Aussie Zor Takes American Award

Brad Sugars, who founded ActionCOACH in Brisbane Australia before expanding to the United States, is to receive a “Stevie” award as “Chairman of the Year.”  Sugars is proud of being in some controversial company.

Sugars himself has been criticized by his franchisees, and Sugars issued a press release touting the “Stevie” awards by taunting critics: “I feel very proud considering I am up against the likes of the leaders of organizations such as AMERIGROUP and Nu Skin Enterprises.”

Amerigroup recently settled a $334 Million suit by paying the Federal  government and the State of Illinois the amount of $225 Million plus legal fees. The suit had resulted in a jury verdict of fraud and additional penalties imposed by the judge as a result of fraud.

NuSkin is a high profile multi-level marketing (MLM) company based in Utah. The politically well-connected company has managed to stay in business despite a  lengthy history of controversy including FTC investigations and former MLM participants posting details on internet sites.

Formerly known as Action International, the franchisor’s ex-franchisees  have charged that the company changed its name following bad publicity and litigation.  Franchisees charged that even after going out of business, the franchisor pursued them for monthly royalty payments that the franchisor “lost” when the franchisees were no longer in business. Others have alleged that Sugars pursues those who criticize him on internet sites.

The “Stevie” awards are funded by fees charged to entrants and to “sponsors” of the awards, plus tickets to the awards dinner. Ironically, 2 of the sponsors are John Hancock Mutual Funds and LifeLock, an identity theft company.

Some of Brad Sugars’ franchisees would suggest that those concerned with providing for retirement might do well to avoid buying a Sugars franchise. As for identity theft, following the model of Action International, victims could always just change their name and stay one step ahead of the bad reputation.