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Frank L. VanderSloot (born August 14, 1948) is an American entrepreneur, radio network owner, and cattle rancher. He is chief executive officer of Melaleuca, Inc., an Idaho Falls, Idaho,-headquartered multi-level marketing company that sells nutritional supplements, cleaning supplies, and personal-care products. His other business interests include Riverbend Communications, a group of broadcast radio stations, and commercial cattle and horse ranch operations in Idaho and Utah. VanderSloot also serves on the board of directors and executive board of the U.S. Chamber of Commerce. He was listed among the 400 wealthiest men in the United States by Forbes Magazine and as the nation’s 86th largest landowner.

VanderSloot served as the national finance co-chair for Mitt Romney's bid to serve as the Republican Party's 2008 presidential candidate and was chosen as one of thirteen national finance co-chairs for Romney's 2012 presidential campaign. He also contributed $1.1 million and helped to raise another $2 million to $5 million for Romney’s 2012 campaign.

VanderSloot has been a major financial contributor to Republican and Democratic political campaigns and has financed advertisements in opposition to Idaho Democratic judicial candidates. His stances on gay-rights issues have been controversial.

VanderSloot sponsors an annual Independence Day fireworks display (the Melaleuca Freedom Celebration), billed as the largest west of the Mississippi, and was the primary funder of the American Heritage Charter School in Idaho Falls.

Early life and education

Born to a Dutch immigrant family, VanderSloot grew up on a small farm in Cocolalla, Idaho. His father, Frank (Peter Francis VanderSloot; b. 1913, d. 1982), worked as a painter for the Northern Pacific Railway and owned a small ranch. Vandersloot attended Sandpoint High School, graduating in 1966. At the age of 16, he converted to The Church of Jesus Christ of Latter-day Saints (LDS), and later served on a 2-year LDS mission in the Netherlands.

Vandersloot paid for his college education college by selling cream from a cow his father had given him, working at a laundromat, selling beef jerky in bars, and teaching Dutch to future missionaries." He earned an associate’s degree in business at Ricks College in Rexburg, Idaho, and in 1972, he graduated from Brigham Young University with a bachelor's degree in business administration.

Career

Early career

Before his Melaleuca days, VanderSloot was "in management jobs for 9 1/2 years at Automatic Data Processing in three cities, then as an executive for three years at Cox Communications in Vancouver, Wash."

Oil of Melaleuca

In 1985, VanderSloot was offered the helm of a startup multi-level marketing business (Oil of Melaleuca, Inc.) in Idaho Falls, Idaho by his brother-in-law Roger Ball and Roger's brother Allen Ball. Half of Oil of Melaleuca's 1,000 distributors quit because they could not make quick profits by passing along inventory to salespeople below them in their networks. The company failed to achieve significant market share and was targeted by the U.S. Food and Drug Administration because the company’s salespeople were making exaggerated medical claims. The partners shut down the company later in 1985.

CEO of Melaleuca

In 1985, five months after the closure of Oil of Melaleuca, Vandersloot started a new company, Melaleuca, Inc., serving as CEO and president. He hired a new research and development team whose work eventually resulted in nine U.S. patents for the company, including a muscle relaxant and analgesic containing melaleuca oil, also known as tea tree oil. The current company sells nutritional supplements, cleaning supplies, and personal-care products, which are distributed through multilevel marketing.

Melaleuca operates internationally, with U.S. operations centered in Idaho Falls, Idaho, and Knoxville, Tennessee. Melaleuca was recognized as an Inc. magazine Hall of Fame business in 2000. According to VanderSloot, Melaleuca had gross sales in excess of one billion dollars in 2011. In 2004, 25% of company revenue came from Taiwan, Korea, Japan, Australia, New Zealand, and the United Kingdom. Melaleuca is a member of the United States Direct Selling Association (DSA), a trade association. In 2008, VanderSloot began a 3-year term as one of the eight members of the DSA's board of directors. In December 2009 Vandersloot and his wife contributed $10,000 to the DSA’s political action committee.

VanderSloot states that the company has a "business model for those people who want to supplement their income." According to Dan Popkey of the Idaho Statesman, Melaleuca has 800,000 customers for its household and nutritional products. Roughly 37 percent are also part of the company's sales force of independent contractors, referred to as “marketing executives", and about 90 percent of the sales force average less than $2,100 in annual income from Melaleuca. The average annual income for 72 percent of Melaleuca's marketing executives, according to a report issued by the company for 2006, is $90.

FDA warning

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In 1997, Vandersloot received a warning letter from the FDA to stop marketing Melaleuca dietary supplements (i.e., ProVex, ProVex-Plus, and Replenex) as drugs for the treatment of disease conditions in contravention of the Federal Food, Drug, and Cosmetic Act. The warning, issued subsequent to an FDA inspection of Melaleuca’s manufacturing facilities, noted that the products carried claims that their use results in "halting and possibly reversing the process of articular cartilage degeneration" and that they were "an alternative in the treatment of degenerative joint disease or common osteoarthritis." Melaleuca subsequently announced that the claims would no longer be used for marketing the products.

Ranching

VanderSloot owns Riverbend Ranch, which is one of the largest operations in the United States for both purebred and commercial cattle. He also owns Fort Ranch Quarter Horses in Promontory, Utah.

Broadcasting

VanderSloot owns Riverbend Communications, a group of radio broadcast stations in Eastern Idaho that he purchased from Bonneville Communications in 2006. Riverbend Communications operates KLCE Classy 97, KCVI Kbear 101, KTHK 105.5 The Hawk, KFTZ Z103, KBLI News-Talk AM 690 - 1260, and KBLY AM 1260.

Snake River Cheese factory

In 1994, VanderSloot was approached by Firth, Idaho, dairy farmer Gaylen Clayson with a plea to invest in the Snake River Cheese factory in Blackfoot, Idaho, after Kraft Foods had announced a decision to close it. In response, VanderSloot bought a $1 million interest in the plant, which closed anyway within six months, after an investment company assumed control. Dairymen crowded into a local meeting hall afterward to make another plea to VanderSloot, who thereupon paid off a $2 million debt owed to the dairymen, staffed the plant with his own personnel and supplemented the milking herd with two thousand head of cows. He later brought in Beatrice Cheese, a subsidiary of ConAgra, to run the factory. In 1999, the company netted $278 million in sales. In 2000, VanderSloot sold all of his interest in the company to Suprema Specialties. "My business is Melaleuca and that's what I need to pay attention to," he said. In 2006, the factory, which by then had been renamed as the Blackfoot Cheese Company, was sold to Sartori Foods.

Paving and construction

VanderSloot was the owner of HighStone (formerly Eagle Rock Construction; RBH Gravel; VIP Construction) an Idaho Falls-based asphalt construction and maintenance company. HighStone’s projects included a $421,000 state government contract to repair a stretch of Idaho State Highway 33 in Idaho Falls, as well as work on road repairs in Rexburg. In September 2011, HighStone merged with DePatco, a family-owned heavy construction company in St. Anthony, Idaho. The merger deal created the largest locally-owned company in the industry in eastern Idaho.

Net worth

In 2004, VanderSloot was included on the Forbes 400 list of wealthiest Americans. According to Forbes, VanderSloot was worth $700 million and his company Melaleuca, for which VanderSloot owns 55% of the voting stock and 44% of the nonvoting stock, was valued at $1.4 billion. Although VanderSloot does not publically disclose his personal worth, estimates in 2011 suggest that Melaleuca would be valued at $3.2 billion to $3.9 billion were it to go public. In 2011, VanderSloot was listed by The Land Report as the 86th largest landowner in the United States, with holdings of 110,448 acres. In 2006, Ridenbaugh Press listed Vandersloot at #15 on its list of the 25 most influential people in the state of Idaho.

Public activity

United States Chamber of Commerce

VanderSloot is on the board of directors of the United States Chamber of Commerce, and in 2004 he was named to the organization's executive board.

Political campaign financing

According to Dan Popkey of the Idaho Statesman and Roger Plothow and Marty Trillhaase of the Idaho Falls Post Register, VanderSloot supported Idaho Democrat Larry EchoHawk’s 1994 gubernatorial campaign and endorsed Democrat Jackie Groves Twilegar for Idaho state controller in 2006, but VanderSloot has otherwise favored and been a major donor to Idaho Republicans, and he is “the state’s most boisterous conservative financier”. VanderSloot has helped finance election campaigns for several conservative political candidates in Idaho. He spent more than $100,000 on independent advertising on three winning judicial campaigns, two for Idaho Supreme Court and one for district judge in Bonneville County. Vandersloot and Melaleuca were financial supporters of Concerned Citizens for Family Values, an organization that ran attack ads targeting incumbent Idaho Supreme Court Justice Cathy Silak during her 2000 re-election campaign against Republican challenger Daniel T. Eismann. The ads alleged that if Silak were re-elected, same-sex marriage and "partial-birth abortion" could become legal in Idaho.

In 2002, VanderSloot and Melaleuca contributed more than $50,000 opposing the election bid of Democrat Keith Roark, a former Blaine County prosecutor, for Idaho Attorney General. The contributions included a $35,000 donation to Roark’s Republican opponent, Lawrence Wasden, and a $16,500 donation to Concerned Citizens for Family Values, an organization run by Vandersloot, to finance a radio attack ad against Roark in Eastern Idaho. That year, VanderSloot and Melaleuca also donated $7,000 towards the 2002 gubernatorial campaign of Republican Dirk Kempthorne.

In 2006 VanderSloot and his wife Belinda donated $16,000 through the PAC Citizens for Truth and Justice, and via direct payments for advertising, for attack ads against Idaho 7th District Court Judge James Herndon, a Democrat, in a three-way race against challengers Darren Simpson and DaLon Esplin.

In 2010 Vandesloot funded two political action committees (PACs) that launched last-minute attack ads against Idaho 2nd District Judge John Bradbury, a Democrat, during his electoral run for state Supreme Court against Republican incumbent Justice Roger Burdick. VanderSloot donated $19,000 to the PAC Idaho Citizens for Justice and financed the PAC Citizens for Commonsense Solutions. Idaho Secretary of State Ben Ysursa announced that the PACs were fined $1,900 collectively for failing to appoint a certified treasurer prior to accepting contributions from VanderSloot and for failing to disclose large expenditures for its attack ads before the election, as required by law.

VanderSloot served as the national finance co-chair for Mitt Romney's unsuccessful bid to serve as the Republican Party's 2008 presidential candidate. In 2012, VanderSloot was chosen as national finance co-chair for Romney's 2012 presidential campaign. In 2012, VanderSloot’s companies contributed a total of $1.1 million to the Restore Our Future political action committee, a group that supports Romney for President. According to VanderSloot, he raised between $2 million and $5 million for the Romney campaign.

On April 20, 2012, a website operated by Barack Obama’s campaign team included VanderSloot on a list of 8 major donors to Mitt Romney’s 2012 presidential campaign who have "questionable and troubling records on various issues" and described him as "litigious, combative, and a bitter foe of the gay rights movement". VanderSloot waged an aggressive response, making a series of appearances on the Fox News Channel in which he called for donations to Romney in protest of the list. VanderSloot, who accused the Obama campaign of targeting him unfairly, said that he went through "living hell" and told Fox News host Bill O’Reilly that his company Melaleuca had lost about two hundred customers in the first two weeks after after his mention on the Obama campaign website; however, he told the Idaho Statesman two days later that all the attention was turning out to be good for business.

In July 2012, VanderSloot said that was the subject of two new federal audits, one by the Internal Revenue Service and the other by the U.S. Department of Labor. VanderSloot said that the timing of the audits was curious and questionable, claiming that he received notice of the IRS audit two months after he was "singled out by the Obama campaign;" however, he noted that he did not think that the President was directly behind the audits.

LGBT issues

In 2012, Vandersloot stated that "gay people should have the same freedoms and rights as any other individual."However, his controversial stances on certain issues of interest to the gay community have drawn criticism from journalists and gay rights advocates.

In 1999 VanderSloot spent an undisclosed sum to sponsor billboards around Idaho asking "Should public television promote the homosexual lifestyle to your children? Think about it!” in reference to It's Elementary, a 1999 PBS documentary exploring how four schools dealt with homosexuality. VanderSloot's wife donated $100,000 to the Proposition 8 initiative to rescind gay marriage in California, and the the call center of VanderSloot’s company Meleleuca was used to persuade California voters to pass the initiative. Vandersloot's efforts and his wife's donation drew criticism from the Human Rights Campaign.

In 2006, VanderSloot issued critical statements regarding an award-winning series of investigative articles in the Idaho Falls Post Register about incidents of child molestation by Brad Stowell while serving as a Boy Scout director in the Grand Teton Council. Reporter Peter Zuckerman wrote that the Mormon Church and Idaho Boy Scout officials had received prior reports of some of the incidents at the Council's Camp Little Lemhi and that Stowell was a pedophile, but had failed to take appropriate action. Zuckerman also reported on the 1983 rape of a junior counselor by Dennis Empey, an Idaho Scout camp swimming instructor, and the case of Scoutmaster Jeff Hardin, a counselor at Camp Little Lemhi who was convicted of lewd conduct for molesting a Scout.

VanderSloot took out full-page advertisements in the Post Register in which he challenged Zuckerman's stories and devoted several paragraphs to establishing that Zuckerman was gay. One of the advertisements stated that "the Boy Scout’s position of not letting gay men be scout leaders, and the LDS Church’s position that marriage should be between a man and a woman may have caused to attack the scouts and the LDS Church through his journalism." Another advertisement said that:

there is nothing wrong with having homosexual reporters, but since the Boy Scouts’ policy of not allowing homosexual men to be scout leaders has produced so much anger against the scouts from the homosexual community, it seems that if the Post Register had wanted a fair and balanced story on the Boy Scouts, they would have assigned a reporter who did not have a personal ax to grind.

VanderSloot was accused of outing Zuckerman. VanderSloot denied the charge, saying that Zuckerman had already posted his sexual orientation on a public website, that a local radio show and the community had been discussing the fact and that he, Vandersloot, had attempted to defend Zuckerman's motives; Post Register editor Dean Miller, however, wrote later that Zuckerman's sexual orientation had been known only by Zuckerman's family and a few of his close friends and colleagues.

VanderSloot also claimed that Zuckerman's articles were inaccurate, untruthful, and sensationalized. (Zuckerman’s investigative reporting on the Grand Teton pedophile story in the Post Register was awarded the Scripps Howard First Amendment prize, and follow-up reports, based on Zuckerman’s investigations, by Harvard University’s Nieman Foundation for Journalism and PBS Exposé received the Mirror Award from Syracuse University’s S.I. Newhouse School of Public Communications and an Emmy Award nomination for best documentary, respectively.)

The Post Register also criticized VanderSloot for publishing the names of the victims in the Grand Teton pedophile case, to which VanderSloot responded "we feel we deserve every bit of criticism leveled at us by the Post Register for our carelessness...for that we are truly sorry”.

According to VanderSloot, he had employed Paul Steed, the father of two of Stowell’s victims, after the publication of Zuckerman's articles; helped broker a settlement between the Boy Scouts and the Steeds; and gave Espey's victim Jeff Bird a $30,000 check.

Defamation lawsuit threats

According to Rachel Maddow and other sources, VanderSloot has threatened defamation lawsuits, copyright infringement and other legal action against critics and outlets that have published adversely critical views, including Maddow herself, Forbes magazine, lawyer Glenn Greenwald, Mother Jones Magazine, and Idaho journalist Jody May-Chang.

Philanthropy

VanderSloot created the Melaleuca Foundation, a private 501(c)(3) non-profit corporation in 2004. The Melaleuca Foundation has been a financial contributor to the Santa Lucia Children's Home (Hogar Santa Lucia), an orphanage in Quito, Ecuador. In 2007, VanderSloot's company Melaleuca received the Salvation Army Others Award for helping with relief efforts following Hurricane Katrina.

Each year since 1992, Melaleuca has organized the Melaleuca Freedom Celebration, in Idaho Falls. The event is billed as the largest Independence Day fireworks display west of the Mississippi.

In 2012, it was announced that Vandersloot would be funding, via the Vandersloot Foundation, the new American Heritage Charter School, a K-12 charter school scheduled to open in Idaho Falls in 2013. The school, which touts itself as “a patriotic choice for parents” with a focus on “individual freedoms and free market economics”, is modeled after a similar charter school, the North Valley Academy in Gooding Idaho, and bases its curriculum on the Core Knowledge Program established by E.D. Hirsch.

Awards

In 1998, VanderSloot received the Idaho Business Leader of the Year award from Idaho State University. In 2001, he was awarded the Ernst & Young Entrepreneur of the Year Award for the U.S. Northwestern region.

Personal life

Vandersloot has been married to Belinda VanderSloot (née Boyock) since 1995 and they currently reside in Idaho Falls, ID. Together they have fourteen children: six from two of Frank VanderSloot’s prior marriages, and eight from Belinda VanderSloot’s first marriage. Frank VanderSloot was previously married to Kathleen VanderSloot (née Kathleen Zundel), his first wife, and Vivian VanderSloot, his third wife.

See Also

• Melaleuca, Inc. v. Hansen— Melaleuca was found by a court not to be an "Internet access provider".

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82. "Boy Scouts of America: A Proud Heritage". The Community Page. June 25, 2005. Retrieved 10/05/2012. {{cite news}}: Check date values in: |accessdate= (help)
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85. "A Special Cause: The Santa Lucia Children's Home". Melaleuca Inc. Retrieved 28 May 2012.
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88. "Nominations open for 'Idaho Business Leader of the Year'; event to celebrate 53rd anniversary." ISU Headlines. Nov. 1, 2011
89. Plaster, Billie Jean. "Frank L. VanderSloot" Sandpoint Magazine. Winter 2004.
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92. O'Donnell, Michael H. "Tragedy draws family together". Idaho State Journal. Retrieved 09/23/2012. {{cite news}}: Check date values in: |accessdate= (help)

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