Letter to the Editor
Ex-IHI official offers his view
Triangle Business Journal
TBJ's Dec. 4 article, "Van Etten fronts cash to beat SEC charges," contained false statements made by Stan Van Etten regarding my former relationship as International Heritage Inc.'s vice president of sales.
The truth is I was promoted by Van Etten after he and IHI had encountered serious problems with numerous regulatory agencies, which, along with other factors, had caused a loss of credibility with IHI's representatives. Van Etten was aware that after years of work on my part building a reputation for integrity, I would have credibility with representatives that existing management lacked.
In early October 1998, it became apparent that, even though IHI was out of money and facing increasing regulatory problems, Van Etten nevertheless wanted me to persuade the representatives that everything was all right. I could not in good conscience do what he wanted, and I looked for alternatives to protect IHI.
Van Etten's description of our meeting when I resigned is a complete fabrication. I turned in my resignation because I could not make the representations Van Etten wanted me to make knowing the problems IHI faced. There was no ultimatum or challenge issued by me. I did state that if IHI was going to cease operations as a network marketing firm, as Van Etten conceded it must, it would be in the best interests of IHI to allow representatives that could not receive the support IHI had promised to go to other companies and to attempt to locate other reputable companies for them. Van Etten agreed, and asked that I make recommendations in this regard.
I was only one of several people that recommended New Vision International as a good option for IHI representatives to consider. At that point Van Etten took over discussions with New Vision, sending letters on Oct. 22 to entice New Vision to present opportunities to IHI representatives, stating IHI has "an incredibly talented field leadership group that would benefit by the superior support, service and technology (New Vision) offers" and that IHI had waived any restrictions on the company because it was "the only fair thing to do."
It is not clear why Van Etten has decided to make a personal attack on me and others. Perhaps his ego requires that he try to find a scapegoat for IHI's problems. I gave IHI my best efforts while I was with it, and thought I was working with Van Etten to minimize the damages that would be caused to the company, its employees and representatives.
Ken Rudd
Phoenix, Ariz.
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