I’m not a fan of “Big Government”. I believe in capitalism, self-reliance, personal responsibility and that everyone needs to carry their own weight. That being said, there are instances that arise where Government intervention is not only necessary, but needed in order to stop greed and consumer fraud. One of those instances is the Banking and Credit industry.

Yesterday, the first phase of the Credit Card Accountability Responsibility and Disclosure Act went into effect. Credit card companies are notorious for holding payments until after the due date, jacking up interest rates, and changing terms and conditions without much written notice at all. If you’re unfortunate enough to have just one of these creditors “hold your payment” until after the due date, it starts a snowball effect where the rest of the creditors follow suit in raising rates. Before long, responsible consumers and users are in over their head with no feasible way out. I found the top five tricks used by credit card companies in this Fox 5 news report here that exposed their tactics.

Because this has been such a large problem affecting hundreds of thousands of consumers across the entire industry new legislation was signed back in May by President Obama. The first phase went into affect yesterday to protect consumers and keep the banks from pulling these underhanded stunts. (Video to the left) The second phase of the act will complete the reform in February 2010, preventing these tactics and placing the power back to the consumer.

While the new Accountability Responsibility and Disclosure Act has been big news this past year it’s only half the story of the injustice perpetrated by credit card companies and credit collectors. Creditors and collectors get even more brazen with even more consumer fraud, deceptive trade practices, and false advertising when you attempt to stand up and fight the deplorable tactics now corrected by the new legislation.

In the past, one of the fist things that happens when you decide to dispute a charge, an interest rate, or one of the many fees is a letter from a credit collector, (in our case Mann Bracken) to submit your case to an “impartial, independent and neutral administrator of arbitration proceedings”. The mission of the NAF (National Arbitration Forum) is as follows:

“Alternative dispute resolution (ADR) is a more efficient, predictable and amicable way to resolve conflicts and achieve legal decisions without the expense and inconvenience of going to court.”

Ronda and I have personally experienced this process, but found the entire proceeding a complete sham. What ADR does is find in favor of the Defendant (the bank) 94% of the time. In addition 64% of all cases sent to the National Arbitration Forum were handled by the law firm of Mann Bracken.

As a result, all of our disputes ended up in court anyway, (because we opposed the decision made by the NAF) and Mann Bracken was able to use the judgments handed down by the NAF to place a court order and judgment of “payment in full” in some cases. To make matters even worse, and show the desperation of the banks, who know changes are coming, Mann Bracken used one of the judgments against Ronda to garnish our joint bank account in an attempt to collect the payment in full.

No warning, no notice, just gone.

Ronda and I were able to file a “traverse” to keep the money out of the hands of Mann Bracken while we fought this hideous stunt in the courts. As a result, the court granted a 60 day continuance in order to settle the dispute. While Mann Bracken agreed in front of the courts, when negotiations again proceeded, nothing less than payment in full, including thousands of dollars more in interest, fees and court expenses would suffice.

Because of the deplorable behavior of Mann Bracken, our legal counsel advised that Ronda file for bankruptcy in order to protect our assets. Therefore, on July 14th, Ronda filed for bankruptcy, unaware of what was going on the very same day up in Minnesota.

On July 14, Minnesota Attorney General Lori Swanson filed a complaint against the National Arbitration Forum, alleging that it had concealed financial ties to Mann Bracken and worked behind the scenes with creditors against the interests of both Ronda and I.

From The Wisconsin Law Journal

The complaint mapped out a “complex web” which boiled down to a cozy financial relationship: the arbitration services of NAF and sister organizations as well as the debt collection services of the law firm Mann Bracken and other companies have all been owned by the same New York hedge fund since 2007.

The complaint alleged that the NAF violated state consumer fraud, deceptive trade practices and false advertising statutes through “complex and opaque corporate structuring” that concealed its financial ties and represented itself as a neutral party.

“The ability of a class action litigant to get all of these other court cases undone is limited because of comity. Definitely a federal court will not be able to tell state courts to set aside judgments,” said Rubin, who hopes that other state attorneys general or the Federal Trade Commission (FTC) will step in and order that profits be disgorged.

As a member of YTB, I’m fully aware of complaints filed by Attorney Generals with allegations of consumer fraud and deceptive trade practices. While YTB fought the unfounded and meritless accusations eventually settling the dispute a year later, what do you think big business did when allegations of the same were placed on them?

They folded like a wet noodle.

Five days later, NAF agreed as part of a consent decree that it would cease consumer debt arbitration by July 24.

The ink was barely dry on the settlement when the American Arbitration Association announced on July 22 that it too would be getting out of debt collection arbitration until it can develop standards of practice.

As a result, when the continuance for the traverse came up on the court calendar to oppose the garnishment, Mann Bracken didn’t even show up. The case was dismissed, we got our money back, and our joint bank account was restored.

Unfortunately, because papers and proceedings for bankruptcy were already filed, Ronda may be living with the stain of this gross injustice for years to come. I say may because of what has transpired and the fraud committed against thousands of consumers, the entire proceeding may be able to be expunged. (Not guaranteed, but possible.)

In the meantime, the one last account I have with Bank of America (FIA Card Services) which also has a judgment against me via the NAF and Mann Bracken is still pending. I haven’t decided or been advised as yet how hard I can squeeze to retaliate against this deplorable and fraudulent company. Edelman, Combs, Latturner & Goodwin in Chicago, has already filed the first class action against MBNA/FIA and Mann Bracken, exposing it’s financial ties to the NAF. If successful, it will aside thousands of arbitration awards and judgments entered against Illinois consumers since 2007.

I will also be filing a complaint with the Georgia Governor’s Office of Consumer Affairs and the FTC against Mann Bracken. The state of Georgia is also suing Mann Bracken for FDCPA and for violations of the Georgia Business Practices Act.

I’m fully aware of the bizarre comments and speculation about our personal finances out there on the internet right now. I didn’t feel it necessary to react to a bunch of shallow halfwits who have once again proven how delusional, vindictive, and ignorant they really are.

I was talking with Candi May earlier in the week and she gave me a very interesting quote:

If facts are are on your side discuss the facts. If you don’t have facts plead the law. And if you don’t have the law, drag a dead cat into the room.

Because critics can’t fight the facts about YTB they deflect with personal attacks. One month ago a District Court not only threw out, but severely spanked the perpetrators of a hideous class action lawsuit filed against YTB International. The Judge called the entire document redundant, immaterial, impertinent, and scandalous. Their false illusions of a scam also been compounded with the settlement in California, and the Convention held earlier in the month. In addition, they are now facing the best compensation package available in the travel industry.

Because these punks can’t argue the facts and findings found here, they’ve resorted to these types of personal attacks and finger pointing to discredit or make me simply “go away”. (Cha…RRRRIGHT!)

For the record: The nameless and faceless punks who have been vilifying my wife and family over the internet about this situation owe her an apology. Unfortunately, when you lack class, morals, ethics, and judgment cowards never man up and do what’s right or respectable.

In other words, don’t count on it.

Me…I got what I wanted and that’s exposing a true scam, and telling the truth. Something critics know nothing about.

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YTB’s Quarterly financial report came out on Friday. During this years Convention, Scott Tomer announced a Q2 profit on earnings before income taxes. He was correct, as YTB did post a $1.2 million net income from continuing operations. What he may or may not have known until after the Convention however was a $2.6 million in contract termination costs for the disposal of REZconnect, which resulted in a “discontinued operations” line item resulting in a loss of $2.8 million total dropping the $1.2 million profit into a $1.5 million loss overall for the quarter. The current portion of the $2.6 million liability balance is $608,000 and is required to be shown in our SEC filing based on future commitments.

REZconnect has been somewhat of a sore spot in years past. Micheal Brent had been selling off shares like it was candy. Rumors surrounding the subsidiary also pointed to a net loss in revenue for the entire company for years. This was the first time the subsidiary had been broken out to show it’s contribution. REZconnect operations reported net revenues of $869,000 and a loss from operations of $463,000. The Board of Directors made a strategic decision about the REZconnect business model, which they stated was serving primarily brick and mortar travel agencies, and felt it was not compatible with YTB’s current and future plans.

“As a result, the Company expects to realize cash savings of $2.4 million over the next 5.5 years based upon the cash payments to be made under the employment severance agreement versus the cash payments that would have been required under the original employment contracts.  Thus, while the Company has recognized significant expenses in the current period, the cash savings in the coming 5.5 years will serve to contribute a significant savings in terms of liquidity, helping to strengthen the Company’s position.”

In this current economic climate companies need to cut dead wood. While I have not seen, nor do I really care to see what others will be saying about YTB’s financial condition, I’m willing to bet you that they’ll be pointing to the huge loss in revenue over the last year do to the pyramid crumbling. While they will most certainly be pointing YTB’s “business model” as the cause of the loss in revenue, you should take a look at other company revenues to compare what they’re doing in this current economic climate. Royal Caribbean’s revenue (and profit margins) have declined significantly, resulting from large profits plummeting to significant losses over the last four quarters.

People are not spending in this current economic climate. Period.

It should be noted that the hemorrhaging of our RTA’s has slowed significantly in part due to the California settlement. While there was an enormous amount of speculation over California winning it’s argument of a gigantic pyramid scheme and successfully shutting the company down, the truth (as always) finally came to light. In addition, the “ungainly monster of 39 pages and 133 paragraphs” that was submitted as a class action law suit was also thrown out by the courts. Current RTA’s are just now starting to realize what I’ve known all along.

If you’d like to read my analysis of what our critics actually know about MLM and YTB in general, I invite you to read my e-book entitled “What the Critics Know About YTB“.

To further illustrate my point, I did take note of a couple of things in the notes section that critics were speculating (as they always do) about YTB’s financial condition and what the company would and would not be able to do.

Once Scott mentioned “profits from continued operations” our second payment for the California settlement was brought up. Some wondered if we happened to skip that payment in order to show profits. It should be pointed out that it was in fact paid and half of the settlement money is behind the company. Payment of $250,000 was paid as scheduled before the June 30 quarter ending.

In March, YTB’s credit card processor increased it’s reserve requirements, resulting in a $2.7 million balance to be held in reserve. While it was speculated that YTB would not be able to acquire the funds necessary to obtain the balance, that request was also achieved during this quarter. This too is now behind the company.

One of the funniest twists found in the financial statement that I doubt you will find anywhere but here is the saga of the proposed Conference Center that was envisioned by YTB to be built on land the company currently owns. Back in November, YTB sold a 9.9 acre out parcel of the 59 acres it owns to an undisclosed buyer. In late July, we found out through the media and the blogs that the buyer plans to build a Holiday Inn Express and a Country Kitchen gas station on the land that has been purchased. When news came out that the Wood River City Council voted to approve a funding agreement with Aventurs Development LLC. nobody bothered to check if the land in question had in fact been paid for.

“In addition to other consideration, the Company received a $500,000 promissory note dated November 24, 2008 as proceeds for the sale of land situated in Madison County, Illinois, which was non-interest bearing so long as there was no event of default thereunder.  Principal and other amounts under the note, collateralized by the related land sold, was due and payable on March 24, 2009.  On April 22, 2009, the Company sent a notice of default under the promissory note and mortgage to the purchaser because the purchaser failed to satisfy all obligations under the note within 120 days.  The notice required the purchaser to cure such non-payment within five business days of receipt of the notice, as required by the mortgage.  On May 6, 2009, the Company filed a complaint for foreclosure in Madison County, Illinois Circuit Court under the terms of the promissory note and mortgage because the purchaser failed to cure the non-payment within the required five business days.  On June 2, 2009, a notice of foreclosure was recorded against the land.”

Of course, like everything else that backfires on our critics for drawing conclusions based on what he reads and hears on the internet without checking actual facts, mums going to be the word on this. Instead, they’ll continue to focus on yours truly and the gross error I made when I didn’t check my source. As I’ve learned over the weekend, thanks to many comments, e-mails, and phone calls, it’s much better to surrender defeat in cases such as this in order to move on and get back on track.

Lastly, it should be noted that the company has made significant advances in curbing it’s spending and keeping an eye on the bottom line. Those of us who were at this years Convention saw evidence of that. With the current details listed in the notes section of the quarterly report just filed, we see more documentation of YTB doing what it needs to do in order to survive. Many of the hard choices made in prior months have proven to be significant, and while time will tell if the elimination of REZconnect will help YTB’s bottom line, the future looks to be significantly better than a single number found at the bottom our financial report.

A major key in YTB’s survival and prominence in the industry is educating those who may be looking for opportunities as the country starts to come out of the current economic condition. With YTB’s new tools and upgrades just announced at Convention, it may prove to be significant in showing the company’s strength instead of weakness.

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Last week, I had the pleasure of being interview by George Dooley in Travel Agent Central. What made this even more of an honor was finding out that George is an admitted fan of my blog and my perspective of YTB. I found him honest, fair, and genuinely interested in my side of the story.

George is also a reporter.

Part of the job of any good reporter is to provide both sides of a story. Think Fox News here…”Fare and Balanced”, right? I can’t knock George for providing an alternative view about YTB, but I have to ask why in the world did he have to pick one of the most narrow minded, self absorbed, and damaged critics in the industry to speak for the other side?

John Frenaye and I go back for almost two years now, and I can’t tell you how many times I’ve had to correct, clean up, or otherwise call John out for not getting things right. Like most self professed “experts” John continues to take a singular quote or comment and attempt to dazzle the reader with what he feels are important facts and figures in order to distract everyone from what is really going on.

His current response to my article is no different.

John, among other critics, took exception to the fact that YTB grew from $414 million in travel sales, to $425 million in this years Travel Weekly Power list despite all the criticism, mud slinging, and various other issues totally unrelated to the travel industry. (Mind you, both interviews can be found in a “travel publication”.) But as we’ve seen so many times before, we have “travel agents” who can don the cap of Legal Counsel, Financial Auditor, Stock Broker, Travel Supplier, Business Consultant, and Better Business Bureau at a moments notice; all in an attempt to make you look away from the real story and guide you in a direction more in line with their own limiting beliefs.

You need to remember that this is the same guy that said Coach and Scott would call it quits – one who speculated that California could achieve it’s goal of shutting YTB down – that called the amended class action “powerful” – and an individual who forgot to check with Peter Jensen if he was in fact leaving YTB!

If you have this much egg on your face in one month’s time, wouldn’t “tough minded” begin to look more like “simple minded”? I mean good grief, what is it going to take to finally wise up and start living in the real world instead this fantasy land? If it weren’t for the constant reactions to what YTB is doing, he’d be a just some average John Doe without much else to do.

But John has provided some good comic relief through the years and this article is no exception. I don’t know if he’s aware of this, but one of the first points John attempts to make in the article actually links to the “ungainly monster of 39 pages containing 133 paragraphs” that didn’t pass muster under federal standards. We all know by this time how the Honorable Judge Murphy reprimanded Counsel concerning this case for being nothing more than redundant, immaterial, impertinent, and scandalous. But John, the BBB, and various other critics have decided to ignore the reprimand, and still use this failed class action in an attempt to provide a “powerful” message?

If it works for you John, be my guest. But the rest of us will more likely side with the Judge who actually knows the letter of the law in this case and called a spade a spade here.

Furthermore, the other link reports that Jerry Brown brought an end to an “elaborate pyramid scheme”, yet YTB just finished up one of the most meaningful conventions I’ve ever been a part of. We now have valuable tools that in years past have proven substantial and something the entire field has been asking for. While John wrote yesterday on his bog that the $6000 guarantee didn’t work, YTB’s RTA numbers soared from 20K to 122K during that program release. If it were me, I’d be more concerned about YTB regaining it dominance, rather than focusing on thinking that it’s over for YTB.

As we’ve heard so many times before the real phobia surrounding YTB is the “Recruiting”. John and others continue to pound this dead horse mixing the recruiting revenue with travel revenue.

“It does not take a rocket scientist to figure it out,” Frenaye said. “Their entire income is based on the sign up fees and the continuing monthly access fees to the cloned privately labeled Travelocity booking engine. For a stark look at the numbers, the TSOs have paid (sign-ups and monthly fees) a total of $283,513,046, or over a quarter billion dollars since 2006 and during that time have earned a total in travel commissions of $39,999,552. Not the greatest return on investment if you ask me.”

Rocket science?

After all this study – all this time, energy and focus on YTB he still can’t grasp that Hotels.com, Trav-Tech, Apple, Pleasant, Travel Impressions, Collette, TicketsNow, and RCI among a host of other suppliers isn’t offered through Travelocity. But he wants you to think that what YTB offers is nothing more than Travelocity to make him and his pals feel better. In addition it’s not YTB’s responsibility for the pour commission percentages producing only $40 million ($55 million to YTB) from over $1 billion in gross travel sales in a three year period. (Based on verified gross sales found in Travel Weekly in 2006, 2007, and 2008) More to the point, John’s upset the he missed out on his free Rep position with YTB, and cashing in on selling “replicated Travelocity booking engines” for a piece of a $200 million pie paid to other Reps just like him.

If you’re going to look at numbers, it’s wise to look at ALL the numbers. By placing $1 billion in gross travel sales in the “travel category”, and $200 million paid in the “Rep Category” those that have figure this out know that evens things out a bit. Or at least know that John’s concerns certainly don’t mix when it comes to pitching the sad, sad story of MLM’s and Travel.

For folks like John, it’s all about the model being flawed. “Very few” as he states make it in this industry, simply because it’s MLM.

One of the fist articles I ever wrote was about Roger Bannister breaking the 4 minute mile. Like Roger’s story, John is telling you it can’t be done. I’m here to tell you that it can. Because people like me, Candi May, Von Nickleberry, Nick Pagano, Rick Ricketts, Jeanie Sharpless, Tim Dominey, and hundreds of others have done it, what gives anyone the right (or the gall) to tell you that YOU can’t? If they’ve proven to be successful, wouldn’t it be wise to followed the same path we have, in order to obtain some level of the same success in this industry?

If you want John to protect you…that’s your choice. But I have to warn you, from experience, he’ll turn on you at a moments notice to slap you upside the head for not doing it exactly the way he wants you to.

John doesn’t see YTB competing favorably as a franchise because Royal Caribbean, NCL, and Perilo have decided not to utilize YTB’s massive sales force. John ignores that YTB is already is competing as a lowly MLM with year over year growth from #35 to #25 in just three years. The question isn’t if YTB’s going to compete, it’s when Royal and NCL decide they need to compete.

But because John and the others have never been able to accept any amount of actual Travel Sales, it perpetuates the myth that YTB is inferior. In order to prove his point he takes the TSO income disclosure statement stored on his own server to lay claim that only one person can make $25k. Maybe he should take the time to pull the PDF again to see that both an Associate at the 60% contract level has earned in excess of $25k, and an RTA at the 70% contract level has earned closed to $27K. Only one has exceed the $25K mark? Fact is, he doesn’t know how many have actually earned over $25K, but it sure sounded good for the purpose of his story. My question is how TSO’s are now encouraged to push from say $20k to $25K to earn the additional 10% contract, bonuses, and fully paid medical and life insurance that I can promise you the “other” hosts would not provide.

If you don’t think a travel professional might be swayed by fully paid medical and life insurance, for the same contract or better, with additional performance bonuses to boot…you’re dreamin.

But as we’ve seen John quoted so many times before “I just don’t get it”?

At least he got that right. But it again begs the question why George had to use this simple mind to react to a the articulate message brought forward during last weeks convention in St. Louis.

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Last year at this time California dropped a nice little present upon entering the 2008 Convention with a well timed lawsuit claiming YTB was a gigantic pyramid scheme. Now that’s it’s a year later, California is settled, and the meritless class action that followed California’s claims by a couple of ambulance chasers has been thrown out, we find ourselves back in St. Louis for another YTB Convention.

The ploy from the very beginning from critics was that these suits were designed to shut YTB down. We saw these comments all year long.

I suspect that after 18 months of “negotiating” and 7 months of discovery, they are pretty well versed on YTB.

However, I do think that this might never see a trial. YTB will continue to go through the motions of “defending” this “meritless” suit and then call it quits at the last minute.

CA will have achieved their primary goal of shutting them down. Then the class actions and the California suits will need to determine if they want to proceed against Tomer Tomer and Sorensen individually.

Of course, now that we’re on the other side of this smear campaign, none of them “recall” ever making such claims and they want us to dig up the quotes in order to save face. (Convenient huh?) Problem is, I have a complete file of links with claims just like this. They come in mighty handy now that they’re attempting to slither out of any responsibility of making such redundant, immaterial, impertinent, or scandalous matter.

When the Convention was announced and open enrollment began, some questioned if it was wise to make plans for something they never thought would materialize. It’s no secret that they have no faith in the model, or our founders, and put an enormous amount of faith in mere accusations that we now know couldn’t pass mustard when it came to actual legal backing.

So here we are, the morning of YTBU and a plethora of classes designed to educate, train, and motivate anyone who has a desire to better themselves. Courses include:

• Charting Successful Group Cruises
• Business Ownership vs. Business Opportunity
• Building Momentum through Travel Parties
• Travel Booking Made Simple
• Mental Scripts: Change Your Mind, Change Your Money
• Put Your Website To Work For You
• Don’t Be Undersold – Understand Cruise Pricing and Amenities
• Rewards of Educational Student Travel
• Power of Oneness – Millionaire Marriage
• Alaska 101
• Keys to Unlocking your YTB Vault
• Travel Insurance..How it Benefits You and Your Clients
• The Features & Benefits of Selling Cruise Vacations
• Making money with shopYTB
• Destinations and Princess Cruises
• Step by Step Travel Training
• Let Golf Vacation Travel Increase Your Gross
• YTB’s 2020 Vision and Why Belief, Edification and G.U.T.S. are Key.

In years past, YTBU has been the building block for our business and we always learn something new each year as both we and the classes have evolved.

I was talking to an industry veteran earlier in the week over the phone. I mentioned how many show up for this event each year. While we don’t have actual numbers at this time, I told this veteran that in years past YTB has hosted thousands of Website Sellers and Website Owners each year both here in St. Louis and then again in Orlando for our Funshine Travel Trade Show. He asked about how many “thousands”, and when I told him that it’s grown from 3000 to 18,000 over the previous three years, he gasped. Reason being is that those numbers are far greater than what the entire industry can produce for a single event. (And YTB does it with as one company.)

YTB ALWAYS produces the largest number of potential business for the industry. I even caught a report this morning how 50-60% of the participants for the CLIA training last week in Atlanta was YTB. Of course, the story is simply opinion and slanted with disrespect with stories that can never be proven. Even the percentage that was there) But once again we see notations that speak of YTB showing up in force when suppliers and associations host travel shows and events in an attempt to produce revenue.

By the way…this 50-60% being just YTB…Makes me wonder if they still think the pyramid is crumbling?

Nevertheless, suppliers are responding in kind as they see evidence in both the numbers YTB produces at these events in regards to Agents and the numbers YTB produces for their bottom line in regard to gross revenue. (They read Travel Weekly’s Power List too.) I took a look around at the supplier booths last night when we were registering for Convention. Here’s a list of suppliers that will most likely be at both here and at Funshine at the end of September.

• Carnival
• Holland America Line
• Honeymoonwishes
• Princess Cruises
• Cunard
• Spring Worldwide Tours
• Travelocity Partner Network
• Travel Guard
• Worldwide Golf Vacations
• American Destinations

Of course we have other vendors such as Staples, Vistaprint, Commonwealth Card Services, and Sprint who also offer services as a business owner. And this isn’t even our “Travel” show.

It appears that none of these vendors bought into what other overzealous critics had to say either. Truth of the matter is, YTB produces revenue for these companies, and if they’re wise, they show up at events like this to get their name in front of YTB Website Owners. And the best critics can do is tell stories of how they disapprove. That’s what happens when stunts like last year fall flat and illusions of this last years Convention being YTB’s last are proven not only to be unfounded, but our model and company as a far more formidable foe than they ever imagined.

And while critics show an obvious level of anger and bitterness over what they’re drinking, YTB is ready to serve cold, thirst quenching glasses of Kool-aid the next 4 days that doesn’t produce the sourness and bitterness that critics can’t seem to get out of their batch. You would think they might find another recipe, but then again, some actually think sewer water is fine.

It’s fun to watch.

Nuts, now I’m late for class.

Remember to check back to for more updates, live from Convention! (It’s actually here! Who knew?!)

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On Friday, I wrote about an absolutely ridiculous amended complaint filed by a group of "ambulance chasers" looking to score a quick buck. Outrageous claims were made in the re-filed amendment which stated YTB had perpetrated an illegal pyramid scheme that represents the largest fraud in the history of the State of Illinois! It further stated YTB was one of the largest frauds in this history of this nation, exceeded only by the likes of Bernie Madoff’s illegal Ponzi scheme.

Critics and Anti-MLM Zealots flocked to message boards, blogs, and trade publications to celebrate the new filing, with hopes that big bad YTB would soon perish from the industry. One “professional” went as far as calling the amended document “powerful” on his blog. The post even claimed Counsel had learned a thing or two from California just to make the claim stick. Questions were also raised if Coach would be sharing a cell with Mr. Madoff as a closing chapter of his new book “The Fourth Quarter”.

After reading the amended filing, I was amused regarding the terminology used by Counsel in the complaint. I pointed out that words like “failed”, “corrected”, “deficiency”, “amending”, “incorrectly”, and “realized after 100 hours of arguing” placed doubt if this amendment had teeth or substance. If the first filing was riddled with errors, how was it right now?

I spent part of my weekend discussing with other Director’s and TSO’s which prompted a hardy laugh over YTB’s ability to steal from other Brick and Mortar Travel Agencies putting them out of business. We also questioned how anyone could think that 4 months would be enough time to effectively work either an MLM opportunity or Travel Business.

Critics also went round and round this past weekend, with their own illusions surrounding this amended complaint. The self proclaimed MLM expert was once again (as he and other Zealots have always been) incapable of understanding any perspective other than their own. After a very creative play with my words in Fridays article, the attention was placed back on YTB and my beliefs. By doing this, it raised the same question that has been asked of me many times over the last year.

Can I have a “warm fuzzy” concerning the legal actions brought against YTB?

I responded in part with the following comment:

I do have a warm fuzzy and have enjoyed how our legal system is making everyone cross their T’s and dot it’s I’s. Like the California legal process, the process in Illinois not only points out but apparently knows what the law is. While neither claim filed in each state enjoys the same luxury you have here on the internet, I know that their claims, unlike you, are being held accountable to prove the accusations made in regard to actual law.

We finally found a system and process that knows how to read, comprehend, and logically work through things in order to set the record straight.

While it’s taking some time, and we have to endure you’re idiosyncrasies with words, phobias, and obsession with YTB, much has already been brought to light to show the truth.

Little did I realize when I wrote that response to John Frenaye, how quickly the Court would respond.

I mentioned how humorous I found the accusations made in this amended filing. Please understand, that I’ve been dealing with critics for some time. I have come to the conclusion that correcting or educating any of these dolts is a fairy tale. While I could get upset, frustrated, or angry with them for ignoring simple, straight forward facts that I’ve actually experienced to be true, critics are no longer worth the amount of energy.

The Honorable G. Patrick Murphy who has been ruling in this class action complaint was not amused however. In fact, he essentially took the “ungainly monster of 39 pages containing 133 paragraphs“, rolled it into a cone, and used it as an instrument to whack Plaintiffs Counsel upside the back of their heads.

Judge Murphy filed his response on Monday to the amended complaint filed just last week on July 15th. It’s important to read this short response in full to feel the tone of this ruling which was penned by the District Judge. His words clearly vibrate frustration with Counsel concerning this amended filing “that likely does not pass muster under the familiar federal “notice pleading” standard”. The ruling also states that “a good deal of the flabbiness in the sprawling pleading before the Court consists of paragraphs of legal argument challenging the Court’s earlier dismissal of the ICFA claims of the non-Illinois Plaintiffs”.

There are many points of interest in this ruling that should be noted for everyone.

Although no responsive pleading has been filed in this case, the Court’s dismissal of the case pursuant to its June 5, 2009, order terminated Plaintiffs’ right to file an amended complaint as a matter of course. See Fed. R. Civ. P. 15(a); Wheeler v. Pension Value Plan for Employees of Boeing Co., No. 06-cv-500-DRH, 2007 WL 2608875, at **3-4 (S.D. Ill. Sept. 6, 2007) (collecting cases). Accordingly, the Court will strike the First Amended Consolidated Complaint in this case. See Fed. R. Civ. P. 12(f) (authorizing a court sua sponte to strike “redundant, immaterial, impertinent, or scandalous matter” contained in a pleading). If Plaintiffs wish to file their First Amended Consolidated Complaint as it is pleaded currently, they will file a motion requesting leave of Court to do so. In their motion Plaintiffs should bear in mind that the Court’s order entered June 5, 2009, establishes the law of the case, from which the Court is unlikely to depart absent a showing of compelling reasons to do so.

While I’m certain some will continue to argue this point, the amended filing was not the least bit “powerful” but instead exposed for what it really was by the Court. Redundant, immaterial, impertinent, or scandalous matters may work for some on the internet via the blogs and forums populated by a few critics. When it comes to a Court of Law, you should present some sort of substance to an individual who obviously knows the law. Since none was found, the amended complaint was kick back out and exposed what it really is.

A big ol’ pile of horse dung.

While some spend a vast amount of time twisting and spinning every move YTB makes based on stereotypes and myths surrounding pyramid schemes and scams on the internet, a Court of Law is clearly a different story.

As a general rule the Court is not fond of “ill-founded requests for reconsideration of matters previously decided,” given that such requests “needlessly take the court’s attention from current matters and visit inequity upon opponents who, prevailing in an earlier proceeding, must nevertheless defend their position again and again.”

It’s sad to say, but it’s SO true. Critics never give up their position. For some, giving up or admitting wrong would shatter their very existence. Especially those who blog and post their dribble day after day. You also need to remember that because both the California complaint that took almost a year to settle, and now the new light of this ruling regarding the Class Action, each day that passed without a resolution added validation of their illusions. The words “gigantic pyramid scheme” still ringing in their ears.

If you say it enough times, it’s got to be true…right? Rex Carr said it, and they’re the best from what we’ve been told.

Here’s one last statement in the ruling from the Court. I want you to read this and take it to heart. Going into the Convention which is now just days away, we as a company need to have this same attitude towards those that are attacking and slandering YTB and it’s members.

Put another way, the Court does not intend to spend a great deal more judicial time than it already has spent in hashing over with Plaintiffs and their counsel the matter of whether under the circumstances of this case non-residents of Illinois are entitled to maintain claims under the ICFA. Parties aggrieved by the Court’s rulings always have the option of seeking review of those rulings in a higher court at an appropriate time. So long as they are in this Court, however, litigants and their counsel do well not to treat the Court’s rulings “as mere first drafts, subject to revision and reconsideration at a litigant’s pleasure[.]”

Remember, this isn’t a journalist, a blogger, or an anonymous poster we know only as a screen name. This court filing and it’s view is indeed valid. When it comes to actual law surrounding the allegations and claims regarding YTB, we now have something we as a company can use to combat the very small but obnoxiously loud cult of critics. They desperately want to see an end to YTB based on their illusions and will gravitate and attach to any other illusion similar, regardless of any verification of fact or documentation.

Personally, I find the document filed by the Court pure poetry. It’s refreshing and energizing to see someone with this level of expertise and stature validate what I’ve been saying about critics for years. A very valuable score in the pursuit of truth, enlightenment, and justice.

To the Honorable G. Patrick Murphy:

With all the sincerity, gratitude, and humility I can find, I want to thank you for your swift and decisive response concerning the recent ill-founded amendment filed in your Court. Thank you for protecting my business and thousands of others who not only appreciate YTB for what it truly is, but admire and respect the Founders who have created it.

In addition thank you for exposing the outrageous claims for what they truly are. Ill-conceived, and defective perceptions regarding a company and model that has withstood the test of time.

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