Dedicated Memorial Parent

 

To: Members of Senate Hearing on SB-80

 

From:

Dedicated Memorial Parents Group

Phil Ellenbecker, Director

704 Mark Drive

Verona, WI. 53593

 

Public Hearing on Bill SB-80

Malinda’s Traveling Sales Crew Protection Act

 

April 10, 2007

Wisconsin State Capital

 

Amended for accuracy April 25, 2007.

 

Testimony of Phil Ellenbecker:

 

Before I begin I would like to thank the senate committee members for giving me the opportunity to speak on behalf of Senate Bill SB-80 this morning.

 

I would also like to thank Senator Erpenbach, and his staff for helping to bring this very important legislation to your attention today.

 

And last I would like to thank the Department of Workforce and Development, the Department of Agriculture Trade and Consumer Protection for their continued support of this bill and for their ongoing work with this most serious problem.

 

I would like you to keep in mind that the SB-80 bill is structured to protect Wisconsin children, young adults, and homeowners from the brutal violence that has plagued the traveling door to door sales industry both her in Wisconsin and across the country. The bill is a matter of public safety and as such requires that the protection and safety of Wisconsin kids and homeowners must take priority over any out of state companies. I would also like to point out that there are no traveling door to door magazine or cleaner companies that our organization is aware of that originate from the state of Wisconsin. All of the fraud, rape, murder, and vehicular death that has occurred in our state has come from outside of our borders. The SB-80 bill is structured to give law enforcement, state prosecuting attorneys, and civil attorneys the necessary tools to go after the door to door sales companies when their sales agents commit crimes. One such crime occurred on March 25, 1999. On that night my only daughter Malinda died bleeding to death alone on a cold cement highway from a crushed skull. Six others also lost their lives that night. No one was there to comfort, or hold them as their lives slipped away. Along with the seven deaths, five other children were also permanently maimed for life in one of Wisconsin's most horrific traffic accidents in the history of our state.

 

I can tell you from the depth of my soul that every waking minute of every day Malinda is in my heart. She was a beautiful child with a wonderful future. She was loved by many and had so very many dreams.

 

Now all we have are memories of a time that is gone forever. Her life and part of mine ended that night. I buried Malinda not more than five blocks from where she lived and I drive by the cemetery taking my son Dustin to his friend's house almost every day. And still to this day we become so very quiet as we pass by her in the car. I think that if you have children then you know what I am trying to say but it is not something that can be put into words and it is not something that you can experience unless you have

lost a child.

 

The death of my daughter affected my son severely. One of the hardest things that I have ever had to do in my life was to tell my eight-year-old son Dustin that his sister Malinda was dead and in heaven with the angels.

 

It has been eight years this past March 25 since the horrible van crash that took my daughter's life and the lives of six other children. Since March 25, 1999 there have been 30 more deaths across the country that we are aware of. Two of these deaths have occurred here in Wisconsin. Currently Wisconsin has the highest percentage of deaths related to traveling door-to-door sales crews in the country. In total eleven lives have been lost in Wisconsin, nine deaths by vehicular accidents, one death by drowning, and one death by murder.

 

Just as recent as July 5, 2005 a 50-year-old Menonomine, Wisconsin woman was brutally beaten, sexually assaulted, and robbed. The offender was working for a traveling door to door sales company selling magazines out of Florida by the name of Palmetto Marketing. Palmetto marketing has a long history of violent crime and a long history of not doing background checks on their sales agents.

 

The traveling door-to-door sales industry is totally out of control. There are currently no federal or state laws regulate the industry.

 

Since November of 2006 there have been 2 murdered magazine sales agents, 1 sales agent death by drug overdose, 5 rape cases, 2 sexual assaults, a kidnapping/attempted sodomy case, and two more van rollovers.

 

Because of the continued and escalating crimes the Dedicated Memorial Parents Group has added a wanted page to our traveling sales crew’s information website: (www.travelingsalescrews.info .) Currently we have logged 3 unsolved murders and 3 unsolved rapes. All directly related to the door too door sales industry.

 

In total since the Dedicated Memorial Parents Group started monitoring these crimes in 2002 we have logged over 200 criminal felony cases and 74 deaths. The crimes are almost always against homeowners and range from fraud, burglary and felony assault to sexual assault, rape and murder.

 

After the Janesville van accident Attorney General Jim Doyle sent letters to the publishers warning them to stay out of Wisconsin. The letters were ignored.

 

Since my daughter Malinda and the other six kids were killed on March 25, 1999 there have been nine more traffic fatalities. A van crash that occurred in Wyoming killed one girl, seriously injured four, and critically injured a young boy. The boy was clinging for his life with a cracked skull, a punctured lung, broken rips and other major injuries. The death just occurred on April 22, 2004 in South Dakota and is being treated as a homicide. More recently on November  27, 2005 a van crashed near Phoenix, Arizona killing to kids and on October 26, 2005 another van crash killed a magazine sales agent in Adel Georgia. This is also being treated as a vehicular homicide.

 

 

The traveling door to door sales industry has become a silent killer of youths in America. It is without question a growing national tragedy.

 

Many labor officials, critics, and even our own former Attorney General Jim Doyle have coined these groups: "teen sweat shops of the streets." Many of the crews are on a daily basis are breaking child labor and state solicitation laws.

 

Kids who have the misfortune of being recruited into these crews are lured in and lied to. Many are abandoned, physically and mentally abused, introduced to drugs, and cut off from their families and friends. Girls are forced to have sex with the managers and are told that if they do not comply they will be abandoned without any money sometimes thousands of miles from their homes.

 

One magazine sales crew out of Texas forces the male sales agents to box each other if their sale for the day is low. The other kids are forced to bet on the winner. We have pictures from a former crew manager showing bruised and bloody faces.

 

Those that can get out before it is too late survive, but with horror stories that haunt them for life.

 

Many of these kids never come home.

 

The dirty business of child exploitation is alive and well in the door to door sales industry. Children and young adults across this country are at risk of being falsely lured into this brutal and immoral business.

 

But Children and young adults are not the only victims of this out of control and unregulated industry. Our research has uncovered an alarming trend in violent crimes being carried out against anyone unfortunate enough to open their door to a traveling sales crew member. Many of the individuals hired by the unscrupulous fly-by-night sales crew recruiters have criminal backgrounds. Our records show that these individuals have committed some of the most heinous crimes imaginable, crimes that have destroyed lives and devastated families across the country.

 

But the real villains of this national tragedy are the clearinghouses and publishers that on a daily basis continue the dirty business of sales by exploitation without legal entanglement.

The clearinghouses and publishers maintain their distance from any legal entanglements by insisting that the kids working on the sales crews are independent contractors when in reality the passage of money flows directly from the crew subscriptions, to the clearing house and then on to the publishers. This arrangement is not by accident. It has been thought out and planned this way in order to minimize any legal and liable connection between the kids selling products door to door and the clearinghouses and publishers. This arrangement also virtually eliminates any rights that the kids would have if they were considered employee’s of the sales crews. By manipulating the grey area of law the clearinghouses and publishers can literally get away with murder. The children have no rights, no minimum wage, no insurance, and no benefits and are treated as indentured servants and slaves. The independent contractor arrangement also saves the door to door sales companies a lot of money. The Southwestern Company out of Nashville, Tennessee is no different when it comes to how they hire young adults. Their door to door sales agents are also considered independent contractors. This affords the company a great amount of saving while producing substantial profits for the company. It also gives them the same legal barrier from the law if one of their sales agents commits a crime.

 

Last year the Southwestern Company protested the SB-251 bill during a house small business committee hearing after the bill had been unanimously passed through the Senate. There argument was that it would affect their so called “business model.” What they were actually protesting was the fact that they do not want to make their sales agents employees of the company because it would cost them money and cut into their profits.

 

On August 20, 2002 Brian L. Grewe Jr. a UW of Lacrosse student working for Southwestern Company was in a vehicular accident in Picayune, Mississippi. The accident left Mr. Grewe paralyzed from the waist down for life. Mr. Grewe filed a lawsuit against the Southwestern Company and on July 5, 2005 John R. Tunham a United States District Judge out of Minnesota denied Southwestern’s motion to dismiss. This decision allowed for the civil lawsuit against Southwestern to continue and ultimately lead to well deserved victory for Mr. Grewe.

 

Last year Southwestern stated that they wished to work with us to find some reasonable way for them to continue operating under their current “business model.”

What they really meant was that they wanted to be exempt from the SB-80 legislation. Southwestern did not help us with this legislation, they tried to destroy it. Southwestern is not interested in the well being and safety of Wisconsin kids and home owners, they are only interested in making money. Because of Southwestern’ greed for money and because House Representative Carl Van Roy sided with Southwestern for reasons unknown Wisconsin has gone another year without protection. We cannot allow this to happen again. We must put the safety and well being of our kids and homeowners before an out-of-state company that has money as their motive.

This entire process of watching what happened to our bill last year makes me sick. How could a representative of the State of Wisconsin side with an out-of-state company and neglect his duties as a representative to protect the best interests of Wisconsin. It is a question that has haunted me for the past year. 

 

During the house small business committee hearing last year a UW of Wisconsin recruiter working for Southwestern company was asked if she was aware of any problems with their industry. Her answer was no. In reality besides the Grewe accident there was another vehicular accident

on September 6, 2003 five miles south of Platteville, Wisconsin. In this accident two girls working for Southwestern were injured. Jenny Kwon was seriously injured and sustained serious back injuries and a collapsed lung.

The Southwestern Company has also been banned from 2 college campuses, the University of Durham in England and the University of Iowa. The reasons given for their being banned were high pressure recruiting tactics and truth in hiring violations. As far as we are concerned the Southwestern Company’s recruiting tactics are not unlike the traveling magazine sales company’s.

 

The Janesville, Wisconsin van accident has cost the state of Wisconsin millions of dollars. Our lawsuit against the magazine companies was in many ways a failure. Our attorneys blamed lax state legislation as the main reason why we could not win our case against the magazine companies and the clearinghouse. Out of the 9 million dollars that it will take to care for Monica Forgues (the little girl paralyzed from the neck down) the state of Wisconsin was only able to recover $500.000. Wisconsin tax payers will pay for the rest.

 

Three years ago the Dedicated Memorial Parents Group worked with the Wisconsin Department of Education and together with the 12 CESA's in Wisconsin we distributed Dedicated Memorial posters to every high school in the state in an attempt to warn our kids and their parents about the many dangers involved with door-to-door sales. But education alone will not solve this problem and will certainly not protect our homeowners and consumers.

 

The magazine and cleaner crews come into our state, recruit our kids, rip off our consumers and commit crimes against both the kids and homeowners. They fraud our consumers by marking up the price of a subscription as high as 300% over the actual cost and they lie to the homeowner, telling them they are from the local high school and working toward a scholarship.

 

This is not a republican or a democratic issue, it is not a big business issue, this is about protecting our children and homeowners from exploitation and crime.

 

Senator Erpenbach has created a piece of legislation (SB-80) that we believe would be a very good bill for the State of Wisconsin. If passed it would most certainly help detour the sale crews from preying on our kids and homeowners. It would also send out a very powerful message to the National Field Selling Association (the sales crews and clearinghouses trade group) and to the Magazine Publishers of America. The bill could also be used as a model for other states that would like to follow Wisconsin's lead. Wisconsin was the first state in the union to adopt child labor laws. I am asking you today to continue that tradition by passing the SB-80 bill on through the Senate.

 

I am asking you for my daughter Malinda and for the other six kids that died on March 25, 1999 and I am asking you for all of the thousands of children and families that have been brutalized by this most violent and immoral industry.

 

Thank you for your time.

And thank you for your consideration in this most important matter.

 

Sincerely,

 

Phil Ellenbecker

Director

The Dedicated Memorial Parents Group

April 10, 2007

 

Contacts:

Dedicated Memorial Parents Group

Phil Ellenbecker

704 Mark Drive

Verona, WI. 53593

 

Home Phone: 608-845-1711

Work Phone: 1-608-838-4197 x161

Fax: 608-838-8367

 

Email: trollpt@charter.net

Websites:

www.travelingsalescrews.info

www.dedicatedmemorial.org

 

For further information on door to door sales crews:

www.parentwatch.org

www.magcrew.com