Three weeks after his arrest in Evansville, Ind., Jerry Thorstad, founder and president of Constitutional Collegues — a network marketing company that promotes educational materials about the U.S. Constitution and personal liberty issues — is in Fresno, Calif., to face felony charges of directing and operating an alleged illegal “pyramid scheme.”
His arrival last Saturday ended a week of worry for his friends and fellow defendants, who were concerned the 61-year-old Thorstad would be treated to a stiff dose of “diesel therapy” — which is what convicts call the practice of driving prisoners who are being transferred from one facility to another, about the country on circuitous routes so their actual trip time is stretched out longer than necessary. In some cases what should be a short trip can last weeks.
Thorstad’s journey turned out to be relatively short. Arrested Apr. 22 at the company headquarters in Evansville, he was held in jail until finally picked up May 2 for extradition to California. After six days on the road in a TransCor America van, he was brought to the Fresno County Jail.
At the Tuesday arraignment, Judge Kent Levis ordered an “honor release” for Thorstad, meaning he did not need to post a bond.
But his immediate problems weren’t over. Despite Judge Levis’ order, Thorstad still had to spend an extra day in jail. While the paperwork was being processed, the computer showed a felony hold from Indiana. That turned out to be a computer glitch — the felony charge being the one he had been extradited for. Before that was straightened out, another 24 hours had gone by.
Not until Wednesday could Thorstad walk about in the streets. He had spent a total of three weeks in custody.
“And for what?” That’s what attorney William R. McPike asks.
McPike is presently acting as Thorstad’s attorney as well as for the other defendants — the “Fresno Four,” who were arrested Jan. 5, during a raid by the Fresno County Sheriff’s Department. Thirty-seven flak-jacketed deputies, packing sidearms, stormed a public meeting sponsored by Constitutional Colleagues. Deputies seized the collection of video and audio tapes — “The Miracle of America” — which the group markets. The program was developed by constitutional scholar Cleon Skousen, and is also marketed by Skousen’s National Center for Constitutional Studies, in Washington.
Three defendants were arrested at the meeting: Blaine Williams, 41; Sharon Saunders, 54; and Peter Plitt, 44, a sheriff’s deputy and bailiff. Daniel Dana Furtney, 51, a retired sheriff’s deputy was later arrested at his home.
Both Saunders, an administrator at a local hospital, and Peter Plitt were fired from their jobs because of their participation in Constitutional Colleagues. Furtney and his wife are being forced to sell their home and many furnishings to cover expected legal fees.
“The lengths they’ve (the prosecution) have gone to are unbelievable,” said McPike, in a phone interview, referring to the extraordinary effort the sheriff’s department and district attorney’s office have gone to in developing and pursuing the case against Thorstad and the others.
McPike observed that last November, just prior to the investigation of Constitutional Colleagues, eight Fresno County area residents — including three Fresno Fire Department captains — were arrested for participation in what really was a pyramid scheme.
Under the plan called Friends Helping Friends, participants gave thousands of dollars to those above them in the chain, and in turn they would ask people to give money to them. Under California law, that constitutes a “endless chain scheme.” Originally charged with felonies, all eight pleaded guilty last month to misdemeanor charges which may eventually be dropped. A judge recently sentenced them to perform community service as a punishment.
Assistant District Attorney Bob Ellis recommended that the eight be sentenced to one year of unsupervised probation. Ellis also said that they might seek to withdraw their guilty pleas and that the misdemeanor charges would be formally dropped at a hearing scheduled for Sept. 10.
“This was a real financial pyramid,” said McPike. “They were collecting $5,000 to $10,000 and there was no product. Their plan was to say, ‘give us your cash now, and we’ll give you more cash later.’ They were released and they were not fined. None of them lost their jobs. And all they get is some community service.”
McPike noted that although they had pleaded guilty to felonies, “the judge (Gene Gomes) reversed that. He said that it (the scheme) didn’t rise to a felony. So they’re folding towels in the hospital and picking up litter.”
In contrast, McPike said, “The people here (the Fresno Four) were selling material about the Constitution and American history for about $200 or so. They had a product — yet the DA’s office calls it a pyramid scheme. They have had to undergo all kinds of trauma. I can hardly believe the expense of having someone arrested and extradited to Fresno.
“In my opinion,” McPike continued, “This reflects some kind of political agenda by someone. These people were engaged in multi-level marketing of patriotic educational materials. Evidently someone didn’t like what these people were telling people. I see this as a freedom of speech issue.”
Thorstad could not be reached for comment. The four Fresno defendants are scheduled for a court appearance May 25.
A defense fund has been set up. Contributions can be made to “The Freedom Fund,” Union Bank of California, 840 E. Herndon, Suite 102, Clovis, CA 93612. Constitutional Colleagues can be reached at 812-473-5340 or at their website.
Related stories:
- Raid on multi-level marketing meeting
- Fate of ‘Fresno 4’ in limbo
- ‘Fresno 4’ charged
- Network marketer jailed in Indiana
- Where’s Jerry Thorstad?
