The Case of the Bad Vibe!

"Buy 1 for yourself and get the chance to sell your friends and family 5 and get your downline started!" We examine the multi-level marketing industry, where only the people who come up with the ideas make any money, and everybody else is left unhappy, broke, and tired of reading scripts and selling overpriced vitamins and similarly worthless products. Includes Global Prosperity, Pinnacle Quest International, IRS Codebusters, Stratia, and other new Global Prosperity scams.

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Stinky McGurk

The Case of the Bad Vibe!

Postby Stinky McGurk » Tue Sep 25, 2007 2:38 pm

There was some terrific information about Eniva on this forum a while back. Wes posted some real good stuff. But it looks as if most of that material is gone.

Not to worry!

I see over on world wibe scam that Bob Burtis rips the Baechler Twins a new set of assholes.

THE PEOPLE'S COURT - The Case of the Bad Vibe! Eniva On Trial - DAY ONE

Burtis provides "evidence" against Eniva in a mock courtroom setting.

Seems that someone has been recruiting dogs into their downline. "Bud. E. Edwards" is listed as Eniva affiliate number 147962.

WWSN:You also own the business affiliate name the "Helping Hands Mission", do you not?

BARRY EDWARDS: Yeah - I have set up several charitable business centers in Eniva to help others in need... and to reduce my Federal Income Tax liabilities. It was my accountant's idea. (from Day 2)

Material like that. Really hilarious!

If you go to Bob's home page, http://www.worldwidescam.info , there's a ton of other good material.

How he gets away with this is a mystery!

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Re: The Case of the Bad Vibe!

Postby wserra » Mon Mar 24, 2008 11:36 am

God knows that I am no defender of Andrew Weil. Along with our buddy Deeppockets Chopra, he has become quite wealthy on New Age hucksterism and mumbo-jumbo "medicine".

Even a blind pig does find the occasional acorn, however. Here is Weil's take on Eniva's Vibe. He makes the three obvious points: it's no better for you than any good quality vitamin, it's much more expensive, and it is immediately suspect because it's sold by MLM.

If it were called "Weil by Nature's Path" instead of "Eniva", of course, you'd probably die without it.
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Re: The Case of the Bad Vibe!

Postby wserra » Sat Jul 12, 2008 1:23 pm

Our friends at Eniva are at it again.

Apparently they commissioned the Linus Pauling Institute at Oregon State - a perfectly legitimate place - to do standard chemoprotective testing for their very expensive vitamins. The results? Hold your breath, now, folks - it's an antioxidant! Like almost every other (much cheaper) fruit juice/vitamin out there, and probably not as high an ORAC as pomegranate. Of course, from their "press release", you would think they'd found a cure for cancer. If you google "Eniva" and "Linus Pauling", you'll see how far they've spread the word that every morning a huge ball of flame rises in the east.

It occurred to me that the Institute might not appreciate Eniva referring to them as "our collaborators at the Linus Pauling Micronutrient Research Institute", so I emailed them to tell them about it. It would be fun if they did something.
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Re: The Case of the Bad Vibe!

Postby wserra » Tue Jul 22, 2008 2:30 pm

I received an interesting response from the Linus Pauling Institute ("LPI"). Here it is, in its entirety (I put numbers in red to later comment, rather than interrupting the email):
Dear Wesley:

Thanks for contacting the Linus Pauling Institute.

Samples submitted by Eniva were analyzed in the LPI Cancer Chemoprotection Program for a fee. LPI has that core lab and an online educational component called the Micronutrient Information Center. It seems that Eniva has confused these elements of LPI. (1) I don't think that simply analyzing compounds for a fee necessarily qualifies LPI scientists as collaborators because that term implies a deeper intellectual engagement.

That said, I believe the results were reported honestly. (2) Of course, cell culture experiments cannot be extrapolated to humans, but they often provide a basis for a research strategy.

(3) Also, a company founded by Linus Pauling's children controls the commercial rights to the name Linus Pauling. LPI does not have the authority to grant those rights.

Thanks again for your concern.


And thank you, LPI, for that very careful answer. I note how you said (twice) that you received a fee for this testing, to which you are surely entitled. I certainly don't want to jeopardize your funding. However, people should see how companies like Eniva twist honest results.

(1) I certainly agree that, by performing testing for a fee, a lab doesn't become a "collaborator". However, that's exactly what Eniva claims you are. From their "press release":
Chairman of Eniva Corporation, Andrew Baechler, commented, "This result further identifies and separates Eniva as a leader in providing science-based dietary solutions. We are very enthusiastic about the findings and are very grateful to our collaborators at the Linus Pauling Micronutrient Research Institute."
This is a scammeister trading on your good name. They clearly imply that you did more for them than just test for a fee.

I'd be pissed.

(2) As you say, you can't extrapolate from cell cultures to human health. That, of course, is just what Eniva does.
This third party testing was performed as part of an ongoing investigative effort to further identify mechanisms by which the Eniva VIBE nutraceutical impacts human health... This result further identifies and separates Eniva as a leader in providing science-based dietary solutions
Dietary solutions for what? Cells? Since I doubt Eniva makes many sales to cells, I assume they mean "dietary solutions" for people.

I'd be pissed.

(3) Do you imply from your comment that the LPI has no authority to grant use of the name "Linus Pauling" that Eniva is using it without authorization?

I'd be pissed. But maybe that's just me.

In addition, of course, all that the testing proved is that this very expensive vitamin has the same properties as does much cheaper stuff. But we already discussed that.
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Re: The Case of the Bad Vibe!

Postby Doc Bunkum » Sat Mar 05, 2011 5:18 pm

Supplement company Eniva files bankruptcy

March 2, 2011 - 9:11 PM

Nutritional supplement maker Eniva Corp. has filed for Chapter 11 bankruptcy, delaying a hearing to evict the business from its headquarters in Anoka...

Eniva said it has $10 million to $50 million in debt and owes money to 200 to 999 creditors, according to court documents. The company lists assets between $10 million and $50 million.

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Re: The Case of the Bad Vibe!

Postby wserra » Tue Mar 08, 2011 1:10 am

Eniva's Chapter 11 petition is interesting. Especially the list of its largest creditors.

At the top of the list (at $375K) is a Minneapolis law firm, Moss & Barnett. They represented Eniva in a recent sexual harassment lawsuit which was settled on undisclosed terms. Typically the largest creditors in commercial bankruptcies are lenders, suppliers and the like.

But the next several are really strange. No. 2 is one Lowell Plooster, at $360K; no. 3, Roger Swedzinski, at $332K; no. 4 is in fact a bank; nos. 5 and 6 are John Leaf and Pete Woodworth. So, in a commercial bankruptcy, four of the top six creditors are individuals. Who are they?

Well, all we know about Lowell Plooster is that at a recent Eniva conference he "led the morning devotional". $360K seems a little much to pay for a prayer or two. Just yesterday, Eniva put up a video on Youtube in which "Lowell Plooster tells the story of how he became wealthy building several network marketing businesses, giving important keys everyone needs to know as they build their Eniva Business". Still seems a little overpaid. But that's it.

Roger Swedzinski is an "Executive National Director" of Eniva. On this page, he's described as a "Top 10 Leader". That's about it.

John Leaf and Pete Woodworth are members of Eniva's Board of Directors. (Here, too.)

So four the top six creditors of a bankrupt company are company insiders? That seems strange to me. I'm going to ask someone who knows a lot more about bankruptcy than I to comment.
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Re: The Case of the Bad Vibe!

Postby Judge Roy Bean » Tue Mar 08, 2011 5:08 am

IMHO, they're buying time; evictions are a PITA.

From experience, I can say that as a company begins imploding, certain participants are willing to forgo being paid and will accept taking creditor positions because they know there is a stalking horse waiting to step in and they have a deal on the side.

It's high-stakes gambling at its best if you have the nerves for it.
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Re: The Case of the Bad Vibe!

Postby notorial dissent » Tue Mar 08, 2011 5:27 am

I would think they would have some powerful 'splainin' to do to the judge and the creditors committee. My suspicion being that those claims won't survive scrutiny. Will be interesting to see what comes out of it. I'm always dubious when companies like this file for bankruptcy.
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Re: The Case of the Bad Vibe!

Postby wserra » Tue Mar 08, 2011 1:31 pm

Were I a real creditor of a corporation filing for bankruptcy protection, I think I would be seriously pissed off at the prospect of having my recovery diluted by the claims of insiders - especially directors. No?

And isn't filing just to stave off an eviction bad faith? I understand that there are problems of proof here, but it seems to me that the extent to which Eniva goes to follow through on the bankruptcy - once the crisis of an impending eviction passes - will be telling.
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Re: The Case of the Bad Vibe!

Postby notorial dissent » Tue Mar 08, 2011 2:22 pm

Wes, I quite agree, this has all the earmarks of a delaying tactic, and I would bet it wouldn't survive the judge's scrutiny, providing the creditors weren't screaming bloody murder, which I would think they would have every right to. I think bad faith is the least of it here.
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Re: The Case of the Bad Vibe!

Postby Prof » Tue Mar 08, 2011 4:02 pm

Wes and several of you have expressed questions about the list of 20 largest creditors filed in the Eniva bankruptcy.

If you will note, the 20 Largest should not contain "insiders," even the insider is a legitimate creditor, for the list of 20 Largest is used by the US Trustee to solicit members of an official committee of unsecured creditors.

Clearly, this list contains a number of insiders, including the prior counsel for the Debtor (a potential insider in my opinion, although if their representation was limited to a single piece of litigation, they may not be insiders; still, they do have ethical considerations in serving on the committee and being adverse to a former client; the same is true of the other law firms), another potential insider, Plooster, and three obvious insiders, including two directors and an employee. See generally, 11 USC sec. 101 (31) which defines insiders to include a corporation's officers and directors.




wserra wrote:Eniva's Chapter 11 petition is interesting. Especially the list of its largest creditors.

At the top of the list (at $375K) is a Minneapolis law firm, Moss & Barnett. They represented Eniva in a recent sexual harassment lawsuit which was settled on undisclosed terms. Typically the largest creditors in commercial bankruptcies are lenders, suppliers and the like.

But the next several are really strange. No. 2 is one Lowell Plooster, at $360K; no. 3, Roger Swedzinski, at $332K; no. 4 is in fact a bank; nos. 5 and 6 are John Leaf and Pete Woodworth. So, in a commercial bankruptcy, four of the top six creditors are individuals. Who are they?

Well, all we know about Lowell Plooster is that at a recent Eniva conference he "led the morning devotional". $360K seems a little much to pay for a prayer or two. Just yesterday, Eniva put up a video on Youtube in which "Lowell Plooster tells the story of how he became wealthy building several network marketing businesses, giving important keys everyone needs to know as they build their Eniva Business". Still seems a little overpaid. But that's it.

Roger Swedzinski is an "Executive National Director" of Eniva. On this page, he's described as a "Top 10 Leader". That's about it.

John Leaf and Pete Woodworth are members of Eniva's Board of Directors. (Here, too.)

So four the top six creditors of a bankrupt company are company insiders? That seems strange to me. I'm going to ask someone who knows a lot more about bankruptcy than I to comment.


As to the legitimacy of the debt, the list represents that these folks hold promissory notes. Even insiders can hold debt; however, 11 USC 510 provides for equitable surbordination of certain types of insider debt to a class or level below the claims of general unsecured creditors or even treatment of such "debt" as an equity investment, if the facts support such treatment. However, in many cases that I have handled, at some point investors decide that investment is no longer appropriate and that new advances of cash must be in the form of loans. These are fact intensive cases and much depends on the company records and the veracity of the witnesses.

As Wes noted, most creditors are very suspicious of insider debt and in a case where the insiders claim such large amounts, it is very likely that there would be subordination litigation.
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Re: The Case of the Bad Vibe!

Postby Prof » Tue Mar 08, 2011 4:06 pm

wserra wrote:Were I a real creditor of a corporation filing for bankruptcy protection, I think I would be seriously pissed off at the prospect of having my recovery diluted by the claims of insiders - especially directors. No?

And isn't filing just to stave off an eviction bad faith? I understand that there are problems of proof here, but it seems to me that the extent to which Eniva goes to follow through on the bankruptcy - once the crisis of an impending eviction passes - will be telling.


Filing to prevent foreclosure or eviction is common and is not, in and of itself, evidence of a bad faith filing. If the filing is the second or third to prevent eviction, common in some places like California, the Code has been changed to limit the availablity of the bankruptcy automatic stay for serial filers who file and dismiss.

In fact, most cases are filed to prevent an eviction, foreclosure, seizure and sale of collateral held by a secured creditor,etc.
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Re: The Case of the Bad Vibe!

Postby wserra » Tue Mar 08, 2011 9:48 pm

Prof wrote:In fact, most cases are filed to prevent an eviction, foreclosure, seizure and sale of collateral held by a secured creditor,etc.


Put that way, it makes perfect sense. There frequently is a straw that broke the camel's back.

Thanks for the help, O Bankruptcy Mavens.
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Re: The Case of the Bad Vibe!

Postby notorial dissent » Wed Mar 09, 2011 12:07 am

I think at this point it is called the ship is sinking, the question is just how fast.

A lot will depend on what is actually going on, and how accurate / honest the filing information is. It is conceivable that they could be that far in debt, but I find it a little hard to believe since they basically have no real expenses, and they are selling a grossly over priced product so it isn't like that is costing them all that much unless they haven't been paying for it all along.

On the other hand, their con may just have finally caught up with them and their house of cards is now falling apart.

It will be interesting to see how this plays out.
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Re: The Case of the Bad Vibe!

Postby Doc Bunkum » Wed Mar 09, 2011 2:25 am

Interesting what was reported in the Star Tribune/ October 20, 2007.

This summer, the Baechlers secured a deal to buy a 26-acre site and building at the entrance to Anoka's Enterprise Park and build a corporate headquarters. They closed on the property a few weeks ago and will begin moving in at the end of the month...

... The Baechler brothers are planning to demolish 200,000 square feet of the 432,000-square-foot building. The remaining space will be renovated to include corporate offices, research and development labs, and room for manufacturing and distribution. Because Eniva is upgrading the property so much, the city agreed to a deal in which the company will not be responsible for city tax increases from the remodeling over the next 10 years, up to $500,000.


So where did all these creditors come from?

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Re: The Case of the Bad Vibe!

Postby notorial dissent » Wed Mar 09, 2011 6:50 am

Curiouser and curiouser, as Alice said.

Possibly the same place some of their claims came from????
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Re: The Case of the Bad Vibe!

Postby Doc Bunkum » Wed Mar 09, 2011 1:30 pm

wserra wrote:At the top of the list (at $375K) is a Minneapolis law firm, Moss & Barnett. They represented Eniva in a recent sexual harassment lawsuit which was settled on undisclosed terms.

Moss & Barnett represented Eniva in a lawsuit filed in 2008 by a former employee. That employee, Terrance J. Thiel—who was hired as a chemist—claimed that he was terminated after refusing advances from Florina Nita, Eniva’s director of quality systems and scientific affairs, according to federal court documents. Thiel claimed that Nita touched him inappropriately, violated his personal space, threatened to spank him, and mentioned that she needed to get him drunk so that he would “open up.”

The parties reached an undisclosed settlement in October 2009, and the lawsuit was dismissed in February 2010. The bankruptcy documents filed Monday don’t indicate what prompted the filing and whether the lawsuit played any role—and a Wednesday afternoon phone message to an Eniva representative wasn’t immediately returned.


Now that certainly must have been an interesting sexual harassment lawsuit. :whistle:

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Re: The Case of the Bad Vibe!

Postby wserra » Thu Mar 10, 2011 1:03 pm

Doc Bunkum wrote:Now that certainly must have been an interesting sexual harassment lawsuit.


Well, Doc, if you'd really like to know some more about it, take a look at the denial of Eniva's motion for summary judgment.

They settled (on undisclosed terms) shortly after this order.
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Re: The Case of the Bad Vibe!

Postby Doc Bunkum » Thu Mar 10, 2011 5:00 pm

Thanks - that was entertaining.

The Star Tribune is giving a few more details on what's going on here with Eniva.

As noted above...
The Baechlers secured a deal to buy a 26-acre site and building at the entrance to Anoka's Enterprise Park and build a corporate headquarters. They closed on the property a few weeks ago and will begin moving in at the end of the month...(2007)


Now we learn..
In a statement e-mailed late Wednesday, Eniva told Twin Cities Business that it “was the victim of predatory lending practices and unscrupulous business behavior of a north metro real estate group,” which prompted the bankruptcy filing. According to the company, that real estate group, which it declined to name, “wooed” it into its current location—the former Cornelius Company headquarters at 1055 West Main Street in Anoka—in 2006. Eniva said that it told the real estate developers and lenders that it only wanted to occupy 100,000 square feet of space, and both parties assured Eniva that they would help the company sell excess land, provide additional renters, and find additional capital as necessary. With those assurances, Eniva said that it “reluctantly” signed a master lease for the property.

However, the real estate group failed to disclose “multiple complicated financial relationships between various partners, including lenders,” and the developers and lenders didn’t keep their promises, Eniva said.

“Eniva went forward with this filing to protect itself from the unscrupulous business practices of the north metro real estate and lender group,” Eniva CEO Andy Baechler said in an e-mail.

Supplements Maker Eniva Files for Chapter 11 - 03/03/2011

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Re: The Case of the Bad Vibe!

Postby notorial dissent » Fri Mar 11, 2011 2:06 am

So, in other words, the con artists got conned. My, my, my!!!
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