Genewize - In Prelaunch and In Trouble Already!
August 13, 2008 – 10:34 am | by Shelley Penney - The MLM Diva
Genewize faces a lawsuit and they barely got "on their marks"!
Genewize is a network marketing company (a subsidiary of an older, more established company) that offers a customized program of nutritional supplements based on your own DNA testing (which they do for $400). They are a company in prelaunch, and creating a bit of a rumble in the MLM community, mostly because their approach is novel, and kinda cool if you really think about it.
How cool is it to face a lawsuit before you even have your number on the team sweater though? It is important to TRY to find a company whose leaders you can trust. I have a hard time joining ANY prelaunch company, however, when they start out like this, I recommend a "wait and see". It’s a rocky beginning!
Philadelphia Lawyers, Pelagatti & Pelagatti, Sue GeneLink and Their Subsidiary for Fraud
GeneLink, Inc. (OTCBB: GNLK) and its new marketing subsidiary, GeneWize Life Sciences, Inc., have been sued for fraud in Philadelphia Common Pleas Court by GeneLink’s former CEO and Board Chairman, John DePhillipo and his wife, Maria for approximately twenty million dollars ($20,000,000).
DePhillipo claims that GeneLink’s lawyer fraudulently misrepresented the financial state of GeneLink to him and the trial judge in order to induce the former CEO to settle his law suit for salary arrearages which he had filed against GeneLink in Atlantic County, New Jersey.
On April 14, 2008, at about the same time DePhillipo agreed to settle his lawsuit in court for cash by surrendering almost 4,000,000 of his shares for 6 cents a share, GeneLink intentionally released their late annual report disclosing the formation of its marketing arm, GeneWize, which had sold presidential founder memberships at $1,000.00 each and 4000 prospective dealerships for $500.00 each.
The price of GeneLink shares sky rocketed to as high as fifty cents a share within weeks after the company released its April 14, 2008 annual report.
GeneLink, a public company, allegedly, surreptitiously and contrary to Securities and Exchange Commission rules, operated their defacto marketing subsidiary, GeneWize for approximately 16 months without notifying company shareholders such as DePhillipo, creditors, the public, or the Securities and Exchange Commission.
GeneLink’s investment banker, as well as several board members including its chairman, Robert P. Ricciardi, were sued individually for conspiracy to commit fraud.
CONTACT INFO: Gustine Pelagatti, Sr. Pelagatti & Pelagatti 1845 Walnut St. Philadelphia, Pa., 19103 215-563-6821 Attorneys for Plaintiffs
Genewize faces a lawsuit and they barely got "on their marks"!
Tags: fraud, GeneLink, genewize, GeneWize Life Sciences, John DePhillipo, lawsuit, legal, sued
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Shelley Penney lives in her own world.... building a network marketing business from her home office, and writing about it in hopes that she can TRULY make a difference. Find her at http://www.shelleypenney.com
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Tags: fraud, GeneLink, genewize, GeneWize Life Sciences, John DePhillipo, lawsuit, legal, sued
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