FTC Shuts Down Pyramid Scheme Company

FTC Shuts Down Pyramid Scheme CompanyDirect-sales company Fortune Hi-Tech Marketing was shut down on January 28 because the company was operating a pyramid scheme, according to a recent article in the Chicago Tribune. The company had hired people to sell products made by certain cellphone providers, Frontpoint Home Security and Dish Network, and also sold many types of health and beauty products. However, the distributors made very little money for selling products and services. Most of the profits came from signing up new sales people.

Police estimated that about 100,000 people from all over the United States had been affected by the hoax. For example, in Chicago, Spanish-speaking consumers were the victims of the scheme. Most victims paid from $100 to $300 annually and some paid even more to be entitled to sales commissions and recruiting bonuses.

The Federal Trade Commission along with the states of Illinois, Kentucky and North Carolina filed a complaint against Fortune Hi-tech Marketing after which a judge issued a temporary restraining order requiring the company’s shut down. The company responded to the allegations saying, “We are confident that our side of the story will be heard and we are already making positive strides toward re-opening.” The move against Fortune Hi-tech may mean that the FTC could make a bigger push against direct marketers in general.

If your business enterprise has been charged with fraudulent business practices, it is very important that you enlist the services of a skilled business litigation attorney as soon as possible. The sooner you resolve your business dispute, the sooner you can move on. Contact an experienced business lawyer in Naperville, Illinois at once.