A bankruptcy Trustee has claimed JRJR33 President, CEO and Chairman of the Board, John P. Rochon, with the assistance of his children,
‘pillaged and decimated more than a dozen companies under his control’
.

Rochon Sr. is a named defendant in the complaint, along with his children John Rochon Jr. (right, JRJR33’s Vice Chairman, CFO and Treasurer) and Heidi Rochon Hafer (JRJR33’s General Counsel).

Other corporate and individual defendants include former Board Directors Michael Bishop and William H. Randall, and R-Nine Nine Nine Inc (a holding company owned by Rochon).

The allegations stem from
JRJR33 bankruptcy proceedings
, which saw a number of MLM companies collapse (notably
Agel
and Longaberger).

In an adversary complaint filed on June 26th, the Trustee claims

exorbitant insider management fees and expenses destroyed any significant asset value of the debtors and their affiliates.

Aided by a hand-picked and ineffectual board, the Rochon defendants failed to protect the value of the Debtors’ sizable assets, causing significant financial injury to the Company and its creditors and stakeholders.

Whatever John R. Rochon ordered was followed largely and without question of meaningful resistance.

Such negligence, waste, inaction, and breach of fiduciary duty and loyalty form the basis for this lawsuit.

The Trustee alleges Rochon Sr. (right) was able “manipulate” JRJR33, through a “complex and convoluted web of related entities”.

A breakdown of JRJR33’s business model by the Trustee states the company targeted businesses “for acquisition” that were “troubled or underperforming.

This was on the basis JRJR33 and its executive team were “experienced professionals in business integration”.

It quickly became clear, however, that the individual defendants were not skilled turnaround professionals.

The individual defendants were indeed proficient at spending money, just not on the kinds of things that added shareholder value.

The references to the individual defendants and their contributions to the company as found in the company’s SEC filings and investor materials are mostly generic business buzzwords, like “finding efficiencies”, “spotting opportunity for top line growth”, and “efficiencies by eliminating duplication of efforts and costs”.

Unfortunately, there is no substance to these hollow descriptions, and the company’s operational “infrastructure,” as touted by the individual defendants, was virtually nonexistent.

According to the Trustee, Rochon Sr. and the defendants paid Richmont Holdings, another holding company controlled by Rochon, “millions of dollars every year” for “advice and assistance”.

But even after years of this so-called “advice and assistance” … JRJR33 was plagued by material weaknesses in its financial and compliance controls.

In reality, Richmont Holdings was not providing value to JRJR33, it was sucking it dry.

The only reason Richmont Holdings was paid was because it was owned and operated by Rochon and Ro

🤖 Quick Answer

Who is John P. Rochon and what are the allegations against him?
John P. Rochon is President, CEO and Chairman of JRJR33, accused by a bankruptcy Trustee of orchestrating systematic corporate fraud. The complaint alleges he, along with his children John Jr. and Heidi Rochon Hafer, misappropriated assets and pillaged multiple companies under his control, causing collapse of MLM firms including Agel and Longaberger.

What entities and individuals are named defendants in the complaint?
The adversary complaint filed June 26th names John P. Rochon Sr., his children John Rochon Jr. (Vice Chairman, CFO, Treasurer) and Heidi Rochon Hafer (General Counsel), former Board Directors Michael Bishop and William H. Randall, and R-Nine Nine Nine Inc, a holding company owned by

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