Pyramids of Fortune?

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Thinking of joining a multilevel marketing program to make some extra money? Before diving in, make sure you’re not dealing with a pyramid scheme. They’re illegal, and for good reason.

Today, the FTC announced a complaint against Fortune Hi-Tech Marketing, Inc. (FHTM) for scamming consumers out of $169 million. The FTC alleged that the company operated an illegal pyramid scheme disguised as a multilevel marketing program, and claimed that anyone who joined could earn a substantial income. But the FTC investigators found that more than 90% of all the members earned less than $15 in a year. Most folks actually paid more to join FHTM than they earned.

What about all the rags-to-riches stories the company promotes? Only true for a few at the top tier.  In fact, the FTC charged, the company structured its business in a way that guarantees most people who join would lose money. The compensation plan is confusing, and commissions on product sales are very small. There’s no training on how to sell the products — things you might be familiar with and can buy elsewhere — like subscriptions to DISH Network, cell phone services, or dietary supplements. According to the FTC, the only way to make any money working for FHTM is to recruit other employees.

So what’s the bottom line for you? If you’re planning to buy into a multilevel marketing plan, get the details:     

  • If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is mainly based on the number of people you recruit and your sales to them, it’s a pyramid scheme.
  • Even if a company sells products or services you’re familiar with — or boasts celebrity members — they may not be legitimate.
  • Don’t be fooled by rags-to-riches stories or portrayals of lavish lifestyles made possible by joining the program. These stories may not represent the experiences of most members.
Blog Topics: 
Jobs & Making Money

Comments

I too have fallen victim to this newest scam from Juenesse. It is a pyramid scheme and there is no way to get around it. The 2 minute video of instantly ageless is the bait. I took the bait and joined at$1200. I did not research this company or try any products before i joined to be a distributor. I do think instantly ageless works, but the market is very saturated with make up and anti aging products. You will quickly find out how many women already have their make up regimen and are happy with it. The other products may or may not work. I am VERY suspicious of FINITY ™ . Beware of this product as it claims to lengthen your telemers which will slow down your aging process. I mean come on really? That freaks me out. I think it is total BS. If i would have done my homework i would have realized that this is not Randy Ray's first pyramid company. He was selling pills that claimed to improve gas milage but they proved to be phony. None of you know what could really be in Jeunesse's products because these types of companies fly under the radar. No FDA regulation whatsoever. Not on a health perspective or on a business perspective. I don't believe the numbers are realistic. Anyone can come out and make claims that the company made $450 million last year and growing. Where are the 10k statements? Where can i see the financial statements? All of these products are a guise to what the true agenda is and that is recruiting others. That is how the big money is made. Its not through selling cosmetics i promise you. Don't be fooled or lured into this. You will loose. They got me hook, line and sinker. Im very upset with myself for buying into this. I watch american greed every night on cnbc. I should have known better. 1Timothy 6:10 For the love of money is the root of all kinds of evil. And some people, craving money, have wandered from the true faith and pierced themselves with many sorrows.

Thank you for that provocative and informative comment! Anyone have any info on Millionaire Money Machine (MMM) aka Prosperity Nexus?

The ponzi/pyramid scheme known Infinity 2 Global or "I2G" has changed their name due to negativity about their fraudulent business ranking high on Google.

The new name for this old con is "Global 1 Entertainment" or "G1E"

Once again there is no way for an affiliate who signs up to make any money by selling any products. There are in fact no products to sell. Only vague descriptions of "social media" "online entertainment" and "social gaming". The only way to earn money is recruit new people into the scheme for up to $1500 for which you will be paid a commission.

Anyone no anything about G1E ???

It has been great for me. It does have products you can sell and make money off of. Not sure why this guy said there is no product.

G1E does not have a product. The social, gaming, entertainment may be a "product". However it is abstract "product" where you already have free websites such as Facebook for social, plenty of gaming an entertainment website that is free. The G1E "gaming" is actually gambling which raise more question of it's legality.

Anyone familiar with Prosperity Nexus. Trying to save my in-laws from disaster. Bottom line; you "buy-in" at a "level" and receive a bunch of DVDs on business building and motivation. Buy-in starts at $500 and goes up. Then you get someone else to buy in and they write a check to you for what ever level they buy in to, PLUS their "product purchase" to PROSPERITY NEXUS. HIS ISN'T LEGAL...IS IT?

If you can only make money by getting others into the business, this could be a sign of a pyramid scheme, and illegal. You can file a consumer complaint with the FTC at ftc.gov/complaint if you think this company is offering a pyramid scheme.

Would be interested to know how your in-laws are fairing presently in their endeavor with Prosperity Nexus. I was recently solicited by a telephone representative from this company.

You have the buy in for Prosperity Nexus wrong. It's 2k,3.5k,6.5k, 12.5k and 20k. Your first sale goes to the person that got you in and then you keep all your personal sales after that. I would think once you made your second sale, if you didn't get paid this would blow up.

Is It Works Global a scam?

Yes, I think it is a pyramid scheme! FTC- please help!

I know!! Is it being investigated? You don't make money selling the products, just by recruiting AND YOU HAVE TO PAY MONTHLY FOR PRODUCTS FOR YOURSELF! And I go t no training, just expensive pep rallies!!! Please investigate!!

Yes please my daughter is sucked into this cult-like pyramid scam and claims to be making over 10k a month constantly recruiting on Instagram while claiming all these "blessings" from god.

You can report a scam to the FTC at ftc.gov/complaint. The information you give goes into a database that law enforcement uses for investigations. You can also report a scam to your state and local consumer protection agencies.

Does anyone know if Infinity Concepts is a pyramid scheme?

Very interesting post here, I didn't even know some of this stuff. Thanks so much for sharing with us all.

Thanks for this nice article.I like the post.

hi, ist there anyone who has further information about the federal trade commission investigating against Jeunesse Global because many Vemma affiliates switched camp after the company has been taken to court?
thanks for any kind of news

I like your blog. I enjoyed reading your blog. It was amazing. Thank a lot.

How about dsdomination and a new company under the same umbrella named infinii™? No reviews yet because it is so new. Pls help!

How about jusuru? Anyone having any issues?

Great post, didn't know until now.

If your government says it's bad, you know it's good. What we should probably be investigating is the ftc among others, a bunch of bureaucrats who don't know the first thing about business thinking they know what's best for the people who have actually built and ran something.

What makes you say that? Can you provide some evidence to support your claim?

Thanks for sharing this article.It is very useful.i read again and again.Thanks again.

If you want your own business, start your own business. Common sense is so rare these days with people. It is a FACT, do not send money to anyone with the promise of making more!!! I have never seen so many gullible people in all my life. Amway may have beaten they system, but I cant believe people actually even still use their products. I know alot of people, and know no one that even uses them. Most have no clue about them, surprised they are even still in business. People, quit living a pipe dream and making others rich. If you need money and good insurance go to work for mcdonalds, at least is dependable in every aspect. Then save your money and start your OWN home based business based on what you are good at and feel will sell in today's market.Geesh, dont you all watch dateline, 48hrs?? etc. etc. Wisen up.

“Save your money while working at McDonalds.. LOL!!! As if anyone working at McDonalds has enough money to save to start a business! In almost anywhere in the US is going to require at least 2 or 3 McDonalds jobs to pay for necessities AND be able to save enough to start a business and anyone doing that also has to figure out what kind of business they’re going to start and how to operate it successfully all while holding 2 or 3 full time jobs! Good luck with that.

Thanks for sharing this nice article. I read it completely and get some interesting knowledge from this. I again thanks for sharing such a nice blog.

I received a small refund check in the mail yesterday for "Fortune Hi-Tech Marketing". It mentioned that this check is my share of settlement money collected so far. Is there more settlement money to come???

You should deposit or cash the check within 60 days.

This FTC press release explains that it's possible that the FTC will have additional funds to distribute in the future, after lawsuits filed against FHTM’s highest earning sales representatives are resolved.

The FTC never requires people to pay money or provide account information to cash refund checks. If you have questions about the case, contact the FTC’s refund administrator, Epiq Systems, Inc., at 800-964-0978.

Hello, I think Vision Travel (visiontravel. net) is a pyramid scheme. Please investigate them as well. Many of our friends have fallen prey.

To tell the FTC about a company, report it at FTC.gov/complaint. The information you give goes into a secure database that the FTC and other law enforcement agencies use for investigations.

The comments you put here on the blog don't go into the law enforcement database.

to the Clifton leaf and his magazine another editor from more magazine jonny Lichtenstein got involved in coraption business with crazy cbs anchor Otis Livingston to rob fortune magazine employees bank accounts. never trust jonny Lichtenstein and Otis Livingston

Someone needs to seriously check out the practices of an on line game called Gamepoint This has to be actual gambling and these people have to be involved in fixing their outcomes. Just please check into it.

If you want to report a scam, please go to FTC.gov/complaint. You can provide information about the company, what it promised, and what you got. The information you give goes into a database that law enforcement uses for investigations.

The comments you put here on the blog don't go into the law enforcement database.

can ftc look in to company ACN is legit company or parymid scham

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