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Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 1 of 69 Page ID #:1

1 Geoff J. Spreter, Esq. (SBN 257707)

SPRETER LAW FIRM, APC


601 3rd Street
3 Coronado, CA 92118
Tel: (619) 865-7986
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geoff@spreterlaw.com
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Attorneys for Well-Med Global, LLC

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UNITED STATES DISTRICT COURT


FOR THE CENTRAL DISTRICT OF CALIFORNIA

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WELL-MED GLOBAL, LLC, a


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California Limited Liability Company, )
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Plaintiff, )
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vs.
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)
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NHT GLOBAL, INC., a Texas
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Corporation; UBIQUITY
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INTERNATIONAL, LLC, a Nevada
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Limited Liability Company;
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AWESOME SYNERGY, INC., a
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Wyoming Corporation.
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Defendants.
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Case No.:
Complaint For
1. VIOLATION OF RICO (18 U.S.C.
1962[C])
2. BREACH OF CONTRACT
3. BREACH OF THE IMPLIED
COVENANT OF GOOD FAITH AND
FAIR DEALING
4. INTENTIONAL INTERFERENCE
WITH CONTRACTUAL RELATIONS
5. INTENTIONAL INTERFERENCE
WITH PROSEPCTIVE ECOMONIC
INTEREST
6. FRAUD
7. TRADE LIBEL
8. MISAPPROPRIATION OF TRADE
SECRETS
9. VIOLATION OF BUSINESS AND
PROFESSIONS CODE 17200
JURY TRIAL DEMANDED

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-1COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 2 of 69 Page ID #:2

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Well-Med Global, LLC, (Well-Med), demanding trial by jury, complains and


alleges upon information and belief as follows.

I. INTRODUCTION

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1.

This action is brought by Well-Meda multi-level marketing (MLM)

companyfor damages and injunctive relief, arising from the breach of a two-year

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8 exclusive supply agreement, for the popular supplement Stemfit Active (Stemfit), and
9 the subsequent raiding of Well-Meds downline independent distributors (IDs) by the
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Unnamed Co-Conspirators Tina Johnson, Dr. Chris Morris (hereinafter Unnamed Co-

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12 Conspirators ), and NHT Global (NHT). (Ex. 1.)

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2.

In or around January 31, 2014, the Unnamed Co-Conspirators: The

Unnamed Co-Conspirators2), through their limited liability company, Ubiquity

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16 International, LLC., (Ubiquity) and later through Mind, Body, & Spirit agreed to
17 supply Well-Med for a term of (2) two years, with a product call Stemfit Active. Stemfit
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Active is a nutritional supplement that contains, among other things: the incubated,

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20 fertilized, avian-egg extract YTE (from Norway Marine Mineral Complex), Shark
21 Cartilage, Glyconutrient, and Phytonutrient. Users of the supplement report, among
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Tina Johnson and Dr. Morris are subject to a mediation and arbitration provision. Well-Med will initiate mediation

24 shortly against them. Should they not comply with the terms of the policies and procedures, then Well-Med shall amend
the complaint to name them as named parties in this complaint. Thus, they are referred to as Unnamed Co-Conspirators

25 for the purpose of pleading claims against the other Defendants relating to conspiracy.
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Tina Johnson and Dr. Morris are subject to a mediation and arbitration provision. Well-Med will initiate mediation

26 shortly against them. Should they not comply with the terms of the policies and procedures, then Well-Med shall amend
the complaint to name them as named parties in this complaint. Thus, they are referred to as Unnamed Co-Conspirators

27 for the purpose of pleading claims against the other Defendants relating to conspiracy.
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-2COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 3 of 69 Page ID #:3

1 other things: increased energy and endurance, improved focus, attention, concentration,
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and improved sleep for better recovery. (Ex. 2.)

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3.

Several months prior to the 2-year contract ending (which included a 6

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month non-compete upon termination), it is believed that Defendant Ubiquity and the

16 Unnamed Co-Conspirators chose to violate the exclusivity and non-compete


17 provisions, by reaching a secret agreement with Defendant NHT, and its master
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distributors, Joe Garia, and Dan Catto, to transfer the Stemfit product line over to NHT.

20 It is believed that Co-Conspirator Morris and Johnson, met with Joe Garcia, founding
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master distributor of NHT, a Canadian citizen, and, as early as October 2015, if not

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earlier.3 Joe Garcia was able to lure the Unnamed Co-Conspirators away from Well-

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http://www.wecreatemillionaires.info/

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-3COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 4 of 69 Page ID #:4

1 Med, by promising them the opportunity to join a global $300 million company, and
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the potential to have a billion-dollar product. (Exs. 5, 8, 43).

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4.

Knowing that Stemfit had a loyal following, and was gaining sales

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momentum, the Unnamed Co-Conspirators, who were well respected Well-Med IDs,

21 and President and Chief Product Strategist, set out to steal Well-Meds loyal customer
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base (the IDs) for Stemfit. (Ex. 15.) The Unnamed Co-Conspirators intended to bring

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the Well-Med IDs to NHT Global, when they transitioned over, so as to boost initial

25 sales figures. To orchestrate this raid on Well-Med, the Unnamed Co-Conspirators


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concocted the fiction that only NHT would have Stemfit/Stemrenu, as Unnamed Co-

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-4COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 5 of 69 Page ID #:5

1 Conspirators were the formulators, and had exclusive right to YTE, the key ingredient
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in Stemfit; this is flat out false (Ex. 6). They also spread a false rumor to Well-Med

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IDs that Well-Med only possessed a two to three-week supply of the product, and after

5 the supply ended Well-Med would no longer be able selling Stemfit Active.
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5.

These false statements about Well-Med and Stemfit Active were also

20 promulgated through social media outlets, at the instruction of Unnamed Co21

Conspirators and their loyal distributors. (Exs. 7, 25).

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6.

However, Well-Med had access to YTE, the main ingredient in Stemfit

24 and was able launch it second generation Stemfit product shortly thereafter despite the
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false statements by the Defendants.

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-5COMPLAINT

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7.

Among other things, in their attempt to defame and raid Well-Med IDs,

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Defendants and the Unnamed Co-Conspirators: (1) violated the 2-year exclusivity

15 agreement, by negotiating to sell the product to NHT; (2) violated the 6-month non16

competition provision, which ended on July 31, 2016 (3) misappropriated trade secrets,

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in the form of proprietary Well-Med contact information for active IDs and Stemfit

19 customers; (4) engaging in tortious business actions aimed at damaging Well-Meds


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reputation in the multi-level marketing industry (such as falsely stating it was selling

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22 products that were using degraded YTE, and was unable to obtain certain ingredients
23 for products.
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8.

As shown below, Defendants and the Unnamed Co-Conspirators conduct

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26 with respect to Well-Med was: egregious, intentional, malicious, and undertaken with
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-6COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 7 of 69 Page ID #:7

1 the specific intent to harm Well-Med professionally and financially. Moreover, Well2

Med, and its business, have been directly affected by Defendants and the Unnamed

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Co-Conspirators unlawful and tortious actions, in that they have lost business, in the

5 form of product sales, and active IDs, who actively sell Well-Meds products.
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9.

Given that the unlawful conduct is continuing and ongoing, and that

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8 Defendants and the Unnamed Co-Conspirators have misappropriated trade secrets, its
9 clear that only an express order from this Court, enjoining Defendants and the
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Unnamed Co-Conspirators from continuing their defamatory campaign and

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12 unfair/unlawful business practices, and imposing punitive damages, will deter
13 Defendants from continuing such conduct.
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II. THE PARTIES

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The Well-Med:

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10.

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Well-Med, LLC was (at all times relevant to the allegations in this

complaint) a corporation organized under the laws of the State of California, with its

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20 principal place of business in the State of California, that did business regularly
21 throughout the United States, including in California. Well-Med is a multi-level
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(MLM) company that distributes skin-care and wellness products.


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The Defendants:

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11.

Defendant NHT Global, at all relevant times, was a corporation organized

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under the laws of the State of Texas, with its principal place of business in the State of
-7COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 8 of 69 Page ID #:8

1 California, and did business regularly throughout the United States, including in the
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State of California. NHT transacts its business in the Central District of California in

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accordance with 18 U.S.C. 1965(a) and (b) and California Code of Civil Procedures

5 410.10. NHT is a direct competitor of Well-Med and acts through is distributors. It a


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publicly traded company with a market capitalization of over $300 million dollars. (Ex.

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8 8).
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The Defendants:

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Defendant NHT Global, at all relevant times: was a corporation organized

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12 under the laws of the State of Texas, with its principal place of business in the State of
13 California, and did business regularly throughout the United States, including in the
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State of California. NHT transacts its business in the Central District of California, in

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16 accordance with 18 U.S.C. 1965(a) and (b), and California Code of Civil Procedures
17 410.10. NHT is a direct competitor of Well-Med, and acts through is distributors. It
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is a publicly traded company with a market capitalization of over $300 million. (Ex.

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20 8).
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Defendant Ubiquity International, LLC, at all relevant times, was a

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corporation organized under the laws of the State of Nevada, with its principal place of
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24 business in the Nevada, and did business regularly throughout the United States,
25 including in the State of California. Ubiquity transacts its business in the Central
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-8COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 9 of 69 Page ID #:9

1 District of California, in accordance with 18 U.S.C. 1965(a) and (b), and California
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Code of Civil Procedures 410.10.

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14.

Defendant Mind, Body, & Spirit, Inc., at all relevant times was a

5 corporation organized under the law of the State of Nevada, with its principal place of
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business in Nevada, and did business regularly throughout the United States, including

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8 in the State of California. Defendant Mind, Body, & Spirit, Inc., transacts its business
9 in the Central District of California, in accordance with 18 U.S.C. 1965(a) and (b),
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and California Code of Civil Procedures 410.10. Defendant Mind, Body, & Spirit,

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12 Inc. is owned jointly by the Unnamed Co-Conspirators. It received payment from Well13 Med on several occasions, in response to purchase orders for Stemfit.
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15.

Defendant Awesome Synergy, Inc., at all relevant times, was a

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16 corporation organized under the laws of the State of Wyoming, with its principal place
17 of business in the State of Wyoming, and did business regularly throughout the United
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States, including in the State of California. Awesome transacts its business in the

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20 Central District of California in accordance with 18 U.S.C. 1965(a) and (b), and
21 California Code of Civil Procedures 410.10. Awesome Energy was incorporated in
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December 3, 2015, as a corporate entity for the Unnamed Co-Conspirators to conduct


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24 business for the StemRenu product, when they launched the product with NHT. (Exs.
25 10, 11).
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Unnamed Co-Conspirators:
-9COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 10 of 69 Page ID #:10

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Tina Johnson: Is a veteran multi-level marketing professional with over

25-years experience in the industry. (Ex. 12). Unnamed Co-Conspirator Johnson has

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had a wide-ranging career, including TV-radio personality, health & nutritional

5 practitioner, entrepreneur, distributor, corporate leadership, and Formulator.


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17.

After signing-up to be an ID with Well-Med, in or around April 2013,

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8 Co-Conspirator

Johnsonalong with her partner, Co-Conspirator Morris

9 approached the CEO of Well-Med, Tom Lee, with the idea to market a YTE-based
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product, like one she had marketed previously at another MLM company (Lifepharm

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12 Global). (Ex. 13). Tina Johnson, because of her prior experience and ambition, was
13 made President of Well-Med. As president, she was paid a salary of $10,000 per month.
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Ms. Johnson received this salary up until March 2016. She received commissions up

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16 until April 2016 from Well-Med.
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Chris Morris:
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Chris Morris is another veteran MLM professional who operates in the

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20 health and wellbeing products market. According to his biography, he is a recognized
21 naturopathic physician, author, cleric, and business leader. (Exs. 13,14,15). Tina
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Johnson is his partner, and they routinely work together in MLM companies such as
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24 LifePharm Global, Well-Med, and now NHT.
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The above named Defendants and Unnamed Co-Conspirators had and

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have sufficient and continuous contacts with the Central District of California, in that,
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Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 11 of 69 Page ID #:11

1 among other things: they actively violated the exclusivity agreement, solicited IDs
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from Well-Med, and had active Well-Med IDs and employees send current IDs

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contact information to Defendants and Unnamed Co-Conspirators, through the use of

5 mails and wires in this district. They also sold products and services in the district, and
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promoted their businesses in the district through video.

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CONSPIRACY, AGENCY, JOINT VENTURE, ALTER EGO

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Each of the Defendants named herein acted as the co-conspirator, agent,

single enterprise, joint-venturer, or alter ego of or for the other Defendants, and

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12 Unnamed Co-Conspirators, with respect to the: acts, violations, and common course of
13 conduct alleged herein, and ratified said conduct, aided and abetted, or is otherwise
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liable. Defendants and Unnamed Co-Conspirators had meetings with other Defendants,

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16 and Unnamed Co-Conspirators reached agreements to solicit Well-Med IDs and
17 violate the exclusivity agreement. In addition, Defendants, along with Unnamed Co18

Conspirators, were part of the leadership team that participated in the launch of

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20 StemRenu, and made decisions regarding: products, services, marketing strategy, and
21 compensation plans.
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The acts alleged in this Complaint, as having been done by Defendants

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24 and Unnamed Co-Conspirators, were: authorized, ordered, ratified or done, by their:
25 officers, agents, employees, or representatives--while actively engaged in the
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management of the Defendants' businesses or affairs.


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III. JURISDICTION AND VENUE


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Defendants are subject to the jurisdiction of this Court. Defendants NHT,

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Ubiquity, and Awesome, at all relevant times, have been engaged in continuous and

5 systematic business in California, and/or have committed tortuous acts in this state.
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The individual Defendants have, at all relevant times, also been engaged in continuous

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8 and systematic business in this state and/or have committed tortuous acts in California.
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The actions giving rise to this suit were undertaken by Defendants, at least

in part, in California. Well-Med is a resident of California and has corporate

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12 headquarters within this district. In accordance with 18 U.S.C. 1965(a) and (b), the
13 Defendants are subject to this Court's jurisdiction, in that they "transact affairs" in the
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Central District of California and "the ends of justice require that other parties residing

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16 in any other district be brought before the Court, the Court may cause such parties to
17 be summoned, and process for the purpose may be served in any judicial district of the
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United States by the marshal thereof. (U.S.C. 1965[a] and [b]). In accordance with

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20 California's long-arm statute, California Code of Civil Procedure 410.10, this Court
21 has personal jurisdiction over the Defendant.
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24.

Because Well-Med asserts claims pursuant to the Racketeer Influenced

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24 Corrupt Organizations Act (RICO), 18 U.S.C 1961-1968, this Court has jurisdiction
25 over this action, pursuant to 28 U.S.C 1331. Because Well-Med assert state-law
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Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 13 of 69 Page ID #:13

1 claims under the California Business and Professions Code, this Court may exercise
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supplemental jurisdiction, pursuant to 28 U.S.C. 1367.

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Venue is proper in this District, pursuant to 28 U.S.C 1391(b), and

5 because a substantial number of the acts and transactions that precipitated Well-Meds
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claims occurred within this District. Defendants did (or solicited) business, and

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8 transmitted communications by mail or wire, relating to StemFit Active and StemRenu,
9 in this district. Defendants also transacted their affairs in this judicial-district, and
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committed wrongful acts in this district, which have directly impacted the general

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12 public (of this district); the ends of justice do require that parties residing in other
13 districts be brought before this Court.
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IV. FACTUAL BACKGROUND

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A. WELL-MEDS BUSINESS MODEL AND WELLNESS PRODUCTS

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Well-Med is wholesaler of skincare, personal-care, and wellness products.

Well-Meds rapid success is largely attributable to its culture of innovation, investment,

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20 and fine tuning of its business model. Throughout its existence, Well-Med has
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products that provide helpful benefits to Well-Med's customers; and (2) develop a
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24 highly motivated, fair and well compensated distribution network of IDs.
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Well-Med distributes its products throughout the United States, through

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an MLM model. Although Well-Med distributes its products through IDs, (each
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1 operating their own businesses), these IDs agree to be bound by Well-Med's written
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Policies and Procedures. The Policies and Procedures (P&Ps) are a set of written

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principles and ethics that govern the IDs' representation of Well-Med, the sale of its

5 products, and the operation of each IDs business. Among other things, these P&Ps
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hold everyone associated with the company, including its IDs, to the highest possible

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8 ethical standards.
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28.

As shown below, Defendants and the Unnamed Co-Conspirators conduct

is anything but ethical; in fact, it is downright unlawful. The raiding of Well-Meds

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12 downline through the theft of proprietary IDs lists, is a known improper practice in the
13 MLM industry. It is also in direct contravention of the P&Ps that the Unnamed Co14

Conspirators agreed to follow and were bound to by their affiliation with Well-Med.

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B. THE CREATION OF STEMFIT, THE BREACH OF THE SUPPLY


CONTRACT AND THE NHT CONPSIRACY TIMELINE

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1. The Unnamed Co-Conspirators and Well-Med

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In or around April 2013 Unnamed Co-Conspirator Johnson and Morris

joined Well-Med as IDs. Well-Med took notice of the Unnamed Co-Conspirators

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ambition and excellent sales results. They were high-volume sellers of Well-Meds

23 health and wellbeing products.


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After approximately three (3) months of being IDs for Well-Med, the

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Unnamed Co-Conspirators approached Mr. Thomas Lee, the Chief Executive Officer

27 of Well-Med (CEO Lee), about marketing a supplement using YTE. The Unnamed
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1 Co-Conspirators had been very successful selling another YTE extract based Stem Cell
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Protein supplement, a Laminine product (also created from stem cells taken from

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chicken eggs grown in Norway) at their prior company, LifePharm Global (Ex. 13).

5 CEO Lee was impressed by the by the Unnamed Co-Conspirators proposal, and the
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parties agreed to work together bringing the product to market.

31.

To finance Stemfit, CEO Lee created a limited liability company, Odyssey

9 Group International, for Well-Med to purchase the product through. The Unnamed Co10

Conspirators signed the contract through their limited liability company, Ubiquity, who

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12 agreed to manufacture the Stemfit product and deliver it to Odyssey Group. In return,
13 Well-Med agreed to purchase Stemfit from Odyssey and market it through its current
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IDs.

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The parties memorialized the deal by signing a supply contract on or about

17 January 31, 2014. The contract also contractually bound the parties to an initial
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purchase order of approximately 30,000 bottles ($240,000). (Ex. 1)

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Among other things, in relevant part, the contract states:

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5. Ordering Procedure and Lead Time

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Purchases and sales of the products between OGI and UI under this agreement
shall be made by means of written purchase orders submitted by OGI to UI,
specifying, among other things, the number of units of each product ordered
under each purchase order, and the desired date and place of delivery. The
production lead-time shall be 6-8 weeks from receipt of the P.O assuming that
UI has access to the required packaging components 2 weeks prior to the due
date. It is the responsibility of both parties to confirm receipt of the purchase
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order and agree on the delivery date within 3 days of receiving PO. If OGI does
not receive an acknowledgment, then it is to be assumed that the Receive by date
is accepted. If a product is not going to be ready on the agreed upon date, UI
agrees to inform OGI at least one week prior, so necessary arrangements can be
made.

7. Exclusivity

UI agrees that OGI is the exclusive sales channel for the StemFit Acitve product
and that UI will not sale nor distribute any similar product containing StemFit
active ingredients. Such exclusivity will remain during term of this contract and
the exclusivity will survive the termination for a period of six months.

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9. Assistance
(a) The information regarding the use of the product, marketing materials and
sales support shall be responsibility of OGI.
(b) UI shall also provide Buyer with documentation for the transportation,
regulation (such as FDA), storage, maintenance and general formulation of the
product.
10. Additional Cost for service

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UI has the right to charge additional fees for services other than specified above.
Term of contract.

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11.Term of Contract

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This agreement shall be effective for a period of 2 years, at which time the
agreement may be re-evaluated and renewed by mutual agreement of the parties
hereto. (Both parties reserve the right to determine whether to renew the
agreement or not renew the agreement.) During the term of this contract UI
agrees to continue to supply OGI with its products under the business procedures
and practices described in this contract.
This Agreement may be terminated by either party upon sixty (60) days written
notice to the other party. Notwithstanding the preceding, the obligations of the
parties shall continue hereunder with respect to the acceptance of payment of
any product ordered by OGI and the production of the product by OGI prior to
any such termination.
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2. The Success of Stemfit Active.

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The initial response to the Stemfit product was positive. Well-Meds IDs

4 immediately took a liking to the product, and were enthusiastic about the products
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benefits. The product quickly gained a loyal following, as Well-Meds IDs are

7 predominately senior citizens, and baby boomers who are focused on purchasing
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products, as opposed earning income by participating in an MLM.

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Knowing it had a winner, Well-Med put a lot of its resources into

11 marketing and selling Stemfit. Well-Med created marketing materials so that their IDs
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could market Stemfit, and build brand recognition. Well-Med IDs started having

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conference calls, hosted by high ranking IDs, such as the Unnamed Co-Conspirators,

15 who, at the time, were the President and Chief Product Strategist of Well-Med,
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respectively, and would become the spokespersons for the product. (Ex. 2, 15).

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As the contract proceeded, sales of Stemfit started to grow incrementally.

19 Well-Med averaged 1,300 bottles a month in sales in 2014, and started to average 1,800
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to 1,900 bottles per month in 2015. For the months of: August, September, October,

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and November 2015, sales for Stemfit were 1,824, 1,962, 1769, and 1,949 units per

23 month, respectively.
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3. The Breakdown of the Stemfit Relationship

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37.

In or around December 2015, Unnamed Co-Conspirator Johnson

27 approached CEO Lee, and informed him that she was leaving Well-Med for personal
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1 reasons. She informs CEO Lee that she is leaving her partner, Unnamed Co2

Conspirator Morris. Unnamed Co-Conspirator Johnson is in tears, and appears

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emotional to CEO Lee. Being sympathetic, CEO Lee shows compassion and asks that

5 Co-Conspirator Johnson stay on and train her replacement, Frania Viele. Co6

Conspirator Johnson agrees, and Well-Med continues to pay her $10,000 a month

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8 salary and she continues to receive commissions (which she received up until April
9 2016).
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38.

As January 2016, came to a close, Well-Med was operating under the

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12 assumption that the contractual relationship was intact and proceeded to place an order
13 under the same prior terms on February 1, 2016.
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Around this same time, (in early February 2016), Unnamed Co-

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16 Conspirator Johnson started reaching out to Well-Med employees and acquiring
17 Stemfit customer lists: can you tell me on this list who has ordered in the past 3
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months? Thanks, those are the ones we will need to call first. (Ex. 16).

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40.

Justin Crowder (Crowder), a Well-Med employee, is the inside mole for

21 the Unnamed Co-Conspirators and NHT. For example, on February 22, 2016, he sent
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himself a list of things to do, to prepare for his departure from Well-Wed, which,
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24 included, but are not limited to (Ex. 17):
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1. Work on Instagram and Pinterest pictures with StemRenu Logo. Similar to

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what I did for Facebook and Stemfit.


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2

2. Incorporate with name JADE, LLCUse this as my member name for


replicated website to keep anonymity.

3
4

3. Ask Tina if she would allow me to sponsor some of her direct peeps in my

lesser leg.

4. StemRenu blog posts, buy StemRenu.com, Email WellMed email List.

7
8

Subject Line: Looking for Stemfit Active.

9
10

41.

As March 2016, comes, CEO Lee could tell things were not right with the

11 Unnamed Co-Conspirators. Well-Med had placed a purchase order on February 1, 2016


12

for 10,000 bottles of Stemfit; the Unnamed Co-Conspirators were holding up the order.

13
14

42.

On March 7, 2016, Unnamed Co-Conspirator Johnson, through her

15 counsel, Wellman & Warren, LLP, sent a letter to CEO Lee confirming Unnamed Co16

Conspirator Johnsons resignation from any and all relationships with Wellmed

17
18

Global. In the letter, Unnamed Co-Conspirator Johnson attempts to set December

19 2015, as her resignation date, by saying that she resigned from her contracted
20

relationships on December 14, 2015, during her in-person meeting with Tom Lee.

21
22

However, this statement is false, and is an attempt by Unnamed Co-Conspirator

23 Johnson to draw attention away from her tortious conduct, occurring in January and
24

February 2016. (Ex. 18).

25
26

43.

That same day, Unnamed Co-Conspirator Johnson reached out to her

27 moles in Well-Med and asked for the Week 7 payouts for Stemfit, from Well-Med
28

- 19 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 20 of 69 Page ID #:20

1 employees. She also solicited current Well-Med employees Justin Crowder, Judy
2

Crowder, and Frania Viele. (Ex. 19). She then sent out an email about NHTs platinum

3
4

philosophy, and states that the Well-Med IDs should promote NHTs gold or

5 platinum packages with auto-bank. Johnson also sent out links to the SteamTeam
6

Index, a website operated by Dan Catto, and Joe Garcia. (Ex. 20).

7
8

44.

The very next, day after allegedly resigning from Well-Medof any and

9 all relationships with Wellmed GlobalTina sent an NHT non-disclosure agreement


10

to Well-Med employees, and stated: use this NDA. (Ex. 21). In addition, Unnamed

11
12 Co-Conspirator Johnson sent NHT marketing material, that had an estimated monthly
13 payout for specific titles at NHT (Bottom Line the total income at each of these Ranks
14

is higher and much more the higher the Rank Achieved.) (Ex. 22). The document also

15
16 discussed the specific triggers for different nationalities, for example:
17
18
19
20

Russian like Trips. Chinese $$$. Koreans recognition. North Americans


a bit of mix. Most good leaders know theyre Team and what Drives them.
Universally Driving Rank around the Platinum Package has been the
best.
45.

On or about March 15, 2016, CEO Lee sends Unnamed Co-Conspirator

21
22

Johnson an email inquiring where Well-Med/Ubiquitys latest Stemfit order is, which

23 was placed on February 1, 2016. (Ex. 23). In response, Unnamed Co-Conspirator


24

Johnson sends an email stating that she would send CEO Lee a mutual release

25
26

document, and stated Once signed by both of us, I can get you the bottles of stem right

27 away. (Ex. 23).


28

- 20 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 21 of 69 Page ID #:21

1
2

46.

On or around March 16, 2016, Unnamed Co-Conspirator Johnson sends

CEO Lee an email asking CEO Lee how she should send him an agreement concerning

3
4

the order. She then sent a follow-up email that evening, stating that she needed a

5 response regarding the agreement (concerning the final order) by 5:00 pm, she also
6

mentioned that another company wants them however. (Ex. 24).

7
8

47.

Unnamed Co-Conspirator Johnson sends another email to CEO Lee

9 another on March 17, 2016, asking for him to sign a general release prepared by her
10

law firm, Wellman & Warren, LLP, releasing Mind, Body, & Spirit, and Ubiquity

11
12 International from any liability relating to the sale of the Stemfit. (Ex. 24). Again, in
13 the release, Unnamed Co-Conspirator Johnson tries to list December 14, 2015, as the
14

termination date of her relationship with Well-Med. In addition, the release contains

15
16 the language from the March 7, 2015, resignation letter, Johnson has resigned from
17 any and all of positions and relationships with Well-Med. She also warrants in the
18

termination section: Johnson further represents and warrants that she has not retained

19
20 any copies, electronic or otherwise, of any proprietary information. The release also
21 contains a provision that Unnamed Co-Conspirator Johnson is to be compensated in an
22

amount of $5,000 for training Frania Viele up and until March 17, 2016.
23
24

48.

On March 17, 2016, Unnamed Co-Conspirator Johnson sends an email to

25 Justin Crowder asking him to edit the NHT Global Opportunity Presentation that was
26
27
28

forwarded to her by NHT Master Distributor, Joe Garcia. (Ex. 25).


- 21 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 22 of 69 Page ID #:22

1
2

C. DEFENDANTS NHT, AWESOME, AND THE UNAMED COCONSPIDATORS GLOBAL AMBITIONS AND TORTIOUS
CONDUCT

3
4
5
6

1. The Unnamed Co-Conspirators StemReNu Venture with NHT Global


49.

Well-Med believes that at least as early as October 2015, if not earlier, the

Unnamed Co-Conspirators became associated with NHT, and reached an agreement to

7
8 move Stemfit and the loyal Well-Med customer base over to NHT. (Ex. 2, 5).
9
10

50.

NHT is an MLM company that sells personal health products, including

personal-care and wellness products; NHT is thus a direct competitor of Well-Med.

11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

- 22 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 23 of 69 Page ID #:23

1
2

51.

According to NHTs fact sheet on its website NHT is an international

direct-selling and e-commerce company that markets premium quality personal care,

3
4

wellness and quality of life products under the NHT Global brand. It has a market

5 capitalization of over $356 million dollars.


6

52.

NHT 4 receives almost 91% of its revenues from Hong Kong and is

7
8 attempting to grow its revenues in Southeast Asia, where MLMs are profitable.
9
10

53.

China has very strict MLM rules.5 According to the website China6, The

company is required to: have a business license, can only pay out one level of

11
12 commission, the sellers have to follow an advanced training course offered by the
13 company and by the end of the course they have to get a license and the direct sellers
14

must wear a badge to prove their status. In addition, the personal sellers commission

15
16 it set at 30% of the sales, including bonuses, commission, and other benefits. Because
17 of the multi-level payment structure, the organizers and the members at top level obtain
18

interest illegally and, according to the Chinese Government, disturb normal economic

19
20 order, and affect social stability. On the contrary, in Taiwan and Hong Kong MLM is
21 legal. It is common to see salesmen from these regions selling in the mainland using
22

Taiwanese or Hong Kong addresses and banks to become sales reps in these
23
24
25
26

http://seekingalpha.com/article/3431806-the-numbers-dont-add-up-at-natural-health-trends-corp?page=2
http://seekingalpha.com/article/2496345-natural-health-trends-has-all-of-its-eggs-in-one-highly-unstable-basket
6
http://www.china-briefing.com/news/2015/07/16/multi-level-marketing-china-isnt-buying.html
- 23 COMPLAINT
5

27
28

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 24 of 69 Page ID #:24

1 jurisdictions while at all times living and working in China. The legality of this is
2

questionable.

3
4

54.

Several bloggers have started to questions NHT business model with

5
6

regard to Southeast Asia and its sustainability. For example, on blogger, on the investor

7 blog site wrote an article entitled, The Numbers Dont Add Up at Natural Health
8

Trends Corp. In the article, the author states his concerns he has with NHTs extremely

9
10

high product prices and the possibility that NHT is selling products in China through

11 Hong Kong, as a way to escape Chineses multi-level-marketing regulations. In


12

particular he states:

13
14

Unlike non-MLM companies, which sell products at price points that reflect actual
15
consumer demand, NHT Global sells products that are priced significantly higher
than any other comparable product.
16

17 The final scenario, and most likely, is that the company doesn't sell products at the
18
19
20
21
22

prices that are suggested. That shouldn't be too much of a stretch to conclude the
company can't sell $73 bottles of water to real consumers. Rather, it appears that the
company has little-to-no demand for the products sold. As is the case with many
MLM firms, revenue is recognized when sold to distributors. But unlike other MLM
firms, NHTC claims to sell 93% of products to actual consumers in China where
they are not allowed to have distributors. If the company only sells via e-commerce
in China, then why is there a direct correlation between revenues in that region and
the number of distributors in Hong Kong?

23
24 In the protein shake example above, NHT Global's Triotein would need to sell to
25

distributors for around $20. A review of various distributor websites and resale sites
like Alibaba reveal that the products sell at deep discounts in China.

26
27
28

- 24 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 25 of 69 Page ID #:25

1
2

55.

The author goes on to compare some general health products that are sold

by various MLM, at retail, and NHTs prices.

3
4
5
6
7
8
9
10
11
12
13
14

56.

Well-Med had discussed with the Unnamed Co-Conspirators a marketing

15
16 plan that involved an expansion of the Well-Med MLM into Asia, as well as the Stemfit
17 product. It is believed that NHT lured the Unnamed Co-Conspirators to NHT by
18

offering them the ability to market StemRenu in China, and with other economic

19
20 incentives.
21
22

57.

All that NHT needed was a successful product launch of Stemfit and it

would be able to sell the product to its own downlines, as part of a product package.

23
24

2. The Raiding of Well-Meds IDs

25
26
27
28

- 25 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 26 of 69 Page ID #:26

1
2

58.

To have a successful product launch for Stemrenu, the Defendants decided

to raid Well-Meds IDs, instead of doing so ethically and organically. In or around

3
4

April 2016, Well-Med received information that Defendants and the Unnamed Co-

5 Conspirators, directly and indirectly, were soliciting Well-Med IDs and customers to
6

join NHT.

59.

The Unnamed Co-Conspirators used their status as Well-Med President,

9 and Chief Product strategist, and formulator of StemFit Active to aggressively solicit
10

Well-Med IDs through, email, text messages, in-person, as well as social media

11
12 (including but not limited to Facebook). (Exs.7, 27)
13
14

60.

Beginning in early March 2016, Unnamed Co-Conspirator Johnson begins

actively making contact with high ranking Well-Med IDs, about moving their

15
16 downlines to NHT from Well-Med. This campaign is targeted and designed to steal the
17 marketing methods employed by Well-Med IDs to market Stemfit, and to have Well18

Med IDs and employees spread false rumors about Well-Med, to foment dissent

19
20 amongst the ranks of Well-Med IDs, and create a rift within the company. (Exs. 15,
21 26).
22
23
24

March 2016
61.

In or around March 2016, Unnamed Co-Conspirators ramped up their

25 campaign to raid Well-Med IDs for the StemRenu launch. Emails from Unnamed Co26
27
28

Conspirators Johnson to various active Well-Med IDs, demonstrate that she and the
- 26 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 27 of 69 Page ID #:27

1 Well-Med IDs were actively coordinating the raid and assisting in the StremRenu
2

launch. (Ex. 16-31).

3
4

62.

On or about March 8, 2016, one day after Unnamed Co-Conspirator

5 Johnsons lawyer sent her resignation letter, John and Judy Crowder send emails to
6

Unnamed Co-Conspirators Johnson with their personal information, so they can be

7
8 enrolled in NHT Global as StemReNu distributors while still employed at Well-Med.
9 (Ex. 26).
10

63.

Then, on March 9-10, the Unnamed Co-Conspirators and the Crowders

11
12 circulate emails regarding NHTs enrollment procedures and packages. For example,
13 the Well-Med IDs discuss the StemRenu signup procedure (Ex. 27):
14

step 1 set the default leg bound under administration application

15
16

placement setting

17

step 2 set up your storefront bound under administration retail catalog

18

settings

19
20

step 3 set up autobank from under administration auto shipping settings

21

step 4 and all and paying their found on page this one might need to be

22

changed as they think the only cases are pain in her checkup will want to
23
24

verify

25
26

64.

Crowder, Sandy Conrad, a Well-Med ID and Well-Meds software

27 consultant, and Unnamed Co-Conspirator Johnson also discuss some of the links that
28

- 27 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 28 of 69 Page ID #:28

1 NHT Global provides on its StemRenu training website, like motivational videos, such
2

as The Secret. (Ex. 28).

65.

In a March 11, 2016, email, Unnamed Co-Conspirator Johnson directs the

5 IDs to their website www.awesomesynergy.com. (Ex. 28). This email also includes a
6

StemRenu schedule for upcoming StemRenu training and marketing calls. She also

7
8 instructs the IDs to get their distributors into the system please work with response
9 or an outline support to make the stop and. She also attaches the enrollment packages,
10

but stated, however, the StemRenu is not available for 3-4 weeks.

11

66.

12

On or around March 14, 2016, Joe Garcia and Unnamed Co-Conspirator

13 Johnson exchange copies of NHTs Global Business presentation webinar. Unnamed


14

Co-Conspirator Johnson to upload the presentation to their Awesome Synergy website

15
16 (Ex. 29).
17
18

67.

On or around March 16, 2016, Mr. Crowder emails himself a list of Well-

Med IDs that he later intends to call and solicit to join NHT. (Ex. 30).

19

68.

20

In the latter half of March 2016, Unnamed Co-Conspirators and their

21 moles at Well-Med began to actively raid Well-Meds IDs, and solicit them to join
22

NHT.
23
24

69.

For example, a Well-Med ID wrote Unnamed Co-Conspirator Johnson on

25 or about March 18, 2016 Re: Stempfit/StemRenu:


26
27
28

- 28 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 29 of 69 Page ID #:29

1
2
3
4
5
6

greetings Tina: you dont know me but I used to use Stemfit. Got an
email the other day that said you and Chris Morris were no longer with
the company. I dont need the details but I want to know what happened
to Stemfit. Is StemRenu the same product? Is it a different product? Did
Wellmed Global keep the original recipe? Basically am I going to be
getting the same product of the same quality and integrity. And any info
you can pass on is appreciated. (Ex. 31)
70.

In response, Unnamed Co-Conspirator Johnson emails Crowder stating:

7
8 Justin: can you see who this person belongs to in WMG? She may need your help.
9 Thanks, T. Justin sends a response on March 21, 2016, who was a Well-Med employee
10

up until 4/1/16, with the name of the up-line ID at Well-Med who sent the inquiry to

11
12 Unnamed Co-Conspirator Johnson. (Ex. 31).
13
14

71.

On or about March 20, 2016, Sandy Conrad, (a recent convert to NHT),

sends an email to Crowder about another Well-Med ID (Ex. 32):

15

20

You should contact him. He wants to get into NHT but doesnt like his
current sponsor. He is in my downline so I told him I couldnt sponsor
him because I have to keep line integrity. Put him on your inside leg you
can assure him then they wont see he is in. Can you also get and info on
how you can buy daily, etc. directly? He called the office and talked to
Ivan that he wanted to buy Stemfit but didnt want to work with his upline.
Let me know if you need his phone number or email.

21

72.

16
17
18
19

22

Around this time, the Unnamed Co-Conspirators are also directing Well-

Med IDs that have questions about the Stemfit product, to visit their new NHT site

23
24

(www.awesomesyergy.com), and what is happening as far as them leaving the

25 company. (Ex. 33).


26
27
28

- 29 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 30 of 69 Page ID #:30

1
2

73.

On March 29, 2016, Crowder sends another email to the Unnamed Co-

Conspirator stating some suggestions for marketing. (Ex. 34):

3
4

74.

On March 30, 2016, Crowder sends another email to another Well-Med

5 ID stating (Ex. 35):


6
7
8
9
10

Hey Don, please keep this confidential until I leave Well-Med Global.
In regard to our conversation here the Information, the check out
www.awesomesynergy.com and watch some of the webinars.
Ill call you later after you get out of work to go over all of the details and
get you positioned if you would like to do that.
75.

These are but a few of the instances of the blatantly unlawful and unethical

11
12

conduct undertaken by Defendants and the Unnamed Co-Conspirators to raid Well-

13 Med of its IDs and their downlines, to ensure the successful launch of NHTs
14

StemRenu.

15
16
17
18

April 2016
76.

In April 2016, the Unnamed Co-Conspirators start hosting webinars and

preparing for the American launch of StemRenu.

19
20

77.

On April 4, 2016, Unnamed Co-Conspirator Johnson exchanges emails

21 with Karyn Simmons, NHTs Vice President of Global Marketing, regarding potential
22

dates for the StemRenu seminars: Tampa April 27, Atlanta April 30, Minnesota

23
24

May 2 opened May 4., LA HOC test May 7. Chicago? Houston? New York?

25 Vancouver? (Ex. 36). Well-Med has a strong presence in the above listed cities and
26

believes Un-Named Co-Conspirators may have chosen them because of this fact.

27
28

- 30 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 31 of 69 Page ID #:31

1
2

78.

To ensure the launch is a success, the Unnamed Co-Conspirators and their

associates instructed the Well-Med IDs to obtain their downline information from

3
4
5
6
7
8

confidential reports available from Well-Meds back office (Exs. 37-41):


I am unable to locate my reports as my computer somehow deleted them.
And, I have not been able to run a report in my WMG back office. I tried
but the system wont generate the report. It is possible for you to run the
Unilevel Team report for me? My I log in with my ID #67839 and my
password is pm4244. Let me know if you are able to do it, and if possible,
send me a copy.

9
10

79.

A critical issue for the Well-Med ID converts arose during April 2016

11 concerning the new pricing for StemRenu. Specifically, the Well-Med ID converts
12

want to know how NHT is going to handle the pricing for StemRenu. On April 7, 2016,

13
14

a Well-Med ID sends the following email to Unnamed Co-Conspirator Johnson

15 inquiring about the issue (Ex. 38):


16
17
18
19
20
21
22

All I am interested in is Stemfit whatever the new name will be and that
it will be as good as before. Can you give me the bottom line of the ways
I can get Stemfit to people I know that still want it? What are the up front
costs such as having to buy a package or some type the $60 dollar price?
How much would cost the borrower for Preferred Customer?
Getting people to buy frontload packages or a bunch of products is no
longer working. Im not saying that your new company is doing this, but
it concerned me when you said you would need by a top package (Gold?)
Become eligible to the get Stemfit for $60.

23

80.

The same rep wrote another email to Crowder on April 7, 2016, informing

24
25 Crowder that he was able to obtain certain reports from Well-Med (Ex. 39):
26
27

I was able to recover this report from my system. Its a good thing it
appears that WMGs shutdown our ability to run the Unilevel Team

28

- 31 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 32 of 69 Page ID #:32

1
2

Report. At least this report will give a something to work with. It looks
like we can identify distributors who were sponsored multiple people and
focus on them. Please let me know if this will work.

3
4

81.

Unnamed Co-Conspirator Johnson also specifically instructs the Well-

5 Med Ids on where to place the IDs in their binary downlines at NHT (Ex. 39):
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Beth Anne: I now have Jens highest and lowest levels enrolled and I
will get Marys pending order taken care of in the next couple of days
here. So I have two more people that Im going to enroll as distributors
personally and I need to know where to place them. Seems to me I would
want to personally enroll at least two more distributors one of my right
and left under my lowest level to qualify that level correct?
Tina: Dont put any of your personally enrolled on your right. We talked
about this. Build on your far left.
Beth Ann: OK I must have misunderstood. I thought you said that I need
at least one person on my left and right in order to qualify that level?
Tina: Dont you already have Mary on your right?
Beth Ann: Yes my highest level has a right and left. Im talking about my
lowest level. Isnt it the best to qualify that one is well? I have at least two
more people interested in being distributors possibly more.
Tina: STOOOOOPPPP!!!: There is no upper and lower level its a left
and right you only need one of your people that he is a distributor on your
left one on the right. That part you have done. From now on everyone you
personally enroll put on your left outside leg write that note down. Please
do not ask me again!!!
Beth Ann: OK I wont aske again. Im really confused now because this
seems contrary to what I was told before. But I will do as you say this
time.

25
26

Tina: Oh for god sake were gonna have to talk later on today.

27
28

- 32 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 33 of 69 Page ID #:33

1
2

82.

NHT corporate officers are also involved in the transferring of Well-Med

IDs to NHT for the StemRenu launch. For example, an NHT support member ccs Jung

3
4

Chen, an NHT Operations Manager, in an email dated April 24, 2016, instructing the

5 Well-Med mole Crowder to instruct a potential transferring Well-Med ID (Ex. 41):


6

Dear Justin; Please help out the Well-Med Distributor. Thank you. Dont
hesitate to ask when you have any queries.

7
8

83.

NHTs corporate officers, such as Karyn Simmons, Vice President of

9
10 Global Marketing, also instruct the Unnamed Co-Conspirators on how to market
11 StemRenu, and what claims they can make about the product. (Ex. 42).
12

84.

By mid-April 2016, Unnamed Co-Conspirators are having their

13
14 distributors advertise and send invitations to webinars on social media. For instance,
15 one distributor makes the following statement, in conjunction with a posting for a
16

webinar: We are launching a New Breakthrough Product thats worth millions. (Ex.

17
18 43).
19

85.

On or around April 25, 2016, an NHT mass-marketing email regarding

20

StemRenu is sent out to potential distributors and recent Well-Med ID converts. The
21
22 email states, in relevant part (Ex. 44):
23
24
25
26
27
28

Buy StemRenu NHT Global formally Stemfit Active now with 10%
more
Next Generation Nutrition!
Experience a Multifaceted Benefits of StemRenu
10% more in each Cap the Stemfit Active Product
- 33 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 34 of 69 Page ID #:34

An explanation is in order. Welmed Global, the former home of our


product was unable to provide the worldwide distribution that it originally
promised. We have moved our product (now with 10% more of the
proprietary formula) to NHT Global (National Health Trends), whom
Fortune Magazine has named the 2nd fastest growing corporation in the
ENTIRE world. NHT is a publicly traded company with distribution on
over 40 countries. USA and Canada distributors are now with Europe
coming within weeks followed by Asia. Their stock is risen 3,000% in the
last 24 months and we are excited to have found a permanent home with
a company that is already worldwide.

86.

2
3
4
5
6
7

10

Toward the end of April 2016, NHT distributors start to question the

pricing structure for StemRenu that NHT is about to impose. Many Well-Med IDs

11
12

were led to believe by the Unnamed Co-Conspirators that they could purchase

13 StemRenu under similar terms to those Well-Med offered. For example, on April 28,
14

2016, a prior Well-Med ID writes an email to Unnamed Cop-Conspirator Johnson

15
16
17
18
19
20
21
22
23
24

questioning NHTs pricing of StemRenu (Ex. 45):


I have enrolled with the Bronze Package but still dont really know if that
was the best option for me. I did have a conversation with Justin before I
did it and that is what we settled on. Pat is not a lot of help because it
seems she doesnt know much more than I do, although she did enroll me.
I kept asking her where I could find the prices of these products and she
never could tell me. Her answers usually were she was still learning and
were all earning together. Thats okay, its just not what Im looking
for.
Now some specifics---honestly, I am appalled at the prices of these
products---its no wonder that they are making so much money---$130.33
(my price) for 10.5 ounces of weight protein????

25

27

Im not going to take time to go into any more products because I dont
think of using many of them (I cant afford them) and I would be willing
to bet and not be surprised if and when they raise the price on StemRenu

28

- 34 COMPLAINT

26

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 35 of 69 Page ID #:35

1
2
3
4
5
6
7

Do you know if that is in the works? Even though I use two bottles a
month., I still have 5 bottles of the Stemfit because I took advantage of the
5 bottles +1 free Special (twice) when Well-Med offered them this year.
Of course, I knew something about these bit changes at the time, I was
just trying to save money.
I have been on most of the calls but sure dont understand the marketing
plan and dont know how much of this Co., and these products I will be
sharing with other people anyway. My friends, (seniors like me) dont
have the money either, I dont think.

8
9
10

87.

On April 29, 2016, Unnamed Co-Conspirator Johnson responds to the

distributor stating (Ex. 45):

11
12
13
14
15
16

There are ways to be able to get deeper discounts at the Gold Level for
the other products. I understand your concern with the cost of some of the
them.
Yes, stem would eventually be increased in price. Even if we were at the
old company across increased pricing would have changed.
Im not sure when or how much it will increase.

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If you would like to learn a deeper discount please work with Justin as
the understand how you are your way there.

19

22

I certainly dont want to rule anything out as far as your potential to share
products and be able to earn extra money. Francis is a woman in her 70s
who is doing really well with the NHT business. Joe has mentored her
over the last year and she now makes about $15,000 a month.

23

Anything and everything is possible!

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May 2016

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- 35 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 36 of 69 Page ID #:36

1
2

88.

As shown above, the Unnamed Co-Conspirators and NHT premised their

launch on the false statement that only NHT would have the YTE supplement product.

3
4

However, the key ingredient used in Stemfit, StemRenu, and StemfitActive is YTE,

5 which is a trademarked and patented formula owned by a Norwegian company who


6

licenses the extract to American distributors. (Ex. 6).

7
8

89.

The fact that NHT is not the sole source of a YTE-based supplement starts

9 to become a major issue for the recent Well-Med converts in May 2015 (they were
10

specifically told that only NHT Global would have the supplement).

11
12

90.

Around this time, and in response to NHTs and the Co-Conspirators

13 unlawful and unfair business practices, Well-Med releases its own improved YTE14

based, successor: StemActive, the 2nd generation of Stemfit. The supplement contains

15
16 25% more YTE than Stemfit, with additional supplements, such as Rishie-Mushroom
17 extract and Shilajit extract. (Ex. 46).
18

91.

The response to StemActive is very positive. For example, one NHT

19
20 distributor, who was switched over from Well-Med without her knowledge, writes the
21 following email (Ex. 52):
22
23
24

Thank you so much for the sample bottle. So evidently my upline


changed to StemRenu without my knowledge. What would it take for me
to become a distributor of StemActive.

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- 36 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 37 of 69 Page ID #:37

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92.

In response, Well-Med IDs who had switched to NHT, start to question

NHT and the Unnamed Co-Conspirators claims about StemRenu. (See Exhibit 46

3
4
5
6

[Steve, you said Well-Med was out of the business of the egg extract product.?])
93.

Prior Well-Med IDs, who had switched to NHT based on the claims of

the Defendants and the Unnamed Co-Conspirator are impressed by the new Well-Med

7
8 YTE based product: (Ex. 47.)
9
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11

Your still there, I am sure its been a tough time for you and Ivan. This
new products sounds INCREDIBLE! REISHII and Ganoderma are two of
my favorite products. I wish you had Ganoderma coffee! She ordered free
sample for her husband (Rick Jones.)

12
13

94.

In response to the Well-Med YTE-based supplement launch, the

14 Defendants and the Unnamed Co-Conspirator prepare a campaign to discredit Well15

Med through webinars and a series of emails disseminated to the NHT StemRenu IDs

16
17 (Ex. 48,49):
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Hi All:
Here's what you should know about the Stem product WMG has come up with
to replace Stem Fit Active which is now only available as StemRenu with NHT
Global. There will soon be a team call with Dr. Chris Morris to explain it further
and answer your question but the info below should answer most of your
concerns.

23

Here are some key points about the StemActive product from WMG:
24
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1. Shilajit, a key ingredient in the product, alone will degrade the other
ingredients, especially the Signal Proteins in the egg. Shilajit is also
known to increase uric acid in the body and is not recommended for
anyone suffers from gout: http://www.herbslist.net/shilajit.html
- 37 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 38 of 69 Page ID #:38

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2.The YTE may be degraded because of the age of the extract. There is
also no way to know how it has been stored or preserved. It does not
come from the current producer of YTE who has an exclusive agreement
with Chris & Tina.
3.WMG claims that StemActive has 25% more YTE than the StemFit
Active. Chris and Tina own the Stem Fit formula and they have never
revealed to WMG how much YTE is in the formula. To say there is 25%
more in the StemActive is impossible for them to know.
4. StemActive contains Magnesium Stea rate, an ingredient that is
potentially dangerous for human consumption. See:
http://articles.mercola.com/sites/articles/archive/2012/06/23/wholefoodsupplement- dangers.aspx

11

14

Listen to Tina & Dr. Morris discuss how to look at products and their
legitimacy: 712-775- 7039 Code: 808470# (skip forward to Chris after
Dan and Joe speak) I am working out a day and time for a-team call with
Dr. Chris Morris. Stay tuned.

15

95.

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16

The Unnamed Co-Conspirators then proceed to conference call later that

day with the new NHT StemRenu distributors, to disparage Well-Med and its

17
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StemActive.
96.

The email gets circulated to current Well-Med IDs, who become

concerned about Defendants statements about the new Well-Med product (Ex. 48):

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Im sure by now you have seen this...it was passed along to Darla, who
signed me on to WellMed..this only raises concerns..Im not sure who to
trust on this product.The info he submitted contradicts itselfId like
a free sample.

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97.

Around the same time, Well-Med IDs who had recently transferred to

27 NHT (based upon the Unnamed Co-Conspirators misrepresentations concerning


28

- 38 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 39 of 69 Page ID #:39

1 Stemfits availability), again question NHTs pricing of the product, and began to
2

confront Unnamed Co-Conspirators:

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4

We do not have an objection to the retail price being whatever is


appropriate.

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Our main concern is that customers who were told the price would
remain $60 for some time. Many of those customers have stocked up on
Stemfit and are not ready to order yet. Not their fault the transition of the
drawn longer than anticipated! They will not be willing to purchase a Gold
pack and to even suggest that as an option indicates a corporate mind set
that has ever been in the field. Our customers (NOT business builders or
distributors) were told the price of $60 would be honored in the move over
to NHT and to change the price so drastically in such a short period of
time is less than ethical and will have lost most of them and gained nothing
but ill will.
We would like to see a programing change that honors the $60 price until
early September 30th so that we can bring them over and prepare them for
the inevitable price increase of $85+. Anything less than that is not
acceptable in our opinion.
This would be for preferred customers only with a cut off date of May 31.
(or 29th.) but provides at least the bulk of this month to contact them and
provide them with a preferred customer position (likely restated for the
distributors) until they are ready to order stem again. The incentive is for
them to come over this month to be able to purchase at $60 whenever there
ready or they will not be guaranteed that price because the product has
been improved. We can deal with the price increases as we approach the
month of September and not lose them to WMG which WILL happen if
the present proposal in your email is put in effect.
We believe a program can be created to accomplish this and NHT should
be happy to comply from a financial point of view rather than lose
customers not only for stem, but the ability to purchase and the other fine
NHT products. I believe its called the loss leader and done by every
retailer of article.

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- 39 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 40 of 69 Page ID #:40

1
2

98.

Unnamed Co-Conspirator Johnson responds to this email later in the by

day stating (Ex. 51):

3
4
5
6

below is information back for parent in regard to our request. This is for
your eyes only and is not the order sent to anyone else energy this is the
inner circle only for those listed on this email.
From corporate:

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We were able to get the following approved:


1. The ADM 06 waived enrollment option extended until July 31 to.
2. The 3 bronze and on packages with the $50 fee included as extended
until May 29.
3. We lost the retail store knew list price however it would have to be in
alignment with the new list price C number one below
Beginning July 1 tier pricing will go into effect.
Wholesale/Retail=$90.91
Bronze=$88.18
Silver=$80.91
Gold=$60.00

16
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99.

The following day, a recent convert to NHT sends an email to the

Unnamed Co-Conspirators regarding the launch of the Stemfit Active, the email states

19
20 (Ex.50):
21
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This morning I awoke to an lnbox full of messages about the StemActive


from my WMG/ NHT distributors. Here is a sampling of the questions I
need to answer today: How is it possible that WMG has "Norwegian
Certified" Young Tissue Extract"? Is this new well med product
StemActive from a different growth factor producer in Norway? How can
this be possible? I didn't think WMG still had access to YTE. This looks
good. What can you tell me? Why is WMG saying they have the same thing
and a better generation? I thought Tina and Chris had the exclusive on
YTE from Norway. What's the real story? Chris, I heard what you said on
- 40 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 41 of 69 Page ID #:41

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the call last night but we need a coordinated response that has credibility
and it needs to come from you and Tina, and fast. WMG is making us look
like liars and this going to hurt our NHT businesses if we don't respond
assertively.
We knew Tom was going to do something. The disappointing thing is that
he actually has YTE. I Wonder if we are going to face the same thing from
TLC when they introduce their competitive product. This is why NHT
MUST work with us if they want us in their game. I understand the
pressures of dealing with a global distributor base and the need to
standardize everything but they have to understand that none of us would
be within 100 miles of NHT if it weren't for the StemRenu and the two of
you.
Their compensation plan is, without a doubt, the most unfriendly in the
industry as it serves only those who want to build a major business. Their
bracket pricing system puts the StemRenu out of reach for people
who do not want to invest in being Gold and Joe's solution for dealing
with our PCs, who will not or cannot pay the higher price, is not something
that most distributors will be willing to do.
NHT has a choice, at this point: understand the very difficult situation we
are in, and make some major concessions that recognize the culture of our
WMG organizations, or lose a lot of people. It would be one thing if our
people had no choices but, good or bad, now they do. One thing, we can
be sure of is that all our people will order the free sample of the
StemActive. Who knows where it will go from there. If the product does
not work, as you say Chris, things could workout in our favor. But, that
will take time and, with the looming deadlines from NHT on bracket
pricing, etc, we could be hit hard over the next couple of months.

21
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23
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I'd like to suggest a call with the original inner circle group to discuss how
we respond to this situation. You can bring the others in later but I feel
that it will be more productive to keep it small. Let's do it today.
I am available before 11:30 am ET or after 2 pm ET.

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- 41 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 42 of 69 Page ID #:42

1
2

100. Unnamed Co-Conspirator Morris responds to the email stating: we


addressed a lot of this on the morning call on how to look at products and legitimacy.

3
4
5
6

And on top of that we would be glad to a call with you and your group as soon as you.
June 2016 through the Present
101. June 2016: the NHT master distributor sent emails in support of the

7
8 Unnamed Co-Conspirators and their false statements. The following email is sent on
9 June 30, 2016 (Ex. 53):
10
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12
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15
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Attention Awesome Synergy team I wanted to update you


regarding the last couple of months. Tina and Chris
formulators of StemRenu have had sold out rooms in their
recent NHT Meetings in New York, Los Angeles and
Vancouver. Their StemRenu presentations captivated our NHT
Global distributors. Our leaders in North America definitely
recognized they have a Diamond mind with StemRenu that will make
them millions of dollars...
StemRenu will be available in all of the EU shipping will
commence 1st week of July, it is now available though to
purchase. Hong Kong, China & Australia markets will launch
in July.

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25
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NHT sales continue to grow rapidly the last 2 months since


StemRenu launched have been record breaking. When I was
first introduced to Stem 8 months ago I definitely felt that this
was a 1 billion dollar product all by itself and knew I had to get it here
to NHT. Over the last 90 days this feeling has
multiplied. As stated above the existing leaders definitely
have start to feel the same way as I do.
With the NHT exclusivity of the Norway EGG ALBUMEN and
the Patent Pending formula StemRenu (if you have any doubt in these

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- 42 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 43 of 69 Page ID #:43

1
2

statements feel free to call me) I have no doubt it will be a billion


dollar
formula with NHT Global.

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5
6
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8

What does this mean to you? Well with the growth we are
having Globally including domestically and the new country
openings India, Peru, Malaysia timing as a business opportunity
could never be better for you and your family.
Just ask yourself this question have you ever been apart of an
opportunity that checks off everything that one should look for in an
business opportunity?

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Leadership - Founding distributors still 100% active


Timing Professional Training - www.SteamTeam.ca
Global and continuing to expand Globally - A support system
that all distributors globally can tap into.
Simple Compensation plan that pays a beginner to a top
achiever and no forced autoship, very little breakage
A Company that is not a start up and it is in it's major growing phase
predicted to be a billion dollar annual company within 3 to 5 years
1 billion dollar product lines. Known world wide for it's Luxury Brand
backed by science.
Best kept secret in the industry
No traditional special privileges to attract leaders
100% Organic growth 99% industry newcomers
Last 20 millionaires all Industry newcomers.
100 million cash in the bank
2nd fastest publicly traded company 2015
17 consecutive quarters of double digit growth
Ranked in the top 65 by the WORLD DSA
Recognized by leading major financial institutions
A company that is guaranteed to be here 10, 20 and
moreyears from now (97% of startups (companies that are less than 5
years old) go bankrupt or merge with an existing company in the
industry of Network Marketing.
100% Documented/Verifiable NO HYPE!!!!

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check marks that NHT Global has.....


- 43 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 44 of 69 Page ID #:44

The NHT world is starting to embrace StemRenu in a huge way it's


going to be EPIC!!!!!!

2
3

Below is a NHT corporate copy of an email blast regarding the new


StemRenu pricing.

4
5

There a few ways for you and or customers to continue


purchasing StemRenu at $60.00. Please click on the blue link
below as it is a great solution to help your customers to
continue purchasing the StemRenu at $60.00.

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8

If you have any questions regarding this option feel free to


reply to this email

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Customer purchasing at STemRenu at Gold pricing

11

If you have not reached out to me prior to this email please take the
time to
call me.

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I AM COMMITTED TO YOUR SUCCESS


WITH NHT GLOBAL

15
16

18

Joe Garcia NHT Global - www.WhyJoeGarcia.com


Global Ambassador and Founding Distributor
+19058440354

19

102.

17

Despite the false statements made by Defendants and the Unnamed Co-

20

Conspirators about Well-Med, previous Well-Med IDs are starting to return to Well21
22 Med.
23

103. Many of these IDs are quite apologetic, and glad to be back at a company

24
25

focused on their beloved Stemfit product, as opposed to a business opportunity,

26 which they are not interested in, and cannot afford.


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- 44 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 45 of 69 Page ID #:45

1
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104. For example, Well-Med IDs have sent CEO Lee the following emails
(Ex. 54):

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I was invited to the secret non-recorded call w/ Tina & Chris and a handful of
people and I took notes Chris- imitation is the most sincere form of compliment.
T & C have the patents & exclusivity in place..Tina- Well Med says they have
25% more YTE extract. That is a false claim. They dont have access to the vault
where that info is. Tina has exclusive w/ Norway. T & C have the studies. Lots
of YTE on the black market. YTE will run out! T & C have exclusive contract
w/ manuf. YTE is frozen, thawed, frozen again. integrity of the product? It very
temporary, so why sue them (WM)? In 6-12 months most likely will run out.
Chris- only one source for product- them!...This is why we thought Well Med
was the aggressor. And the leaders I spoke to were worried about moving back
to WM and then having it fall apart after 6-12 months, and then have to re-group
again. We felt we1d lose everyone if they had to go through that.
This is when all the melt down started. Awesome Synergy Newsletter via email:
IMPORTANT NEWS! (News means its NOT a reminder) Beginning July 1st
tiered pricing for StemRenu goes into effects NO mention of what that would
look like. This is when the realization of betrayal started to sink in Tina & Chris
knew this was coming & didnt give anyone full information so they could make
an informed decision. Networking with several people helped me understand
NHT is a publicly traded co. w/shareholders to keep happy, so their PROFIT
MARGINS require a structure with higher pricing. So again, this was planned
from the beginning. And Ive never witnessed such pressure and bullying from
successful leaders to get new people in a co. and to buy more than they can truly
afford.

20
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105. Another returning Well-Med ID wrote:

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My team is in shock from price increase that is coming up with still no


official word from the company ... with ethics in leadership and manipulation
of wellmeds product supply i am moving back to wellmed global it was totally
unnecessary for me to spend that almost 900 bucks when i could have staid at
my home base wellmed . I was coerced into moving under false pretenses. i
will not give my business to people that with hold truth from me and give me

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- 45 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 46 of 69 Page ID #:46

1
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3

an inferior product. My team is looking to me for guidance and i am directing


them back to wellmed global but it sure makes me look stupid for leaving in
the first place. Please add my letter to your files for unhappy with nht global
people.

4
5

106. Also, several Well-Med Ids mentioned that they were switched without

6 their knowledge. For example, this Well-Med Id wrote:


7
8
9

Thank you so much for the sample bottle. So evidently my upline changed to
StemRenu without my knowledge. What would it take for me to become a
distributor of StemActive?

10

107. Although some of the Well-Med reps are returning the effects of the

11

Unnamed Co-Conspirators raid on Well-Med has been devastating, and taken a great

12
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14
15
16

toll on the company.


A. THE UNNAMED CO-CONSPIDATORS BREACH OF WELLMEDS POLICIES AND PROCEDURES AND UNFAIR AND
UNLAWFUL BUSINESS PRACTICES

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18

108. As stated above, Unnamed Co-Conspirators joined Well-Med as IDs on

19 April 2013.
20

109. As independent IDs ("IDs"), the Unnamed Co-Conspirators are bound

21
22 by the Well-Med Policies and Procedures ("P&Ps"), which, among other things,
23 prescribe certain rules of conduct. A true and correct copy of Well-Meds P&Ps are
24

attached to this complaint hereto as Exhibit 55.


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- 46 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 47 of 69 Page ID #:47

1
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110. The Agreement and P&Ps contain a choice of law provision incorporating
California law by enrolling as IDs, Unnamed Co-Conspirators agreed to abide by the

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5
6

Agreement and P&Ps. (Ex. 55, Section 8.5)


111. Pursuant to the Agreement and P&Ps, Unnamed Co-Conspirators were
engaged as independent contractors to generate product sales and service downline

7
8 distribution for Well-Med and to build the business as Well-Med IDs.
9
10

112. During the time of their affiliation with Well-Med, Unnamed CoConspirators were appointed President and Directors of Product Marketing,

11
12 respectively.
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14

1. Well-Meds P&Ps Prohibit Unfair Competition and Solicitation.


113. Well-Meds P&Ps contain a post-termination, non-competition provision

15
16 and non-solicitation prohibition. (Ex. 54, Sections 3.9.1, 3.9.2 and 3.9.3)
17

114. The P&Ps provide, in pertinent part, that:

18

3.9.1 Non-Solicitation and Noncompetition


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WELLMED GLOBAL Independent Distributors are free to participate


in other multilevel or network marketing business ventures or marketing
opportunities (collectively Network Marketing). However, Independent
Distributors may not directly or indirectly recruit other WELLMED
GLOBAL Independent Distributors for any other Network Marketing
business unless they are personally sponsored by them or they personally
sponsored them. This includes general solicitations on social networking
sites where friends include persons not personally sponsored by the
Independent Distributor and who are already WELLMED GLOBAL
Independent Distributors.

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- 47 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 48 of 69 Page ID #:48

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An Independent Distributor who participates in another Network


Marketing business agrees to operate his or her WELLMED GLOBAL
Independent Distributorship entirely separate and apart from the other
Network Marketing business. Accordingly, Independent Distributors who
choose to participate in other Network Marketing businesses agree that
they shall not:
a. display any non-WELLMED GLOBAL Product(s) and/or sales aids
with, or in the same location as WELLMED GLOBAL Product(s) and/or
sales aids;
b. offer any non-WELLMED GLOBAL program, opportunity, Product,
or service in conjunction with the WELLMED GLOBAL opportunity; or
c. offer any non-WELLMED GLOBAL opportunity, Products, or services
at any WELLMED GLOBAL-related meeting, seminar or convention, or
within two (2) hours and a five (5) mile (8 kilometers) radius of the
WELLMED GLOBAL event. If the WELLMED GLOBAL meeting is
held telephonically or Product(s) to prospective or existing Customers or
Independent Distributors; or on the internet, any non-WELLMED
GLOBAL meeting must be at least two (2) hours before or after the
WELLMED GLOBAL meeting, and on a different conference telephone
number or internet web address from the WELLMED GLOBAL
meeting.

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16

115. The P&Ps provide, in pertinent part, that:

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18

3.9.2 Non-Solicitation after Termination:

19

Following the cancelation of an Independent Distributors Agreement,


and for a period of one (1) year thereafter, with the exception of an
Independent Distributor who was personally sponsored by the former
Independent Distributor, the former Independent Distributor may not
recruit any WELLMED GLOBAL Independent Distributor for another
network marketing business. If an Independent Distributor did not
personally sponsor another Independent Distributor on his or her first
level, he or she is prohibited, for one (1) year following the date of
cancelation of the contract, from recruiting that Independent Distributor
to sell or purchase Products or services other than those offered by
WELLMED GLOBAL. Independent Distributors and the Company
recognize that because network marketing is conducted through networks

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- 48 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 49 of 69 Page ID #:49

of independent contractors dispersed across the entire United States and


internationally, and business is commonly conducted via the internet and
telephone, an effort to narrowly limit the geographic scope of this nonsolicitation provision would render it wholly ineffective. Therefore,
Independent Distributors and WELLMED GLOBAL agree that this nonsolicitation provision shall apply to all markets in which WELLMED
GLOBAL conducts business. This shall survive termination of the
Agreement. Any violation of this agreement, the Company may, without
waiving any other rights or remedies, seek an injunction, or other
equitable remedy to prevent further prohibited recruiting activities, and
may pursue other legal remedies.

2. The P&Ps Prohibit Raiding

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5
6
7

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116. Because MLM companies depend on the ability of IDs to develop a

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distribution network.'! of other IDs, and depend on the integrity of those networks, 5

13 MLM companies, including Well-Med. Prohibit "raiding" (also known as "cross14

recruiting," "cross-sponsoring," or "poaching").

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16

117. Raiding is the practice of a Distributor either A) recruiting or attempting

17 to recruit a representative from another Distributor's downline or B) recruiting or


18

attempting to recruit a representative from its own downline, other than a representative

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20

that was originally sponsored by that Distributor (for example, if a Distributor

21 originally sponsored A, and A sponsored, the original Distributor cannot attempt to


22

recruit B).

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24

118. Raiding is considered an unethical and unfair practice in the MLM

25 industry because it significantly damages the legitimate protectable business interests


26

of third parties, namely other IDs.

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- 49 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 50 of 69 Page ID #:50

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119. The Well-Med P&Ps prohibit raiding. For example, 3.9.3 provides, in
part, that:

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3.9.3 Definition of Cross Recruit


For purposes of these Policies and Procedures, the term Recruit means
the actual or attempted sponsorship, solicitation, enrollment,
encouragement, or effort to influence in any other way, either directly,
indirectly, or through a third party, another WELLMED GLOBAL
Independent Distributor to enroll or participate in another multilevel
marketing, network marketing or direct sales opportunity. The conduct
described in the preceding sentence constitutes recruiting even if the
Independent Distributors actions are in response to an inquiry made by
another Independent Distributor or Preferred Customer.

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120. Similarly, 3.10 provides, in pertinent part, as follows:

13
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3.10 Targeting Other Direct Sellers:

15

WELLMED GLOBAL does not condone Independent Distributors


specifically or consciously targeting the sales force of any other direct
sales company to sell WELLMED GLOBAL Products or to become
Independent Distributors for WELLMED GLOBAL. Nor does
WELLMED GLOBAL condone the solicitation or enticement, by an
Independent Distributor, of any of the members of the sales force of
another direct sales company to violate the terms of their contract with
such other company. Should an Independent Distributor engage in such
activity, the Independent Distributor bears the risk of being sued by the
other direct sales company. If any lawsuit, arbitration or mediation is
brought by another company against an Independent Distributor alleging
that he or she engaged in inappropriate recruiting activity of its sales force
or customers, WELLMED GLOBAL will not pay any of such an
Independent Distributors defense costs or legal fees, nor will
WELLMED GLOBAL indemnify the Independent Distributor for any
judgment, award, or settlement. Independent Distributors agree to
indemnify WELLMED GLOBAL and WELLMED GLOBALs directors,
officers, employees, and agents, and hold them harmless from any and all

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- 50 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 51 of 69 Page ID #:51

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liability and/or loss (whether direct or indirect, consequential or economic


loss) including judgments, civil and/or criminal penalties, damages,
refunds, legal advice fees, court costs, or lost business incurred by or
imposed on WELLMED GLOBAL as a result of any breach of the terms
by that Independent Distributor.
121. Due to the anti-raiding clauses in the P&Ps, as well as industry practice,

6
7 Well-Med IDs are prevented from presenting, recruiting, attempting to enroll, or
8 assisting in presentation of other multilevel marketing business ventures to any non9

personally enrolled Well-Med IDs.

10
11

E. The P&Ps Protect Well-Med's Trademarks, Proprietary Information,


and Trade Secrets.

12
13

122. Sections 3.2.5, 3.9.4 also restricts Well-Med ID activities with respect to

14
15 the company trademark, propriety information, and trade secrets. It provides, in
16 pertinent part as follows:
17
18
19

3.2.4 Cancelation of an Independent Distributors Wellmed Global


Business

21

If an Independent Distributors WELLMED GLOBAL business is


canceled for any reason, the former Independent Distributor must
discontinue all WELLMED GLOBAL related business activities.

22

3.2.5 Trademarks and Copyrights

20

23

27

WELLMED GLOBAL will not allow the use of its trade names,
trademarks, designs, or symbols by any person, including WELLMED
GLOBAL Independent Distributors, without WELLMED GLOBALs
prior written permission. Independent Distributors may not produce for
sale or distribution any recorded Company events and speeches without
written permission from WELLMED GLOBAL nor may Independent

28

- 51 COMPLAINT

24
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26

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 52 of 69 Page ID #:52

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Distributors reproduce for sale or for personal use any recording of


Company-produced audio or video presentations.
3.9.4 Confidential Information
Notwithstanding any other provision of the Agreement, the Independent
Distributor shall never use WELLMED GLOBAL trade secrets and other
Confidential Information, as further described herein, to solicit, recruit
whether directly or indirectly, other WELLMED GLOBAL Independent
Distributors or Customers. Confidential Information is information
disclosed to Independent Distributors pursuant to the Contract including,
but not limited to, information regarding 1) downline organizations or up
line Independent Distributors, including Independent Distributor names
and contact information, customer information, and 2) customer lists,
business reports, commission or sales reports, business plans, projections,
trade secrets, intellectual property, analysis, and related information and
other financial and business information that would be reasonably
understood to be confidential and/or give competitive advantage. To
protect the Confidential Information, an Independent Distributor shall not,
on his or her own behalf, or on behalf of any other person, partnership,
association, corporation or other entity:
Directly or indirectly disclose any Confidential Information to any third
party;
Directly or indirectly disclose the password or other access code to his
or her back office;
Use any Confidential Information to compete with WELLMED
GLOBAL or for any purpose
other than promoting his or her WELLMED GLOBAL business;
Recruit or solicit any Independent Distributor or customer of
WELLMED GLOBAL listed on any report or in the Independent
Distributors back-office, or in any manner attempt to influence
or induce any Independent Distributor or Preferred Customer of
WELLMED GLOBAL, to alter their business relationship with
WELLMED GLOBAL. The obligation of an Independent Distributor to
not disclose any Confidential Information shall survive cancelation or
termination of the Agreement, and shall remain effective and binding
irrespective of whether an Independent Distributors Agreement has been
terminated, or whether the Independent Distributor is or is not otherwise

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- 52 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 53 of 69 Page ID #:53

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affiliated with the Company, and is subject to legal enforcement by


injunction and award of costs and fees necessarily incurred.
3.9.5 Information Gathered in the Promotion of the Wellmed Global
Business
Independent Distributors agree that information gathered by an
Independent Distributor about other Independent Distributors by virtue of
their association with WELLMED GLOBAL, or in connection with their
promotion of WELLMED GLOBAL Product or sales materials, is
considered proprietary information that belongs to WELLMED GLOBAL
and Independent Distributors are bound to the non-disclosure provisions
of these policies and procedures in relation to this information.
123. The purposes of the anti-raiding clause and trade mark protection clauses

11
12

in the P &Ps are: 1) to protect the businesses, hard work, and protectable business

13 interests of other Well-Med IDs; and 2) to protect Well-Med's marketing organization


14

and trade secret, proprietary, and confidential business information, without which

15
16
17
18

Well-Med would not be able to exist.


124. Furthermore, due to the nature of the organization and sponsorship of IDs
in network marketing, any cross-recruiting is particularly damaging because the field

19
20

of distributors is very sensitive to disparaging and negative news. When word gets out

21 that downlines are being raided, it has a substantial negative effect on the morale and
22

efforts of the other IDs and does substantial damage to the company.

23
24
25
26

F. DEFENDANTS' AWARENESS OF THE UNNAMED COCONSPIRATORS BREACH OF THE NON-SOLICITATION


AGREEMENT,
UNPERMITTED
USE
OF
WELL-MEDS
PROPRIETARY LISTS, DEFAMATION, AND TRADE LIBEL

27
28

- 53 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 54 of 69 Page ID #:54

1
2

125. Well-Meds designation of business report information as trade secrets


and non-solicitation covenants are common knowledge in the direct selling industry as

3
4

well as the multi-level marketing industry in which Well-Med operates. Savvy industry

5 participants like Defendant and the Unnamed Co-Conspirators are aware of not only
6

Well-Meds covenants and trade secrets designations, but are also aware that virtually

7
8 every industry participant imposes such covenants and makes such designations.
9
10

126. Despite Well-Med's best efforts, and a cease and desist letter sent on or
about May 2016, Defendants, to date, have refused to cease their wrongful conduct,

11
12 and, in fact, have continued to solicit and attempt to recruit Well-Med IDs and
13 customers to join NHT. As such, injunctive relief is necessary to prevent Defendant
14

and the Unnamed Co-Conspirators from continuing their unlawful conduct.

15
16
17
18

FIRST CAUSE OF ACTION


RACKETEERING ACTIVITY IN VIOLATION OF 18 U.S.C. 1962(C)
(VERSUS ALL DEFENDANTS)
127. Well-Med hereby reincorporate by reference each of the allegations in the

19
20
21
22

preceding paragraphs of this Complaint as though fully set forth herein.


128. The Defendants and Unnamed Co-Conspirator violated section 1962(c)
by participating in the (1) conduct (2) of an enterprise (3) through a pattern (4) of

23
24
25
26

racketeering activity.
129. The Well-Med have standing since they have been injured in their
business or property proximately caused by the conduct constituting the violation.

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28

- 54 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 55 of 69 Page ID #:55

1
2

130. Proximate cause exists with respect to Well-Meds RICO claim against
the Defendants due to the direct relation between the injury asserted and the injurious

3
4
5
6

conduct alleged herein.


131. RICO protects the public, and in this case, Well-Med, from those who
would unlawfully use an enterprise, whether legitimate or illegitimate, as a vehicle

7
8 through which unlawful activity is committed pursuant to 18 U.S.C. 1961(4).
9 Defendant NHT, is a Texas corporation, with its principal place of business in
10

California. It has been referred to herein as "Defendant NHT. Defendant NHT

11
12 qualifies as an enterprise under 18 U.S.C. 1961(4).
13
14

132. Defendants operated through the NHT enterprise and, or in the alternative,
the Defendants operated through the individual Defendants and Unnamed Co-

15
16 Conspirators, and all of them, as a group of persons associated together for a common
17 purpose of engaging in a course of conduct, which under the law can also be considered
18

an enterprise.

19
20

133. NHT Global is an ongoing organization being used by the Defendants as

21 a vehicle for the commission of two or more predicate crimes.


22

134. The Defendants and Unnamed Co-Conspirators are enabled to commit the
23
24 predicate offenses by virtue of their position in the enterprise or involvement in or
25 control over the affairs of the enterprise and the predicate offenses are related to the
26
27
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activities of that enterprise. Specifically, Defendant NHT uses its high level
- 55 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 56 of 69 Page ID #:56

1 representatives, such as Joe Garcia, and corporate officers, to add legitimacy to the
2

StemRenu product. The NHT enterprise routinely defends the unlawful actions of the

3
4

Unnamed Co-Conspirators in marketing materials, and has ratified the unlawful acts of

5 their agents, such as the Unnamed Co-Conspirators and Defendants agents.


6

135. Subsection (5) of 18 U.S.C. 1961 ("section 1961") defines pattern of

7
8 racketeering activity to require at least two acts of racketeering activity. There is a well9 established relationship between the predicate acts, which are the repeated commission
10

of predicate criminal acts of wire fraud by the Defendants in violation of 18 U.S.C.

11
12 1343, which includes fraud by wire, radio, or television, as the Defendants and
13 Unnamed Co-Conspirators devised or intended to devise a scheme or artifice to
14

defraud, or for obtaining money or property by means of false or fraudulent pretenses,

15
16 representations, or promises, transmits or causes to be transmitted by means of wire,
17 radio, or television communication in interstate or foreign commerce, any writings,
18

signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice.

19
20

136. The repeated and continuous acts of wire fraud by Defendant and

21 Unnamed Co-Conspirators conduct of actively raiding Well-Meds IDs, and the


22

theft of trade secrets, and confidential customer lists constitute a pattern of


23
24 racketeering. The actions by the Defendants complained of herein, repeated acts of wire
25 fraud, constitute prohibited racketeering which proximately caused Well-Med severe
26
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28

- 56 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 57 of 69 Page ID #:57

1 and ongoing injuries to their business or property. The factor of continuity plus
2

relationship combines to produce the pattern of such conduct in this case.

137. Moreover, in violation of 18 U.S.C. 1962(d) Defendants were aware of

5 the essential nature and scope of the enterprise and intended to participate in it and thus
6

conspired to violate 18 U.S.C. 1962 et seq.

138. Said injuries have damaged Well-Med in an increasing amount by the

9 Defendants and Unnamed Co-Conspirators acts of ravaging of Well-Meds downline


10

business organization of IDs due directly to the theft of trade secrets and wire fraud of

11
12 the Defendants.
13

SECOND CAUSE OF ACTION


BREACH OF CONTRACT
(Against all Defendants)

14
15
16

139. Well-Med repeats and re-alleges each and every allegation contained in

17
18 the paragraphs above, and incorporates the same herein by this reference, as though set
19 forth at length.
20

140. Well-Med and Defendant Ubiquity entered into a contract on January 31,
21
22 2016.
23

141. Well-Med did all, or substantially all, of the significant things that the

24
25

contract required it to do paid all time, 10,000 bottles per order. The contract had no

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28

- 57 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 58 of 69 Page ID #:58

1 time tables. Over the life of the contract, Well-Med ordered in excess of 100,000
2

bottles.

3
4

142. That all conditions required by the contract for Defendant Ubiquitys

5 performance have occurred.


6

143. Defendant Ubiquity violated the exclusivity provision which it was

7
8 prohibited from doing under the terms of the agreement.
9
10

144. Well-med was harmed by Defendant Ubiquitys failure to honor the


exclusivity contract in an amount to be determined at trial.

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12
13
14
15

THIRD CAUSE OF ACTION


BREACH OF THE IMPLIED COVENANT OF GOOD FAITH AND FAIR
DEALING
(Against All Defendants)
145. Well-Med repeats and re-alleges each and every allegation contained in

16
17 the paragraphs above, and incorporates the same herein by this reference, as though set
18 forth at length.
19

146. The agreement between Well-Med and Defendant contains an implied

20
21 covenant of good faith and fair dealing, which binds the parties thereto, and is
22 enforceable by either of them.
23

147. As set forth in greater detail above, Defendant breached the implied
24
25 covenant of good faith and fair dealing, by abusing his discretionary authority. Without
26 limitation, Defendant engaged in the following conduct:
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- 58 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 59 of 69 Page ID #:59

1
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a. tortuously

interfered

with

Well-Meds

prospective

economic

interests/contacts, in the form of its IDs and right to sell YTE based

3
4
5
6

supplement products;
b. diverted actual or prospective business of the Well-Med IDs to
Defendants and the Unnamed Co-Conspirators;

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8
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10

c. diverted actual or prospective business to Defendants and the Unnamed


Co-Conspirators;
148. By virtue of Defendant's breach of the implied covenant of good faith and

11
12 fair dealing contained within this agreement, and as a direct and proximate result of
13 Defendant's breaches, as above-described, Well-Med has been damaged, in the form of
14

lost profits, and an amount to be determined at trial.

15

18

FOURTH CAUSE OF ACTION


INTENTIONAL INTERFERENCE WITH CONTRACTUAL
RELATIONS
(Against all Defendants)

19

149. Well-Med hereby reincorporate by reference each of the allegations in the

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17

20

preceding paragraphs of this Complaint as though fully set forth herein.

21
22

150. Well-Med had and has a validly existing contractual relationship with its

23 current and former IDs in the form of ID agreements. This relationship obligates
24

current IDs not to directly or indirectly recruit Well-Med Customers and IDs for

25
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another business venture through the use of Well-Meds trade secrets, including lists

27 of IDs and Customers in Well-Meds downline business organization, by making


28

- 59 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 60 of 69 Page ID #:60

1 illegal income representations, or by defamation of Well-Meds downline business


2

organization. It also obligates former IDs to refrain from doing so.

3
4

151. The Defendants and the Unnamed Co-Conspirators knew of these

5 covenants, or were chargeable with knowledge of them.


6

152. The Defendants and the Unnamed Co-Conspirators nevertheless induced

7
8 the breach of these covenants through the unpermitted use of Well-Meds trade secrets,
9 including lists of IDs and Customers in Well-Meds downline business organization,
10

by making illegal income representations, and by defamation of Well-Med and its

11
12 products, theft of contact information for customer lists, and Well-Meds downline
13 business organization, with the specific understanding and intent that these IDs would
14

build an NHT business fast by taking Well-Med Customers in violation of the

15
16 covenants, and also by directly and indirectly assisting the IDs in violating the
17 covenants, with knowledge of the covenants.
18

153. Because of the Defendants and the Unnamed Co-Conspirators actions, the

19
20 covenants have been and continue to be breached.
21

154. The breach of these covenants has damaged Well-Med in an amount to be

22

proven at trial.
23
24
25
26

FIFTH CAUSE OF ACTION


INTENTIONAL INTERFERENCE WITH PROSPECTIVE ECONOMIC
RELATIONS
(Against all Defendants)

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28

- 60 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 61 of 69 Page ID #:61

1
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155. Well-Med hereby reincorporate by reference each of the allegations in the


preceding paragraphs of this Complaint as though fully set forth herein.

3
4

156. Well-Meds downline business organizations Customers make a

5 commitment to purchase Well-Meds products, which is terminable at will. Well-Med


6

derives substantial revenue from Customers continued purchases, and has a reasonable

7
8 expectation, based on a long history, that the vast majority of Customers who ordered
9 from Well-Med in one month will order again in the future.
10

157. The Defendants and the Unnamed Co-Conspirators intentionally

11
12 interfered with Well-Meds expectation of continued revenue from IDs by recruiting
13 IDs and by recruiting IDs with the expectation and intention that they would in turn
14

recruit IDs.

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16

158. The Defendants and the Unnamed Co-Conspirators actions were

17 wrongful because the Defendants and the Unnamed Co-Conspirators accomplished the
18

interference using the improper means of (a) inducing the breach of non-solicitation

19
20 covenants by misappropriating trade secrets in the nature of Well-Med downline
21 business organization lists of IDs and Customers, illegal income representations, and
22

defamation of Well-Med, and its products, and theft of its downline business
23
24 organization and (b) inducing and perpetrating the misappropriation of trade secrets
25 belonging to Well-Med.
26
27
28

- 61 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 62 of 69 Page ID #:62

1
2

159. The Defendants and the Unnamed Co-Conspirators interference has


caused damage to Well-Med in an amount to be proven at trial.

3
4
5
6

SIXTH CAUSE OF ACTION


FRAUD
(Against All Defendants)
160. Well-Med hereby reincorporate by reference each of the allegations in the

7
8

preceding paragraphs of this Complaint as though fully set forth herein.

161. As the Unnamed Co-Conspirators were the President and Chief Product

10

at strategist at Well-MEd, they were obligated to disclose to Well-Med all facts relevant

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12

to Well-Meds wellbeing, as set forth above in the incorporated allegations, and were

13 under duty not to provide materially false information to Well-Med, and refrain from
14

taking action, which put their personal interest above Well-Meds.

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16

162. Although under a duty to do so, Defendant failed to disclose some or all

17 of such facts to Well-Med, and made materially affirmative misrepresentations to Well18

Med, which Defendant knew to be false at the time they were made, and which Well-

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20
21
22
23
24
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26

Med and its IDs relied on to his detriment, including, without limitation, the following:
That Unnamed Co-Conspirators hereafter was complying with the
agreement they had made with Well-Med, when, in fact, Unnamed CoConspirators were not doing so.
That Well-Med only had a two to three-week supply of Stemfit left.
That only the Unnamed Co-Conspirators had access to YTE.
That StemActive did not have more 25% more YTE extract Stemfit.
163. To his detriment, Well-Med justifiably relied upon Unnamed Co-

27 Conspirators fraud in connection with the matters which are the subject of this action.
28

- 62 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 63 of 69 Page ID #:63

1
2

164. Well-Med only became aware within the past few months of Unnamed
Co-Conspirators failures to disclose and false statements as aforesaid. Before then,

3
4

Well-Med neither knew nor should, in the exercise of reasonable diligence, have

5 known of said Unnamed Co-Conspirators misconduct.


6

165. By virtue of Unnamed Co-Conspirators actual fraud, as alleged above,

7
8 Well-Med has been damaged in a sum not currently known to him. Said damages
9 include, without limitation, lost business opportunities and fees paid to the Unnamed
10

Co-Conspirators, that otherwise would have been paid for out of to Well-Med.

11
12

166. As a direct and proximate result of Unnamed Co-Conspirators breaches,

13 as above-described, Well-Med has been damaged. Said damages include, without


14

limitation, monies retained by Unnamed Co-Conspirators from bonuses, product sales,

15
16 and damages arising from lost product sales and trade libel.
17
18

167. The conduct of the Unnamed Co-Conspirators, as alleged above, was


malicious, oppressive, and/or fraudulent. As a result of this misconduct, Well-Med is

19
20 entitled to punitive and exemplary damages against Unnamed Co-Conspirators,
21 pursuant to Civil Code 3294.
22

24

SEVENTH CAUSE OF ACTION


TRADE LIBEL
(Against All Defendants)

25

168. Well-Med hereby reincorporate by reference each of the allegations in the

23

26

preceding paragraphs of this Complaint as though fully set forth herein.

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28

- 63 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 64 of 69 Page ID #:64

1
2

169. Defendants and the Unnamed Co-Conspirators made a statement that

3 disparaged the quality of Well-Meds products and services, specifically Stemfit and
4 StemActive.
5
6

170. That the statement was made to a person other than. In this case, the

7 unnamed Co-Conspirators made the statements to Well-Meds current reps, NHT


8
9
10

distributors, and members of the general public.


That Well-Med only had a two to three-week supply of Stemfit left.

11

That only the Unnamed Co-Conspirators had access to YTE.

12

That StemActive did not have more 25% more YTE extract Stemfit.

13
14

171. These statements were untrue.

15

172. That Defendants and the Unnamed Co-Conspirators knew that the

16

statement was untrue/ acted with reckless disregard of the truth or falsity of

17
18 the statement.
19
20

173. Defendants knew or should have recognized that someone else might act
in reliance on the statement, causing Well-Med financial loss.

21
22

174. Well-Med suffered direct financial harm because someone else acted in

23 reliance on the statement, in particular Well-Meds Ids left Well-Med on reliance on


24

the false statements, causing Well-Med to suffer a loss of revenue.

25
26
27
28

- 64 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 65 of 69 Page ID #:65

1
2

175. That Defendants and the Unnamed Co-Conspirators' conduct was a


substantial factor in causing Well-Meds harm.

3
4
5
6

EIGHTH CAUSE OF ACTION


MISAPPROPRIATION OF TRADE SECRETS
(Against All Defendants)
176. The Well-Med hereby reincorporate by reference each of the allegations

7
8

in the preceding paragraphs of this Complaint as though fully set forth herein.

177. Well-Med's ID/Customer Information constitutes a trade secret within the

10

meaning of California Civil Code 34-2601, et seq. Although, Well-Med's IDs and

11
12

Customer Information reports and lists are not exclusively for the benefit of its IDs,

13 such as the Unnamed Co-Conspirators of Well-Med are intended beneficiaries of the


14

contractual provisions protecting the confidentiality of same contained in the IDs

15
16

Agreement Terms and Conditions and the Well-Med P&Ps set forth supra in that the

17 integrity of the trade secrets in the form of proprietary lists of IDs and Customers is
18

important, if not absolutely crucial, to the growth and maintenance of Well-Meds

19
20
21
22

operation of its MLM.


178. Well-Med's ID/Customer Information has not been readily known or
readily ascertainable.

23
24

179. Well-Med's ID/Customer Information derives independent economic

25 value to Well-Med from not being generally known or readily ascertainable. Well-Med
26

has made efforts that are reasonable under the circumstances to maintain the secrecy

27
28

- 65 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 66 of 69 Page ID #:66

1 of its ID/Customer Information, including without limitation imposing contractual


2

restrictions on its use and disclosure.

3
4

180. Well-Med provided ID/Customer Information for the organization of

5 Defendant Ubqiuity and the Unnamed Co-Conspirators subject to an express and


6

implied duty not to disclose or use the reports or the information contained therein after

7
8 any termination of the Unnamed Co-Conspirators status as Well-Med IDs. Well-Med
9 provided such information to other IDs subject to the same duty on the part of the IDs.
10

181. Defendants misappropriated Well-Med's ID/Customer Information

11
12 regarding the Unnamed Co-Conspirators former Well-Med downline business
13 organization.
14

182. Defendants acquired ID/Customer Information when they knew or had

15
16 reason to know that the information was acquired through the breach or inducement of
17 a breach of a duty to maintain the secrecy of the information.
18

183. Defendants disclosed and/or used Well-Med's ID/Customer Information

19
20 without any express or implied consent from Well-Med. Defendants' disclosure and/or
21 use occurred after Defendants had acquired knowledge of the ID/Customer Information
22

by inducing the Unnamed Co-Conspirators to breach a duty to Well-Med to maintain


23
24 the secrecy of the ID/Customer Information. In addition, Defendants' disclosure and/or
25 use occurred at a time when Defendants knew or had reason to know that their
26
27
28

- 66 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 67 of 69 Page ID #:67

1 knowledge of the ID/Customer Information derived from or through a person who


2

owed a duty to Well-Med to maintain the information's secrecy or limit its use.

3
4

184. Defendants' misappropriation of trade secrets has caused damage to Well-

5 Med in an amount to be proven at trial pursuant to 3426.3 of the California Civil


6

Code. The Defendants have been unjustly enriched and therefore their unjust

7
8 enrichment should also be taken into account in determining the loss suffered by the
9 Well-Med. The misappropriation is willful and malicious and Well-Med are therefore
10

entitled to an award of exemplary damages in an amount not exceeding twice any award

11
12 made, and since willful and malicious misappropriation exists, Well-Med is entitled to
13 an award of reasonable attorney's fees and costs as the prevailing parties including a
14

reasonable sum to cover the services of expert witnesses used in preparation for and

15
16 during trial under California Civil Code, 3426.4.
17
18

NINETH CAUSE OF ACTION


VIOLATION OF BUSINESS AND PROFESSIONS CODE, 17200, ET SEQ.
(Against All Defendants)

19
20

185. Well-Med repeats and re-alleges each and every allegation contained in

21 the paragraphs above, and incorporates the same herein by this reference, as though set
22

forth at length.

23
24

186. The foregoing conduct, as alleged, violates the California Unfair

25 Competition Law (UCL), Cal. Bus. & Prof. Code 17200 et seq. Section 17200 of
26
27
28

- 67 COMPLAINT

Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 68 of 69 Page ID #:68

1 the Cal. Bus. & Prof. Code prohibits unfair competition by prohibiting, inter alia, any
2

unlawful or unfair business acts or practices.

3
4

187. After their resignation, the Unnamed Co-Conspirators and Defendant

5 committed acts of unfair competition, as defined by the UCL, by, among other things,
6

engaging in the acts and practices described herein, including but not limited to:

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8 defaming Well-Med, slandering Well-Med to members of the business community, and
9 raiding its IDs. Defendants conduct as herein alleged has damaged Well-Med by
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defaming it and interfering with prospective business opportunities, and therefore was

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12 substantially injurious to the Well-Med, and caused him to lose money and/or property
13 as a result of such conduct.
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188. Defendants course of conduct, acts, and practices, in violation of the

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16 California laws mentioned in the above paragraph, constitute a separate and
17 independent violation of the UCL. Defendants conduct described herein violates the
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policy or spirit of such laws or otherwise significantly threatens or harms competition.

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189. Well-Med seeks restitution and equity and such other legal and equitable

21 relief from Defendants unlawful and willful conduct as the Court deems just and
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proper, as well as injunction precluding Defendant from continuing to use Well-Meds


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24 license number to conduct business in
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PRAYER FOR RELIEF

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WHEREFORE, Well-Med pray for judgment against Defendants as follows:


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Case 8:16-cv-01611 Document 1 Filed 08/31/16 Page 69 of 69 Page ID #:69

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For general compensatory damages according to proof at trial;

2.

For special compensatory damages according to proof at trial;

3.

For restitution and/or disgorgement;

4.

For injunctive relief precluding Defendant from continuing to violate


Business and Professions Code Section 17200, et seq.;

5.

For punitive damages according to proof at trial;

6.

For an award of prejudgment and post-judgment interest; and

7.

For cost of suit; and

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8.

For such other and further relief as the court deems just and proper.

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JURY TRIAL DEMAND

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A jury trial in this matter is hereby demanded

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Respectfully submitted,

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SPRETER LAW FIDM, APC


Dated: August 31, 2016,
/s/ Geoff J. Spreter
SPRETER LAW FIRM, APC
601 3rd Street,
Coronado, CA 92118
Tel: (619) 865-7986/Fax: (619) 342-9600
geoff@spreterlaw.com

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- 69 COMPLAINT