Dear Friends and Lifewave Associates,

I have met many of you, written to some of you, spoken with others of you and in general shared who I am from within my heart as is my nature for I serve God by serving others. Many of you have received the words which flowed through me and some have even found tears flowing within themselves as something touched them and reminded them of who they are and their love for God. In truth, I ask nothing else from life than to be able to touch people in this way while I make my way in this world like you and provide that which my children require to grow into mighty beings, well nourished on all levels.

In like manner, I have sought from the first day we met to serve you and to help make your life easier in this endeavor of LifeWave. Most of you know this and know my heart as well as I have come to know yours. Certainly, as many of you know, I have tried to be both your upline and customer service through all the trying mistakes that beset LifeWave from its inception and has not yet ended or will do so for some time.

As you recognize, I have fought for you on many fronts from shipping products with my friends John and Jan to Canada and Europe to encouraging you and intervening when you were unable to have your pleas and cries for assistance addressed by a corporate staff who somehow overlooked the most basic of MLM principles, communication, gratitude and service.

Like you, I have desired to believe and patiently overlooked all the danger signs of ignorance, lacks of integrity, broken promises and faux pas too frequent and repetitious to mention as solutions promised transformed into problems even greater than that which they purported to solve. I have held my tongue and only spoken to my then colleagues on the Advisory Board whose disgust and frustration with corporate incompetence and betrayals of trust were at least as great as mine.

Of course, some, like Chuck Michaels, whose removal from compassion used to constantly amaze me, preferred to play the ostrich and always look ahead, never attending to the many challenges of their associates and preferring to recruit and leave fire fighting to others. Yet, I like Chuck as I do most whom I meet, except those whose dishonesty and lack of integrity is so glaring that it stretches even my desire to forgive.

Now, mind you, I found this not in the field but in Lifewave corporate. It would almost be difficult for me to share with you the many written proofs I have of Warren Hanchey's continual demonstrations of deceit. Yet, I will share a few and if any of you desire to look further into my files, I will happily send you the written proof. At first, I preferred to believe that David Schmidt had no knowledge of this and that Warren alone was responsible for this. I have come to learn that this is not at all true for he who allows the presence of misuse of power and lack of integrity is unquestionably in resonance to it.

Some of you are at this point amazed as you have only known Stephen to speak with graciousness and respect always embracing even the most negative situation and finding within it the spiritual blessing. Of course, I have counseled many of you, protected you from corporate ineptness and helped you stay the course as you always knew that at least Dr. Brown understood the problem and would work on it for and with you. Let me start with the complete dishonesty of Warren's agreement with me as my upline and his continual flaunting of how he enrolled people under his daughter that he had either been given by David Schmidt or had manipulatively "borrowed" from another.

I was first made aware of this when Warren went to the UK and met with Nigel Allen's group, the same Nigel Allen who resigned from the LifeWave UK Board of Trustees because he feared that LifeWave's illegal presence would cause his family legal danger. This is the same Nigel Allen who resigned from LifeWave because of their continual incompetence, non payment of VAT, illegal settling of funds and general lack of intelligence in doing anything the right way because of lack of desire to pay for it. This is the same Nigel Allen whose checks Warren arbitrarily held for three weeks prior to the European tour simply because Warren felt like it.

Warren held the meeting and then returned. About a month later, I noticed that there was an order to be shipped to the UK to someone who wasn't in my group. When I asked Wendy at MarketQ about this, she told me the individual was enrolled by Warren Hanchey and placed under his daughter Meredith. When I inquired further, I discovered that (I have the proof) the individual in question was the sister of Nigel Allen's personal enrollee, the one whom he put on the top of one of his legs. Not only did Warren sponsor this individual but he placed her under his daughter on his other leg. Can you imagine the unconsciousness which would cause an upline to do something like this and to feel not the slightest bit of remorse? Of course, I communicated this to David Schmidt well over 15 months ago and nothing was ever done.

Now, let's fast forward to April 13 2005 when Warren Hanchey was now the CFO of LifeWave. At that time, he approached one of my associates, Nancy Saporta and some of her associates including Sally Lyons and suggested that if they purchased a second distributorship under his son, he would build an international organization under them using referrals. They chose to do this because they didn't understand that Warren Hanchey was then violating all the basic principles of MLM and betraying all trust assumed to be present in a corporate executive. Those of you who want to see this, just enter 600188 as a log in and 1313 as a password and then 600763 as a log in and love as a password. This will lead you to Nancy's and Sally's site on the other side. If you look at orders, you will see that although under Nancy's sister's name and another name for Sally, they were sent to their address. (I have a letter from Nancy attesting to this and the copied information in my files).

Approximately six weeks later, an inquiry was made at MarketQ by a Japanese gentlemen who had been in Ken Wells' and David Jumper's personal enrollee Yoshi's Nuskin downline. Wendy at MarketQ sent this to corporate and Warren got hold of it. Wendy also sent a copy of it to Ken Wells. Warren, knowing that Yoshi was the only one in Japan and that this individual knew him, chose to steal him and have his son Troy enroll him. I remember when he told me with a smirk in his voice that Troy had just enrolled a Japanese. When Ken confronted Warren, he told Ken that the gentleman had found his website at www.hanchey.com. As promised to Nancy, that gentlemen was placed under her under Troy and today has at least 1500 associates in that leg. In all that time, Warren has never apologized for his thievery and despite Ken speaking to him, never done the right thing. Of course, David Schmidt has been aware of this for over a year and done nothing about it.

When you look at what occurred last year at our convention, how David and LifeWave corporate allowed doctors who were workshop leaders to hawk their wares at our associates, while at the same time choosing to cut out all BV and sell the product at a 50% reduction, one can see where David Schmidt and Lifewave corporate placed their priorities. You may not know this but Warren Hanchey had decided to do this and except for the screaming intervention of the Advisory Board, there would have been no PV credit for any of the products purchased at the national convention. Warren Hanchey, incidentally, made the decision as well to lessen the number of monthly packets in the Gold and Silver Packages when the previous web site was introduced. He did this again without telling anyone because he is a bean counter, a man with little understanding of how to run an MLM, about as much as David Schmidt.

Now some of you may ask how can I say this. As of two weeks ago, with over 8500 associates, I had 848 on auto ship. Over 4,000 of them went to Eniva because Dr. Norm and Debra Burba were wise enough to anticipate this debacle long before it occurred and bring their associates somewhere else where competence rather than incompetence characterized the corporate staff. At the meeting in the UK over a year ago there were 150 attendees and 17 two months ago. In Finland, there were over a 100 and 15 two months ago. In Canada on a Thanksgiving Day weekend, there were 300 attendees on Friday night and 150 for the training the next two days. Last Memorial Day weekend, there were 40 on both occasions.

Why do you think this occurred? Pay cards that didn't work and with which Warren rigidly refused to budge from. Shipping foibles one after the other. Why are there today only 30 orders per day being shipped from RML? Why has business in the US come to a shrieking standstill and reverse? Why are all but two of the Advisory Board members working with other MLM companies? Why was Ron Moorefield blamed entirely for the software disaster when a large part of it was according to him, David Schmidt's unwillingness to pay for additional help? Why is David Schmidt paying $27,000 a month rent for a second office in San Diego when no other MLM company has two offices in the same country, least of all one whose volume is decreasing in all portions of the world except Japan.

Now let us talk some more about who David Schmidt really is. When I notified him about Warren Hanchey's deceit and blatant cross recruiting, our mild mannered David sent me the following email.

Dr. S.A. Brown,

It has come to my attention that you are making defamatory statements regarding LifeWave and its corporate members. This behavior will not be tolerated.

Let this notification serve as your warning to cease and desist immediately from these actions. We are forwarding your case to our corporate attorney and we have reserved to right to pursue all legal actions at our disposal against you in this matter.

GOVERN YOURSELF ACCORDINGLY.

David Schmidt
Founder / C.E.O.

1020 Prospect St. Ste 200
La Jolla, CA 92037

Ph: (858) 459-9876 x100
Fx: (858) 459-9876

dschmidt@lifewave.com
www.lifewave.com

He cc'd Warren Hanchey and Michael Collins, who incidentally has known about Warren Hanchey's cross recruiting and deceit since shortly after he joined LifeWave. I like Mike but am not at all impressed by the manner in which he chooses survival with David over integrity. In a private conversation with Nigel Allen, who long ago realized that Warren Hanchey was a major reason for LifeWave's many and continuing challenges, Mike indicated that he had been trying to get rid of Warren but that David would not budge and kept saying that Warren does not understand.

Let me give you another few examples of David Schmidt's paradox between a compulsion to micromanage and a complete absence of understanding of network marketing. David had agreed to come to Houston last year shortly after Stan Cottrell and Mike Collins joined LifeWave. I remember when I was in Canada, I was standing behind David Schmidt and Michelle Hanchey who was arranging his travel venue. All the plans had been made in Houston by Paddy McAllister and her enroller and Advisory Board member, Barry Edwards. Many associates were flying in to see David and had already purchased tickets to do so. Lifewave had gone through much tribulation shortly before this due to broken promises about sites and the usual customer service glitches. The Houston meeting was for those associates their last stand and what they hoped would allow them to come back from the most disastrous national convention that any leader had ever experienced in their years in the industry. Disastrous, of course, because Lifewave corporate in their prevalent and ignorant vanity could not even comprehend that they knew nothing about how to arrange a national convention and of course did not have as before and many times again even the barest hint of wisdom to ask their field leaders or to work as a team. David Schmidt, as with most everything else wanted to play God and do it himself.

I heard David say to Michelle that he wanted to rearrange his schedule and to not go to Houston as he had promised but to instead go to Japan that weekend so he could go to a Chi Gong conference the following weekend. Did you get what I just said? David Schmidt consciously chose to betray the dreams and trust of all those making plans to attend Houston and instead attend a Chi Gong conference which probably yielded not a single associate. He broke Paddy McAllister's heart and Barry Edward's as well. Barry had given David two years of his life through two companies and then LifeWave. Today, Paddy is making $10,000 a month in another company as she and her group were betrayed by David Schmidt as unbeknownst to many of you, you have been as well.

I will share one more thing with you which is perhaps the strangest. I have proof that Warren Hanchey either inspired or at least conspired to receive stolen property from FFi, their genealogy, taken by as Warren wrote in an email, "a disgruntled associate", in truth the former customer service manager of MarketQ and now the fired former customer manager of FFi, Fuel Freedom International now doing over $2 million dollars a week and owned by Wendy Lewis and Randy Ray, the owners of MarketQ, our two steps removed former software provider. He gave this to Michael Collins and David Schmidt and this was used as the basis for my termination. In spite of the altering of the information by Dana, who has five Cease and Desist orders and is suspected of maliciously altering password codes, Mike Collins and David Schmidt sent me a termination letter. Please note that Warren Hanchey had held my checks for five weeks with no communication and no letter indicating such.

I want each of you to know that David Schmidt to my knowledge has never paid Ken Rasner for the 500 or so DVD's that Ken had placed in their hands. Lifewave sold these for $100 a piece and has owed Ken $37,500 for over nine months. Recently, Stan Cottrell was summarily fired after being continually sabotaged by Warren Hanchey. David had asked Stan to purchase his LifeWave business air flights with his own credit card. David now refuses to pay Stan $17,500. David Schmidt still owes Steve Gould, the former VP, thousands of dollars. He had entered into an agreement with CourtneyZablocki, the Olympic Luge champion and then refused to honor it after Courtney had honored her end. Lifewave as of August 17, had still not paid Horizon International Cargo for the VAT and clearance on the skin care orders which were received and cleared 7-10 and represent orders paid for by European associates on June 9. Linda Albers brought the Lifewave skin care line to the attention of Dr. Haltiwanger by introducing him to her friend a doctor. Do you think that David Schmidt even considered compensating her for this? Of course not as both Dr. Haltiwanger and the doctor have discussed giving Linda some of that which they earn on the transaction. In like manner, Michael Earle introduced the Pay Card we now use and Warren Hanchey somehow negotiated Michael out of his rightful brokerage fee. Personally, I have always wondered what happened to the brokerage fee and why Warren so rigidly held to a Pay Card system which worked nowhere else in the world except the US and Canada.

Now, that you have some idea that all is not as it seems to be and are undoubtedly aware that no one in Lifewave has been paid for two or three weeks and that the auto ships and the new computer software are again a complete mess, I would like to place before you the possibility that some of what is on www.worldwidescam.com is in fact closer to the truth than many of us have before even suspected. Consider that it may be highly likely that the sleep patch has existed since 1990 and that the true inventor of this technology is a Korean. Soon, I will have proof of the truth or untruth of this statement and soon as well I will be able to test the strength of patches which will cost half as much. If I find the proof and the patches work, I will notify all of you so that you may honor your Lifewave lineage and simply shift to another company. We shall see. You may not realize this but David Schmidt pays his brother $3 for each month supply and then sells it to LifeWave for $15. Do you now have a better idea that someone is making a great deal of money even if very few associates are.

I have concluded that these are simply not very nice people although I dearly love Dr. Haltiwanger, who has demonstrated nothing but excellence and integrity throughout this harrowing experience for all of us. Those of you in Canada are quite fortunate for John and Jan have demonstrated a tremendous patience and to some may even appear to completely discount all the many things that I have mentioned to you. Do they really? I do not know. I have great respect for them but have not ever had any sense that they truly know as many of us who have interacted longer with corporate the extent of their deception. By the way, have any of you wondered at why no communication has yet gone out about the delay in commission checks.

Now let me share with you that which I am now building so that you may choose to explore it and perhaps join me again in a journey of service and sharing. Please visit my web site at www.myzavita.com/viveka and join me on a conference call this evening at 9:00 PM EST by calling 641-297-8000 and using pin number 375345# If you are not able to make this call, please dial 212-461-2897 for a 24/7 Conference Call in which I interview the Chief Scientist of Zavita. I will shortly mail each of you something. Please know that I am grateful to each of you for all that you have added to my life. Those of you in Canada and the UK, I have enjoyed serving you immensely and all the gifts I was able to package and send to you. Zavita will be in Canada as a fully established corporation by the end of this year. Mexico and other countries will follow. How can it get any better than a new division of a debt free 17 year old company with a CEO who thinks like we do.

Life is more than Lifewave and perhaps our shared journey will again be shared but in a different direction and with a different company. Know that I honor your dreams and always have but long ago, as other members of the Advisory Board, have stopped bringing in new people to a company whose intelligence and integrity became increasingly suspect. Please keep in touch with me as our friendships extend far beyond the confines of a company.

Always remember this. That which emerges from our imagination carries within itself the harmony or discord within our heart. None can produce ripe fruit capable of nurturing if the roots were not planted in worthy soil. Observe LifeWave and all that has beset it. Know that it is no accident as the hearts of those who created it unbeknownst to us had issues that continue to emerge as outer discord. These men are not bumbling idiots, I assure you, but like all parts of life continually reap what they have sown. I now go to different soil where honesty and integrity are present. There is no anger within me, not even sadness as I simply observe a reality which I once loved crumble in all that I had thought it and reveal itself as the lie which it is.

Much Love in Spirit,

Stephen