The Jay Noland Story: Modified by the FTC
If I were to add a subtitle that would take up most of the front cover of the book, it would be something like: “ An American self-made success story of climbing the highest mountains in sports, society and as an entrepreneur, only to be thrown off a cliff by the un-elected government regulators that are free to do so. ”
(This article was written by Peter Mingils and additional comments added by Jo Dee Baer on Building Fortunes Radio. This is a modified version of the radio show).
The first few years of life for Jay Noland should have sealed his fate as someone destined to be limited in education, society, and in life. In the beginning, Jay started life as a poor kid in a poor community. He was raised on a hog farm in Kentucky by his grandparents. The color of his skin, or the rest of his ethnic background, probably did not mean much to the hogs, but in this society, sometimes race still matters for some. Most people would call him “a black man” if they saw his picture or shook his hand.
At age 7, his dad shot himself, and almost died. At age 8, his mom left him. He was raised by loving grandparents in a very poor part of Kentucky. His part of Kentucky was the kind of place “stuck in time place” where people have hog farms, lots of free time in the woods, and limited financial resources. The wealth his grandparents had was not in their bank account, but in the lessons and values they instilled in him… INSTILLED in him as was the determination to succeed.
He was naturally gifted in sports and mostly as a baseball player. He was working his way up through AAA baseball with the Seattle Mariners when he “blew out” his elbow and was told he might not be able to achieve his dreams to become a major league baseball player. During the year of recuperation after surgery—He needed money & decided to try direct selling. They called him “LIGHTENING” in Baseball and he use the same skills in Direct Sales as he found in MLB.
He succeeded at several network marketing companies as a distributor; however, he often found that the companies are not adhering to his standards and he wound up resigning. On one occasion the Federal Trade Commission, pressured him into a settlement that would later be violated by the FTC itself.
On the Building Fortunes radio show, Jo Dee Baer added, “Check out BigSmart 2002 final judgement: Lines 4 and 7: EXONERATED from any wrongdoing! “
Along the way, he formed a successful consulting and media company and eventually went on to start his own network marketing companies. He lost control of one of his companies through a messy divorce and underhandedness, fought through the legal system and eventually gained control back. The judge declared to the Plaintiffs: You’ve come in here with ‘unclean hands’ and ruled in his favor.
Jay’s always worked consistently with the confidence that hard work and playing by the rules would be the best way to live a successful life. As you will learn, that is not the happy ending that will experience at the hands of un-elected regulators that destroyed his latest company, Success by Health.
In August 2017, he started a new Multi-level Marketing company Success by Health (SBH). Success by Health is an additional division to his already existing company Success by Media (SBM). He started SBH with a hand few of eager distributors and a few loyal followers.
Jo Dee Baer added, “As my Affiliate number ends in 13—? I WAS one of those eager to succeed as a Baby Boomer… Supplementing my income for Retire.”
With experience in MLM, he knew recruiting new Affiliates is an ongoing process.
He also knew the importance of retail sales for outside customers. In the context of this article, MLM and Network Marketing are virtually “the same thing”.
For those unfamiliar with the history of regulations against network marketing/direct sales companies by the FTC, the FTC looks for a large number of sales to be generated to outside customers… not just purchases made by the distributors themselves. In situations, where the majority of sales are made by the distributors themselves for personal use or for compensation plan qualifications, that’s a “pyramid”.
In the FTC cases against MLM companies, the term pyramid has little to do with the geometric shape. Pyramids are based on the distributors’ motivation in buying the product. If a portion of the motivation for buying the product is for personal consumption, that’s OK. If the majority is for personal consumption, that’s a pyramid. I know the people at the FTC can not read your mind. I know I cannot read your mind. However, I would guess the majority of people would probably ask, “what is the percentage of personal consumption to retail sales?”
Consistently, the FTC says, and I paraphrase, “it depends”. And believe it or not, I actually think that’s the right answer. Each company is a little different. The sales force, the product line, and other variables make it hard to give a specific number for the percentage.
Jo Dee Baer comments, “Our CEO KNEW this and has consistently promoted retail sales. His field leaders know this and consistently promote retail sales. In fact— Our Company retail sales were 3 to 1 over recruiting… and as the present #1 earner of the Company? My 2019 income was 1/3 retail sales to 2/3rd company commissions— TRULY the antithesis of a pyramid.”
In April or May of 2019, Jay Noland was advised by someone at his bank that his bank records were subpoenaed. Immediately, his lawyer to contacted the Federal Trade Commission and see why they were being investigated, and what SBH could do to offer assistance in their investigation. Then? He took his Dad on a fishing trip…
Jo Dee Baer added, “Doesn’t sound like someone who’s concerned about guilt… Does it? Each time the SBH Lawyers reached… to check if everything was OK? The attorney was told, ‘not at this time’.”
It appears, a few months prior to the subpoena, a disgruntled former distributor allegedly coordinated a bunch of complaints to the FTC and initiated a considerable number of credit card charge backs. This coordinated attack of incoming complaints prompted the FTC investigation.
At this point, I would hope the FTC would initiate an investigation. That investigation would reasonable start with a letter, a phone call, or perhaps a subpoena or request for information. That is not what transpired.
Under the “secret’ investigation by the FTC, SBH corporate and Affiliate conference calls and webinars were recorded, “moles” were embedded into the company to buy products, attend events, and “recruit”. Eventually an ex-parte Temporary Restraining Order (TRO) was put into affect on January 13th 2020, as he and his wife and son stepped on to US soil from overseas. The company operations were stopped immediately and the assets of himself, his wife, and two corporate executives were frozen.
The whole scenario looked like a “hit job”. Flying into the United States for a Leadership event that coming weekend. The “hit job” would send shock waves through the entire organization. Hundreds of Affiliates would NOT get their checks. Domestic and International flights and travel plans for over 800 people that were key to growing the business would be disrupted. Correspondence from a court ordered and appointed receiver to the entire distributor base would cast doubt on the legitimacy of the business, and create a certainty for it’s likely demise.
A preliminary hearing in February 2020, would startle the FTC and the judge. An unusual number of SBH supporters and Affiliates flooded the court room:
Jo Dee Baer stated, “I was one of them who flew into Phoenix from Forida. 4817 of pages of documents were presented to the court as evidence of retail sales, 48 Top Affiliate income claim disclosures, and potential racial bias were submitted.”
Yes. Potential Racial bias. The FTC expert witness, Dr. Stacie Bosley, had an article published while being an Associate Professor at Hamline University in Wisconsin. Dr. Bosley stated during cross-examination by the SBH attorney Mr. Silver, that “Many people are intrigued”… with comparisons linking the KKK to MLM.
The people in the courtroom were shocked and astonished by the potentially biased opinions that seemed to even catch the FTC by surprise or embarrassment.
After all the volumes of documentation, the court still ruled to keep the TRO in place as Preliminary Injunction until the trial occurs.
In the minds of many, the court and the FTC did not take into account the reasonable evidence the Company Defendants, lawyers and SBH Affiliates presented. He and the Affiliates and executives of SBH are virtually guilty as charged based on the partial and one-sided evidence being used against him.
President Donald Trump signed an Executive Order in October 2019 identifying that the overreach of unelected government regulators has to stop.
Jo Dee Baer says, “Google the Federal Register and President Trumps Executive order on Federal Agencies to read (If you speed read)? Check out #e and #f. Once again? Here are some words for your search: “
Jo Dee Baer says, “Our CEO’s entire 25 + year business, reputation, and future has been “thrown off a cliff” with the security cameras still rolling. What most people never see are the consequences of these actions.
There are distributors now that are financially harmed. ALL catastrophically affected 6700+ There are customers that cannot buy the products they desired to buy.
The HEALTH and WELLNESS of countless people are left at the precipice of this cliff There is an orphanage that has been totally funded through SBH— Whereby these children are even without FOOD as this point. This foundation provided financial support that cannot complete a much needed construction project.
The reputations of many have been harmed.
If the purpose of the FTC is to protect consumers, they have horribly failed in this instance. President Donald Trump is one of many that has to stop this government over reach.”
Jo Dee Baer continues, “We’ve even reached out to the state level in one state to the NAACP— This was the response from their attorney:
The NAACP does not get involved in individual cases that involve only that person but rather in cases that would have a wide application to people of color. Do they not know that: YET? The majority of people in MLM/Direct Sales ARE Minorities? WHY? Start with a minimal investment, WORK HARD— And change your station in life; And LIFT others up as well…”
A possible solution could have been a fine, a restructuring, a new set of guidelines. Not a permanent TRO.
“An American self-made success story of climbing the highest mountains in sports, society and as an entrepreneur, only to be thrown off a cliff by the un-elected government regulators that are free to do so.”