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Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 1 of 60JONATHAN E. NUECHTERLEINGeneral CounselANGELEQUE P. LINVILLE, Tex. Bar No. 24058793JASON C. MOON, Tex. Bar No. 24001188ANNE D. LEJEUNE, Tex. Bar No. 24054286EMILY B. ROBINSON, Tex. Bar No. 24046737Federal Trade Commission1999 Bryan Street, Suite 2150Dallas, Texas 75201(214) 979-9378; jmoon@ftc.gov (Moon)(214) 979-93 81; alinville@ftc.gov (Linville)(214) 979-9371 ; alejeune@ftc.gov (LeJeune)(214) 979-9386; erobinson@ftc.gov (Robinson)(214) 953-3079 (Fax)Attorneys for PlaintiffFEDERAL TRADE COMMISSIONUNITED STATES DISTRICT COURTFOR THE DISTRICT OF ARIZONAFederal Trade Commission;No.Plaintiff,v.Vemma Nutrition Company, a corporation;Vemma International Holdings, Inc., acorporation;Benson K . Boreyko a!k/a B.K. Boreyko,individually and as an officer of VemmaNutrition Company and Vemma InternationalHoldings, Inc.; andTom Alkazin, an individual;Defendants, andBethany Alkazin, an individual;APPENDIX- VOLUME IApp. 1-697MEMORANDUM OF POINTSAND AUTHORITIES INSUPPORT OF PLAINTIFF'S EXPARTE APPLICATION FORTEMPORARY RESTRAININGORDER WITH ASSET FREEZE,APPOINTMENT OF ARECEIVER, AND OTHEREQUITABLE RELIEF, AND ANORDER TO SHOW CAUSE WHYA PRELIMINARY INJUNCTIONSHOULD NOT ISSUERelief Defendant.UNDER SEAL
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 2 of 60TABLE OF CONTENTSApp.#TitleVOLUME IDeclaration of Federal Trade Investigator Matthew Thacker 1Arizona Corporation Commission Records31Arizona Dept. of Economic Security Records119Wells Fargo Bank Business Records (intentionally omitted,available upon request)128American Express Business Records440Undercover purchase documents5250"This is Vemma" Success Magazine5540YPR Magazine614VOLUME II Undercover purchase documents- continued6980Vemma FlipBook6980Vemma Affiliate Action Plan7200Vemma Scientific Resource Guide764781www.vemma.com web capture0Vemma Compensation Plan8220Vemma Affiliate Agreement Terms and Conditions achieve. vemma.commyroadma12tosuccess.com The Vemma Training Bible840850855879www. businessforhome.org913Screenshots from captured videos918Vemma Back Office, w Two & Go Training Video with Tom Alkazin(pdf)2936
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 3 of 600 New Vemma Flipbook970Transcripts of video and audio recordings9970Welcome to Vemma With BK Boreyko9970"Your First 7 Days" - 04 Mindset Number One11040"Your First 7 Days" - 05 Stepping Around MindsetNumber OneUndercover Telephone Contact Between MatthewThacker and David Treat00Vemma Event- Pleasanton California101110191030VOLUME III0"Opportunity and Fast Start" Vemma Training Event,Dallas, Texas10470Tom Alkazin-24 Hour Overview Call10920BK: Our Plan to Exceed Your Expectations11050Venm1a- New Customer1120o . Vemma Affiliate Marketing Text Invite - VemmaApp0Welcome to Vemma! Your Journey to SuccessBegins Here!1127113303 Step Plan - How 8 People Can Change Your Life11400Darik Alexander11460Verve Text Invite- Vemma App11550YPR Radio - Luke Hessler11600Jed Buenaluz on Leading by Example from VerveLeadership Academy - Venm1a11700Message of the Month - Blake Stauffer11810Nick Ptak11940YPR Radio - Brad Alkazin Full Length12040Verve Mobile Text Invitation to Learn How YoungPeople Are Having Fun and Making Extra CashZero to Sixty: a Start-up Business Action Plan forYoung People Self-employment, with Alex Morton0121612220How Vemma Pays You12310Step 1 - "Dream Big Dreams"12383
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 4 of 600Step 4- "How to Lead with Vemma, Verve, and Bode"12530Step 5 - "Leading with Vemma Business"12660Step 6 - "Goal Setting - Your First Objectives"12760Step 8 - "Time for Action: Home Events & YourChecklist"TK Kubvoruno on YPR Radio Season 2 with EricThomas- Learn How TK's Why Drove Him toSuccess0128912960New Two & Go Training Video with Tom Alkazin13150BK's Blog Why Now is the Time to Build13360First Vemma Live Call of 2015 video13430May 2015 Vemma Live Call video13540How Vemma Pays You13730New Affiliate Marketing Business Model withCustomer Perks AddedBKs Blog CEO of Vemma Nutritional CompanySpeaks on Why to Join Vemma0138213890February 2015 Vemma Live Call Video13960Vemma Success Alex Morton14070Vemma Business Vemma Presentation with TopLeader Tom AlkazinBKs Blog Interview with Bryce Madjick and LukeKishVemma Nutrition Company Marketing and SalesBusiness Plan for Premium Supplement Products14201432BK Boreyko Talks to Parents14520001445VOLUME IV0BKs 2014 Halftime Report14590Why a Game Plan with Ruth Elliott14830Matt Morrow - Verve in Simple Terms14900Star Pinnacle Tom and Bethany Alkazin Vemma AllIn 201414960Darik Alexander- Ambassador Michelle Barnes1502Expert Declaration of Stacie A. Bosley, Ph.D.41522
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 5 of 60Declaration of Bonnie Patten 1566Roadmap to Success1568Italian Decision from the Italian Competition and MarketsAuthority (intentionally omitted, available upon request)1612Translation of the Italian Decision1611Declaration of Adam Fracassi 1629"Everybody Deserves Great Health" Booklet1631Audio Recording of the Michigan Event (intentionallyomitted, available upon request)1651Michigan Event Transcript1652Corrected Michigan Event Transcript1690In reNew Vision International, Inc.1781"How to Get Paid with Vemma - Vemma Home Event Video ShowThis Last" landing page, www.venuna.com1789VOLUME V Video and Audio Recordings0Welcome to Venuna with BK Boreyko17900"Your First 7 Days" - 04 Mindset Number One17910"Your First 7 Days"- 05 Stepping around MindsetNumber One17920This is Vemma17930Removal of Auto-Delivery17940Undercover Telephone Contact Between MatthewThacker and David TreatUndercover Telephone Contact with VemmaCustomer Service00Vemma Event - Pleasanton California0"Opportunity and Fast Start" Vemma Training Event,Dallas, TexasHow to Get Paid with Vemma - Vemma Home EventVideo Show This Last0179517961797179817990Tom Alkazin-24 Hour Overview Call18000BK: Our Plan to Exceed Your Expectations18010Vemma- New Customer18025
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 6 of 6000Vemrna Affiliate Marketing Text Invite- VemmaAppWelcome to Vemrna! Your Journey to Success BeginsHere!1803180403 Step Plan- How 8 People Can Change Your Life18050Darik Alexander18060Verve Text Invite - Vemma App18070YPR Radio - Luke Hessler18080Jed Buenaluz on Leading by Example from VerveLeadership Academy - Vemma18090Message of the Month - Blake Stauffer18100Nick Ptak18110YPR Radio- Brad Alkazin Full Length18120Verve Mobile Text Invitation to Learn How YoungPeople Are Having Fun and Making Extra CashZero to Sixty: a Start-up Business Action Plan forYoung People Self-employment, with Alex Morton0181318140How Vemma Pays You18150Step 1 - "Dream Big Dreams"18160Step 4 - "How to Lead with Vemrna Verve and Bode"Step 5 - "Leading with the Vemma BusinessOpportunity"00Step 6 - "Goal Setting - Your First Objectives"0Step 8 - "Time for Action: Home Events & YourChecklist"TK Kubvoruno on YBR Radio Season 2 with EricThomas - Learn How TK's Why Drove Him toSuccess0181718181819182018210New Two & Go Training Video with Tom Alkazin18220BKs Blog Why Now is the Time to Build18230First Vemma Live Call of2015 video18240May 2015 Vemrna Live Call video18250How Vemrna Pays You18260Living the Vemrna Lifestyle18276
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 7 of 6000New Affiliate Marketing Business Model withCustomer Perks AddedBKs Blog CEO of Vemma Nutritional CompanySpeaks on Why to Join Vemma182818290February 2015 Vemma Live Call18300Vemma Success Alex Morton18310Vemma Business Vemma Presentation with TopLeader Tom AlkazinBKs Blog Interview with Bryce Madjick and LukeKishVemma Nutrition Company Marketing and SalesBusiness Plan for Premium Supplement Products001832183318340BK Boreyko Talks to Parents18350BKs 2014 Halftime Report18360Why A Game Plan with Ruth Elliott18370Matt Morrow - Verve in Simple Terms18380Star Pinnacle Tom and Bethany Alkazin Vemma Allin 201418390Darik Alexander - Ambassador Michelle Barnes18407
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 8 of 60Dated: August 17, 2015Respectfully submitted,JONATHAN E. NUECHTERLEINGeneral Counsel\ ANGELEQUE P. LINVILLE, Tex. Bar No. 24058793JASON C. MOON, Tex. Bar No. 24001188ANNE D. LEJEUNE, Tex. Bar No. 24054286EMILY B. ROBINSON, Tex. Bar No. 24046737Federal Trade Commission1999 Bryan Street, Suite 2150Dallas, Texas 75201(214) 979-93 78; jmoon@ftc.gov (Moon)(214) 979-9381; alinville@ftc.gov (Linville)(214) 979-9371; alejeune@ftc.gov (LeJeune)(214) 979-9386; erobinson@ftc.gov (Robinson)(214) 953-3079 (Fax)Attorneys for PlaintiffFEDERAL TRADE COMMISSION8
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 9 of 60DECLARATION OF FTC INVESTIGATOR MATTHEW J. THACKERPURSUANT TO 28 U.S.C. § 1746I, Matthew J. Thacker, declare that I have personal knowledge of the facts set forth below. Ifcalled as a witness before any court, I could and would testify as follows:1.I am over the age of 21 and competent to give this declaration. I am a FederalTrade Investigator with the Federal Trade Commission (FTC). My business is address 1999Bryan Street, Suite 2150, Dallas, Texas 75201. I have a Bachelor of Science degree in CriminalJustice. I have more than six years of experience as a Special Agent Criminal Investigator forthe United States Army Criminal Investigation Command.2.As an Investigator with the FTC, my primary duties include, but are not limitedto: identifying patterns of unfair and deceptive trade practices; conducting computer researchusing a variety of Internet search engines, public record and law enforcement databases, andcomputer software-based investigative tools; requesting, receiving, and examining informationprovided by third parties, including information provided by financial institutions, stateagencies, and other organizations; and analyzing data related to possible violations of theFederal Trade Commission Act and other laws enforced by the Commission.3.As part of my duties, I have been assigned to work on the investigation of VemmaNutrition Company and Vemma International Holdings, Inc., and related individuals, Benson K.Boreyko (BK Boreyko) and Tom Alkazin (T. Alkazin) (collectively Defendants). Myinvestigation uncovered documents and information related to: (1) corporate records of VemmaNutrition Company (Vemma) and Vemma International Holdings, Inc. (VIH); (2) filings with theState of Arizona Department of Economic Security; (3) corporate bank and credit card records;(4) my undercover purchase from Vemma; (5) recorded undercover telephone calls with Vemma;(6) Vemma websites and videos. I also assist in related litigation.App. 0001
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 10 of 604.Throughout this declaration and in its attachments information that would revealundercover identities and accounts used and controlled by the FTC has been redacted.Additionally, information that would reveal personally identifiable information has beenredacted.Corporate Records5.During this investigation, I searched the Arizona Corporation Commission (ACC)website, www.ecorp.azcc.gov/Search, for records related to Vemma, VIH, and any associatedcompanies. I requested and received certified copies of ACC records for Vemma and VIH fromArizona’s Office of the Attorney General.6.Vemma: On May 15, 2015, I received the certified copies of Articles ofIncorporation, 2005-2014 Annual Reports, Statements of Changes, and Officer/DirectorShareholder Change for Vemma on file with the ACC. True and correct copies of these recordsare attached at App. 0031-0087.a.According to the Articles of Incorporation, Vemma was formed inArizona on September 3, 2004. The Articles of Incorporation identified thecompany’s Board of Directors as BK Boreyko, Karen Boreyko-Salmirs andLauren Boreyko and its stated purpose was “the transaction of any and all lawfulbusiness for which corporation may be incorporated under the laws of the State ofArizona, as the same may be amended from time to time.” The Articles ofIncorporation identified the character of business that Vemma initially intended toactually conduct in the state of Arizona as to market dietary supplements. BKBoreyko signed as the incorporator on the Articles of Incorporation. The ArticlesPage 2 of 24App. 0002
Case 2:15-cv-01578-JJT Document 10 Filed 08/17/15 Page 11 of 60of Incorporation also identified Vemma’s known place of business as 8322 EastHartford Drive, Scottsdale, AZ 85255. (App. 0031-0036)b.According to its 2005-2010 Annual Reports, Vemma’s shareholdersholding more than 20 percent interest in the company and its directors includedBK Boreyko, Karen Boreyko and D. Lynne (Lauren) Boreyko. BK Boreyko wasidentified as the President and CEO and the mailing address was listed as 8322 E.Hartford Drive, Scottsdale, AZ 85255. (App. 0037-0060)c.According to its 2011-2013 Annual Reports, the only shareholder holdingmore than 20 percent interest in the company was VIH. The directors includedBK Boreyko, Karen Boreyko and D. Lynne (Lauren) Boreyko. BK Boreyko wasidentified as the President and CEO and the mailing address was listed as 8322 E.Hartford Drive, Scottsdale, AZ 85255. (App. 0061-0072)d.According to its 2014 Annual Report, the only shareholder holding morethan 20 percent interest in the company was VIH. The directors included BKBoreyko, Karen Boreyko and D. Lynne (Lauren) Boreyko. BK Boreyko wasidentified as the President and CEO and the mailing address was listed as 1621 WRio Salado Parkway, Tempe, AZ 85281. (App. 0073-0076)e.According to the Statement of Change filed on October 15, 2009, thecompany’s statutory agent was changed from Sheena Tejeda to BK Boreyko.(App. 0077-0079)f.According to the Statement of Change on January 21, 2014, Vemma’sstreet and mailing addresses were changed from 8322 E. Hartford Drive,Page 3 of 24App. 0003
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0 Step 4-"How to Lead with Vemma, Verve, and Bod- 1253 e" 0 Step 5 - "Leading with Vemma Business" 1266 0 Step 6 - "Goal Setting - Your First Objectives" 1276 0 Step 8 - "Time for Action: Home Events & Your 1289 Checklist" 0 TK Kubvoruno on YPR Radio Season 2 with Eric Thomas-Learn How TK's Why Drove Him to 1296 Success 0 New Two & Go Training Video with Tom Alkazin 1315
