Conclusion
On one hand, the retail FundAmerica membership was a sound idea saving for a future retirement - saving while spending, however on the other, the marketing plan with its "wholesale buy-in" and "downlining" created problems with the state of Florida. It was the state of Florida that put an end to this so-called "business opportunity of a lifetime." FundAmerica, Inc. had almost reached what people in the multi-level marketing field call critical mass, despite only operating in California, Arizona, Colorado, Oregon, Texas, Utah, Washington, and Florida. Critical mass is when an mlm company is poised for geometric growth exponentially. According to Florida officials some 98% of more than $33 million in gross income (during the first four months of 1990) came from "wholesale membership sales."
Over the course of several months, FundAmerica was vindicated as a legitimate, timely and revolutionary membership savings program and network marketing opportunity. The State of Florida, having dropped all charges against Edwards and FundAmerica, ended up citing FundAmerica for not having a valid business license in the State of Florida, fined the company $25,000, and prohibited the company from doing business within the State of Florida for twelve months. Edwards and FundAmerica subsequently were able to release the nearly $4 Million in withheld commissions to Independent Distributors. FundAmerica Member rebates, always fully funded and held in a Member Trust Account were disbursed in accordance with the provisions of the FundAmerica Membership. Attempts to revitalize the FundAmerica program under the name of FundAmerica 2000, including Edwards’ additional, personal investment of nearly $20 Million, ultimately failed. The damage to the company, its Independent Distributors and its Members by overzealous Florida officials and the sensation-hungry media was simply too great for Independent Distributors to overcome.
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