Amway Emerald Sues Upline Fred & Linda Harteis, Receives Death Threat
In a complaint filed in Pennsylvania in October, 2000, former Emerald Direct Distributors Eric and Patricia Scheibeler accuse Double Diamonds Fred & Linda Harteis, Harteis Enterprises, Emeralds Lee and Linda Fessler, and Louis and Jean Mazzante with global fraud. Also named in the suit are Rich & Helen DeVos, Jay VanAndel and his wife, Amway, Quixtar, Ja-Ri Corp., and the Amway Distributor's Association.
Scheibeler claims that the Harteises, Harteis Enterprises, and their diamonds committed fraud on a global scale, and that
"The defendants and each of them represented that if the plaintiffs and others followed their formula for success, they too could experience tremendous growth and financial success in their "Amway business." The defendants, however, never told the plaintiffs or others similarly situated that their publicly displayed wealth and success were derived from the sale of "motivational materials" to the plaintiffs and others in the Harteis organization, and not the Amway business as repeatedly represented.
"Amway knew of Harteis organization's fraud upon the plaintiffs and others similarly situated. Instead of enforcing its "rules" to curb the known abuses of power, Amway allowed those abused to thrive. Amway profited from this decision and rewarded, instead of controlling the other defendants' fraud."
The complaint goes on to describe many of the same abuses which have been enumerated in other lawsuits (Morrison et al v. Wilson et al, Hayden v DiSalvatore, and others).
Scheibelers Receive Death Threat
According to a letter from the Scheibelers' attorney, on February 7, 2001, while Scheibeler was meeting with his attorney to discuss possible arbitration of his case, his 11-year-old son answered the phone at home, only to hear a death threat from an unidentified person. He handed the phone to Mrs. Scheibeler, who also heard the person make the threat. This threat was then reported to the State Police, and the Scheibelers' attorney sent a letter to all other attornies involved in the case about the incident.
Case Dismissed
This case was dismissed from arbitration and has not gone to trial.
