YTB International, Inc., a multi-level-marketing travel company that is facing both legal challenges and declining revenues, said CFO John D. Clagg resigned earlier this week. “John was a well-respected and vital member of our executive team and the value he contributed to the organization is immeasurable,” said Robert Van Patten, YTB’s CEO. “His leadership will undoubtedly be missed. The company wishes him the very best in his future business endeavors." YTB's board of directors appointed Van Patten to serve as interim chief financial officer in addition to his role as CEO until a permanent CFO is found.

Last May California Attorney General Edmund Brown Jr. announced an agreement forcing YTB International to stop what he called the “deceptive marketing” of its travel websites and prohibiting the company from charging consumers nearly $500 to recruit others into its chain scheme. That same month, the Illinois attorney general led a suit charging consumer fraud against J. Lloyd Tomer and J. Scott Tomer, co founders of YTB, which the attorney general called a “classic pyramid sales scheme” in his complaint. In October, J. Lloyd Tomer resigned as director and chairman in order to spend more time coaching sales associates, according to YTB, and Van Patten was named president and CEO. In November, the company reported that its third quarter revenues had declined 62 percent, citing a decline in sales of new Internet Business Centers (IBCs) and a decrease in the number of active IBC site owners. For more information on YTB from the company itself, visit www.ytb.com or www.thefactsaboutytb.com.
 

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