In reporting on Velovita’s acquisition of Jeunesse earlier this month, I very a lot felt like one thing was amiss.

Advertising instructed Velovita had solely acquired rights to sure areas, placing a query mark on the remainder of Jeunesse’s enterprise.

This was on high of allegations made by Jeunesse co-founder Randy Ray in October, inserting former Jeunesse CEO on the heart of a conspiracy to allegedly defraud him out of tens of millions.

In response to our Velovita acquisition article, a BehindMLM reader introduced up Greenway International’s claims of Jeunesse possession.

This was the primary I’d heard of Greenway International having something to do with Jeunesse so I seemed into it and, positive sufficient, there it was:

My analysis ultimately led me to a lawsuit filed by Velovita towards Greenway in November. Case filings make clear the matter, with Kevin Giguere allegedly in the midst of one more scheme to misappropriate tens of millions.

Named defendants in Velovita’s November 4th filed Criticism are:

1. Greenway US, LLC
2. Greenway USA, LLC
3. Jeunesse International Holdings LLC
4. Jeunesse LLC, dba Jeunesse International
5. Jeunesse Inc
6. Kevin Giguere
7. Suntitle Companies Inc., dba Title Companies and
8. John Roby

In its lawsuit Velovia confirms it “acquired sure belongings of Jeunesse” in October 2024.

This contains Jeunesse LLC, Jeunesse International Holdings, LLC, and all of their direct and oblique wholly-owned subsidiaries.

These firms got here with Jeunesse’s worldwide affiliate and buyer database, in addition to patents, advertising belongings (Jeunesse’s web site and so forth.), product registrations, enterprise licenses and current product stock.

The crux of Velovita’s lawsuit is the allegation that Greenway International has

been deceptive Jeunesse distributors and prospects into believing they personal the Jeunesse Property and stating that they, not Velovita, have the proper to promote and market Jeunesse merchandise.

Velovita claims it despatched Greenway International a stop and desist through e-mail on October twenty ninth.

Twelve hours after the e-mail was despatched, Greenway International is alleged to have despatched one other e-mail to Jeunesse distributors, claiming they had been partnered with the corporate.

[Greenway Global is] actively encouraging former leaders and workers of Jeunesse to misrepresent to different Jeunesse distributors that the Defendants personal the Jeunesse Property to influence these distributors to transition to Defendants.

In its protection Greenway International claims it “entered into contractual agreements” with Jeunesse. These agreements purportedly predate Velovita’s acquisition.

Velovita naturally dispute’s Greenway International’s alleged agreements, claiming;

Neither Jeunesse Inc. nor its mother or father firm, VIP International Stars, Inc., nor any of its subsidiaries ever effectuated an settlement with Defendants, as Defendants failed to satisfy the expectations outlined within the agreements.

Even when there was a sound settlement, which there was not, the Defendants didn’t carry out on their guarantees.

For instance, the Defendants solely paid $2.1 million of the $10 million they dedicated to.

As to the expectations, Greenway International claims it “acted inside [its] rights … [and was] fraudulently mislead by the Jeunesse CEO, Kevin Giguere.

From Greenway International’s October thirty first response to Velovita’s stop and desist;

All actions taken by Greenway have been primarily based on authorized grounds and in accordance with contracts and agreements signed by Kevin Giguere on behalf of Jeunesse and Greenway.

Moreover, it seems that your organization is now claiming possession of property and belongings which can be topic of the contracts and agreements entered into between Giguere/Jeunesse and Greenway.

Greenway denies any tortious interference with the contractual or enterprise relationships of Velovita, as all actions taken by Greenway had been pursuant to contracts and agreements to which it’s a social gathering.

Greenway intends to take all obligatory actions to recuperate the funds wrongfully obtained by Jeunesse and Giguere.

In an affidavit from Giguere, hooked up as an exhibit by Velovita, he states;

I started nationations with Greenway in June of 2024 to buy sure belongings of Jeunesse Inc., comparable to database data for particular nations solely quite than the complete Jeunesse database.

Regardless of exchanging a number of drafts, Greenway submitted paperwork to me for last signature that I later found didn’t comport with our negotiations.

Greenway misrepresented to me that the phrases of those agreements had been in keeping with our oral conversations, which I relied upon in executing the agreements.

The negotiated phrases had been as follows:

Greenway was to pay Jeunesse $3 million {dollars} for chosen nations of the Jeunesse database and $7 million {dollars} to Jeunesse to be paid on a month-to-month foundation for a complete of $10 million {dollars}, plus fund a Jeunesse occasion in Singapore, and buy tens of millions of {dollars}’ value of stock on behalf of Jeunesse.

In alternate, Jeunesse was to ship the stock to Greenway’s chosen warehouse and switch the database data and chosen emblems from the agreed upon nations.

However the misrepresentations, Greenway nonetheless did not carry out its obligations below any settlement or negotiated phrases by solely paying $2.1 million of the $10 million {dollars} promised and failing to gather the stock.

Because of this, Greenway didn’t and couldn’t take authorized title to any of the Jeunesse Property.

Regardless of Greenway’s shortcomings in fulfilling its obligations, it improperly and incorrectly communicated to all Jeunesse Distributors that it had acquired Jeunesse and subsequently revealed an article in Enterprise For Dwelling, which I didn’t authorize.

It’s unclear why Giguere handed over Jeunesse’s database, a lot the much less Jeunesse’s whole database, if Greenway had did not pay as agreed.

My attorneys despatched a cease-and-desist letter on behalf of Jeunesse, demanding that it take away the article on the time and stop its improper conduct, however Greenway refused.

The Jeunesse Property had been bought to a 3rd social gathering below a confidential Asset Buy Settlement.

Upon data and perception, the Jeunesse Property had been then bought to Velovita.

Jeunesse Inc. is not the authorized proprietor of the Jeunesse Property, and it doesn’t have the authority to switch them to a different social gathering, comparable to Greenway right now.

Of be aware is Kevin Giguere being the first beneficiary of the purported Jeunesse Greenway settlement. From a letter of demand despatched by Jeunesse’s legal professionals to Greenway in August 2024;

By the use of this discover, Jeunesse calls for that inside 24 hours of this letter, Greenway deposit the contemplated buy value of $10 million into escrow …

The $10 million in escrow will then be disbursed as follows:

• $1 million to Terry Lacore
• $1 million to Brian McMullin
• $550,000 to Vitaquest
• $400,000 to United One
• $200,000 to Uniwell
• $200,000 to Dr. Nathan Newman
• $50,000 to Dr Giampapa
• $2 million to Ryan Jumonville and
• $4.6 million to Kevin Giguere

Giguere is at present a named defendant in a separate lawsuit filed by Jeunesse co-founder Randy Ray.

Ray alleges Giguere was a part of a conspiracy to grab management of Jeunesse and steal tens of millions from him.

Defendants’ actions show that they intend to maintain focusing on the Jeunesse database and promote Jeunesse merchandise utilizing stock and emblems owned solely by Velovita.

To that finish, Velovita sought momentary and everlasting injunctions towards Greenway International. Compensatory damages, particular damages and authorized prices had been additionally sought.

On November fifteenth Velovia was awarded its requested Non permanent Restraining Order (TRO) towards the Greenway defendants.

The TRO prohibits the Greenway defendants from:

1. soliciting Jeunesse distributors and prospects;
2. “holding themselves out because the proprietor of or using Jeunesse Property”; and
3. defaming Velovita or Jeunesse.

On November 18th Greenway filed its reply to Velovita’s criticism. Connected was a counterclaim, naming Velovita, Jeunesse entities, Kevin Giguere, Suntitle Companies and John Roby as defendants.

I don’t know why the necessity for secrecy however each Velovita’s Criticism and Greenway’s counter-claim cite whoever bought and bought Jeunesse to Velovita as “John Doe”.

This cited John Doe is a defendant in each Velovita’s Criticism and Greenway’s counterclaim.

Greenway claims Giguere contacted it in Might 2024 to beg for cash.

By way of a cellphone name on Might 29, 2024, Jeunesse’s CEO Giguere reached out to Greenway International Vice President Dany Loaroque asking for assist.

Giguere knowledgeable Laroque that Jeunesse was having issue paying commissions to its distributors and may not survive until it instantly obtained a big inflow of money wanted to make sure fee of these commissions.

It must be famous these claims mirror these made by Randy Ray in his lawsuit towards Giguere.

Greenway goes on to assert, primarily based on Giguere’s representations, that it “executed a confidential Mutual Cooperation Settlement” (MCA).

Amongst different potential phrases, the MCA contemplated:

1. the acquisition by the Greenway Entities and supply by Jeunesse of specified Jeunesse merchandise;
2. the licensing of Jeunesse emblems; and
3. the switch of the Jeunesse community database.

Greenway claims Giguere led them to consider Jeunesse monetary issues had been on account of “irregularity in Jeunesse’s distributor insurance policies”.

On this regard, Giguere mislead the Greenway Entities to consider it was in each events’ greatest curiosity for the Greenway Entities to advance funds to Jeunesse in order that Jeunesse may pay its distributors and thereby maintain the community of distributors collectively to guard Jeunesse’s goodwill pending the completion of the sale of the Jeunesse Property to the Greenway Entities.

In actuality, Jeunesse’s incapability to pay its distributors was on account of an undisclosed, underlying fraud described additional under because the “Level Scheme”.

The referenced “Level Scheme” is specified by element in Randy Ray’s Criticism towards Giguere.

The Kingpin Defendants carried out the Level Scheme by recruiting and directing members of the Operational Defendants to fraudulently add tens of millions of unearned factors onto sham accounts—the Community Defendants’ Jeunesse accounts.

In a nutshell, the “Level Scheme” sees Giguere and a number of other Jeunesse insiders accused of misappropriating tens of millions of {dollars} by manipulating Jeunesse’s affiliate database.

Getting again to Greenway’s counterclaim;

Unaware of the fraud, the Greenway Entities entered into two contracts to buy Jeunesse product for $2.1 million, and between July 1 and August nineteenth, 2024, the Greenway Entities actually made funds to Jeunesse totalling $2.1 million.

Once more mirroring Randy Ray’s claims, Greenway claims the $2.1 million it paid Jeunesse and Giguere was misappropriated by the “Level Scheme”.

The Greenway Entities additionally found that almost all of the $2.1 million they paid Jeunesse and Giguere to pay fee to Jeunesse distributors was diverted to different events, together with Giguere personally, by [the] “Level Scheme”.

Citing promotional materials from Jeunesse in July 2024 noting the Greenway acquisition, Greenway claims that, regardless of the stop and desist despatched in late August, it

documented plenty of the agreements contemplated by the MCA in a collection of contracts dated September 11, 2024.

These agreements lined mutual obligations, switch of the Jeunesse Community, switch of Jeunesse’s trademark rights and particulars of the deliberate October 2024 Singapore advertising occasion.

Greenway claims the agreements additionally required Giguere to signal a non-competition settlement, and resign claims made within the late August stop and desist letter.

Greenway asserts it adhered to the phrases of the September agreements, whereas Giguere didn’t.

Regardless of the failure of Jeunesse and Giguere to carry out their obligations, Aqua Title and its escrow agent, John Roby, have failed and refused to return the $900,000 escrow deposit to Greenway.

Giguere did not receive a letter from Greenberg Traurig withdrawing his claims within the GT demand letter. Notably, nevertheless, Giguere has admitted his claims and allegations within the GT demand letter are false and don’t have any foundation in legislation or reality.

In truth, Giguere despatched a letter to Greenway International’s Leonid Morgunov renouncing all claims and allegations made within the GT Demand Letter, together with false claims that the Greenway Entities had been obligated to deposit $10,000,000 into an escrow account in reference to the events’ agreements.

In alternate for his or her fraudulent induced July and August 2024 funds to Jeunesse totaling $2.1 million, the Greenway Entities obtained solely $32,740 value of Jeunesse product.

Jeunesse Holdings did not take all steps obligatory to completely switch the Jeunesse knowledge community to Greenway US and did not execute all agreements essential to impact the switch of Jeunesse emblems.

Giguere didn’t execute a non-competition settlement.

The Greenway entities financed the October 26-27, 2024 EXPO occasion – to the tune of $2.7 million – whereas Jeunesse sabotaged its function.

Along with many different failures to adjust to the EXPO Settlement, Jeunesse didn’t promote the brand new enterprise between Greenway International and Jeunesse International, which was the aim of the occasion.

In truth, Jeunesse’s Vice President, Jason Borne, who was scheduled to be the first host of the EXPO, referred to as in sick at 7:00am the morning of the occasion claiming that he wanted to fly dwelling as a result of he was in poor health.

Because it seems, Borne was not sick the primary day of the EXPO however as a substitute was busy internet hosting a pre-planned assembly with Velovita representatives, together with Velovita Kosta Gara, in Jeunesse’s Singapore workplace.

It must be famous right here that this flip of occasions is especially unusual given Terry LaCore’s possession curiosity in each Jeunesse and Velovita.

By LaCore Enterprises, LaCore (proper) bought Jeunesse in January 2023. Velovita has been a LaCore Enterprises firm since launch in 2020.

So in impact, we have now two LaCore Enterprises firms going to extraordinary lengths to strike a secret deal between themselves, whereas concurrently screwing over a 3rd social gathering.

Such to the extent Velovita and Kosta Gara had been explicitly conscious of the Jeunesse’s Greenway Singapore occasion obligations is unclear, ditto LaCore.

Greenway’s countersuit continues;

A big portion of the roughly $2.7 million in bills funded by the Greenway Entities was for flights and lodging for high Jeunesse distributors from world wide to attend and take part within the EXPO.

A lot of Jeunesse’s high distributors had been invited to and attended the Jeunesse-Velovita assembly quite than the EXPO, even by the Greenway Entities had paid for his or her flights and lodging in order that they might attend the EXPO.

This left Greenway US in a scramble to host a multi-million greenback, two-day occasion for 4000 individuals – with out the promised Jeunesse merchandise and with out Borne, the scheduled Jeunesse host – solely two hours earlier than the doorways opened.

The EXPO was additional thrown into chaos by rumors that started circulating that Giguere had purportedly bought Jeunesse to a different firm, Velovita.

This was the primary time the Greenway Entities had any inkling Giguere and Jeunesse didn’t intend to carry out the Transaction agreements.

The sabotage of the EXPO by Giguere and Jeunesse brought on the occasion to be extraordinarily expensive to the Greenway Entities and unsuccessful for its function.

Worse but, it shook the Jeunesse distributors’ religion and confidence in Greenway US, a catastrophic incidence for any MLM firm.

Greenway maintains its personal buy agreements supersede that of Velovita.

The Greenway Entities have realized that Giguere and Jeunesse fraudulently hid liens on the Jeunesse Property, together with a number of lien in favor of Velovita.

Velovita, in the meantime, has misappropriated for its personal use the Jeunesse Property that had been bought to and paid for by the Greenway Entities, regardless of having, on data and perception, prior discover of the Greenway Entities’ prior and superseding possession curiosity within the Jeunesse Property.

Velovita is now utilizing the Jeunesse Property to solicit each Jeunesse and Greenway US distributors, in addition to threatening American Jeunesse distributors who’ve promoted the Jeunesse Greenway US enterprise enterprise.

All up Greenway International claims it has

paid roughly $5.7 million in reliance on Jeunesse/Giguere’s fraudulent representations … in return, the Greenway Entities obtained solely $32,740 value of products and a bunch of empty and deceptive guarantees.

On December ninth, the courtroom denied Velovita’s requested TRO (additionally dissolving the beforehand granted TRO).

In its order, the courtroom decided;

Greenway had paid greater than $7 million to Jeunesse in furtherance of the agreements it entered into with Jeunesse.

Velovita’s declare that Greenway has misled Jeunesse distributors relies on the truth that Greenway has acted in furtherance of the rights it acquired pursuant to the contracts it entered into with Jeunesse.

There was by no means any settlement by which Greenway agreed to pay Jeunesse $10 million, and this reality is confirmed in a letter signed by Kevin Giguere on September 12, 2024.

The TRO beforehand obtained by Velovita prevents Greenway from soliciting Velovita and Jeunesse distributors regardless of the absence of any non-solicitation provision or settlement in place between Velovita and Greenway.

The TRO has prevented Greenway from promoting Jeunesse merchandise that it lawfully bought. Most of the merchandise have a shelf life that may expire, and the merchandise will likely be worthless if not bought earlier than the shelf life expires.

[Velovita] has did not show with competent, substantial proof a chance of success on the deserves.

As of December twenty fourth, the end result of the dispute between Velovita and Greenway stays pending. Keep tuned for updates at BehindMLM continues to trace the case.