David Van Sambeek focuses his practice on the organization and operation of direct sales and multi level marketing companies with an emphasis on regulatory compliance, illegal pyramids, Ponzi schemes, corporate counsel, employment issues, and various transactional matters.

Mr. Van Sambeek has counseled companies and distributors throughout the world on the operations and regulatory issues unique to the direct sales and multi level marketing industry. He has launched direct sales companies in foreign countries including Mexico, Canada, Ecuador, Columbia, Chile, Peru, Ukraine, Russia, and various EU nations.

Outside of the direct sales industry, Mr. Van Sambeek represents clients on corporate, securities, business formation, franchising, and intellectual property matters. His practice involves both sophisticated transactional work and litigation. Mr. Van Sambeek works closely with the firm’s Litigation Department on direct sales and complex business-related lawsuits, often contributing his knowledge in trade secret, contract, and marketing disputes.

Mr. Van Sambeek is a member of the Orange County Chapter of the Association for Corporate Growth (ACG), and the Association of Network Marketing Professionals (ANMP), and serves on the Board of Directors for the MultiLevel Marketing International Association (MLMIA).

When not in the office, David can be found at the beach surfing with his sons.

Operating an MLM post-Herbalife and post-Vemma

  • December 22nd, 2016

By David VanSambeek, Esq.*

A few months back the FTC and Herbalife concluded an investigation that many projected would “reshape the MLM regulatory landscape.” The Herbalife settlement just reconfirmed many of the regulatory principals that […]

  • Which type of entity is right for your business?

Which type of entity is right for your business?

  • January 12th, 2013
Choosing the right entity is an important decision facing many small business owners and entrepreneurs. There are several business forms to choose from, each of which create different legal and tax consequences. Most importantly, there is no simple answer as to which entity is appropriate for each type of business owner or business industry.
  • Selling a Founder Position

Selling a Founder Position

  • January 12th, 2013
With many entrepreneurs, having the capital to successfully launch their new business is one of the biggest hurdles to overcome.  This is no different when starting a network marketing or direct sales business.  One significant mistake, that I see time and time again, is a new Network Marketing company selling their top business positions in the genealogy for prices in excess of that which a normal distributor would pay to become a distributor.
  • Is This a Pyramid, a Ponzi, or a Legitimate MLM?

Is This a Pyramid, a Ponzi, or a Legitimate MLM?

  • January 12th, 2013
If you have been following the news lately, I am sure you have heard of multi-billion-dollar fraud schemes that have left hundreds, possibly thousands, of investors broke.  Despite all this recent media attention, I have noticed that many individuals, including those in the media, haven’t grasped the differences between an illegal pyramid and a ponzi scheme (and NO, they are not the same thing).
  • What can an MLM company do when a former distributor cross-recruits?

What can an MLM company do when a former distributor cross-recruits?

  • January 12th, 2013
Many times we receive calls from our MLM clients asking what can be done when a former distributor is poaching or cross-recruiting distributors to participate in his or her new MLM company.  We will assume that the former distributor has  already been terminated or resigned from the original MLM company.

  • Represented numerous multi level marketing companies in the successful launch of their businesses in the United States.
  • Negotiated successful resolution for multi level marketing company in the USA in a distributor dispute where the distributor resided in Japan.
  • Negotiated settlement for multi level marketing company against the US Department of Justice and US Food and Drug Administration in a case alleging product health and drug claims.
  • Assisted numerous multi level marketing companies in international expansion efforts throughout North and South America, including company formation, contract preparation, receipt of import permits, and foreign trademark registrations.
  • Successfully resolved complaint from the Electronic Retailing Self Regulation Program against a client company for alleged prohibited health claims.
  • Negotiated and drafted direct response (infomercial) agreement between a client company and one of the largest infomercial producers in the United States.
  • Successfully resolved numerous regulatory inquiries from various State Attorney General Offices, the BBB, the FDA and the SEC.
  • Prepared various 504, 505 and 506 offerings for private placement capital raises for corporate clients.
  • Defended corporate client against patent infringement lawsuit resulting in settlement and dismissal of state lawsuit and complaint before the International Trade Commission.