News From The Convention Floor

Fighting for truth, justice, and the YTB way! Our very own Clark Kent Travel-Pro is reporting from the convention floor. The report was extensive, so we are including only excerpts.

I would urge anyone who is not here in St. Louis to get yourself to the Opening of our Convention at the Edward R. Jones Dome, Friday morning at 9:00am Central Standard time. The company has decided to postpone the unveiling of our Lady Liberty and dedicate the first 15 minutes of our opening specifically addressing this issue before we move into the Second Phase of YTB.

How un American. How can Liberty be put on hold? Oh wait, this "Liberty" is a fraud. Must be the theme of the convention.

We can not express how important it will be for you and your YTB business to see first hand what our Founders and our Legal Team have to say. We want to give you ample opportunity to hear first hand just how we will vigorously fight this personal attack" and why we believe we have a very solid shot at prevailing and inning the frivolous lawsuit.

Recruit to the death! Must recruit! What is Coach gonna say that he already has not? If he talks about it to 20,000 people his ego has finally been eclipsed by his stupidity!

Make no mistake, this suit was a personal attack towards YTB and the Traditional Travel Agents are behind what is going on. The timing of this suit was far too orchestrated and calculating for it not to be, as an embargo was put on the release of this suit until 10:00 PM Pacific Time on August 4th. Just 1 day before the opening of our National Convention.

The TTAs are flattered that you feel we orchestrated this. I am pretty sure the attorney general might feel otherwise. And just how is it that YTB has been negotiating this for 18 months and the TTAs have been actively campaigning for only 12? Travel-Pro...make sure you attend a math class at the University!

In addition, California has also filed suites this year with Heinz, Frito-Lay, Kettle Foods, McDonald's, Wendy's, Burger King, KFC, Pepsi, Proctor and Gamble, AOL, and Country Wide Home Loans just to name a few.

Travel-Pro---take spelling as well. Those "suites" they filed. Can you show shere they were intended to topple McDonalds, Burger King, Et Al? Most likely it was for something less than scamming hundreds of thousands of people out of money. I mean McDonalds has screwed up my order on occasion, but to my knowldge they never scammed me. And to boot they don't use styrofoam! And it seems like all of those companies actually pay people to work for them. Not ask people to pay to work for them.

If however you want to be part of the battle with another State just like Florida in 2006 and Rhode Island in 2007, both of which YTB prevailed, I urge you to be in the Dome Friday morning. Our National Convention has more than 20,000 Reps and RTA getting the same play at the same time from Founders and Leaders and we have plenty of room for you.

Wait a minute, for the past year you have said YTB has never been investigated. Please decide which side of your mouth you want to speak from.

Coach, Scott and Kim know how to handle this, they are handling this, and we are not going to hide. We recommend that you stand tall with us on Friday, August 8th at 9:00am when the play is called.

So Coach is calling another play? We saw how well the play turned out when you sold the Carnival certificates in November. The Olympic play was also a good one. Heck, it seems that his play on the two cruises did not work out too well. If the lemmings will not get behind him during good times, what are they gonna do now? And what is he? A coach, pastor or what? Or does it depend on the audience? And what team does he coach? And why does he have only a corner when most coaches have fields or courts? But I am sure he is pleased that you got one more recruiting pitch in!

It should also be noted that if anyone tries to contact you about this suit, please forward any questions and comments to media@ytb.com, and let our Company handle this battle. This is their responsibility, not yours.

Oops, you maybe should tell that to the people at the convention that are talking to the media out front. When you have 438,000 people in a scam one never knows what they will say. And to be honest, the ones that are quoted so far, have not really shed any type of intelligent light on YTB. Note to those that do talk to the media...calling the Attorney General an idiot doe NOT help the case.

See you at the Convention!!
Doug & Ronda BauknightAKA:
TravelProTravel Agents / Network MarketersYTB Travel NetworkPhone:
678.458.5812

OK, one last pitch!

Well there it is, live from St. Louis! All is well and the Coach is going to address the 3,600 Reps and RTAs that are in attendance on Friday. Wait...3,600 you say? Well, yes, 1,600 is the number of people that are Reps and RTAs. The remainder of the reported 22,000 are family and friends. The attendance figures do include friends, neighbors, children, aunts, uncles, and anyone else that wants to attend. You see, even the play called for the convention was a disappointment and they (like the cruise) decided to give it away. After all, it is all about recruiting.

Don't expect too much on Friday other than a round of Kool-Aid and soothing music assuring you that it is all a misunderstanding. Have we heard that before?

--Kate Holmes

PS: Tell Candi May that all of her travel agent friends say hello. And please tell Dr. Bob Seligman we are thinking of him!

Some Thoughts On Yesterday's News

Well, yesterday's news should have come as no surprise to anyone. It was bound to happen and it could have been one of 50 AGs or some Federal authorities. It is quite likely that there will be additional actions being taken with similar claims of deceptive and unfair business practices and of course running an illegal pyramid scheme.

In looking through some forums yesterday, it seems that there are many at YTB that simply have this blind faith in YTB and will take whatever is told to them at face value. Before doing that, please remember how long it took for YTB to disclose the termination by Royal Caribbean and the loss of the IATAN accreditation.  Management was not exactly forthcoming.

Yesterday's news was not a surprise to the Management. They had been trying to prevent this day for 18 months and apparently have failed. As Mark Ewing has pointed out in his YouTube Video and in a comment on this blog, this is not IATAN or a vendor, this is VERY serious ande has some very far reaching implications for YTB, their Management and yes, even the Reps and RTAs that may not have been 100% ethical in their recruiting. The AG is looking for yet unidentified defendants.

If you are a Rep or an RTA in California, I woudl think a call to your attorney (not Pre-Paid Legal) woudl be a good investment. If you are a Director in California, I would definately make an appointment, because it is likely you will be named in this suit and you will be required to defend yourself. Do not count on YTB to do it for you.

As I mentioned, Mark Ewing has a very fair and balanced (sorry Fox) perspective on this:

Firemedic Throws Stones In Glass Houses

Hey look, it's Firemedic 227!

Yesterday, our very own Firemedic was chastising people for calling other people names. I told him that people in glass houses ought to not throw stones Here was his reply:

firemedic227 said...

John,

I am speaking for myself here but have you seen me calling people names and making personal attacks? I don't need to because I recognize we are all people with the same desires to succeed. We just may have a current disagreement on what is the best way.

Jul 31, 2008 7:07:00 PM

Well, it's funny he should ask. I just discovered a blog where our own Firemedic does not practice what he preaches. As I said, people in glass houses should not throw stones. You can read all about it over there......

firemedic227 said...

Yeah this guy is a tool. He posts all kinds of stuff on YTB and doesn't allow comments to his videos that prove what he is saying is wrong. He is like the communist governments that censor what is being said. The reason he attacks YTB is because YTB is a threat. Think about it. If a company isn't doing anything then there is no reason to attack them. Problem is that Mark doesn't know crap about YTB except for whatever bad press he can find. Look for bad press about any company and you will find it, especially if they are making waves in the travel industry.

Mark is straight up dishonest and a true scammer. He doesn't hold a candle to the founders behind YTB. He has never stepped foot through the front doors of YTB even though he is invited.

As we all know, 95% of all businesses fail in the first 5 years. Mark and his scam have not paid the dues yet. YTB has gone well past that. Mark is the one who will have egg on his face in the end unless he smartens up and joins. I mean, there are people WAY smarter than his joining YTB. I mean WAAAAYYY smarter. We are talking very credible published economists with PHDs joining!!! and just last year!!!!!.

May 22, 2008 8:09 AM

And this one.....

firemedic227 said...

Mark likes to point out what the average person made in YTB last year as if that is a bad thing. What he doesn't do himself is publish what the average person made with his scam last year. YTB puts it right out there for everyone to see. Why doesn't Mark? Hmmmm. YTB has nothing to hide and as a matter of fact they sought to be publicly traded for that reason!!! That's integrity.

Think about this. Ever known someone at work that talks bad about everyone around them? Do you think that person talks bad about you when you are not there? You bet they do. That's because of their own insecurity. They attack anyone perceived as a threat for their own securtiy reasons. Mark must be terrible insecure about what he is doing to attack YTB so obsessively. I mean, if his business was so great why would he need to be so negative on YTB?

May 22, 2008 8:14 AM

And this one...

firemedic227 said...

Cathy Larson,

You asked about proving that Mark Ewing is dishonest. Let me start by saying that Mark is very crafty in his wording. He uses words like "seems like" and "appears". He then tries to back peddle when he says things like "but if you are in to MLM then more power to you."

Let me ask you this. Is withholding vital information honest? I would say that it is not. If you look at any of Mark's videos and look at the blogs you will find that the majority of the comments are negative towards YTB and if there are any comments in defense of YTB you will also notice that Mark always has the last word. Wonder why? That is because he blocks comments that he does not approve. If he his rebutted and proven wrong, you will never hear about on his blog. If he is wanting to get the truth out there then why would he censor replies. I believe he only wants his version of what he believes YTB is all about out there. I have to admit he is skilled at getting his videos out there. He has them on every negative site about YTB.

Mark has been invited many times to come and meet the founders of the company, tour the company, and actually experience the motive behind the company. What better way to understand the true intentions of a company than to walk through the doors? Mark won't because that does not fit his agenda.

Mark picks and chooses the information he shares. It's like saying a cop shot an elderly man. Sounds really bad only getting part of the story when in fact you find out that the elderly man was holding a gun to a child. Now I know that sounds extreme but the point I am making is that Mark will only share part of the truth. Just like his video on Royal Carribean. What he won't tell you, and he clearly knows, is that Royal Caribbean is down %34 in sales and is talking about layoffs. YTB is up %176 in travel sales since this time last year. These are facts. Mark knows this and has privy to the same information but you won't hear him talk about it. He is only interested in the negative.

Ask Mark to share what the average person made with his company last year. He won't.

What is curious is your comments that our blog here hurts us more than it helps us yet Mark is absolutely obsessive about attacking us. I use the word "us" here too because YTB is real people that really care. Mark censors comments, doesn't allow the full truth to be told, and makes all kinds of insinuations yet you feel we are the ones perhaps out of control here? Let me ask you this, if Mark is so focused on the negative of everything he can find and blog about with YTB then how can his program be so successful? How does he have the time? We have nothing against him personally but his actions have been less than honest.

July 28, 2008 3:11 PM

And this one...

firemedic227 said...

Think about this. If Mark Ewing was not attacking YTB every chance he got how else would he get the amount of FREE advertising he gets? Why attack YTB and not the other companies out there? Because YTB is the biggest and most talked about. Actually it's quite creative but not exactly honorable business practices. So you see Mark using YTB to further his business. What you don't see is the founders of YTB attacking other travel business like that. They don't have the time nor the desire to practice business that way. They have higher standards than that. Mark knows there is no better way to draw attention to his opportunity than to vehemently attack the number one. And if that means telling half-truths and making blantantly false insinuations then so be it.

YTB sold more travel in one month last month than all the other network pretenders out there combined! They grew over 176% since this same time last year. They are up from the 35th largest to the 26th now and had the largest rate of increase over all travel agencies. These are facts as quoted in Travel Weekly of which Mark subscribes. He knows this but you won't hear him talk about any of the positive. Now let me ask you...is that someone you want to be in business with? Honestly? There is a law out there , and I do mean LAW, that states that for every action there is an equally opposite reaction. Biblically speaking it's called sowing and reaping. If Mark thinks he will not sow what he reaps then he will most likely be in for a surprise. The founders of YTB know this. They are morally driven people. They also understand that with great success comes great resistance. They are not afraid of it. All great companies do.

Check out a video by TruthandTravel on youtube called "YTB Bad Press".

What Mark and others like him don't take into account is the moral intentions of the founders and people of YTB. Mark and others like him only make YTB stronger. The more resistance they get, the closer to becoming the number one travel agency they become.

July 28, 2008 8:55 PM

So Firemedic, are you really one who does not call people names? I lost count how many times.

And since you are apparently in the know, can you please provide contact information for the "published economists with PhDs" that have joined. I assume you are talking about Dr. Seligman--the phantom RTA!

YTB sought to be publicly traded because they were ethical? Do you even know how YTB came to be publicly traded? It was not because they sought it. They acquired a public company, so there was no investigation or scrutiny by the SEC. However, I might point out that it was shortly AFTER YTB took over that the SEC did investigate and delist them for irregular and inconsistent accounting practices. That is usually a FACT left out of the Red Carpet Day presentations.

However, I am glad you have taken the position you have about moderation on blogs. It is a shame when someone's opinion is so one sided and they get tired of defending a false premise that the only option is to delete comments that do not agree with him and ultimately just prevent anyone from commenting at all. As you said, these types of bloggers are just like the Communist Governments.

And as an aside to Doug Bauknight...are you gonna let this Firemedic guy call you a commie?

PS: Welcome to the my own little version of Coach's Corner. We call it the Dumbasses Den--please meet your denmates, Earl Allen Boek, Proud To Be YTB, Doug Bauknight, YTB & Travel A Great Mix, CruisinMan, Metre Wishom, lbtravel, and of course olescorekeeper!

More "Old News" The Final Chapter

After two recent posts, it has been said (ad nauseum) that YTB has resolved the issued in Lindauer's letter. As it pertains to YTB (not their other ventures), there were four major points which were not in compliance with "State and Federal Marketing Laws and Regulations". While one of the issues may have been addressed after the fact, the rest remain unresolved to my knowldge. The following is an excerpt from Ted Lindauer's letter of January 3, 2008 which was sent via UPS Overnight to Scott Tomer and the Board of Directors of YTB International, Inc.

A. Compliance with State and, Federal Marketing Laws and Requlations. (The matters described in this Section A have been learned from the public websites of the various YTB International, Inc. subsidiaries in use on December 15, 2007).

1. YTB Reps are required to purchase CRTA Training in order to participate in multilevel commissions in several sales programs including, but not limited to, commissions on the sale of travel, commissions in the Car Referral Program and commissions on the purchase of travel by members and affiliates of non-profit RTAs. These required purchases in each instance violate the civil and criminal provisions of multiple states' antipyramid laws and lottery laws, constitute deceptive trade practices under Section 5 of the Federal Trade Commission Act, violate the U. S. Postal Service Lottery regulations and constitute the unlawful offer and sale of unregistered investment securities under state and federal securities laws.

Travelpro has provided a document that says the Reps are not required to pay for the travel agent training to receive the payment in this program. That is true, but the document was produced after receipt of this letter. The problem may indeed be resolved, but it was solved out of reaction. Travelpro has also said it was resolved before this blog posted about the Lindauer letter in mid January. That has no bearing.

2. The description of the Car Referral Program is such as to require that the participating RTAs and YTB Travel Network of Illinois, Inc. register as automobile salespersons and/or automobile dealers in various states. No such registrations have been made.

The documentation provided by Travelpro and anyone else simply does not address this. I do know for a fact that in Maryland and in Pennsylvania, one must have an individual license to sell cars. Has YTB acquired the proper licenses for their 140,000 RTAs that are offering cars for sale on their sites?

3. The Two Fly Free program offered to the public by RTAs of YTB Travel Network of Illinois, Inc. constitutes the offer and sale of Travel Club Memberships and/or Club Memberships and/or Discount Buying Service Organization Memberships requiring the obtaining of licenses and the posting of surety bonds in various states prior to their offer and sale. These licenses have not been obtained to date in all of the states which require such licenses.

This program is still being heavily promoted on all RTA sites. Have the required bonds and licenses been acquired for the 140,000 RTAs that are promoting this product?

4. The disclosures provided in connection with the promotion of the RTA medical/dental/prescription program are insufficient and result in YTB Travel Network of Illinois, Inc being an unlicensed insurance provider (PPO) in various states. In addition, any direct or indirect monetary benefit received by a YTB company or anyone affiliated therewith in connection with the purchase of these plans by RTAs must be adequately disclosed. Further, California law prohibits the offer and sale of the prescription plan until the plan provider has registered with the appropriate state agency.

I am not sure how many RTAs have opted to purchase this insurance, but I wonder if the issues have been resolved. Have the disclosures been corrected? Have the disclosures been made? Has YTB applied, been approved and complied with the California regulations?

YTB may have addressed one of these four issues and everyone on the YTB front seems content with that. AS Mark Ewing has asked, why is there not even some minimal questioning. If you are serious about your business, Your Travel Biz, why are you not concerned?

More "Old News" Part 2

Well, it is Saturday and I suspect that the RTAs and Reps are continuing to contradict themselves about Ted Lindauer. All of them have the inside track at YTB. Some insist he is working at YTB, others have spotted him in Memphis getting off a plane with Coach for a Founder's Tour event, others have seen him working in his office at the Red Carpet Day, and others say he is not working there. The guy seems to be the Elvis of YTB. But I have sent Ted an email (so far unanswered) and I did make two calls to YTB headquarters yesterday asking for him only to be directed to a generic voicemail one time, and being told that he does not work there any longer. So, maybe the folks that saw him at the various events saw an apparition, or maybe he was just picking up some personal stuff. The reality is that he is no longer employed there, no matter the insinuation on his site.

In the meantime as the YTBers were debating the status of Ted, Mark Ewing posted an outstanding comment on yesterday's blog entry. I think it is important to bring this out of the comment section and offer his opinion for everyone to see--YTB folks, suppliers, interested parties, traditional travel agents, and even any regulators that may be reading.

Blind faith and ignorance are just that: Blind and ignorant. And... Ignorance is not bliss.

The fact is, that this information came from one of YTB's own legal staff. A major insider.

It can be assumed that his legal understanding of YTB is far greater than the people on this blog.

It can also be assumed that he would not have posted the demand for resolutions letter without a lot of thought.

Regardless of his intentions, my intentions... or anyone else's intentions.... the letter states clearly that YTB is in violation of civil and criminal laws.

The direct quote is "These required purchases in each instance violate the civil and criminal provisions of multiple states' anti-pyramid laws and lottery laws, constitute deceptive trade practices under Section 5 of the Federal Trade Commission Act, violate the U.S. Postal Service Lottery regulations and constitute the unlawful offer and sale of unregistered investment securities under state and federal securities laws."

Regardless of your personal beliefs, this is a very serious statement.

Remember, this is coming from an MLM attorney, who was direct council for YTB, who states that he is a very close friend to Coach Tomer, and is a shareholder in YTB International, Inc.. This is not some misguided RTA, or someone that is out to get YTB. The letter is addressed directly to the board of directors, with an immediate demand for resolution.

What everyone here needs to be concerned with, is what has happened to these issues. Why did Mr.. Lindauer post this message to the general public. Why did he take it down so fast, without clarification on the demand for resolutions? Why hasn't YTB given the proper S.E.C. required public notice of these resolutions? What is really going on here?!

Just because Ted took down his letter, does not mean that the problems just went away. GET REAL FOLKS! If anything, this raises a MAJOR RED FLAG with YTB, YTB Leadership, and YTB's legality. WHAT IS GOING ON HERE?!

As an RTA, a YTB rep, an outsider, an insider.... You should be demanding to know what is happening with the resolutions disclosed in this document!

The fact is, that this effects current and past RTA's a lot more than it effects non ytb'ers.

Before you spend a lot of time and energy trying to put a positive spin on this.... or trying to argue this issue away.... Stop and ask yourself who and why you are trying to protect here? Aren't YOU more important than YTB?!

As an RTA, aren't you worried about yourself, and your investment in your business?

Who comes first? You....or YTB?! If you are going to represent YTB, don't you have a right and an obligation to make sure that YTB is operating legally? Your pride and loyalty in YTB should be backed by a legal business. You should be demanding that YTB takes every measure and precaution to insure that it is legal!

You shouldn't have to be trying to put a positive spin on this.

You shouldn't have to be arguing this.

That is not part of your job description. It is unfair of YTB to put this burden on you.

You paid your money on the premise that you were buying a legal business. You deserve answers.

So, for all of you RTA's on this blog, you can continue to blindly defend and protect your company.... but that is not going to change anything. It is not going to protect you from the issues that have been disclosed. Ignorance is not bliss. And covering up a crime is in itself a crime.

The fact is, that each and every you should all be angry and upset with this information. You should be demanding clarification on all these issues, as you have invested your time, money, and energy into this business. You have a right to know the facts! Make them answer to these issues...not you. You shouldn't have to feel that you need to make it right. THEY SHOULD MAKE IT RIGHT!

You, as RTA's are ignorant and stupid if you turn a blind eye to this.

It should really piss you off that this issue has just been swept under the rug. You should demand that YTB's board of directors should account for each and every issue brought forth in this demand for resolution letter. THIS IS VERY SERIOUS. Your businesses are on the line here!

This is not about RTA's vs.. Traditional Travel Agents. This is about YTB's legality.

You should demand that YTB fixes all of these issues. to insure that your business is going to be strong in the future. Doesn't that make sense? (Unfortunately, logic may be to much to ask for here on this blog.)

I really question the ethics of someone that continues to promote and sell a business after information like this has surfaced concerning the legality of the business.

If I were in YTB (which I am not) I would make damn sure that these issues were corrected to the satisfaction of the law, before I would involve anyone else in the business. I would be worried about my risk of being sued, or worst, charged with a crime. I would be concerned for the well being of others...and my own well being.

Remember, ignorance is not bliss.

WARNING: As an RTA, you might want to seek out legal council before you continue to promote and sell YTB. You may want to find out the legal implications selling a business with the disclosed issues. You need to find out what are your legal responsibilities here. Can you be held personally accountable and responsible for these issues when you sell this to someone else? Can you personally be sued or charged with a crime? Are you putting your future, and your family's future in harms way?

Like I said, like it or not, this is very serious.