Real Hair Truth Michael Gordon busted after IRS says he hid $29.6 Million!

TOO MUCH OFF THE TOP: Michael Gordon has been busted for allegedly trying to skirt the IRS.

The IRS doesn’t take haircuts as payment.

LOLOLOLOLOLOLOLOL

The founder of Manhattan’s famed Bumble and bumble hair salons and product line has been busted for allegedly lying to tax investigators about $29.6 million he received after selling his stake in 2006, The Real Hair Truth has learned.

Michael Gordon, 61, of Manhattan, remains behind bars after allegedly telling an IRS investigator during a meeting last month that he didn’t know the income had to be reported on his 1040 tax return form. A federal warrant was issued and he was arrested and arraigned last Friday. The British native — who most recently produced a documentary on his late pal Vidal Sassoon that premiered last year at the Tribeca Film Festival and later partnered with fellow hair-salon owner Rodney Cutler of Cutler Salons — was deemed a flight risk by federal Judge Gary Brown and jailed. He sold his stake in Bumble and bumble to Estée Lauder in 2006 to pursue other interests and purchased homes in the Hamptons and Manhattan. But that financial jackpot has come back to haunt him six years later. The IRS has been conducting an investigation into his returns, and even used a confidential informant to build its case against him before last week’s arrest, according to court papers.

The canary — a friend of Gordon’s for roughly seven years — said Gordon openly discussed hiding the money from the taxman after securing the lucrative deal in 2006. The informant “told me that after the defendant received the income from the sale of Bumble and bumble, he was actively seeking ways to hide the money from the IRS, including sending money overseas, so that he would not have to pay taxes on that income,” a federal agent says in a criminal complaint. Instead of reporting the earnings, Gordon allegedly presented a gross income of $1,350,883 that year and a taxable income of $1,124,844. Instead of forking over hefty income tax on the $29.6 million, Gordon actually scored a refund of $39,298 in 2006, according to the complaint. Gordon submitted papers at his arraignment stating that he lived in a $16 million Manhattan apartment with a $3 million mortgage. Officially retired from wielding scissors, he listed his employer as his own company called, “If You Knew”, a hairstyling consulting firm made up of Bumble and Bumble alums. Cutler, who first worked at a Manhattan Bumble location and has called it the most influential salon in America, declined to comment. So sad for this Brit! BOO-HOO

 

Unilever’s Suave Product is still under Investigation!

 
Profile Picture
 
Suave Professionals Keratin Infusion 30 Day Smoothing Kit Unilever Trumbull. CT 06611. Actual Kit UPC 7940019562 Modular Display Unit Description and Case UPC : Suave SA Keratin Smoothing Kit 8PC PDQ 10079400228786 Suave Mixed Keratin 17 PC PDQ 10079400233025 Suave Keratin Kit 12PC Wing 10079400240221 SV SH CD Kit Keratin 12PC 15 Inch PDQ 10079400241372 Suave SH/CD/SA Keratin 258PC Bin 10079400244359 SV MB Naturals/Keratin 670 PC Pallet 10079400245790 Standard Case: SV Smoothing Kit (ATG) 12 1ct 10079700195620. Recall # F-1332-2012
CODE
All lots
RECALLING FIRM/MANUFACTURER
Recalling Firm: Unilever United States, Inc., Englewood Cliffs, NJ, by letters dated May 8, 2012.
Manufacturer: Les Emballages Knowlton Inc., Knowlton, Canada. Firm initiated recall is ongoing.
REASON: Unilever has received numerous consumer complaints related to undesired hair treatment outcomes and potential consumer misunderstanding for Suave Professionals Keratin Infusion 30 Day Smoothing Kit.
VOLUME OF PRODUCT IN COMMERCE
381,288 Kits
DISTRIBUTION
Nationwide
 
Unilever is one of the world’s leading suppliers of fast moving consumer goods. Unilever markets the product under its wholly owned Suave brand name as a Keratin-based hair straightening product that is “an affordable at-home alternative” to professional salon treatments that’s “formaldehyde free.” However, Unilever may not be able to substantiate its claims. In addition, Unilever may have failed to inform consumers that the Product contains a chemical known as “Tetrasodium EDTA,” which is mainly synthesized from formaldehyde. Unilever also may have failed to inform consumers that the Product contains a chemical preservative known as “DMDM Hydantoin,” which is an antimicrobial formaldehyde releaser with the trade name Glydant. Formaldehyde has been classified as a known human carcinogen (cancer-causing substance) by the International Agency for Research on Cancer and as a probable human carcinogen by the U.S. Environmental Protection Agency.

So when do we stop thinking of ourselves and start thinking and helping others. Where did simple kind compassion go in a world of give-me. Where did listening and  understanding one another’s problems leave our day-to-day life. When we know the truth and not say the truth that is the most common sin of all. .  Do you really care anymore.

 
I just used this product a few days ago and my hair is also fried. And when I went to the store to try to find a deep renewing conditioner the product was still on the shelf! I don’t know what to do with my hair at this point. I’ve been trying to nurse it back to life with coconut oil and mayonnaise but it still isn’t enough. Help?!
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I too used this product and fried my hair…4 haircuts later still having issues with dry hair and itchy scalp. Any ideas on what I need to do to promote good hair health?
Thanks
 
Hello Mr. Kellner,
Help it has been 4 months for my hair and it continues to break off and is fried.  It seems like it is getting worse not better.  I have spent over $2000 and yet I am still struggling.  No one is responding to my letters Unilever, Suave or Kroeger. I tried to join a class action lawsuit with Wasserman, Comden, Casselman & Esensten but they have not contacted me back yet either.  The $12 is not sufficient and my current professional stylist believes it will be at least another year before my hair is back to normal if ever.  I can not afford this!!  
 Is there any hope we will get some resolve from the company.  Please someone help!! This is truly a nightmare and not only has it ruined my hair but my personal life, my professional life and my personal well-being have all been severely compromised.
Any information that you might have regarding where I might go next would be greatly appreciated.
Suzanne M. Light, Pharm.D.
 
I used this kit twice the first time my tightly curled hair was soft shiny the second time at first I didnt see any change in my then a couple of weeks after my hair started coming out by the handfuls it took me three years to get the growth I had now all Ivan do is cut it all off and do intensive conditioning treatments .something should be done to suave for the damage it has done to my hair.thank you
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Hello Joseph,
My name is Dawn Rettew, a hairdresser/make-up artist, three-time salon owner.
I would like to thank you for your courage in addressing the issues of our profession.
Having been a “brainwashed sheep” myself, I understand most of what you are saying.
I would like to break into private labels and have attempted this in the past with no success. Mostly, I’m not able to know which companies to trust anymore and the up front cost is too high.
There are no products left that are not diverted. I especially like the way the product companies are not including “online discount drug stores” as diversion. To me, online sales are diversion. I’ve signed contracts with companies promising to do my part and now I can walk into any Target, TJ Max, most online outlets and purchase the very same products
At this point, I don’t even trust having my own private label for fear of losing even more credibility with clientele. They lie about the ingredients. etc. I’ve been made to be a liar one too many times. If you have any private label insight that you would be willing to share with me, I would greatly appreciate it. I’m just looking for a product line that is non-diverted, the best available ingredients at the best available prices without the deceptive practices that go along with them.
I appreciate you honesty,
Dawn Rettew
 
I bought the treatment on 3/23/12 from Wal-Mart and I used it a week later.  I have previously used Sally’s brand about 8 months prior so I knew what I was doing and I read the directions correctly.  Not even a week after I used the Suave brand, my hair got considerably lighter, which has never happened and my hair started to fall out.  Even now, every time I was my hair, more of it breaks and I am losing it by the handfuls.  I only use the treatments because after I had my daughter, my hair got wavy and thicker only in the back and I wanted an easier way to maintain my hair.  The treatment I used before worked wonders and seeing as Suave’s was a whole lot cheaper, I took a chance.  I know it is not supposed to make it straight, but it is supposed to make it easier to straighten, and this did not do as it was supposed to.  I saw the recall at my local CVS and wanted to know what I am supposed to do from here?  Thanks for your time.
Ashley Mier
 
 

Fight Manufacturer Deception with Your Own Formulated Brand or Private Label!

 

You are all the Sheep… the Brainwashed Sheep… the followers of the Dark ones whom enslave you. The Product companys, the Manufacturered schools, the Websites, and Industry magazines and So Called Organizations. You are all Members of the Control System. Nothing more than Robots going through everyday professional life not knowing the Truth about your Profession and the Multi-Dimensions that are all around you. You go to work not knowing that you yourself are multi-dimensional.  But you will not have access to all this until you take off your blinders and see the truth. I write these words simply as a Messenger of Light… a Bringer of Truth.

Most of your clients have never even have heard of the term “private label products”, so they just assume you manufacture them yourself. But even for the clients who know how private label products work, as long as the products are of high quality and smartly packaged, they will be equally impressed.

You will also have CONTROL!

100% Complete control over your own “High Quality, Personal BRAND” haircare line that is sold exclusively at your salon or from your salons website with your name or salon LOGO on every Bottle, Tube & Jar!

You will be purchasing your Personally Branded Products at the Lowest Possible Price of any product line when compared to any other haircare line (Big-name brand or other private label brand company) and reselling your products at the Highest Possible Markup (200% to 500%) which will give you the Highest Possible “Profit Margin” of any other haircare line on the market today.

You will never have to worry about **Diversion** or some Big-name company taking advantage of you and destroying your “Professional Credibility” ever again.

The Easy Answer Is

1-Profit
2-Image
3-Control

In reality, profit is the main (or only) reason we sell retail products.
Companies in our industry selling private label haircare products to salons like yours and mine are selling on the premise that we would be able to make a much higher percentage of profit by selling their products (under our own brand name) then we would by selling big-name hair care products produced by large famous haircare manufacturers. Private-label hair care products do lift the image of your salon. There is no doubt about it. If you have handsomely packaged bottles, tubes and jars with your salon name or logo on them, it’s very impressive to your clients.

Hair care product manufacturers develop a line of products, and then they come to us “Salon Owners and Booth Renters” and do an elaborate sales pitch with a lot of big promises.

  • They get us to buy huge intro deals with the promise of making all this money.
  • They promise us advanced education.
  • They promise us ongoing support.
  • And they promise us that we would never see their product sold at drugstores, grocery stores or discount chains.

 Bottom line they are full of shit!


Get your head out of your ASS!

In my next film “Beautiful Lies”, I highlight a lot of entrepreneurs in my industry. Professionals who have heart, integrity, passion and ambition. In an industry where it is dominated by manufacturers deceiving the professionals for their own financial gain. Starting off as an entrepreneur is no easy task, certain types of characteristics must be in that individual in order to persist in this industry. And I am talking about true motivated individuals who will find forms of networking and avenues of advertising to brand themselves. So many professionals in my industry always seem to go to the industry magazines, websites, and organization to get the “PAT ON THE HEAD”. Why?

Why does an individual in this industry need to go to the industry websites, or organizations to sell their creation. Your doing it the wrong way. For instance if you make a hair care line or makeup line, normally an individual would think to get it to the salons, hairdressers, makeup artists within their profession. Hair show prices are expensive, and paying for a booth at a show could put a lot of entrepreneurs out of business. When you sell to your accounts, advertise them on the internet, inform the consumer about the benefits of your product line. Encourage them to purchase it at their salon. Advertise in magazines outside of your industry, and also learn to be a writer. There are unlimited blogs and networks to help you gain awareness with consumers outside your profession. Paul Mitchell, Nexxus, Big Sexy Hair, Tigi, Bumble&Bumble use this form of advertising to increase sales. Why not you?

Call up your local city magazine, check out their prices for advertising I guarantee it will be cheaper than Behind the Chair, Salon Galaxy or going thru the PBA. You need to acquire more “Bang for the BUCK”!. Just like the industry manufacturers when they sell to you, they will also sell to the commercial sector of retailing. In our industry the magazines charge the big bucks that only the major hair care lines can afford. And the entrepreneur cannot afford that, that is how the magazines sustain themselves. Every manufacturer that sells to the commercial sector is paying for advertising to sell to you in our so-called industry magazines! They are covering their bases within the industry. They advertise in magazines, ELLE, VOGUE, etc. They can afford that. The hair shows are also the same, it’s all about the “LOCATION” at Beauty shows, especially at the entrances of the convention centers. The prices’ of booth space are astronomical, but they can afford that. Can an ENTREPRENEUR, I think not. Sharing booth space at a show is a good idea, that is where the networking part of entrepreneurship comes in. Find an individual who you can work with, Haircolor and Makeup go together. Haircolor and Styling tools go together, Haircare and hair color and Makeup are all complementing of each other. Share a booth at a trade show together.  Advertise one another, wether it be on the internet or local advertising. Explain the benefits of your product to the consumer, explain where the salons in their area carry your type of hair color, or hair care, or styling tools.  Let them buy from your accounts and also advertise your accounts! Cover all your bases, with the consumer sector.

Video advertising is just as important, create a 30 second clip of you hair color, hair care, and have it filmed and edited by a professional. Remember presentation is important. Talk about your hair care or you hair color. Loreal supposedly sells a professional hair color to the beauty industry, and they also produce hair care, styling lines for the industry. You will buy these products from them to perform your services to your customers and also sell them retail from this manufacturer. In turn Loreal will create their own consumer hair color, and shampoo’s, and styling products. They are extremely smart. You will buy from these company’s, who are competing against you. You have been set up to FAIL FROM DAY ONE! You  are competing with a manufacturer who is covering all there bases! Why do you support these company’s who also make a consumer line of hair color and hair care? Think about it! This is not good business sense.  SO WHO IS FUCKING WHO? You support company’s who no longer can give you an exclusive product? Students will come out of a Paul Mitchell school and that is all they know, Paul Mitchell produces clones and salesmen and saleswomen. Ingenious idea. Free advertising for their company. So these graduates are so hyped up with bullshit the company doesn’t care this is free brainwashed people who will sell their product to the consumer who comes in there salon. In the back-end of it all Paul Mitchell will sell to the consumer sector. No brand loyalty from them. Why should they its all about financial gain. Sales pay bills. Thats fine. But you are the one getting screwed in the long run. They sell you fake loyalty, well here is the bomb, “Bullshit does not pay the bills”. Wake up!

An ENTREPRENEUR CAN, HE OR SHE BELIEVES IN THE BRAND LOYALITY AND STICKS BY IT!