Max International without Cash?

by Ted Nuyten on December 21, 2011

No Money

Max International neglects to pay $37,0000+ donations raised for Abuse Child.

During the Max International All-Star Convention in October 2010 $47,341 was collected by Max Associates.

Max Corporate has been only paying $10,000 out of the amount, and never paid the balance of $37,341.80 (that was promised the following month (7 months after they collected).  According to Gina DeSantis of PCAU, to this day, they never received that $37,341.80.

According to our reporters, Max has experienced 3 situations in the last 2 months where products where on back-order.  Apparently Max's credit line from their product manufacture is bad.  Consequently they can not keep enough product on hand to meet recurring demands. Max suggests that sales have increased, but that is not completely true.  In our reporters opinion, Cash flow is the issue.
 
Max is paying off settlements from law suit settlements with Melaleuca and numerous distributors, plus high overhead.  They had enormous legal fees also. They still have an outstanding $450,000,000 dollar law suit with Tripharma.  http://successplan.com/tripharma-llc-files-patent-infringement-lawsuit-for-450-million  The law suit against the Unclebach's was an attempt by Max to stop them from filing a law suit.  Apparently they are going into arbitration during the first week of January.
 
Commissions payments were delayed by one day last month and employee Christmas bonuses were also delayed by a week.
 
PCAUAll these signs are indicative of a company that is operating on slim margins and is having cash flow issues.  If not, it is a sign of an inefficiently run company.  Timely shipment of products and paying commissions on time are critical components to retaining the trust of Distributors in the field.

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16 comments… read them below or add one

Marcus Schubert December 22, 2011 at 2:48 am
Just got the the phone from one of our top company executives at Max and YOU WON'T BELIEVE the "Story behind the story" Stay tuned for a JOINT press release tomorrow from Max & PCAU, which includes a pretty dumb move from resigned associate calling the charity posing as Max, and then going into a police station trying to lodge a legal complaint against Max saying she was from PCAU (who are furious) FYI - Max is very well financially backed, Max recently said NO to a major share holding offer from a sports group who then went and chose another company as their SECOND choice! Maybe they needed the money. We didn't :-P

Michael Firth December 22, 2011 at 3:51 am
One great thing about the internet is that it that it gives smart business people mass exposure... One bad thing is that any ding bat with zero integrity and a personal agenda to grow a new business venture can post stuff online without substance to create hype around a topic.  The smart people see through it straight away, but other ding bats who don't do their home work may fall for it :-) Knowing the truth behind this story is great, because one or two of those creating it, slipped a little in trying to create the BS in the first place. Once Max and PCAU post the response i think one or two people may need good lawyers to stay out of jail.  Not going to name them here, but for anyone reading this, I wouldn't be surprised if this blog suddenly vanishes as they back track to cover their paths. hehe Just in case I have screen shot it myself to provide the appropriate authorities. In an industry that attracts some great people like Greg Norman, unfortunately we also attract (like any industry) some dodgy buggers too.  You can usually spot them a mile away as opportunists jumping from one company to another making stupid claims, possibly because the lack of integrity finally caught up with them.   Network marketing rocks! So does MAX, Just be careful and avoid the con men out there people.   Thus ends my public protection sermon Cheers Michael  

George December 22, 2011 at 3:54 am
Marcus: Why did it take Max 14 months after this event to deal with this???  I was at that event and gave nearly $500 cash.  it was said in a letter from a Max Executive back in April 2011 that they were going to pay the additional $37,000 in May (that's 7 months after they had the cash in their hands).  It makes sense that someone would go to the Police on this.  It makes me sick to my stomach that Max would hold the money till now, and it doesn't appear that they would ever pay it unless they got exposed.  Sounds pretty fishy to me....what's your response???

Marcus Schubert December 22, 2011 at 1:37 pm
Hi George, what is your surname please? I'll be glad to have a chat with you direct on fb rather than be unprofessional and discuss opinions in a public forum :-) I'm so grateful to the people who exposed this information purely for the benefit of the charity with NO SELF INTEREST at all.......ahem :)

Thomas Taber December 23, 2011 at 4:12 am
were is the press release that Marcus stated was going to be today. i dont think Ted Nuyten is shaking in his boots or shoes. the truth will always come out sooner or later. I just would like to see the press release from Max.

Max International December 23, 2011 at 4:19 am
Max International and Prevent Child Abuse Utah have issued the following joint press release: * * * * JOINT PRESS RELEASE Prevent Child Abuse Utah and Max International Respond to Allegations of Failure to Forward Donations Raised at Max International All-Star Convention * * * * PCAU Affirms Allegations are False; Organizations Express Appreciation for Partnership Ogden, Utah / Salt Lake City, Utah, December 22, 2011 - an unfortunate email was circulated, alleging that Max International, LLC (Max International) has failed to fulfill a donation commitment to Prevent Child Abuse Utah (PCAU). The information published in the email does not reflect the understanding between PCAU and Max International regarding the parties’ relationship or any obligation by Max International to PCAU. PCAU and Max International have partnered with each other to raise money for the prevention of child abuse and each appreciates the efforts of the other toward that common goal. PCAU and Max International are not in dispute over the matters mentioned in the email or over any other matters, and the organizations look forward to working with each other in the future. About Prevent Child Abuse Utah: Prevent Child Abuse Utah (PCAU) is a non-profit organization committed to breaking the cycle of child abuse through education and training. PCAU has offered leadership in the development of child abuse prevention programs and services since 1982. PCAU is a statewide agency with a governing board of directors. The mission of PCAU is to forge and guide a community commitment to prevent child abuse in all its forms, through programs, services, public awareness, training and education, advocacy and networking. PCAU has been working with the Utah education system and providing school-based child abuse prevention programs for the past 26 years. It is the state’s largest nonprofit child abuse prevention organization. PCAU curriculum is approved by the Utah State Office of Education and meets the core curriculum values. About Max International: Max International is privately-held direct sales company, based in Salt Lake City, Utah, with operations in the U.S., Canada, Puerto Rico, the Philippines, New Zealand, Australia, and Singapore. Max International provides science-based nutraceuticals through its network of independent distributors throughout these countries.

Thomas Taber December 23, 2011 at 4:21 am
Top Earner Rick Teague Resigns Max International December 17, 2011 Rick Miller left also this month two big shots left Max International is the ship leaking or they just want out.????????????????

Marcus Schubert December 23, 2011 at 5:07 am
Here you go fellow professionals, Max response & JOINT PRESS RELEASE as promised ~ In response to an anonymous email alleging Max neglected charitable contributions, it is important to set the facts straight. In 2010, Max International partnered with Prevent Child Abuse Utah (PCAU) to raise money and awareness for the prevention of abuse, and neglect of children. Raising awareness and money for this charity was worthy of Max’s full attention, and in the spirit of full cooperation, Max put together a fundraising plan. Max spent in excess of $100,000 to create awareness for PCAU, as well as raising money through various means, including cash donations and the sale of merchandise. In addition to the $100,000+ spent to raise awareness, the Company pledged $47,000 to PCAU at Max’s 2010 All-Star Convention. It is unfortunate that certain individuals initiated this allegation, which as you will see in the attached joint press release, is false. Their unethical intent was to hurt Max, and it’s Associates, however this attempt also ended up hurting PCAU as well. Sensitive information including a copy of a check from a Max Associate's donation was released by PCAU to a third party who falsely represented him/herself as a Max employee. The person who deceptively acquired this sensitive information then attached it to the anonymous email in an attempt to support their allegation. Max wishes to expresses appreciation for the great inflow of support it has received from its Associates, and is committed to working in a spirit of partnership with it’s Associates to represent the highest of ethical business standards. Along with this appreciation, Max advises its Associates to take care in partnering with companies or individuals who would seek to profit from unethical behavior. Max and its Associates work diligently to uphold the reputation of the direct selling industry, and it is truly sad to see people stoop to this level. Max believes that the direct selling industry is opening up doors of financial opportunity for countless people at a critical economic time. Engaging in unethical behavior creates industry skepticism and closes the door on people that otherwise would be positive contributors to not only our industry, but also the economy as a whole. Max welcomes healthy, ethical competition. Max is confident in its breakthrough products, and we believe in our Associates and their ability to properly share our message and opportunity to the world. Read the Press Release by clicking link below. http://click.icptrack.com/icp/relay.php?r=18602900&msgid=329728&act=F5KA&c=184337&destination=http%3A%2F%2Fmxl.myvoffice.com%2Fpdf%2Fen%2FjointStatement.pdf

George December 23, 2011 at 6:38 am
Press Release says nothing about Max paying the $37k.... Why don't you see the letter by a Max Corp person dated 04/11. That says it all. They held the associates money and as of Dec. 20, 2011 (according to the charity), PCAU still didn't receive any money.

Mike Collins December 23, 2011 at 6:38 pm
Michael Firth and Marcus Schubert: All of us will be eagerly awainting your response to this question: WHERE IS THE MONEY? Forget about anything else! No spin. No B.S. Just "WHERE IS THE MONEY?" Has it been sent or NOT?

thomastaber December 24, 2011 at 5:24 am
as it was said in the movie SHOW ME THE MONEY

Mike Collins December 27, 2011 at 6:33 pm
AND STILL.......NO COMMENT.........so much for running interference

Marcus Schubert December 28, 2011 at 7:43 am
Thanks for your interest Mike Collins, and George (who is still hiding his surname, wonder why??) Sorry for the late response, I was out building my business, living in the present, looking to the future, saving a whale and looking for a big pile of lost money! When you say Where's the money? Where's The Money? Where's the money??..... do you think I have it?? Do you think it's my job to find it? Do you think I work for or answer to you? haha why are you asking me?? why don't you put a big "S" on your chest and go and FIND it? On a serious note, because yes i agree this is a serious question, even if a number of people who are asking the question have a definite personal agenda's and motives..... So........When you ask "Where is THE money"? I'm assuming you mean the EXACT coins, checks and notes that were passed from associates to the PAST management? If that is your question, then you will need to ask THEM, the PAST men who TOOK IT, not me or the current management who appear to have inherited that debt along with a number of others. I'd say (my assumption) being a logical man that THAT MONEY, was spent long ago by past management and to be honest at the time, I was a bit miffed as to how 2 guys from corporate could think that spending over $100,000 riding across the country on Harley Davidson's was a good use of resources for our company, our associates or the charity itself. Why not just donate the cash direct! On the other hand if you are asking me where is the amount promised from Max Int to PCAU, then it appears from the press release, that their agreement has been addressed satisfactorily between the two parties. If you are personally unsatisfied with the statement from Max & PCAU, and you feel its your business to get involved, then you will need to invest your own time & resources to find an answer that helps you sleep and night. I'd hate to hear back that you are waking up in cold sweats yelling out "WHERE'S THE MONEY, WHERE'S THE MONEY??"

thomastaber December 30, 2011 at 1:23 am
I sleep like a baby, you are the ones with the problems come over to organo gold where the company is top notch, I am sorry that you had to take over a bad ship I hope you can fix it before it sinks

Mike Collins December 30, 2011 at 8:08 pm
Boy Marcus, that was a lot of words used to not answer the real question. The REAL question is...has it been sent or not? You and Michael Firth were the first to post on this topic as though you had intimate knowledge of what is going on. You both made comments like: "Just got the the phone from one of our top company executives at Max and YOU WON'T BELIEVE the "Story behind the story" and "Knowing the truth behind this story is great, because one or two of those creating it, slipped a little in trying to create the BS in the first place." Is the TRUE story that MAX has bad management that was using money donated by it's distributors to fund a personal bike ride across the U.S.? Is that the official story? If you are going to put your neck out there by making statements like "Just got the the phone from one of our top company executives" as if you are in the "know" then don't get all in a huff if someone busts your balls a little. Now...back to the real question: Has the money been sent or not? I'm sure that someone with your connection to "top company executives" knows the answer.  

Thomas Taber December 31, 2011 at 12:28 am
TED put up the article in another story no one has answered it