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Irvine, California December 13, 2003 Travelogia Corporate Office
During one of its regularly scheduled VIP Presentations (recruitment seminars), it was announced that Mr. Greg Neely, Travelogia's "primary investor" (only investor) had agreed to bring in other investors to help subsidize the failing company. Neely stated that he had already found one.
It is reported that Neely has put more than $5,000,000 into Travelogia and the company has yet to show any profit and based on the declining sales figures, no one knows if and when a profit will be made.
Of greatest concern is the "cancellation rate" that Travelogia is experiencing. It is not uncommon for people to drop out of MLM opportunities, specially scams, but to see at least two to three times as many people quit as they are signing up has "literally killed" the company's cash-flow position and has required Neely to "infuse" the company with much more cash than he had planned.
With so many distributors (affiliates) leaving the company, many of its heavy hitters (top recruiters) have lost much of their downline organizations, cash bonuses and other perks. In addition, some of the top producers were suspended without notification or a chance to defend themselves by Cecil Newton, Travelogia's COO for alleged "cross recruiting" violations. The Travelogia policies and procedures manual does not prohibit "Cross recruiting".
With the suspensions and terminations going on, many rumors have surfaced about Travelogia not having the money to pay commissions and that is one of the reasons they have concocted the bogus charges.
The poor management and results of the company has also prompted Neely to establish an office of his own at the Travelogia corporate location in order to help prevent further cash losses and financial improprieties.
On another note, Neely was heard telling people at the presentation that Ms. Kate Johnston, Travelogia's Director of Investor Relations (who needs one of these with only one investor?) was also an investor, even though her financial records show a recent bankruptcy and dwindling financial assets and stability. |