Jeanette and Martin Brooks’ Network Marketing Career

Jeanette earned her degree in Speech Pathology at Brigham Young University; she spent eight years in education and served as a speech pathologist, an aphasic teacher, Easter Seals National Camp director and high-school administrator. While working as a teacher and Educational Administrator, Jeanette became involved in network marketing.

In March 1982, Jeanette Brooks founded Yurika Foods, an MLM company based in Birmingham, Michigan. Jeanette served as the Vice President of Sales & Marketing, directed the company’s product development, sales, marketing, training and production of publication and sales materials. Jeanette’s husband, Martin Brooks, was listed as the president and agent of Yurika Foods.

• Under the direction of Brooks, in April of 1985, Yurika filed for bankruptcy in Detroit, Michigan, after three years of conducting business. In those three years, Yurika accumulated over 40,000 creditors and incurred a debt of $5 million.
• On August 4, 1986, Lezak Group Inc. entered into an agreement with the major shareholders of Yurika Foods to assist in the emergence plan in an attempt to save Yurika Foods. The plan was to convert the $5M in debt into equity. The emergence plan failed and Yurika Foods was dissolved in 1991.

In 1988, Jeanette founded Phoenix International Corporation, an MLM company based in Sparks, Nevada. Jeanette served as the Executive Vice President and her "ideas and creativity were key to the development of the Phoenix for Life weight control products and the marketing materials." (http://www.mxicorp.com/team/executives/jbrooks.html) Additional history on Phoenix International includes the following:

• On May 25, 1990, the Oregonian wrote the following excerpt: "The FDA notified Phoenix International Marketing Corp. that its products were in violation of federal laws because the promotional materials distributed with the Phoenix for Life weight control program made unsubstantiated medical claims. FDA tests also showed that the cookies contained twice the number of calories claimed by the company and five times the fat. Phoenix International Marketing agreed on May 8 to stop distributing its products: Phoenix Fiber Cookie, Phoenix Fizzie, Phoenix Nutritious Beverage and Phoenix Vitamin and Mineral Capsules."
• On an audiocast found at www.mysuccessbychocolate.com and titled Leaders Call, the Brooks talk about claims on their Phoenix Cookie, stating the promotional material the FDA notified them about was not their brochure, but rather a top distributor of the company created the brochure with claims such as curing diabetes, etc.
• The claims made by the Brooks in the aforementioned audio conflict with the statements made by the FDA. According to the FDA Enforcement Report dated February 20, 1991 and as noted above by the Oregonian, "The Products made unsubstantiated drug claims and their sugar content is well in excess of label claim." The enforcement report confirmed what the Oregonian had reported finding through testing that the cookies contained twice the number of calories than claimed by the company and five times the fat.
• On June 20, 1991, Phoenix International Corporation filed for Bankruptcy.

Also noted on the MXI website in regards to Jeanette Brooks is the following: "Jeanette also developed weight loss products and set up clinical trials for Universal Health & Diet Products." Additional history on Universal Sales dba, Universal Health & Diet Products is as follows:

• On February 9, 2001, an Appellate Court fraud case took place listing Universal and the Brooks as defendants.
• On March 20, 1995 a judgment for breach of contract, fraudulent misrepresentation, fraudulent inducement and unfair competition, was entered in the United States District Court for the District of Nevada against Martin J. Brooks and Jeanette Brooks, among others in a case titled Universal Sales, Inc. v Advanced Physicians Product, Inc. et al., Case No. CV-N-91-375-ECR. That judgment was in the amount of $3,439,868.77, plus applicable interest. (This amount was amended on October 4, 2000, down to $2,339,868.77 plus interest.)

Also noted on MXI website is that, “Jeanette is also a founder of Pure De-lite Products, Inc., specializing in low-carb, sugar free, and high protein products. She has focused her efforts on product development, national advertising, sales and marketing.”

• Pure De-Lite dba Carbalite was incorporated in Utah and in Nevada as Kurtis Nielsen as the sole stock-holder/owner and Marty Brooks is registered as the president.
• On February 4, 2004, the FDA issued warnings to Pure De-Lite Products, Inc. for unauthorized nutrient content claims related to claiming low carb content on labels.
• On April 4, 2004, a complaint and jury demand was filed by Asset Protection & Recoveries as assignee of Advanced Physician Products, Inc. against Pure De-Lite Products, Inc, Kurtis Nielsen, Julie Nielsen and Andrew Brooks seeking judgment for the federal judgment award of $2,339,868.77, plus interest and punitive damages.
• Claim asserts that since initial judgment was rendered on March 20, 1995, and amended on October 4, 2000, the Brooks and Nielsens conspired to conceal assets within the Pure De-Lite Corporation via the creation of Carbalite/Pure De-Lite and that all parties engaged in fraud with the intent and purpose of deceiving lawful creditors. Additionally, the creation of these companies constituted a fraudulent transfer of assets.

Jeanette and Martin Brooks additional information:

• On February 13, 2002, Martin Brooks and Jeanette Brooks filed for Chapter 11 bankruptcy with the Nevada District court. The total amount claimed in the Bankruptcy Claims Register by outstanding creditors is $46,983,091.58.
• Included in the $47 million claims registry are claims filed by the IRS totaling $7,909,470 and the Ministry of National Revenue’s Canada Customs & Revenue Agency are claiming $347,623 for unpaid taxes.
• In October 2006, a federal tax lien has been filed against the Brooks property.

Currently, Jeanette Brooks owns MXI Corp, dba Xocai, which was launched June of 2005 and is an MLM company based in Reno, Nevada, where she takes an active role in product development, sales, marketing and training of the corporation’s leadership. Mr. Martin Brooks is the company’s CEO.

• A link here: www.mysuccessbychocolate.com discusses the Brooks history of MLM at one of their Leadership meetings which omits virtually all of the history above.
• Hoovers’ D&B report lists the annual sales for MXI for 2006 to be $900,000 and identifies 7 employees at the Reno location.

Additional Links

http://www.xocaiglobal.com/
http://www.chocolatewellness.com/
http://www.ixocai.com/
http://www.mychocolatedrink.com/promopage.php
http://www.sweetchocolatebusiness.com
http://mysuccessbychocolate.blogspot.com/