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Global Daily Pay Distributors Fight Back -- File $158.5 Million in Claims against Wisconsin DOJ.

Business Editors


In a move that will allow future litigation, several distributors of the network-marketing company Global Daily Pay, Inc., a Nevada corporation, filed claims against the Wisconsin Department of Justice, Attorney General Peggy A. Lautenschlager, Assistant Attorney General Juan B. Colas, and Special Agent Kyra M. Schallhorn for violations of unfair business practices, fraud, negligence, disruption of business, and loss of revenue.

Court documents reveal that on August 1, 2003, Colas authorized a criminal search warrant to "immediately cease making the website of available for access via the internet until further court order." A Temporary Restraining Order is normally sought by governmental agencies in a civil proceeding to allow companies the opportunity to defend themselves. By denying the company its day in court, the search warrant violated the company's constitutional rights to due process.

Global Daily Pay marketed a variety of downloadable products on the company's website. Company spokesperson Michael Taylor stated, "The DOJ's actions are injurious to consumers since they no longer have the ability to access their products.

"When the DOJ completes their investigation, they will find that Global Daily Pay did not operate any illegal lottery as they claim, and we have complied with all Wisconsin statutes."

Court documents also reveal that the $943,668 seized by the DOJ were an individual's taxable earnings. No other company funds were seized. Distributors claim that this amounts to nothing more than an illegal wage garnishment.

Over 8 million distributors generate over $20 billion in sales per year in the network-marketing industry. Especially in today's economy, Americans have joined network-marketing companies as a way of generating a secondary source of income.

"Just as Amway did in the 1950s, Global Daily Pay is blocking any attempt to outlaw network-marketing companies in Wisconsin or abroad. The livelihood of millions of people's lives depends on this additional source of income," stated Richard M. Krawczyk, Ph.D., Founder and President of Global Daily Pay, Inc.

Before the shutdown of its website, Global Daily Pay was regarded as one of the fastest-growing network-marketing companies in the history of the industry. Global Daily Pay has retained the services of the Madison, Wisc.-based law firm of Hurley, Burish & Milliken for its defense.
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Publication:Business Wire
Date:Dec 16, 2003
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