Zrii statement
This is an archived article that was published on sltrib.com in 2009, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Wellness Acquisition Group, Inc.

FOR IMMEDIATE RELEASE

Top executives and distributors leave Zrii

SALT LAKE CITY - February 5, 2009 - A group of top management and co-founders of Zrii LLC, including over 35 key employees, has left the company in a split with one of the company's founders, William F. Farley.

Farley also terminated the company's leading distributors, known as "ten-star independent executives," after they joined in requesting that Farley voluntarily step down as chief executive in the best interests of Zrii and the thousands of individuals throughout North America who have committed to sharing the Zrii story.

Headquartered in Draper, Utah, Zrii boasts "a company led by masters of prosperity, a product guided by ancient Ayurvedic principles and a brand that transcends borders." Zrii's product is a beverage that features the amalaki, a fruit revered for its beneficial properties.

The groups claim that, disregarding its co-founders' mission and ideals, Farley has saddled the company with unnecessary debt while using it as his personal piggy-bank, and that continuing to work with him under the circumstances would represent a profound betrayal of their individual integrity and personal relationships as well as Zrii's founding principles.

They proposed discussions with Farley to enable the co-founders and management to buy out his interests and take the measures necessary to restore the opportunities for prosperity Zrii promises. Farley has refused to participate in any discussions or respond to the substance of the groups' concerns.

"It appears that Mr. Farley has chosen to continue a 'scorched earth' strategy that is directly at odds with the long-term interests of the thousands of people who invested their individual and collective efforts to develop the personal relationships on which Zrii's success must be built. This was a difficult decision in this tough economic climate, but we had to honor our principles above our pocketbooks.

As a result, Mr. Farley will stand alone amidst the destruction he has wrought through his mismanagement and self-dealing," said Kirby Zenger, a spokesman for the group.

Utah counsel for Wellness Acquisition Group, Inc., a company formed by investment banker and former Zrii independent executive Keith Fitzgerald to structure a deal to pursue a possible buyout, said the management and independent executives are considering various options in response to Farley's actions.

Some may pursue independent claims for unpaid compensation or other wrongs they believe Farley has committed. All hope to be able to use their talents in network marketing in a venture truly committed to well-being and shared success and prosperity.

Farley was formerly the chief executive of Fruit of the Loom. According to a Wikipedia entry on that company, he was forced out in late 1999, after having piloted the company into massive debt and unproductive business ventures, including structuring the company into an off-shore entity in the Cayman Islands to avoid taxes.

Farley has been the subject of other legal proceedings, including an ongoing case in Illinois federal court.

That case includes allegations that Farley "intended to enrich himself by diverting for his own use" various assets, including contributions to a pension fund for retirees.

See Case No. 1:08-CV-02529, United States District Court, Northern District of Illinois.

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