Any communications with WMI senior management, including, but not limited to, Kip Herriage or Karl Bessey.

8. Any other documents relating to WMI.

This inquiry is confidential. The Commission has not determined that the matters under inquiry involve violations of the federal securities laws, and you should not take this inquiry as a reflection upon any person, company or security. You have the right to consult with and be represented by your own lawyer in connection with the inquiry. For further information regarding the rights and responsibilities of persons responding to inquiries from the staff of the SEC, please see the enclosed Form 1662.


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8 comments… read them below or add one

John S November 16, 2011 at 8:40 pm
Hi Ted, Not looking good for WMI and I guess there will be more bad news to come for the remaining members, many of whom will be hanging on in the hope of receiving outstanding commissions. In an industry largely reliant on the combimed efforts of large numbers of people, it's very survival of almost every company relies as much on a continued good reputation as the product, payplan or any other aspect of their business but once damaged, reputation is probaly the hardest element to repair. The other challenge that every time this type of situation arises, the rest of us then have to combat the negative images of the entire industry which re-emerge. That said though Ted, it's good that your information at least brings these things out into the open and that can surely never be a bad thing. Regards, John S. http://www.theglobalpartnership.biz

Greg Reed November 17, 2011 at 5:53 am
Is there any 'big names' involved here? I thought a major 'attraction marketer. ' networker promoted this business?

Kim Willis November 17, 2011 at 12:44 pm
A sad story of a company that overextended itself, then when the pendulum swung against them (eg the Norway ban) they were ill equipped to handle it.

lori November 17, 2011 at 3:54 pm
Greg, To answer your question no. All the big names have left, including mike dillard, jay kubassek, aaron rashkin, michael force, gregg davison, lena bjorna, aaron parkinson, rick & susann crawford and many others. They did announce that jeff lerner has come back which is not a surprise since he is now engaged to karl bessey's daughter. even several top corporate brass have left: deanna latson, mary dee and most recently michael hamburger. It's not the pretty picture they portray. Several complaints can be seen from disgruntled ex-distributors detailing how WMI Corp has been over charging and under delivering, especially anything ryan nelson has produced. Sounds like his work is epic failure after epic failure. Rumors have it that he cheated members out of millions with his SEO work. Word on www.behindmlm.com is that per gunnar hoem is the next to leave.

Bill November 17, 2011 at 6:49 pm
Looks like Wealth Masters International is getting looked into in New Zealand too. The entire write up on Wealth Masters http://behindmlm.com/category/companies/wealth-masters-international/

Kim Willis November 18, 2011 at 12:13 am
Not all sales leaders had left. At least up until recently several Australian sales leaders (one of whom has been a significant multiple 6 figure earner) were still aggressively promoting WMI.

Rich September 27, 2012 at 6:03 am
I have alot of info from wealth masters I've been trying to get a refund for3 months now and haven't received anything I was promised the world and received nothingin return you can reach me at 267-8473138 I'm into them for about 13000.00,and they have not come through on anything as soon as theygot there money noone would call back ive pleaded with them for a refund but was pretty much blown off they rush you in the begining and deliver nothing

Anders Jorgensen December 6, 2012 at 9:22 pm
Hi, everyone, what is the matter with you people looking for refunds? Did you get into WMI for no good reasons and discovering that you have to learn what to do for any kind of success? That is marketing! Learn and master it. You cannot blame WMI. It was your decision to join and your responsibility for making it in the business. Looking for bad rumors or non -confirmed third hand information to justify your logic that WMI is bad because you want a refund and have problems with it is not a positive way to look at it. You are in one of the greatest systems on line for creating wealth. Now look for the marketing solution! WMI is not a pro marketing department. CCPro was but there is still a way to market WMI and it is not in their back office or expertise. I will be happy to help in anyway marketing their WMI business. All you need is the right attitude and I my website can give everything you need when and if you want it. Regards, Anders