Agel Terminates CEO Glen Jensen for Breaches

by louabbott on January 17, 2011

Turbulent times for Agel team members as company terminates their founder Glen Jensen

It’s never easy for remaining associates (distributors, IBOs, etc.) of a company when high level people leave for any reason. In this case, it was Glen Jensen, the founder and CEO, who was terminated and sued for the following alleged reasons that I have excerpted out of the pertinent part of the lawsuit:

Termination of Jensen’s Employment and Jensen’s Actual and Threatened Breaches of Contractual and Other Duties

30.      Prior to November 17, 2010, Jensen had breached the Employment Agreement and had caused Itsumo to breach the Operating Agreement by the following non-exclusive actions: (1) discussing and planning competing opportunities with team members and other Agel employees; (2) refusing to follow directives of Agel’s Board of Directors by failing to terminate employees, failing to notify the Board of significant expenditures beyond those permitted under the Operating Agreement, and sharing confidential company information; (3) making unauthorized market licensee proposals and commitments and product royalty commitments; and (4) making unauthorized use of company funds.

31.      On November 17, 2010, Agel terminated Jensen’s employment.

32.      Upon information and belief, prior to and after Jensen’s termination, Jensen has been in discussions with other Agel executives or employees concerning a potential division of the company for the direct purpose of competing with Agel. Upon further information and belief, such plans include an attempted division of the Southeast Asia and China markets from Agel.

33.      Jensen has contacted several current Agel employees and/or team members for the purpose of soliciting them to join Jensen in a new venture to compete with Agel – all in violation of Jensen’s fiduciary duties to Agel and his contractual obligations under the Employment Agreement.

34.      Upon further information and belief, Jensen may have misappropriated Agel’s property, including, without limitation, trade secrets, formulas, team member contact information, vendor information, and pricing information.

35.      Upon further information and belief, Jensen has used his influence to manipulate commission payouts to give friends and family financial benefits.

36.      After termination, Jensen has failed to return electronic equipment containing trade secrets and other proprietary information of Agel, including a computer, iPad, and cellular phone and has further instructed others to retain similar equipment and proprietary information.

Since the opening of Agel in early 2005, the company has had it’s share of successes as well as it’s tough times, as reasonably can be expected.  They opened an enormous number of foreign markets (10) very quickly, probably more quickly than had ever been done before.

Agel “busted the cap” of their binary comp plan in early 2005 necessitating “adjustments.” Later that year, though not necessarily for that reason, top leader Randy Schroeder left to join MonaVie.  See Related Posts below.

It is reported now that top leader Eric Worre is also now building a business with a different company also, SendOutCards (SOC).

Editor’s comment:

In my Special Report and Course on MLM, I teach that one of the key things to try to understand when evaluating the potential longevity of a new MLM company is who the founders and officers are so that you can try to get a feel for whether or not they are in it for the long haul.  When Agel opened it’s doors in 2005, I noted that Glen Jensen had already founded one company (Synergy Worldwide) and then sold it (to Nature’s Sunshine) in 2000.  After the sale he was retained until some time in 2002.

At the time, I wondered, “If he sold one company when he was ready to move on, what would prevent him from doing the same thing again and might that be a red flag?”  If, in fact, Jensen does start a new company, whether here or in Asia, as he is allegedly planning according to the suit, I would caution people tempted to follow him there to ask that same question again with even more weight assigned to the importance of getting the answer right.

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{ 9 comments… read them below or add one }

Annemarie January 20, 2011 at 11:21 am Thumb up 0 Thumb down 1

I enjoyed reading all comments, especially Daniel’s. It is definitely time to subtract the corporate culture and top dog mentality about MLM opportunities. It is the right time to return to basics where average people with above average dreams can start a home business with minimal capital and some sweat equity to create a better life for their family. There are three key principles that matter: power of leverage, simple marketing plan that duplicates and residual income. Every family deserves a democratic right for equal opportunity for success..that’s our motto.

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Patricia Garcia January 19, 2011 at 1:30 pm Thumb up 0 Thumb down 0

Please, give or share with me your opinion about NusKin.
If it is not the best. it’s far long to be the one of the bests?

Thanks in advance

Patricia Garcia

Reply

adriana January 19, 2011 at 1:22 pm Thumb up 2 Thumb down 0

Everybody is going away from agel !!! About 1 year ago double diamond Bruno Grilo, diamond Francisco Nunes aand diamond Pepe Moura, all of this from Portugal left agel to became monavie distributors ! For thoso o do not know, at some poit e later 2007, portugal was the nr 1 country in agel, Bruno Grilo, a guy with absolutely no experience what so ever in mlm, was hiting 20000 usd by is 3º month, 50000 by is 6º and almost 100000 by is 8º. Francisco Nunes about half of this, and several people on the country doing 10000 or more. EVERIBODY LEFT !! EVERYBODY !! In brazil its the same, since they were all downlines from the portuguese diamonds. In my opinion that company is condemd to failure

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Daniel Hirtz January 19, 2011 at 1:00 pm Thumb up 2 Thumb down 0

Hi Lou,
thanks for keeping us up to date…

What I am more and more convinced of is that it’s time for network marketers to not be defined by the relationship they have with their company or any brand for that matter. It is kind of a contradiction in terms to offer somebody a lifestyle of financial freedom and time freedom and at the same time brand the relationship with one company and a commitment to never join any other… That just creates another dependency that all to often has created huge problems.

I also wonder if the notion in most of our training that it is not possible to build more than one company might come from a corporate culture that wants to control us. Why would it be any different in this industry than anywhere else. It seems that every day corporate power is taking more of our world… why would we voluntarily agree to that in our business as “independent” distributors?

While I am all for loyalty both with my team and my company I do believe it is a good idea to shift the understanding of building networks to a truly independent one and make companies serve us rather than us serving them. I am tired of companies presenting themselves as the solution while they really are only one part of the equation. In fact our ability to market, train, support and build people could easily be valued as the bigger part of the relationship.

What do you think?

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Jimmie W January 19, 2011 at 12:35 pm Thumb up 1 Thumb down 0

When I am solicited by phone for an MLM, I can usually cut the conversation very short by asking, “Who owns it?” An amazing high percentage of people will work without even knowing who they are working for. And they certainly don’t know the background of the owner. In my experience, that one knowledge alone will save all your future heartaches. So ask up front. Then run away!

Jimmie

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Bruce Deery January 19, 2011 at 12:01 pm Thumb up 0 Thumb down 0

Lou….your comments here are unfortunately so True : ” In my Special Report and Course on MLM, I teach that one of the key things to try to understand when evaluating the potential longevity of a new MLM company is who the founders and officers are so that you can try to get a feel for whether or not they are in it for the long haul. When Agel opened it’s doors in 2005, I noted that Glen Jensen had already founded one company (Synergy Worldwide) and then sold it (to Nature’s Sunshine) in 2000. After the sale he was retained until some time in 2002.
At the time, I wondered, “If he sold one company when he was ready to move on, what would prevent him from doing the same thing again and might that be a red flag?” If, in fact, Jensen does start a new company, whether here or in Asia, as he is allegedly planning according to the suit, I would caution people tempted to follow him there to ask that same question again with even more weight assigned to the importance of getting the answer right.

—————————–

Reently, I have been approached by numerous people to join SISEL International and Tom Mower, Sr.- who stated Neways, Inc and later sold it for millions..People rave about his success, him being a Billionaire, his new 400,000 square foot manufacturing plant in Utah, his new 65,000 square foot home, his more than generous gifts to various charities , etc.

When doing my Due Diligence, I was shocked to find out that Mr. Mower started SISEL from his prison cell, while serving a 33 month sentence for Income Tax Evasion, filing under false social security numbers, setting up numerous dummy companies , etc. When I brought tis to the attention of several SISEL reps, I was simply amazed that their reply was essentially that it was not a ” BIG DEAL “…that the company was going to be hugely successful anyway….Maybe they are right , becuase that information does not seem to be stopping people from joining.

Maybe I am square or not focused enough on the MONEY opportunity…But personally, I am not going to hitch my wagon to someone whose ethics, morals, values, honesty, integrity and character are most definitely questionable…he appears to be a very charismatic, convincing, pied piper who is actually a ” Wolf in Sheeps Clothing ”

For more details, see : http://www.heraldextra.com/business/article_f68c0a8f-badb-557a-94c2-4c713bb0af44.htm

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aj January 19, 2011 at 9:05 am Thumb up 2 Thumb down 0

Hi Lou well done for keeping us all up todate
and warning us way back
sometimes i wonder if it may not be better not to know?
ignorance can be bliss
corporate deals get done and distributors get ignored
i reckon for me the key is develop youreself and keep growing
and realise that the profession of mlm is bigger then anyone company.
And to me it seems most companies have their problems but there is no free lunch maybe we can choose the people to have problems wth

keep up the good work

Andries

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peter ellis January 19, 2011 at 9:03 am Thumb up 0 Thumb down 4

So who does one join? I was shocked to see the history of the founder of Mannatech. It still has not stopped anyone joining the company.

The reality is that wherever a member is paid directly or indirectly for the commission of new members this is a pyramid scheme.NO ARGUMENTS WILL CHANGE THAT.

In my view it may be best to leave MLM alone. How much heartache, aggravation, and financial loss do you need?

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AJ January 19, 2011 at 5:33 pm Thumb up 1 Thumb down 0

Hi Peter
yes the company people can be challenging
and yes i dont understand how it is that Mannatech people dont seem to get all the problems with the founding people
but dont judge the whole industry by that
mlm works
its great
its the only real hope for many

Reply

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