Paul Schneider, previously sanctioned in Missouri for securities fraud, has ties to Med Saver Direct, a pharmacy discount company. Operating from St. Louis County, Missouri, the company recruits distributors through a multilevel marketing model. Its website, however, keeps ownership details deliberately vague.
Domain registration records show Paul Schneider registered medsaverdirect.com on February 20, 2014, listing a Missouri address. His YouTube account hosts the company's official marketing videos. The website itself never explicitly names Schneider as an owner.
This lack of transparency becomes important when examining Schneider's past. In 2012, the Missouri Securities Division issued a cease and desist order against him for securities fraud. A year later, in May 2013, Missouri filed an enforcement action. State regulators found that Schneider "offered and/or sold unregistered, non-exempt securities." The enforcement order permanently barred him from offering or selling unregistered securities and ordered him to pay $7,000 in restitution.
Schneider provided his own account of Med Saver Direct's origins. He stated Craig Berens hired Marathon Software, Schneider's firm, to build a system selling services from BidRx, a pharmacy discount program. Berens had an agreement with Dr. Ralph Kalies to distribute BidRx services through associations and MLM channels. Schneider built the custom system for $20,000, integrating payment processing and eligibility verification APIs. He became Berens's first distributor.
Schneider recruited Larry Lalumondiere, who then built a team of over 2,600 distributors in six weeks. Weekly commissions flowed during that time. Berens made $11,000 after expenses in the first week alone. Schneider, managing backend operations, saw all vendor costs and field sales commissions.
But things fractured. Key salespeople within Lalumondiere's downline, who had spoken directly with Berens, formed a "Leadership Group." This group immediately excluded both Schneider and Lalumondiere. They pitched Berens on billion-dollar potential, presenting the two founders as obstacles. Schneider was terminated without cause.
Lalumondiere subsequently launched Med Saver Direct.
The company's stability raises questions, particularly with a founder who faced a securities fraud enforcement order. His role remains hidden from public view. Med Saver Direct customers and potential recruits cannot know from the website that Schneider, the registered domain owner, faced state sanctions for selling unregistered securities. Schneider remains barred from offering or selling unregistered securities in Missouri.