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PSA In The News PSA President Public Radio in Charlotte, NC On December, 4, 2006, Robert FitzPatrick, Co-author of the book, False Profits, and the founder of Pyramid Scheme Alert, was interviewed on public radio, WFAE, Charlotte, NC. The 55-minute interview covers many aspects of multi-level marketing. For consumers interested in an overview of the scams, tricks and myths surrounding multi-level marketing, this interview provides a good primer course. -- MP3 Recording PSA in Ladies Home Journal March, 2004 PSA President Robert FitzPatrick was interviewed in an article on pyramid schemes in this month's Ladies Home Journal. PSA Featured on Fox News In a recent segment on 2by2.net, Pyramid Scheme Alert was prominently featured. PSA Featured on NBC Nightly News Pyramid Scheme Alert's logo filled much of the screen on NBC Nightly News with Tom Brokaw, Jan. 8, 2002. The logo was featured in a "Fleecing of America" segment alerting women to a widespread pyramid scheme known as "Women Empowering Women." More. . . |
Texas Attorney General Settles with MLM Pyramid Scheme that Markets “Fuel Pill” The MLM scheme, BioPerformance, and its owners, Lowell Mims and Gustavo Romero were charged by the Texas AG as a Dallas-based pyramid scheme that marketed a pill that it claimed would increase fuel efficiency in automobiles. By the defendants' own admission, they recruited 50,000 participants within six months of their scheme's inception. The Texas AG said BioPerformance conducted large meetings around the country where, consumers paid fees to join the scheme. Resellers were then subsequently instructed to recruit additional resellers and thus create a "downline" from which they could derive commissions. Mannatech Under Investigation for Deception The Texas Attorney General is investigating the MLM company, Mannatech Inc., for violations of the state's "Deceptive Trade Practices Act "and "other related consumer protection statues." Amway Offices Are Raided and Shut Down in Parts of India; Government Officials Label Amway a Fraud. Offices of Amway (now called Quixtar in North America) were raided by police in nine different cities in the state of Andhra Pradesh, the largest in southern India. Police and government officials said that Amway violated laws against fraud and deception. More than 80,000 Amway distributors were affected in the region. Despite legal challenges from Amway, Indian officials tell Pyramid Scheme Alert that Amway offices in the state of Andhra Pradesh remain closed down. There has been widespread complaints against Amway in some parts of India. More. .. FTC Asked to Halt "Business Opportunity" Fraud by MLM Companies To stop the widespread "Business Opportunity" fraud of MLM pyramid recruitment schemes, PSA has asked the FTC to regulate multi-level marketing. PSA wrote the FTC that MLM is now the most widespread form of "business opportunity" fraud. You can support this effort by writing the FTC's Consumer Protection Division. The email address and phone number are listed at the link below. International Heritage– Harbinger of Future MLM Prosecutions? Recent prison sentences handed out to former executives of one MLM, International Heritage Inc., may offer a glimpse of the future in which MLM’s brief era of scamming will end. Pyramid Scheme Alert Report Aids in FBI Investigation of Auto-Surfing Scheme,12Daily Pro Pyramid Scheme Alert president, Robert FitzPatrick was recently contracted by the Fraud Discovery Institute of San Diego, California. to evaluate a large "auto-surfing" scheme known as 12Daily Pro. The scheme, which is based in Charlotte, North Carolina, had enrolled 300,000 people and claimed to pay 12% for 12 consecutive business days on investments from $6 to $6,000. More New Consumer Website Warns of Ponzi Schemes A new website has been launched to aid consumers in recognizing a new form of Ponzi scheme on the internet, known as "autosurfing." Launched by Curt Crowley, an internet service provider in Missouri, the site is described as a "crusade against the Paid to AutoSurf Ponzi Schemes." Utah's Reputation as America's Scam Capital Grows Utah has the highest concentration of multi-level marketing scheme headquarters per capita of any state in America. Now, the Utah state legislature has legislated a "safe harbor" amendment to its anti-pyramid scheme statute that legalizes the types of schemes that have been prosecuted by the FTC and other states over the last 30 years. Pyramid Scheme Alert has sent letters to Attorneys General in all other states warning them to be vigilant regarding any chain selling schemes that are headquartered in Utah. More. .. NEWS ARCHIVE 2005 China Outlaws MLM as It Is Practiced in the USA In a stunning and unexpected blow against MLM schemes and promoters, the government of China has passed a law that outlaws the payments of commissions on purchases made by "downline" recruits in the scheme. Legitimate direct selling has been approved in the country. PSA worked diligently with Chinese authorities in providing information about the harm caused by MLM recruitment-based schemes, as Amway operates in the US. More. .. Pyramid Scheme Alert President Speaks in Sri Lanka Pyramid Scheme Alert was recently called upon by Asian countries to assist them in understanding and regulating pyramid sales schemes. PSA President, Robert FitzPatrick delivered a highly publicized speech in Sri Lanka on June 2 and facilitated an international seminar in Sri Lanka's capital of Colombo on June 3, 2005. More. . . DSA Pyramid Scheme Bill Stopped in Florida In a victory for consumers, the Florida 2005 legislative session ended without a vote on this bill. Stay tuned next year. . . PSA Alerts Congress Pyramid Scheme Alert sent a special report to all members of the House Subcommittee of Commerce, Trade and Consumer Protection. The report statistically documents the devastating financial results of MLM recruitment schemes. More. . . Pyramid Scheme Alert Files "Friend of the Court" Brief to Defend Consumer Pyramid Scheme Alert President, Robert FitzPatrick, wrote an "Amicus Curiae" brief filed in the United States District Court for the Northern District of Ohio Eastern District in support of a "Motion to Dismiss" by Defendant, Douglas Konkol, a consumer who has been sued by the MLM scheme, International Galleries, Inc., based in Texas. . More. . NEWS ARCHIVE 2004 Herbalife Organization Pleads Guilty in Canada According to the Industry Canada website, one of the motivational organizations associated with Herbalife, Global Online Systems, Inc., has pleaded guilty and paid a $150,000 fine. More. . . Former Amway Emerald Releases Whistle-Blowing Book Former Amway Emerald Eric Scheibeler has just released his new book, Merchants of Deception. This definitely qualifies as one of the books they don't want you to read, and it's available for a limited time as a free download in Adobe Acrobat (pdf). Visit the Merchants of Deception website for information which Mr. Scheibeler, a former Federal auditor, has gathered about Amway/Quixtar and its kingpin diamonds, and take advantage of his free download offer. Pyramid Scheme Alert Petitions NC Attorney General to Investigate Britt World Wide Pyramid Scheme Alert, a Charlotte, NC-based consumer advocacy group has formally asked Roy Cooper, the North Carolina Attorney General, to investigate the business practices of the North Carolina-based company, Britt World Wide, owned by the Amway/Quixtar kingpin, Mr. Bill Britt, a resident of Chapel Hill, North Carolina. More. . . Herbalife Class Action Settlement Reveals "Secret" Business, Similar to Amway/Quixtar's Exposed on NBC Dateline A $6 million settlement reached by attorneys for victims of Herbalife and its recruiting organization, The Newest Way to Wealth, reveals the same type of "secret" business that was exposed at Amway/Quixtar in the May 7, 2004 NBC Dateline. Both Amway/Quixtar and Herbalife are members of the Direct Selling Association. More. . . NEWS ARCHIVE 2003 Skybiz Settles with FTC: $20 Million for Consumer Redress Skybiz.com, Inc. (also known as Skybiz 2000) has settled a two-year-long suit brought by the Federal Trade Commission. In May, 2001, the FTC charged that Skybiz, based in Tulsa, OK, was operating as an illegal pyramid scheme. The company recruited participants into an "internet mall" type MLM scheme. More. . . Direct Selling Association Attempts to Legalize Product-Based Pyramid Schemes The Direct Selling Association (DSA) is the trade group of the MLM industry. Past DSA members have included a number of MLMs, including Omnitrition and Equinox International, which were determined to be pyramid schemes. Now the DSA has submitted a proposed piece of legislation which would effectively legalize any product-based pyramid scheme. Under its provisions, Omnitrition, Equinox International, Heritage International, and many other product-based schemes would have continued harming consumers, and it would all have been legal. More. . . Vizion One, Inc. Ordered to Stop Operating Hawaii's Securities Commissioner has ordered Vizion One, Inc to stop operating a pyramid investment scheme. Vizion is based in California. Vizion claims to sell internet service, but, according to the Commissioner, the real emphasis is on recruiting. The company's investments are not properly registered with the State of Hawaii. Amway/Quixtar/Alticor Accused of Antitrust Violations Businesses owned by Amway Diamonds Schmitz and Hart, and Crown Ken Stewart, have filed a new lawsuit, this time naming Alticor, Inc., Quixtar, and Amway as defendants. Businesses owned by the three had previously filed suit against other high-level distributors and their businesses, but had not named Amway itself. More. . . NEWS ARCHIVE 2002 Owner of Independence 2000 America and TeleCom 2000 Network has Assets Frozen, Disappears Al Petty, self-proclaimed reverend, musician and financial guru, has disappeared from his home in Overton, TX. More. . .
ACN Canada Charged
November 25, 2002 Canada's Competition Bureau charged ACN Canada with eight violations of deceptive marketing. ACN Canada is a spinoff of ACN, headquartered in Michigan. The Canadian headquarters are in Halifax, NS. More. . . BBB Warns About Telecom 2000 Network The Better Business Bureau of Central East Texas, Inc., has issued a warning about a company called Telecom 2000 Network. This is a cellular phone and long distance company which relies on a multi-level marketing promotional plan. The company is owned by Al Petty. More. . . Class Action Lawsuit Against Pre-Paid Legal Services Lieff, Cabraser, Heimann & Bernstein, LLP and Dunn, Swan & Cunningham, P.C. announced today that a class action was commenced on March 1, 2002 in the United States District Court for the Western District of Oklahoma on behalf of all purchasers who at any time (the "Class Period"), purchased an "opportunity" from Pre-Paid Legal Services, Inc. to sell memberships for "legal insurance plans" (the "Class"). More. . . Pennsylvania Attorney General Investigates "World Of Giving" Pyramid Scheme Mike Fisher, Pennsylvania's Attorney General, has taken legal action against promoters and participants in the "World of Giving" pyramid scheme, also known as "Guidelines to Giving." More. . . Wyoming Settles with Pre-Paid Legal Services Pre-Paid Legal Services (PPLS) has agreed to cease using prohibited income statements, to pay fines and legal costs, and to reimburse consumers who had been misled by the false earnings claims. More. . . Skybiz Must Give Up Foreign Assets Skybiz, charged by the Federal Trade Commission last May with promoting an illegal pyramid scheme, has been ordered to repatriate millions of dollars held in offshore accounts. The money will be held for consumer redress. More. . . State of Michigan Reaches Settlement with KM.Net Michigan's Attorney General, Jennifer Granholm, has announced a settlement with internet-mall scheme KM.Net. It should result in about $6 million in compensation for Michigan consumers. More. . . SEC Files Complaint Against Internet Company NuEworld The Securities and Exchange Commission ("SEC") announced that on October 3, 2001, it filed a civil complaint against NuEworld.com Commerce, Inc. ("NuEworld") and its co-founder and Chief Information Officer, Timothy C. Ringgenberg. . . more Federal Judge Dismisses Amway's Case Against Procter & Gamble; "No Conspiracy," Says Court U.S. District Judge Robert Holmes Bell has thrown out Amway's case against rival Procter & Gamble and its attornies. More Pre-Paid Legal Services
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