If A > B > C > D > E means A Recruited B, then this is how it's going to work.

B can grant levels to A (Sounds useless, since you said that account has most maxed jobs anyway)
C can grant levels to B
D can grant levels to C
E can grant levels to D
E is stuck with whatever levels you gain.

To be honest, the who level granting thing... When I RaFed my team, I found it completely useless. I leveled up slow, and I was getting teams to 60 in on real life week, and I work full time and such. It's so painfully easy. And there's RaF leveling guides, and not to mention dungeon boosting.

By the time I was done leveling up with RaF, I had hundreds of levels to give out, and I really didn't use any of them, since most of the teams I wanted to level up at the time were already 60.

If I could do it all over again, I'd have leveled up more teams, but I RaF'd a month, or two, before WotLK was released, so I was on a mad rush to get those desired teams up to 60, as well as get my shaman team to 70, and some last minute BG/Arena gear on Ridere, because I still think Warlock Season 2 gear is the coolest looking warlock set out there.

So yah... Dont' know if that helps or not, but it looks like you won't be granting any levels to Account E, though I really doubt you need to.