NAPRx VS. AIMS MEDICAL SALES COLLEGE, MEDICAL SALES COLLEGE

Case 1:14-cv-03297-PAB-KLM Document 16 Filed 01/26/15 USDC Colorado Page 1 of 31
IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF COLORADO
Civil Action No. 1:14-cv-03297-PAB-KLM
NAPRx, Inc., a Nevada Corporation,
Plaintiff,
v.
AIMS MEDICAL SALES COLLEGE, INC.

d/b/a Medical Sales College, a Colorado
corporation; JIM ROGERS, a Colorado resident,
and KIM SMALLEY, a Colorado resident,
Defendants.
AND
MEDICAL SALES COLLEGE,
Counterclaimant and Third Party Plaintiff,
v.
NAPRx, Inc.,
Counterclaim Defendant,
and
NAMSR, Inc., ERIC REINHARD, BRIAN S. KENNEDY,

and Does 1-10,
Third Party Defendants.
ANSWER TO AMENDED COMPLAINT AND JURY DEMAND;

AND DEFENDANTS COUNTERCLAIMS AND THIRD PARTY COMPLAINT
Defendants Aims Medical Sales College, Inc., d/b/a Medical Sales College (MSC), Jim
Rogers and Kim Smalley (collectively Defendants) answer the Amended Complaint and Jury
Demand (the Complaint) filed by NAPRx, Inc., doing business as National Association of
Pharmaceutical Sales Representatives (NAPSR), as follows:
I. ANSWER TO GENERAL STATEMENT
Defendants deny the assertions in the General Statement portion of the Complaint.
NAPSR and the National Association of Medical Sales Representatives (NAMSR) are, in
reality, a joint enterprise that exists for the purpose of defrauding members of the public into
buying pirated manuals to study for and obtain relatively worthless certifications that are
touted by the NAPSR/NAMSR enterprise as essential to obtaining lucrative jobs in the fields of
medical device sales and pharmaceutical sales. This scheme and all of its component parts, as
set forth later in the Counterclaims/Third-Party claims, will be referred to herein as the
NAPSR/NAMSR scheme. The NAPSR/NAMSR scheme is carried out primarily through
various acts of mail and wire fraud.
NAPSR is not a true trade association. Rather, NAPSR and NAMSR are internet
faades created as part of the NAPSR/NAMSR scheme. NAPSR and NAMSR do not reveal to
the public where their operations are actually conducted. Rather, NAPSR and NAMSR either
provide false addresses or an address for a mailbox in a UPS store. Both NAPSR and NAMSR
are registered in Nevada and use the same registered agent, and both have a sole person allegedly
acting as Director, President, Secretary and Treasurer, and that persons address is the same UPS
mailbox in a strip mall. The person who NAPSR has held out as its CEO and President Steven
Neece is different from the person registered with Nevada as President, and is also likely a
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false faade. The Linked-In profile for Mr. Neece was taken down the day after MSC pointed
out to NAPSR that it was a fake profile with a picture of another person pulled from the internet.
NAPSRs assertion that its certification program can be taken in over 300 universities
is false. This assertion is touted in the Complaint and NAPSRs website in an attempt to lend
credibility to the NAPSR/NAMSR scheme. In reality, the NAPSR certification program is just
an online offering of the company called ed2go. Ed2go offers its online courses to students
through a number of colleges. Because NAPSRs course is among the hundreds of online
offerings in ed2gos course catalog that students at participating colleges may take, NAPSR
falsely asserts that its program is accredited (presumably because the participating college is
accredited). NAPSRs program is not accredited. Furthermore, NAPSR lies about the
universities that supposedly offer its certification program again in an attempt to lend
credibility to the NAPSR/NAMSR scheme.
NAPSR and NAMSR have no strong reputation and engage in no real lobbying
efforts. The sole reason for the creation and existence of the NAPSR and NAMSR internet
faades is to promote the NAPSR/NAMSR scheme of pedaling the products of the
NAPSR/NAMSR enterprise i.e., the manuals (largely pirated from other copyrighted sources)
necessary to study for the certifications created by the NAPSR/NAMSR enterprise. These
certifications are the Certified National Pharmaceutical Representative (CNPR) designation for
NAPSR, and the Registered Medical Sales Representative (RMSR) designation for NAMSR.
MSC admits it is a company based in Colorado that provides medical device sales
training and has advertised its job placement statistics. MSC also admits that it spent many,
many hours investigating NAPSR and NAMSR and made public in certain ways some elements
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of the NAPSR/NAMSR scheme. Many persons to whom MSC communicated these truths have
confirmed to MSC precisely what MSC had discovered.
If the NAPSR/ NAMSR scheme has suffered an enrollment decrease, it is due to the
fact that the public is discovering first-hand the NAPSR/NAMSR scheme.1 MSC admits it got a
letter from NAPSRs attorney demanding that MSC stop communicating the truth about NAPSR,
and MSC admits that it refused to issue any retraction letter that had the effect of hiding or
disguising the truth about the NAPSR/NAMSR scheme.
II. ANSWER TO JURISDICTION AND VENUE
1. MSC admits NAPSR (and recently NAMSR) is registered as a Nevada
corporation. MSC denies that NAPSRs principal place of business is in Nevada. The address
given for NAPSR in the Complaint is the address for a UPS store in a strip mall. NAPSRs and
NAMSRs true place of business, i.e. where real people are physically carrying out the
NAPSR/NAMSR scheme, is information NAPSR and NAMSR do not make public.
2. MSC admits it is a Colorado corporation, and its principal place of business is at
8040 Southpark Lane, Littleton, Colorado 80120, in Arapahoe County, Colorado.
3. Admitted.
4. Admitted.
5. Admit the Court has jurisdiction under 15 U.S.C. 1121 and 28 U.S.C. 1367.
Deny the remaining allegations in Paragraph 5 of the Complaint.
6. MSC is without knowledge or information sufficient to form a belief as to the
truth of the allegations in Paragraph 6 of the Complaint.

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The persons to whom MSC sent an email had already been duped by the
NAPSR/NAMSR scheme and had already paid NAPSR or NAMSR.
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7. Admitted.
8. Denied.
9. MSC admits that at one time it operated the referenced website and that part of
the content of that website is attached as Exhibit A to the Complaint. MSC denies the remaining
allegations in Paragraph 9 of the Complaint.
10. MSC admits it gathered certain public information from resumes posted on
CareerBuilder.com to send emails to victims of the NAPSR/NAMSR scheme, who then
confirmed the NAPSR/NAMSR scheme. MSC admits that a copy of the contents of the email it
sent to certain individuals is attached to the letter that is attached as Exhibit B to the Complaint.
MSC denies any remaining allegations in Paragraph 10 of the Complaint.
11. Defendants deny the alleged claims were false and/or deny the alleged claims
were made in the referenced email or website. Defendants deny all remaining allegations in
Paragraph 11 of the Complaint.
12. Defendants admit that Jim Rogers exercises some control over MSC as CEO.
Defendants deny the remaining allegations in Paragraph 12 of the Complaint.
13. Denied. While Defendants received the letter that is attached as Exhibit B to the
Complaint, the contents of that letter are almost entirely false, whereas the statements published
by MSC are true.
14. Denied.
15. Denied.
16. Denied.
17. MSC incorporates herein its answer to Paragraphs 1-16 of the Complaint.
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18. Denied.
19. Denied.
20. Denied.
21. Denied.
22. Denied.
23. Denied.
24. Denied.
25. MSC incorporates herein its responses to Paragraphs 1-24 of the Complaint.
26. Denied.
27. Denied.
28. Denied.
29. Denied.
30. Denied.
31. Denied.
33. Denied.
34. Denied.
35. Denied.
36. Denied.
37. Denied.
38. Denied.
39. Denied.
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41. Denied.
42. MSC admits NAPSR has obtained millions of dollars by defrauding thousands of
people. MSC denies the remaining allegations in Paragraph 42 of the Complaint.
43. Denied.
44. Denied.
45. Denied.
46. Denied.
48. Denied.
49. Denied.
50. Denied.
51. Denied.
53. MSC admits it is a Colorado corporation. MSC denies the remaining allegations
in Paragraph 53 of the Complaint.
54. Defendants admit that actions taken by Jim Rogers and Kim Smalley on behalf of
MSC were within their scope and authority for MSC. Defendants deny any remaining
55. MSC is without knowledge or information sufficient to form a belief as to the
truth of the allegations in Paragraph 55 of the Complaint.
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56. MSC admits it is generally responsible for the actions of its employees that are
taken within the course and scope of their employment for MSC. MSC denies any remaining
57. Denied.
58. MSC denies any and all allegations in the Complaint not specifically admitted
herein, and denies that NAPSR is entitled to any relief.
AFFIRMATIVE DEFENSES
1. NAPSR has failed to state a claim under which relief may be granted.
2. NAPSRs claims are barred by the doctrine of unclean hands.
3. NAPSRs claims fail because Defendants were privileged to make all statements
made about NAPSR, and privileged to take the actions they took.
4. NAPSRs claims are barred by Defendants right to freedom of speech and right
to report NAPSRs actions to appropriate authorities.
WHEREFORE, having fully answered the Complaint, Defendants pray for judgment in
their favor on NAPSRs claims, for an award of their attorneys fees and costs pursuant to
applicable law, and for such further and other relief as the Court deems just.
COUNTERCLAIMS AND THIRD PARTY CLAIMS
For its counterclaims and third party claims, Defendant MSC asserts as follows:
I. JURISDICTION AND VENUE
1. MSC incorporates herein its answer to the allegations of the Complaint.
2. MSC is a Colorado corporation with its principal place of business in Colorado.
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3. NAPSR is a Nevada corporation that claims to have its principal place of business
in Nevada at 1285 Baring Boulevard, Sparks, Nevada 89434 which is a UPS store in a strip
mall. NAPSR does have a registered agent Registered Agents of America, Inc. in Nevada.
NAPSRs purported Director, President, Treasurer and Secretary, as reported to Nevada, is Chris
Jorgensen, whose alleged address is also the UPS store at 1285 Baring Boulevard in Sparks,
Nevada. MSC believes that the actual persons managing the operations of the NAPSR/NAMSR
enterprise are Brian S. Kennedy and Eric Reinhard.
4. NAMSR is also a Nevada corporation (at least as of November 12, 2014) that
shares the same Nevada registered agent as NAPSR. NAMSRs purported Director, President,
Treasurer and Secretary is B. Lambert, whose address is also listed as the UPS store at
1285 Baring Boulevard in Sparks, Nevada. The same B. Lambert, with the same address, is
associated with over 240 other companies registered with Nevada, and he is the alleged President
of most of them. MSC believes the actual persons managing the operations of the
NAPSR/NAMSR enterprise are Defendants Brian S. Kennedy and Eric Reinhard.
5. NAPSR and NAMSR are, in reality, a joint enterprise that exists to carry out the
NAPSR/NAMSR scheme. NAPSR operates the website NAPSRonline.org, and NAMSR
operates the website medicalsalescareer.com. Both websites are currently hosted by the same
company in Denver, Colorado Softsys Hosting on the same domain name server. Both use a
privacy service to maintain secrecy relating to their domain name registration.
6. Does 1-10 are additional persons who help carry out the NAPSR/NAMSR
scheme, and are associated with the NAPSR/NAMSR enterprise. MSC is not aware of their true
identities at this time because MSC believes that the persons purporting to act on behalf of
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NAPSR and NAMSR e.g. Steven Neece as the alleged CEO and President of NAPSR are all
fakes, and that the persons listed by NAPSR and NAMSR with the Nevada Secretary of State as
their directors and officers have no real association with NAPSR and NAMSR.
7. This Court has original subject matter jurisdiction over the claims asserted herein
pursuant to 18 U.S.C. 1964(a), 15 U.S.C. 1121, 1125(a) (the Lanham Act), and 28 U.S.C.
1367 (supplemental jurisdiction).
8. Venue is appropriate in this district under 18 U.S.C. 1965(a), 28 U.S.C.
1391(b)(1) and (b)(3).
II. MORE ON THE NAPSR/NAMSR SCHEME
9. The general goals of the NAPSR/NAMSR scheme are described above in MSCs
answer to NAPSRs General Statement. The components and methods used to carry out the
NAPSR/NAMSR scheme, some of which are set forth below, demonstrate an internet scam of
incredible proportions.
10. The objective of the NAPSR/NAMSR scheme is to make money by getting
victims to sign up for their online certification programs. These programs require a manual
issued by NAPSR and/or NAMSR so the victims can study for the online certification tests
and get their computer-generated CNPR or RMSR certificates.
11. The NAPSR and NAMSR manuals contain some basic information relevant to
medical device and pharmaceutical sales. The manuals appear, in large part, to have been copied
from other copyrighted sources. Compare, for example, Chapter 10, pages 67-69 of NAMSRs
manual attached hereto as Exhibit A with Chapter 1, pages 3-6 of the book Surgical Technology
for the Surgical Technologist, attached hereto as Exhibit B. NAPSR and NAMSR advertise that
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their manuals are copyrighted, as if that makes them legitimate. But NAPSR and NAMSR dont
disclose that they took the materials from other sources, and that registering a copyright does not
require proof of originality.
12. To get victims to sign up for the CNPR and RMSR programs and purchase the
manual, NAPSR and NAMSR need to create a perception of: (1) need for their programs by job
applicants; (2) demand for their programs by job providers; and (3) credibility. The
NAPSR/NAMSR scheme is designed and utilized to accomplish all of these things.
13. One component of the NAPSR/NAMSR scheme is to tout high industry demand
for new, highly paid, medical device and pharmaceutical sales representatives. NAPSR and
NAMSRs respective web pages, among other things, are used to create this perception.
14. NAPSR and NAMSR also both purport to conduct industry surveys that tout
growth in demand for medical device and pharma sales representatives, and then create press
releases about their alleged survey results. Both NAPSR and NAMSR purported to do such
surveys very recently, and put out their press releases in early 2015. See, e.g., Exhibit C hereto.
15. Another component of the NAPSR/NAMSR scheme is to convince victims that
the CNPR and RMSR designations are actually useful in obtaining lucrative jobs that allegedly
are in such high supply. NAPSR and NAMSR do this in many different ways, including making
such direct claims on their websites, creating YouTube videos, and having internet trolls post
fake testimonials on the internet about the value and demand for the CNPR and RMSR
certifications. See e.g., Exhibit D hereto.
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16. One of the primary ways NAPSR and NAMSR generate victims is through a
complex web of fake job recruiters, fake job postings, fake Linked-In profiles, and a continuous
email campaign directed at those who bite on their scheme.
17. NAPSR and NAMSR have created a collection of websites for fake job recruiting
companies, believed to number 21 or more. For instance, one dedicated website server with an
IP address of 54.187.206.34 houses 12 different fake recruiting company websites for both
medical device sales and pharmaceutical sales positions (i.e. relating to both NAPSR and
NAMSRs businesses). That server is believed to be under the control of Eric Reinhard, who
claims to be a representative of NAMSR (see discussion at 37-38). For instance, this same
server also hosts a website defaming MSC that Mr. Reinhard threatened he was going to create
and then carried out his threat (Id.). This same server also hosts an RMSR training site. There
were no other websites on this dedicated server other than the fake recruiting company websites
and those of NAMSR. Mr. Reinhard is also affiliated with another dedicated server hosting
websites for other fake medical device and pharma sales recruiters. The NAPSR/NAMSR
enterprise has recently been changing information relating to these sites to hide Mr. Reinhards
involvement.
18. The fake recruiting company websites used by the NAPSR/NAMSR enterprise
include:
healthcaresourcestaffing.com
hoffmantaylor.com
keystonestaffinggroup.com
medicalsalesrepresentatives.com
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medprorecruiters.com
mristaffing.com
pharmarephire.com
questepstaffing.com
rmstraining.com
salesforcepersonnel.com
salesrerecruiters.com
salesstaffrecruiters.com
staffmedicalreps.com
expressrep-staffing.com
pharmarepagency.com
They all have a few things in common, in addition to their server being under the control of
Eric Reinhard: they dont provide an address or contact information.
19. The fake recruiting companies set up by the NAPSR/NAMSR enterprise post
hundreds of alleged medical device and pharma sales positions in over 150 cities across the
country on major job websites like CareerBuilder.com and ZipRecruiter.com. See e.g., a
compilation of fake job listings as of November 24, 2014, attached hereto as Exhibit E.
When the job postings expire the same job is usually just reposted.
20. When a victim responds to the fake job posting, thereby supplying contact
information to the NAPSR/NAMSR enterprise, a fake individual recruiter responds to the victim
with a scripted email, asking a series of questions and suggesting that the alleged hiring company
prefers persons with training/certification like that provided by NAPSR/NAMSR. See a sample
scripted email attached hereto as Exhibit F. If the victim indicates they do not have any
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certification, they are provided a link to the NAPSR or NAMSR websites where the victim can
sign up for NAPSR or NAMSRs certification programs. The victim is encouraged to get back
to the fake individual recruiter once they have obtained their NAPSR or NAMSR certifications.
21. The NAPSR/NAMSR enterprise also creates fake Linked-In profiles for these
fake individual recruiters, who often suggest that the victims connect with them on Linked-In.
Pictures for these fake Linked-In profiles are taken, for instance, from various stock photography
websites on the internet. See e.g., fake recruiter Caroline Taylor and the picture taken from
Juliet Hohnen on Trulia; and fake recruiter Janet Moore and the picture taken from Patricia
Bretts Swimsuits for Survivors; and fake recruiter Alan Moser and the picture taken from Can
My Boss Do That?, at Exhibit G hereto. There are many more examples.
22. In addition to the scripted email from the fake individual recruiter, the victim will
also start receiving daily emails directly from NAPSR or NAMSR promoting their program, with
fake testimonials and company logos of companies purporting to have other open sales positions.
See e.g. Exhibit H hereto. NAPSR and NAMSR also encourage following NAPSR or NAMSR
on Facebook.
23. The victims also start receiving other phony requests to connect on Linked-In.
These requests purport to be from individuals already working in the medical device or pharma
sales industries, and these persons all have a conspicuous listing of the CNPR or RMSR
designations after their names. The obvious purpose of these phony connect requests is to
create the impression that there are lots of people with the CNPR or RMSR designations that
obtained lucrative jobs with all of the major companies in the medical sales or pharma industry.
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24. The NAPSR/NAMSR enterprise also creates the fake Linked-In profiles for the
persons that allegedly seek to connect with the victims. The same process is used: set up a fake
profile and attach a picture of a random person obtained from the internet. See e.g., the fake
profiles of Karen Graves and the picture taken from U.S. Congresswoman Krysten Sinema, and
the fake profile of Julie Pearson and the photo taken from Melissa Minchala, attached hereto as
Exhibit I. There are many more examples. The NAPSR/NAMSR enterprise has recently been
deleting these fake profiles after MSC informed their counsel of MSCs knowledge of the
NAPSR/NAMSR scheme.
25. Once the victim relents and signs up for and completes the NAPSR or NAMSR
program, and the NAPSR/NAMSR enterprise has their money, the fake recruiter stops
correspondence or disappears.
26. The NAPSR/NAMSR scheme also relies on creating an aura of respectability for
the NAPSRs CNPR program and NAMSRs RMSR program. This is done in a wide variety of
ways, including the following.
27. As discussed above, NAPSR uses the ed2go platform to suggest that its CNPR
program is legitimate because it is available as an online, correspondence course through ed2go
at hundreds of colleges, many of which are small community colleges. Not content with this
deception, NAPSR lies about the colleges with which ed2go is associated by listing significant
universities like Ohio State University or the University of Nebraska, neither of which offer the
CNPR program through ed2go. NAPSR also lists the University of Colorado, but only the
Colorado Springs campus offers the CNPR program through ed2go. NAPSR also fails to
mention that ed2go and the colleges get paid for each course that students take through ed2go,
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which is why the CNPR program costs about five times as much to take through ed2go as it does
to take it through NAPSR directly.
28. Furthermore, NAPSR lies that its program is accredited when it is not. No
accrediting body has ever reviewed and approved the CNPR program. Despite this fact, NAPSR
had on its website the symbols for the American Council of Education and the Distance
Education and Training Council, neither of which accredited NAPSRs CNPR program. See
Exhibit J, attached hereto. NAPSR removed the symbols for these organizations after MSC
objected to NAPSR that its CNPR program is not accredited.
29. In addition, the NAPSR/NAMSR enterprise hired a Turkish entity to create
thousands of Likes on the Facebook pages of NAPSR and NAMSR to create the illusion that
there are persons who are actually satisfied with the products pedaled by the NAPSR/NAMSR
scheme. This purchase of fake Facebook Likes can be seen by the sudden spike, by thousands,
of Likes in a matter of a day or two. See Exhibit K hereto.
30. The NAPSR/NAMSR enterprise also created YouTube videos for NAPSR and
NAMSR, released a week apart from each other, touting how essential the CNPR and RMSR
designations are to obtaining employment in the respective industry.
31. The methods and timing of promoting the NAPSR/NAMSR scheme, whether
through alleged industry surveys, YouTube videos, fake Facebook Likes, fake recruiting
companies, fake recruiters, fake persons with CNPR or RMSR designations, etc., is virtually
identical for both NAPSR and NAMSR the NAPSR/NAMSR enterprise just changes the
content slightly depending on whether it is addressing persons interested in the medical device
industry or the pharmaceutical industry.
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32. Whenever a victim criticizes NAPSR or NAMSR on the internet, the
NAPSR/NAMSR enterprise lets loose its internet trolls who post a barrage of fake testimonials
from alleged satisfied customers or alleged industry representatives who supposedly value the
CNPR or RMSR designations. See Exhibit L hereto. These postings are a ruse in an attempt to
prop up the NAPSR/NAMSR scheme.
33. In reality, the CNPR and RMSR designations are not valued by the hiring persons
in the medical device or pharmaceutical industries, and the testimonials and blog postings that
the NAPSR/NAMSR enterprise creates to the contrary are fake. MSC has many interactions
with relevant persons in the medical sales industry, and they will attest that NAMSR and its
RMSR designation are not respected in the industry.
34. After MSC learned of the methods of the NAPSR/NAMSR enterprise, it sought to
learn more about the use and impact of those methods. In particular, MSC sent an email to about
200 persons who had posted their resumes on the CareerBuilder.com website, and whose
resumes indicated that they had completed the NAPSR and/or NAMSR programs (the Inquiry
Email). A copy of the Inquiry Email is attached to Exhibit B to the Complaint. In the Inquiry
Email, MSC sought input on the experiences and/or satisfaction with the NAPSR/NAMSR
programs.
35. The response received by MSC to the Inquiry Email was overwhelming (over
50% of recipients responded) and uniformly negative. Many of the recipients expressed an
interest in taking or assisting in legal action against the NAPSR/NAMSR enterprise due to its
fraudulent conduct. These victims of the NAPSR/ NAMSR scheme confirmed its methods and
the ultimate result the fake recruiters go silent after the program is taken, and the CNPR and
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RMSR designations were not useful in getting them a job. See e.g., communications (redacted to
remove email addresses) at Exhibit M hereto.
36. MSC believes there are thousands of victims of the NAPSR/NAMSR scheme,
which has yielded many millions of dollars to the NAPSR/ NAMSR enterprise.
37. After MSC spent hundreds of hours uncovering and documenting the
NAPSR/NAMSR scheme, MSC started collecting that information at a hidden website. The
NAPSR/NAMSR enterprise apparently discovered this website through use of a webcrawler tool.
Eric Reinhard then contacted Jim Rogers, CEO of MSC, and threatened that if Mr. Rogers did
not take down the hidden website, Mr. Reinhard would set up a website to defame MSC and
release the internet trolls used by the NAPSR/NAMSR enterprise to destroy MSC.
38. Mr. Rogers asked Mr. Reinhard to identify any information about the
NAPSR/NAMSR enterprise on MSCs hidden website that was not true. Mr. Reinhard did not
do so, but proceeded to publish the website defaming MSC. Mr. Rogers then supplied
documentation to NAMSRs lawyer showing some of the results of MSCs investigation. The
website defaming MSC was then removed from the internet.
39. Subsequently, NAPSR, purportedly at the direction of Shawn Kennedy (in
reality, Brian S. Kennedy), had an attorney write a demand letter to MSC demanding that MSC
take down its hidden website; stop sending the Inquiry Email; and issue a retraction email to
recipients of the Inquiry Email. See Exhibit B to the Complaint. In that letter, counsel for
NAPSR claims that NAPSR has no association with NAMSR. NAPSR has incredibly
maintained that position to this day.
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40. Despite the fact that the contents of the hidden website and the Inquiry Email are
completely true, MSC elected to take down the hidden website and discontinue sending out the
Inquiry Email while its attorneys discussed the issues with the attorneys for NAPSR and
NAMSR. MSC has refused, however, to send out any kind of retraction email because
everything MSC has said about the NAPSR/NAMSR scheme is true (which is why NAPSRs
Complaint is frivolous and groundless).
41. After MSC pointed out to counsel for NAPSR and NAMSR that neither was
revealing its true address or officers, counsel for NAPSR responded with a letter asserting that
NAPSR had offices both at 1810 East Sahara Avenue, Suite 1418, Las Vegas Nevada 89104, and
2101 L Street NW, Suite 800, Washington, D.C. 20037 (for lobbying only). The attorneys letter
essentially confirms that NAPSR is only an internet faade.
42. The Las Vegas address provided is the address for Sahara Executive Suites by
Davinci Virtual Office Solutions. The Washington, D.C. address is for AdvantEdge Business
Centers, also a virtual office center. Virtual office centers are businesses to whom you can pay a
low month-to-month fee, and in exchange they provide a phone line, mail box, business cards
with their address, etc., all to create the appearance and trappings of a business office. If you
were a business that was accused of being nothing but an internet faade, as MSC accused
NAPSR of being, then such virtual office centers are the cheapest and easiest way to make it
look like you actually have an office where real people show up and do the work of the
company.
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43. However, MSC has obtained information that NAPSR has only recently signed up
for these virtual office services, in an obvious attempt to persuade MSC that NAPSR is not just
an internet faade.
44. MSC challenged NAPSRs counsel to have a real person from Sahara/Davinci
and AdvantEdge write a letter, on their letterhead containing a physical address, email address
and phone number, stating that NAPSR has been renting/using offices at these addresses since
prior to November 2014, and supply a copy of the invoices to NAPSR demonstrating such prior
use. NAPSR has not done so because NAPSR is nothing but an internet faade and scam (which
is now also paying rent for virtual offices it does not use) that is hiding its true location and the
identities and location of the persons who run it. MSC also challenged NAPSR to prove that is
actually engages in so-called lobbying efforts by providing information about the persons
lobbied, the subject of the lobbying, and the persons who did the lobbying. NAPSR has not done
so.
45. MSC revealed to counsel for both NAMSR and NAPSR the nature and
components of the NAPSR/NAMSR scheme and the nature of the evidence MSC had to support
its assertions. NAMSR has not responded in any way. NAPSRs response has been twofold:
(1) NAPSR doesnt have anything to do with NAMSR; and (2) some third party must be running
the NAPSR/NAMSR scheme to sabotage NAPSR.2 Both suggestions make no sense. The
evidence that NAPSR and NAMSR are joined at the hip is overwhelming. Moreover, the idea
that some third party is engaging in a huge, complex scheme that does nothing but promote
2
To support this charade, NAPSR has allegedly created letters to Facebook and LinkedIn
asking them to investigate the circumstances. The letters are just for show, and their content
demonstrates that NAPSR really doesnt want to discover or accomplish anything useful.
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NAPSR/CNPR (and NAMSR/RMSR) and yield millions of dollars to NAPSR/NAMSR is
nonsensical. There is not a single component of the entire scheme that is not promoting NAPSR
or complimentary to NAPSR. It is beyond comprehension that any third party would be
coordinating such a scheme allegedly to sabotage NAPSR by lining its pockets with millions
of dollars.
46. The NAPSR/NAMSR scheme has caused millions in damage to MSC in the form
of lost revenues through significant reductions in the persons enrolling in MSCs training
courses. The target market for both medical equipment sales and pharma sales is the same.
Indeed, many people obtain both the CNPR and RMSR certifications. NAPSRs complaint
concedes that NAPSR competes with MSC.
47. The vast majority of all persons interested in medical equipment or pharma sales
have been bombarded with the NAPSR/NAMSR scheme that promotes a cheap (around $300)
ticket to a lucrative job through an easy certification of NAPSR and NAMSRs own making.
The NAPSR/NAMSR scheme has had the effect of crowding out legitimate and useful
alternatives like MSC. Moreover, after the victims of the NAPSR/NAMSR scheme obtain their
useless CNPR or RMSR designation, and realize they were defrauded, most have no further
appetite for any medical sales training, against harming MSC.
FIRST CLAIM FOR RELIEF
Racketeer Influenced and Corrupt Organizations Act (RICO)

18 U.S.C. 1962
48. MSC incorporates herein the allegations in Paragraphs 1 through 47 of these
Counterclaims/Third Party claims.
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49. The NAPSR/NAMSR enterprise consisting of NAPSR, NAMSR, Eric Reinhard
and Brian S. Kennedy is an association-in-fact enterprise within the meaning of 18 U.S.C.
1961(4). The NAPSR/NAMSR enterprise has an ongoing informal structure or organization; it
functions as a continuing unit; and it has an existence separate and apart from the pattern of
racketeering activity. In particular, the NAPSR/NAMSR enterprise is believed to be run by both
Eric Reinhard and Brian S. Kennedy, who are believed to be in charge of a group of individuals
(Does 1-10) who create and execute the various components of the NAPSR/NAMSR scheme.
The NAPSR/NAMSR enterprise functions as a continuing unit to carry out the NAPSR/NAMSR
scheme. The NAPSR/NAMSR enterprise is separate and distinct from the pattern of
racketeering activity utilized in the NAPSR/NAMSR scheme (mail and wire fraud) because it
has an existence beyond which is necessary to commit the racketeering activity.
50. NAPSR, NAMSR, Eric Reinhard and Brian S. Kennedy are RICO persons
employed by or associated with the NAPSR/NAMSR enterprise within the meaning of 18 U.S.C.
1962(c) (the RICO persons). Eric Reinhard is the person ostensibly in charge of the
NAMSR side of the operations, and Brian S. Kennedy is the person apparently in charge of
NAPSRs side of the operations, but they are in reality working on a common enterprise.
51. Through their actions as set forth above, NAPSR, NAMSR, Eric Reinhard and
Brian S. Kennedy conducted and/or participated in the affairs of the NAPSR/NAMSR enterprise,
directly or indirectly, through a pattern of racketeering activity within the meaning of 18 U.S.C.
1962(c). The affairs of the NAPSR/NAMSR enterprise include obtaining funds by creating
and carrying out the components of the NAPSR/NAMSR scheme. Eric Reinhard, Brian S.
Kennedy, NAPSR and NAMSR managed or controlled those affairs.
21
52. The racketeering activity in which the RICO persons engaged includes numerous
acts of mail and wire fraud under 18 U.S.C. 1341 and 1343.
53. With respect to mail and wire fraud, the RICO persons, with the intent to defraud,
developed the NAPSR/NAMSR scheme to defraud the victims of the NAPSR/NAMSR scheme
and/or obtain their money or property, by means of materially false or fraudulent pretenses i.e.
they schemed to sell the manuals and CNPR and RMSR programs created by the NAPSR/
NAMSR enterprise through the misrepresentations and omissions set forth or incorporated in
Paragraphs 1 through 33 above. The RICO persons planned, intended to use, and did use, the
mails and wires to facilitate and execute the NAPSR/NAMSR scheme.
54. In particular, upon information and belief, the RICO persons caused to be mailed
their pirated manuals to the victims of the NAPSR/NAMSR scheme throughout the United
States; directed numerous emails and communications to the victims, who were located
throughout the United States, via the internet; and collected payment from the victims, who were
located throughout the United States, through various automatic payment systems such as
PayPal, which involve wires of funds among various states, ultimately to accounts maintained by
NAPSR and NAMSR. The certificates showing completion of the NAPSR and NAMSR
programs were, upon information and belief, also mailed to the victims. The precise dates of
these mailings, emails, communications and wire transfers are in documents within the RICO
persons control.
55. The RICO persons engaged in a pattern of racketeering activity because their
predicate acts of mail and wire fraud were related and had continuity. They were related because
they had the same or similar purposes, results, participants, victims or methods of commission
22
and are otherwise interrelated by distinguishing characteristics. In particular, the RICO persons
actions had the common purpose of obtaining the victims money through the NAPSR/NAMSR
scheme.
56. The RICO persons pattern of racketeering activity had open-ended continuity
because it consisted of a series of related predicate acts that existed over a substantial period of
time. In particular, the RICO persons continued to defraud victims, and used the mail and wires
to facilitate their fraud, over a period beginning at least in 2012 and continuing through 2014,
during which time thousands of distinct purchases were made by victims as a result of the
NAPSR/NAMSR scheme, with each purchase based in whole or in part on Defendants
commission of the predicate acts. To the knowledge of MSC, the pattern of racketeering activity
has not yet ceased.
57. MSC was directly and proximately injured in its person or property by reason of
each of the predicate acts and the violation of 18 U.S.C. 1962(c). For instance, but for the
RICO persons employment by or participation in, directly or indirectly, the NAPSR/NAMSR
enterprise through a pattern of racketeering activity, the CNPR and RMSR designations would
not have been sought by the victims and, instead, those persons would have sought the legitimate
medical device sales training provided by MSC. Because of the RICO persons commission of
the predicate acts and violations of 18 U.S.C. 1962(c), MSC has lost millions of dollars in
revenue in the form of lost payments for its training services.
WHEREFORE, MSC demands judgment in its favor and against the RICO persons,
jointly and severally; for injunctive relief to end the NAPSR/NAMSR scheme; for all its direct,
consequential and special damages including, without limitation, economic loss; for an award of
23
damages threefold its actual damages stated; for an award of their reasonable attorneys fees
pursuant to 18 U.S.C. 1964(c); for pre-judgment and post-judgment interest as allowed by law;
costs; and for such other and further relief as the Court deems just.
SECOND CLAIM FOR RELIEF
RICO Conspiracy 18 U.S.C. 1962(d)
Counterclaims/Third-Party claims.
59. The RICO persons and Does 1-10 each conspired to violate and/or endeavored to
violate 18 U.S.C. 1962(d). In particular, they agreed to join the conspiracy to create and carry
out the various components of the NAPSR/NAMSR scheme through a pattern of racketeering
activity of mail and wire fraud. These Defendants either agreed to commit predicate acts, or to
provide support to those committing predicate acts, with the knowledge that those acts were a
part of a pattern of racketeering activity. These Defendants agreed and intended to, and/or
attempted to, further an endeavor which, if completed, would constitute a violation of 18 U.S.C.
1962(c) because it involved conducting or participating in a RICO enterprise through a pattern
of racketeering activity.
WHEREFORE, MSC demands judgment in its favor and against the RICO persons and
Does 1-10, jointly and severally, for all its direct, consequential and special damages, including
without limitation, economic loss; for an award of damages threefold its actual damages
sustained; for its reasonable attorneys fees pursuant to 18 U.S.C. 1964(c); for pre-judgment
and post-judgment interest as allowed by law; costs; and for such other and further relief as this
Court deems just.
24
THIRD CLAIM FOR RELIEF
False Advertising Lanham Act
Counterclaims/Third-Party claims.
61. Defendants NAPSR and NAMSR made false or misleading statements of fact
about and relating to the CNPR and RMSR designations pursuant to the NAPSR/NAMSR
scheme.
62. These false statements of fact are published and communicated by Defendants
NAPSR and NAMSR to induce consumers to buy the NAPSR and NAMSR manuals and
subscribe to the CNPR and RMSR programs.
63. The false statements of fact either have actually deceived, or have a tendency to
deceive, a substantial segment of their audience. Such deceptions are material in that they have
influenced purchasing decisions and are likely to influence future purchasing decisions.
64. Defendants have caused the false statements to enter interstate commerce. As a
result of Defendants conduct, MSC has been and is likely to be injured in violation of 15 U.S.C.
1125(a).
65. Defendants should have known the statements are misleading to a substantial
number of consumers.
66. Defendants conduct caused a loss of goodwill and loss of sales to MSC, and will
continue to cause a loss of goodwill and sales to MSC in the future.
67. Defendants actions are willful and exceptional, warranting an award of enhanced
damages and attorneys fees.
25
WHEREFORE, MSC demands judgment in its favor and against Defendants NAPSR and
NAMSR, jointly and severally, for all direct, consequential and special damages, including
without limitation, economic loss; for enhanced damages; for its reasonable attorneys fees; for
pre-judgment and post-judgment interest as allowed by law; for costs; and for such other and
further relief as this Court deems just.
FOURTH CLAIM FOR RELIEF
Unfair Competition
Counterclaims/Third-Party Claims.
69. The conduct of Defendants NAPSR and NAMSR as described above, and in
particular their false advertising and the NAPSR/NAMSR scheme generally, constitute unfair
competition.
70. The conduct of Defendants NAPSR and NAMSR has deceived the public and is
likely to deceive the public in the future.
71. By reason of these acts of unfair competition, MSC has suffered immediate and
irreparable harm and injury, and will continue to incur damages in an amount presently
undeterminable but to be determined by the evidence presented at trial.
72. Defendants conduct was undertaken maliciously, willfully and with reckless
disregard for the rights of consumers of their products and of MSC. MSC is therefore entitled to
an award of punitive damages in an amount to be awarded by the Court.
26
without limitation, economic loss; for exemplary damages; for its reasonable attorneys fees; for
pre-judgment and post-judgment interest as allowed by law; for costs; and for such other and
further relief as this Court deems just.
FIFTH CLAIM FOR RELIEF
Defamation NAMSR and Eric Reinhard
74. By their actions described above, Defendants NAMSR and Eric Reinhard have
invaded MSCs legally protected interest and have committed defamation.
75. Defendants NAMSR and Eric Reinhard published false statements that were not
privileged and which exposed MSC to disgrace, caused it to be avoided, and had a tendency to
injure MSCs professional status.
76. Defendants NAMSR and Eric Reinhards conduct was malicious and is the direct
and proximate cause of an invasion of MSCs interests of reputation.
77. As a direct and proximate consequence of Defendants NAMSR and Eric
Reinhards defamation, MSC has suffered damages in a sum yet to be ascertained, including
pecuniary loss and loss of the benefits of prospective relations, and has suffered irreparable
injury for which MSC has no adequate remedy at law.
without limitation, economic loss; for exemplary damages; for pre-judgment and post-judgment
27
interest as allowed by law; for costs; and for such other and further relief as this Court deems
just.
SIXTH CLAIM FOR RELIEF
Colorado Consumer Protection Act

C.R.S. 6-1-105
79. The conduct of NAPSR and NAMSR described above constitutes violations of
C.R.S. 6-1-105(1)(b), (c), (e), (g), (h) and (u).
80. The conduct of NAPSR and NAMSR described above is prima facie evidence of
intent to injure MSC and to destroy or substantially lessen competition pursuant to C.R.S. 6-1-
105(2).
81. The conduct of NAPSR and NAMSR described herein occurred in the course of
their business and significantly impacts the public as actual or potential consumers of NAPSR
and/or NAMSRs goods or services.
82. As a proximate result of Defendants conduct described herein, MSC suffered
injury-in-fact to a legally protected interest in the course of its business, and Defendants
deceptive practices caused MSCs injury.
83. Defendants conduct described herein was undertaken in bad faith, entitling MSC
to three times the amount of actual damages sustained.
without limitation, economic loss; for an award of damages threefold its actual damages
28
sustained; for its reasonable attorneys fees; for pre-judgment and post-judgment interest as
allowed by law; for costs; and for such other and further relief as this Court deems just.
Dated: January 26, 2015. Respectfully submitted,
s/ Lawrence M. Zavadil
Lawrence M. Zavadil (#19419)
Wheeler Trigg ODonnell LLP
370 Seventeenth Street, Suite 4500
Denver, CO 80202-5647
Telephone: 303.244.1800
Facsimile: 303.244.1879
Email: zavadil@wtotrial.com
Attorneys for Defendants, Aims Medical Sales

College, Inc., Jim Rogers and Kim Smalley
29
CERTIFICATE OF SERVICE (CM/ECF)
I hereby certify that on January 26, 2015, I electronically filed the foregoing ANSWER
TO AMENDED COMPLAINT AND JURY DEMAND; AND DEFENDANTS
COUNTERCLAIMS AND THIRD PARTY COMPLAINT with the Clerk of Court using the
CM/ECF system which will send notification of such filing to the following email addresses:
Sara Claire Sharp

ssharp@fclaw.com, saraclairesharp@gmail.com, kheidohrn@fclaw.com,
levans@fclaw.com
s/ Lawrence M. Zavadil by Diane Tingen

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NAPRx VS. AIMS MEDICAL SALES COLLEGE, MEDICAL SALES COLLEGE

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NAPRx VS. AIMS MEDICAL SALES COLLEGE, MEDICAL SALES COLLEGE

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Case 1:14-cv-03297-PAB-KLM Document 16 Filed 01/26/15 USDC Colorado Page 1 of 31

IN THE UNITED STATES DISTRICT COURT

Civil Action No. 1:14-cv-03297-PAB-KLM

NAPRx, Inc., a Nevada Corporation,

AIMS MEDICAL SALES COLLEGE, INC.

MEDICAL SALES COLLEGE,

Counterclaimant and Third Party Plaintiff,

NAMSR, Inc., ERIC REINHARD, BRIAN S. KENNEDY,

Third Party Defendants.

ANSWER TO AMENDED COMPLAINT AND JURY DEMAND;

Pharmaceutical Sales Representatives (NAPSR), as follows:

I. ANSWER TO GENERAL STATEMENT

NAPSR/NAMSR scheme. The NAPSR/NAMSR scheme is carried out primarily through

various acts of mail and wire fraud.

credibility to the NAPSR/NAMSR scheme.

faades is to promote the NAPSR/NAMSR scheme of pedaling the products of the

confirmed to MSC precisely what MSC had discovered.

disguising the truth about the NAPSR/NAMSR scheme.

II. ANSWER TO JURISDICTION AND VENUE

1. MSC admits NAPSR (and recently NAMSR) is registered as a Nevada

NAPSR/NAMSR scheme, is information NAPSR and NAMSR do not make public.

2. MSC admits it is a Colorado corporation, and its principal place of business is at

8040 Southpark Lane, Littleton, Colorado 80120, in Arapahoe County, Colorado.

Deny the remaining allegations in Paragraph 5 of the Complaint.

6. MSC is without knowledge or information sufficient to form a belief as to the

truth of the allegations in Paragraph 6 of the Complaint.

allegations in Paragraph 9 of the Complaint.

CareerBuilder.com to send emails to victims of the NAPSR/NAMSR scheme, who then

MSC denies any remaining allegations in Paragraph 10 of the Complaint.

Paragraph 11 of the Complaint.

Defendants deny the remaining allegations in Paragraph 12 of the Complaint.

by MSC are true.

people. MSC denies the remaining allegations in Paragraph 42 of the Complaint.

in Paragraph 53 of the Complaint.

allegations in Paragraph 54 of the Complaint.

55. MSC is without knowledge or information sufficient to form a belief as to the

truth of the allegations in Paragraph 55 of the Complaint.

allegations in Paragraph 56 of the Complaint.

herein, and denies that NAPSR is entitled to any relief.

2. NAPSRs claims are barred by the doctrine of unclean hands.

to report NAPSRs actions to appropriate authorities.

COUNTERCLAIMS AND THIRD PARTY CLAIMS

I. JURISDICTION AND VENUE

1. MSC incorporates herein its answer to the allegations of the Complaint.

2. MSC is a Colorado corporation with its principal place of business in Colorado.

enterprise are Brian S. Kennedy and Eric Reinhard.

NAPSR/NAMSR enterprise are Defendants Brian S. Kennedy and Eric Reinhard.

NAPSR/NAMSR scheme. NAPSR operates the website NAPSRonline.org, and NAMSR

privacy service to maintain secrecy relating to their domain name registration.

1367 (supplemental jurisdiction).

8. Venue is appropriate in this district under 18 U.S.C. 1965(a), 28 U.S.C.

1391(b)(1) and (b)(3).

II. MORE ON THE NAPSR/NAMSR SCHEME

10. The objective of the NAPSR/NAMSR scheme is to make money by getting

and get their computer-generated CNPR or RMSR certificates.

require proof of originality.

NAPSR/NAMSR scheme is designed and utilized to accomplish all of these things.

15. Another component of the NAPSR/NAMSR scheme is to convince victims that

certifications. See e.g., Exhibit D hereto.

email campaign directed at those who bite on their scheme.

Eric Reinhard: they dont provide an address or contact information.

My Boss Do That?, at Exhibit G hereto. There are many more examples.

ways, including the following.

program is legitimate because it is available as an online, correspondence course through ed2go