Thirty-three affiliates of Success by Health funneled nearly $600,000 into the company's legal defense, according to federal court records, as they repeatedly sought to overturn an injunction against the multi-level marketing firm and its owner, Jay Noland. This figure, revised by the Receiver, far exceeds the initial estimate of $250,000.
Initially, 108 Success by Health affiliates filed declarations attempting to reverse the preliminary injunction. Many of these filings sidestepped the Federal Trade Commission's core legal arguments, instead alleging racial bias by the court. The court dismissed this claim as frivolous, admonishing the individual defendants' counsel for raising such an argument. The injunction against Success by Health and Noland remained in place.
Now, 33 affiliates, identified as likely top earners, seek to intervene in the ongoing litigation. This follows an earlier failed attempt to join as defendant parties several months prior. Their current motion represents another bid to overturn the preliminary injunction.
The FTC opposes this intervention, citing its untimeliness. The affiliates filed their motion 13 months after the case began, a year after submitting declarations, and nearly two months after discovery concluded. Courts had already rejected a similar effort months earlier due to these delays.
The FTC argues the 33 affiliates' interests are already represented. The public interest aligns with the FTC's actions. Opposition to the FTC's claims is covered by Success by Health and Noland's existing defense counsel, largely funded by these same affiliates. These individuals have collectively spent close to $600,000 on the company's legal bills.
The financial support began early in the case. Unidentified individuals paid previous defense counsel $100,000 from the start of the litigation until shortly after the preliminary injunction was issued. Jeffrey Wright, an SBH affiliate and Scientific Medical Advisory Board Member, contributed an additional $130,000 within 45 days of the temporary restraining order. The FTC suspects Wright further assisted Noland in violating the injunction.
Since December 2020, the law firm currently representing Success by Health and Noland reported receiving $466,517.58 through December 9, 2020. Of this, at least $218,300, or 47 percent, came from 9 of the 33 affiliates now seeking to intervene. The court also ordered Success by Health and Noland to disclose the source of another $309,217 in legal expenses, a directive they have not fulfilled.
By December 2020, the individual defendants had depleted more than $600,000 in funds from others to defend the case. Ten of the 33 affiliates paid 87 percent of the individual defendants' legal and expert fees. These substantial expenditures have not resulted in overturning the injunction.
The affiliates contend the FTC "fought against affiliates' efforts to speak for themselves" and "opposed testimony of SBH's affiliates." The FTC countered by stating it sought testimony from Jay Noland himself, which the court denied.
When the FTC subpoenaed affiliates for evidence regarding their financial dealings with Success by Health, 5 of 19 subpoenaed individuals, or 26 percent, failed to respond. All non-responders are among the 33 affiliates now attempting to intervene. The FTC had to pursue court orders in two separate district courts to compel responses from two named intervenors, Jo Dee Baer and Jeffrey Wright.
The affiliates claim intervention is necessary because they are "denied access to the [SBH] products" and their "commissions are being withheld." The FTC's response directly challenged these assertions.
The court-appointed Receiver continues to sell Success by Health products. Regarding commissions, no separate fund of earned money exists. The defendants never established an escrow account for affiliate commissions. Instead, they commingled company funds, incurred debts exceeding available commission funds, and used company money to buy luxury items like a Range Rover and motorcycles for the Nolands while affiliates faced financial difficulties.
The U.S. District Court for the Middle District of Florida denied the affiliates' motion to intervene on April 10, 2021.