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How 'bout them apples, Dick?

by: DemWave

Fri Oct 13, 2006 at 00:53:01 AM EDT


(From the diaries - promoted by matt)

As the Alterra story demonstrates, while Dick DeVos (R-Amway) likes to claim that he is a "successful businessman", the Amway Guy is selective and only discloses those business dealings and investments that he deems acceptable for public scrutiny.  Like his failure to publicly disclose his Alterra investment, thus far Dick DeVos has revealed nothing about DeVos family investments and business dealings in the apple business.  But a review of public documents sheds some light on what would appear to be a very interesting story.

Part 1:  Juice Fraud
The story begins back in October in 1993 in Sparta, Michigan, with a company by the name of Apple Valley International, Inc., and its President, Mark Saur.

(More below the fold...)

DemWave :: How 'bout them apples, Dick?

In July 1990, federal agents with the Food and Drug Administration received information from industry sources that Saur's firm, Apple Valley International, Inc., was adulterating its fruit juice by substituting beet sugar for juice concentrate in products labeled as "unsweetened".  Back in October of 1993, the FDA Consumer described the investigation:

As a result, Jim Mundo, an investigator from FDA's Saginaw, Mich., resident post, and Scott Barlow, an inspector from the Grand Rapids post, inspected the firm from Aug. 14 through Sept. 1, 1990.

"No adulterants were found at the firm during their inspection, but then they pursued several other leads," Putz says. "On Aug. 23, 1990, they challenged Mark Saur, the company president, saying we thought there was adulteration going on, and he confessed."

In evaluating the company's records, FDA officials determined that adulterated orange juice had been shipped on March 22, 23, and 29, 1988, to firms in Brookfield, Appleton, and La Crosse, Wis.

In addition, Mundo and Barlow determined that approximately 475,000 cases--million 11.4 cans--of adulterated orange juice had been shipped between 1986 and 1988.

After an extensive three year investigation, charges were filed in federal district court against Saur and Apple Valley International, Inc.  See the FDA enforcement report here.  Both Saur and his company were found guilty.  As the FDA Consumer reported:

District Judge David McKeague, of the U.S. District Court's Western District of Michigan, fined Apple Valley International, Inc., $480,600 on May 17, 1993, on three felony charges for the interstate shipment of adulterated frozen unsweetened orange juice. Company president Mark Saur was fined $100,225 on May 2 by District Magistrate Joseph Scoville, of the same court, for three misdemeanor charges of adulterating frozen unsweetened orange juice concentrate.

"It was economic fraud," says Judith Putz, a compliance officer in FDA's Detroit district.

See Saur at his juice processing facility in this picture from the Holland Sentinel:

And why would Mark Saur and Apple Valley International engage in such fraudulent activity?  Money:

By substituting the invert beet sugar, which Apple Valley purchased for less than 29 cents per pound, for the more expensive orange juice concentrate, the firm saved approximately $1 per pound for every pound of concentrate replaced. The substitution saved Apple Valley more than $2 million from 1986 through 1988.

Part 2:  The DeVos-Fraudster Saur-Felonious Apple Valley International Connection

Within months of the fraud convictions, enter Dick DeVos, the DeVos Family, the DeVos Family holding company RDV Corporation, and DeVos Family crony and business manager, Jerry Tubergen.

On July 26, 1994, on behalf of Dick DeVos' and his family's RDV Corporation, Jerry Tubergen formed Apple Valley Acquisition, L.L.C..  Jerry L. Tubergen was named the resident agent of the limited liability company.  The address for Apple Valley Acquisition, LLC, was the same Grand Rapids address used by Tubergen, the DeVos Family, and RDV Corporation.  Additionally, the articles of organization for Apple Valley Acquisition, L.L.C. were prepared by the Grand Rapids law firm of Warner, Norcross & Judd.  As NurseEye indicated in this diary, Warner Norcross is the Amway family's law firm.

The 1995 annual report for Apple Valley Acquisition, L.L.C. was signed and filed by Jerry L. Tubergen and indicates that Tubergen was the manager of the limited liability company.

On June 14, 1995, manager Jerry L. Tubergen filed with the State of Michigan amendments to the articles of organization for Apple Valley Acquisition, L.L.C., changing the name to Apple Valley International, L.L.C.  The address for the limited liability company was changed to 1991 Twelve Mile Road, Sparta Michigan 49345.  Convicted juice adulterator Mark Saur became the resident agent of this business entity formed by RDV Corporation and the DeVos Family.

On December 1, 1998, the name of the limited liability was again changed by amendment of the articles of organization to become, "Old Orchard Brands LLC".  The limited liability company continues to operate under that name today.  Mark Saur's father, Roger V. Saur, had previously formed Old Orchard Brands, Inc., but that corporation was dissolved in 1993, shortly after the federal charges were filed against Saur.

More information about the history of Old Orchard Brands LLC is available here:

Old Orchard Brands was founded on the site of an apple orchard in the small town of Sparta, Michigan, in 1985. The company's 23-year-old founder, Mark Saur, purchased the land from his father, Roger, and formed two businesses, Apple Valley International and Old Orchard Brands, to make and sell frozen concentrated apple and orange juice.

Part 3.  Connecting More Dots: DeVos, DeVos Crony Tubergen, Fraudster Mark Saur, and the Orlando Magic

In the summer of 1995, the juice company entered into an exclusive 5-year deal with the Orlando Magic, which is the NBA franchise owned by the DeVos Family.  At the time, DeVos Family business manager Jerry Tubergen also served as member of the governing board of the Orlando Magic.  As reported by the New York Times:

ORLANDO MAGIC -- Announced the formation of a governing board. Named Richard M. DeVos chairman; Cheri DeVos VanderWeide vice-chairman and Doug DeVos vice-chairman. Named Jerry Tubergen, Dick DeVos, Pat Williams, Jack Swope and Bob VanderWeide as the other board members.

Referenceforbusiness.com provides some further detail on the Saur-RDV-Orlando Magic connection:

After settling the matter, Saur and the business moved forward, and by 1995 Apple Valley was marketing 12 different varieties of frozen juice and had annual revenues of $35 million, while employing just 23. The juices continued to be distributed primarily in the Midwest, but during the year an agreement was reached with the Orlando Magic basketball team to make the firm its exclusive juice supplier for five years. The team's logo would appear on Apple Valley juices, 11 varieties of which would be marketed in the Orlando area. Orange juice was omitted, as the firm believed it was unlikely to do well in the heart of orange country. The deal had largely come about because the Orlando Magic was owned by Amway Corp. affiliate RDV Corporation, located in nearby Grand Rapids.

. . .

"Juice Firm Inks Deal with Orlando Magic," Grand Rapids Press, July 26, 1995, p. 10A.

So despite this company's involvement in fraud, and a felony conviction in federal court, Dick DeVos and his family had no problem just months later entering into a business deal with fraudulent adulterator Mark Saur and his company Apple Valley International, Inc., through Apple Valley Acquisition, L.L.C., which was eventually renamed Old Orchard Brands LLC.

Part 4:  Fraudster Saur Supports Dick DeVos:  The Pay Back?
Like Jerry Tubergen, the former Alterra Chairman and DeVos Family business manager, Mark Saur also has given the maximum financial contribution allowed under Michigan law to the Amway Guy.

According to Secretary of State Terri Lynn Land (R-Amway Guy's Back Pocket), on May 2, 2006, Mark Saur gave $3,400.00 to Dick DeVos for Governor.  That's the maximum amount allowed by law. 

Interestingly, support for the Amway Guy apparently is a Saur family affair:

- On the same date, 05/02/2006, Lisa Saur also gave the maximum $3,400.00 to DeVos for Governor.  She reported her occupation as "HOMEMAKER". 

- On 05/01/2006, a Megan Saur also gave the maximum $3,400.00 to DeVos for Governor.  She reported her occupation as "STUDENT".  Like her parents, she listed her address as 4894 Catamount Trl, Ada, MI 49301.

- On 05/03/2006, a Melissa Saur also gave the maximum $3,400.00 to DeVos for Governor.  She also listed her occupation as "STUDENT" and used the same address in Ada.

Here's a screen cap from the Secretary of State's website showing the contributions to Team Amway Guy:
Fraudulent Adulterated Contributions?

So, the Saur homemaker and students earned all of the money used for the contributions on their own?  They were never directed to make these contributions by Mark Saur or the DeVos campaign?

How many homemakers do you know with $3,400.00 to burn on a contribution to billionaire Dick DeVos's campaign for governor?

How many students do you know with $3,400.00 in their pocket who would willingly choose to spend it on some 50 year-old Republican running for governor?

Is this credible?

Any lawyers out there care to speculate on whether they believe Mark Saur and Team Amway Guy are evading contribution limits and Michigan law?


If Dick DeVos and his family would enter into a business relationship with someone convicted of deceptive business practices, doesn't the public deserve to know?

Will the mainstream media inquire into these issues?  If so, will they find people involved in the apple business in West Michigan with some interesting information about Dick DeVos, his family, apple concentrate, and Old Orchard?

Wash those tasty Amway Asia profits down with tasty apple concentrate from Communist China

What else does Dick DeVos not want you to know?

Tags: , (All Tags)
Print Friendly View Send As Email
MSM? (4.00 / 1)
Has this been anywhere or do you have another scoop?

MSM Use Google and the State Website? (4.00 / 2)
That would be hard work.

[ Parent ]
Rub-a-dub (4.00 / 4)
Michigan's campaign finance law prohibits money laundering:

A contribution shall not be made by a person to another person with the agreement or arrangement that the person receiving the contribution will then transfer that contribution to a particular candidate committee.

It would have to be determined in a criminal trial, with Terri Lynn Land and Mike Cox bringing the charges, whether Saur and Tubergen and their individual family members used their own funds, or if they got dollars from Dick, all sudsed up and rinsed squeaky-clean.  It's not that hard to follow the money:  bank statements, check clearings, large withdrawals of cash at once.  Cox was trying to pin the exact same charges on Fieger back when our AG was having his Jimmy Swaggart Moment.

But for some reason, convictions for money laundering are fairly rare when politicians are involved.  Must be because they're all so honest.


Most Execellent Work... (4.00 / 2)
... you have here DemWave.  This is one of the best research pieces up so far (and there have been many execellent pieces up so far).

Part 5 is the story of the apple concentrate dumped here from China directly and who gained from those transactions. Somewhere there is a record of these imports, and a legal action initiated by Apple Growers to stop the dumping.

This rabbit hole has more depth. We would say keep digging, but you've done quite a bit so far, and that takes work, in your case, and others here too, excellent work.

The MSM and several reporters have been notified of this story and pointed to it, but they remain silent. What are they doing? Sitting there looking at the longest list of scandals and sleezy dealings of DeVos & Co. sipping coffee thinking, "better not" that's "too risky".

There is NO WAY this story will not break, and those in the MSM that are not leading these investigations should be embarrassed that citizens of Michigan have to do their own reporting. It's shameful.

Waiting breathless for the other shoe in this story.

Rotten to the Core, these people are... they don't care about Michigan, our economy, our institutions, our children, our future, their very own communities and neighbors... it is all about personal PROFIT, period.


Additional tunnels of this rabbit hole... (4.00 / 2)
... can be found here:

The bottomline from some web chatter:

"That's because your probably a hobby farmer. It's not always what you have, but trying to get a fair price, and then paid for it after it has been sold. The farm market use to only compete among other states. Now it has to compete with other countries like China that can use slave labor and all the cheap chemicals banned in the USA. The countries South of us aren't much different . Right near Sparta, Michigan the center of our states fruit industry we have Old Orchards Juice Company. It got very large when Amway put a lot of money into it. It's my understanding that China doesn't let Amway take money out of their country. Amway is given Apple Concentrate instead that is bottled at the Old Orchards Juice factory. By the way, Old Orchards bull dozed out their old orchard like many others who have been forced to because of the cheap juice prices."

The mysterious Dick DeVos' Bermuda company "Apple Hold Co., L.P.” (SEC filing):


This Rule 13e-3 transaction statement on Schedule 13E-3 (this "Schedule  13E-3") is being filed jointly by New AAP Limited, a Bermuda corporation ("New AAP"), Apple Hold Co., L.P., a Bermuda limited partnership ("Apple Hold Co."), Amway Asia Pacific Ltd., a Bermuda corporation ("AAP"), Richard M. DeVos, Jr.

(Break)
On November 15, 1999, Amway Asia Pacific, New AAP and Apple Hold Co. entered into a tender offer and amalgamation agreement providing for the tender offer, the principal shareholders, other than the charitable foundations that tendered their shares pursuant to the tender offer, contributed 46,814,950 shares to Apple Hold Co. As a result of the tender offer, the principal shareholders, as limited partners of Apple Hold Co. indirectly beneficially own 97.4% of the shares

(break)
“Apple Hold Co., L.P.” has been a Group Member with the following 10 Group Members:
Amway Asia Pacific Ltd
Amway Corporation
Ap New Co. LLC
Jay Van Andel
Jay Van Andel Trust
New Aap Limited
New Aap Ltd
RDV Corporation
Richard M. DeVos, Jr
Stephen A. Van Andel


Aside: Just how many of DeVos' companies are registered in Bermuda anyway?

Stories appear across Michigan on Chinese Apple Juice dumping (September 30, 1998):

"Apple imports could be hurting West Michigan orchards. Apples are rotting on the ground of several large area orchards, just because it costs more to harvest them than growers can get paid for juice apples. China is the world's number one apple grower. U.S. apple growers fear China is dumping boatloads of concentrate at ridiculously low prices, wrecking the world market. The Michigan Agriculture Department may soon ask the governor [Engler] to complain to President Clinton, who in turn could request the U.S. International Trade Commission to investigate. That body could impose tariffs or import quotas."

And the imported commie juice starts to take effect, a couple examples:

"National Fruit Company closes Kent City processing plant. The plant, which was Kent City's largest employer, is a victim of "corporate down-sizing." It employed up to 160 workers during harvest season and processed nearly one-twentieth of Michigan's total apple crop. National Fruit Company operated in Kent City for almost forty years, beginning operations there in 1959."

"Going, going, gone! It was an apple orchard in Sparta: sixteen parcels of property and an auction later, the Reister family orchard is gone, sold to the highest bidders."

Another part of the dumping history from the Fruit Growers News in "Michigan legislators boost country-of-origin juice labels" (April, 1999):


"Ten members of the U.S. Congress sent a letter to the U.S. Customs Service urging an investigation of improper country-of-origin labeling. The letter was drafted following a February visit of growers to Washington arranged by Michigan Farm Bureau."

(break)

"Since 1995, China has increased its export of Apple Concentrate to the United States from 900,000 gallons to almost 69 million gallons. The average price paid for imported apple concentrate was $10 per gallon in 1995. Today, it is about $4.50, with the Chinese concentrate selling for even less - $3.50. The break-even point for U.S. produced apple concentrate is $7.50, making the current situation a losing proposition for growers."

The story continues in "Fruits and Vegetables: Issues for Congress" a CRS Report Updated September 4, 2002:

Chinese Apple Juice Concentrate. Because of increasing Chinese apple juice imports between 1995 and 1998 and declining prices that resulted from those imports, the U.S. apple industry filed an antidumping petition against China in June 1999. The U.S. Apple Association asked the U.S. Department of Commerce and the International Trade Commission to impose a duty on Chinese apple concentrate, arguing that it was sold at below the cost of production. On May 15, 2000 the ITC ruled that apple juice concentrate imports from China were being sold in the United States at less than fair value and were economically harming U.S. apple producers. On June 5, 2000, the Department of Commerce imposed antidumping duties of 51.74 % on most Chinese apple juice concentrate imports. News reports have indicated that prices for U.S. apples significantly increased once the duties on Chinese apple juice were in place. In July 2001 the U.S. apple industry petitioned the Department of Commerce contending that semi-frozen apple juice concentrate from China was within the scope of the antidumping duty. The apple industry charged that Chinese concentrate suppliers were evading the U.S. antidumping duties by chilling non-frozen concentrate to a semi-frozen state and declaring it “frozen concentrate.” The Commerce Department found on October 1, 2001, that “semi-frozen” apple juice concentrate is classified as “frozen” and therefore does not fall within the scope of the antidumping order which applies only to non-frozen apple juice concentrate."

And more recently, in 2005 Rep. Dave Camp in a Congressional Hearing on China (Richard Holwill, Alticor's China Lobbyist was also there pushing Amway's China agenda BTW):


"The estimate is 210,000 jobs since 1995 to counterfeit parts worldwide, not just China, $12 billion a year to the industry alone.  The time for reports is over.  We would like to see some action on this area.  Then if you move into the agricultural area, for example, with regard to apples.  We have a similar situation where there has been no action, and the flood of cheap imports of apple concentrate and fresh apples that are really undercutting the livelihood of Americans.  So, I guess I would just echo the comments of some of my colleagues that not enough is being done, and I think that we are going to need to see some action as soon as possible.

Interesting story isn’t it? Keep sqeezing, there's Chinese juice in there somewhere.

Maybe someone at the MDA (in 1995-99 under Engler) knows the rest of the story. Someone at MDA must know there is more than just those nasty "Asian Long Horned Beetles" in the bushes near Sparta & Ada, and bet they are wearing "I love Amway" hats.



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