![]() ![]() Mr Brooks, the chief executive of MXI Corp, was arrested in Montana and pleaded guilty to unlawfully transferring funds from Nevada to the Cayman Islands 15 years ago. The Brookses have had several brushes with the law. The Brookses’ creditors included the US and Canadian tax offices, business partners and angry distributors of a previous product, the Phoenix Fiber Cookie, which was withdrawn after the US Food and Drug Administration found that false health claims were being made for it. But their four previous companies distributing diet and health foods have been involved in litigation and bankruptcy in Nevada, Utah, Alabama, two Canadian provinces and the Cayman Islands, the Herald has found after examining hundreds of pages of US court documents. MXI Corp and websites it has spawned worldwide through its distributors claims heady success for the Brooks family’s past businesses. The couple, who quote celebrities such as Larry King, Oprah Winfrey and Marie Osmond as supporters of their latest product, fled creditors for Canada 15 years ago, but they are back in lavish new Nevada headquarters. Just three years ago, as they were launching their Xocai chocolate range through their network marketing company MXI Corp, Jeanette and Martin Brooks were facing more than $US36 million in claims from 25 individuals, companies and government agencies as part of bankruptcy proceedings in their home town of Reno. Prior to launching the MLM opportunity MXI Corp, Jeanette Brooks founded Pure De-Lite which marketed a low-carb chocolate bar via a non-MLM wholesale model (they marketed to retail companies who then sold to consumers).Īs far as a track record and research into the background of MXI Corps’ two founders go, there’s an article published by the Brisbane Times that lays out a pretty detailed history of Jeanette and Andrew Brooks (photo right) as well as their past ventures that’s worth reading in full. ![]() 27 fairness hearing.MXI Corp was founded in 2005 by mother and son team Jeanette and Andrew Brooks and is based out of the state of Nevada in US. Du entered the settlement order after a Feb. With the case surviving, MXI and Martinez, et al., attempted mediation, but did not reach an agreement after an all-day session. ![]() But she upheld claims of mail and wire fraud, consumer fraud, and operating a pyramid scheme. She found the Ninth Circuit has ruled that investments in pyramid schemes are securities, governed by the Private Securities Litigation Reform Act, which precludes RICO claims. MXI also must show it no longer requires members to have at least 51 percent of qualifying sales volume to preferred customers to earn pay.ĭu in March 2016 dismissed RICO claims against MXI. 19 this year, 1,383 of 41,200 potential class members had submitted claims for either cash or products.ĭu also ordered MXI to provide evidence it no longer is encouraging members to buy more chocolate for resale or personal use to qualify for bonuses or commission. citizens and received less money than they paid to MXI, while buying its chocolate for resale from through Nov. She certified the settlement class as all MXI associates who are U.S. “The court finds that the settlement is the product of serious, informed, non-collusive negotiations conducted at arms' length by the parties and with the initial assistance of a mediator,” Du wrote. The order includes $6.1 million to the class, plus $1.6 million in attorney's fees and costs, and $35,000 in service awards to five plaintiffs. Du gave final approval to the settlement on Feb. They claimed it was a classic pyramid scheme, in which MXI, but not the salespeople, made money through “endless recruiting” of new members. In their May 2015 lawsuit, lead plaintiffs Enrique and Michelle Martinez said they were two of an estimated 50,000 salespeople who bought the chocolate from MXI for resale. to pay $7.7 million to settle a class action from salespeople who accused it of running a pyramid scheme involving “healthy” Xocai chocolate. ![]() (CN) - A federal judge ordered Reno-based MXI Corp. ![]()
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