Destiny Telecomm reaches operating accord in NY; Company anticipates major growth in Empire State.ALBANY, N.Y.--(BUSINESS WIRE)--May 29, 1997--Destiny Telecomm International Inc., one of the nation's fastest growing network marketing companies, announced that it has signed an accord allowing it to operate in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of state. The agreement between the company and the state Attorney General's office contains guarantees that assure the Destiny's business practices conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the specific codes of New York state. Destiny president Randy Jeffers said the agreement would open up a period of major growth for the network marketing company in the state. "We're changing lives in New York, and around the world," he said. Destiny director of information Paul Matson said he was concerned about comments attributed to the Attorney General's office implying that Destiny had been operating a pyramid scheme Pyramid Scheme An illegal investment scam based on a hierarchical setup that relies on new recruits' funding as the source of money, or so-called returns, to be provided to those earlier investors/recruits above them in the pyramid. . "Destiny has been operating legally and ethically in New York, and will continue to cooperate with state regulators," Matson said. In Lowlville, N.Y., Destiny independent sales representative Renne Sullivan said she was delighted that the agreement would allow her to continue operating her business and allow her to return to nursing school. "Destiny has given me the chance to achieve my goals. Without the income from Destiny, I could not have quit my full-time job." Sullivan, a mother of two, said the state was wrong in believing Destiny was a pyramid operation. "I'm in it and I don't believe it. There are people who have joined after me who make more money than I do," she said. Matson said he was concerned about a statement alleging that Destiny required independent representatives to pay a "substantial membership fee." "Perhaps we have been confused with another company. There is no charge for associating with Destiny," he said. "Commissions are based on the sale of products only." The agreement, called an Assurance of Discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. , states that the company "does not admit any wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do ." Destiny agreed to pay $175,000 to the state to cover costs, a penalty, and attorneys fees. The state agreed to waive To intentionally or voluntarily relinquish a known right or engage in conduct warranting an inference that a right has been surrendered. For example, an individual is said to waive the right to bring a tort action when he or she renounces the remedy provided by law for such an additional $175,000 in fees and penalties with full company compliance with the agreement for one year. Jeffers said Destiny paid the money as part of a business decision to allow it to keep operating in the state. "We're not going to let our people -- and our customers -- down," he said. An estimated 7,500 New Yorkers have become Destiny independent sales representatives. The company has 750,000 representatives world-wide. Destiny markets prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay ment n. phone cards, long distance service, as well as health and personal care products. Unlike illegal pyramid schemes that generate profits through recruitment fees, Destiny is a product driven company that is prospering pros·per intr.v. pros·pered, pros·per·ing, pros·pers To be fortunate or successful, especially in terms of one's finances; thrive. on the basis of its service, and the quality and competitive pricing of its products. The company reported sales revenues of $82 million in 1996 and anticipates revenues will nearly double in 1997. It is MCI's ninth largest domestic customer, and pays that telecommunications company See telecom company. $18 million annually to use its transmission services. Destiny built the nation's largest debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. platform in Oakland, Calif. to handle its own prepaid phone card needs. Sales of the company's new line of health products have risen to $200,000 monthly and are anticipated to more than double within the next six months. CONTACT: Destiny Telecomm International, Inc. Paul Matson, 800/723-2692 (pager) Paul Shinoff, 415/495-1991 Renne Sullivan, 315/376-9312 |
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