MLM Blog – Network Marketing Blog

Fortune Hi Tech Marketing Shut Down In Montana As Pyramid Scheme

Posted on 16. Mar, 2010 by Ty Tribble.

I just unleashed 7 of my most closely guarded Internet Marketing files for the first time. Download Ty Tribble's MLM Web Secrets. It's my free gift to you for visiting.

Fortune Hi Tech Marketing has been ordered to cease and desist operating in the State of Montana according to a report from the AP:

HELENA, Mont. (AP) - Montana has ordered a Lexington, Ky.-based company to cease operations in the state, accusing it of running a pyramid scheme.

Monica J. Lindeen, the state Commissioner of Securities and Insurance, says Fortune Hi-Tech Marketing took nearly $1.9 million from at least 1,295 Montana participants between July 2006 and June 2009.

Lindeen says the company lures new members with income opportunities with companies such as Dish Network and General Electric. But, she says, members only benefit if they recruit others to join in the alleged scam.

Here is a copy of the Montana Complaint Against Fortune Hi Tech Marketing.

Here is a link to the FHTM Statement to Montana Reps.

This action comes on the heals of North Dakota taking similar action back in December where the State Attorney General files a Cease and Desist against FHTM.

Attorney General Wayne Stenehjem has issued a Cease & Desist Order against Fortune Hi-Tech Marketing of Lexington, KY and its principals Paul C. Oberson, Jeff Oberson, and Thomas A. Mills for violations of North Dakota transient merchant, consumer fraud, and home solicitation sales laws. The Order was filed late yesterday, December 10, 2009.

Continue Reading

Numis MLM Gold Scam?

Posted on 09. Mar, 2010 by Ty Tribble.

How quickly we forget the last big Gold MLM Scam: Gold Unlimited

January 22, 1992, saw the incorporation of Gold Unlimited, Inc. ("Gold") as a Delaware corporation based in Madisonville. David Crowe served as the sole officer and director of the closely-held corporation. Martha Crowe acted as office manager for the corporation, which employed a total of 89 individuals over four years. Undaunted by past troubles, the Crowes offered the public the opportunity to participate in Gold's "Gold Earning Program"

("Gold I"). Participants paid $200 toward a $400 gold coin; by recruiting new investors, the original participant earned commissions toward the cost of the coin and could earn cash commissions. At trial, Gold's corporate attorney,

William Whitledge, admitted that this plan was "pretty much identical" to AGE's plan, and the South Dakota Division of Securities Enforcement agreed, calling it "almost identical" and enforcing against Gold the cease and desist order obtained against AGE. In April 1992, the Kentucky Attorney General sued Gold, and the Hopkins Circuit Court enjoined the Crowes from operating Gold.

In the opinion, Judge Charles W. Boteler found that Gold I emphasized recruitment of clients, not sales of products, and thus constituted an illegal pyramid scheme. In October 1993, the Crowes and Gold signed a settlement agreement with the state, agreeing to pay restitution to Gold I's participants and submitting to a permanent injunction against operating pyramid schemes and making unrealistic earnings claims. On October 18, 1993, David Crowe pled guilty in an unrelated criminal proceeding to a state charge of false advertising stemming from his activities with Gold I. He received a suspended sentence.

According to MLM Watch Dog and Expert, Rod Cook, MLM Gold programs have a 0% chance of survival...

"Gold based product = 0 out of 70- 80 gold MLMs survived in U.S. since 1990"

Not looking good for Numis.
 

Continue Reading

Goldquest Pyramid Scammers Arrested in Iran

Posted on 09. Mar, 2010 by Dan Mitchell.

The Iranian security forces have arrested 30 suspects in connection with Goldquest, a controversial network marketing company which has allegedly defrauded thousands of people worldwide.

The Iranian Intelligence Ministry announced that 30 key members of Goldquest have been arrested on charges of defrauding people "out of more than 5 trillion rials (about $500 million)," IRIB reported.

The Intelligence Ministry added that the suspects were handed over to judicial officials for further investigations and confessed to defrauding many Iranians, especially young people.

The criminals, who said they worked for an investment company called Quest International, served as the main go-betweens connecting members of the illegal Gold Quest pyramid investment company working in Iran and its leaders based in foreign countries.

Goldquest is a global network marketing company that claims to be engaged in selling coins and watches that are said to have numismatic value.

Network marketing companies like Goldquest work on the principle of the pyramid scheme, a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme.

Source: Press TV

Continue Reading

Amway Sales Grow In 2009 But No Mention Of U.S. Sales Growth

Posted on 09. Mar, 2010 by Ty Tribble.

If Amway doesn't mention U.S. numbers, you can be pretty sure that they are down.  Amway training systems like WWDB have shown declining numbers in meeting attendance and new diamonds....here is the press release from Amway:

ADA, Mich., March 9 /PRNewswire/ -- Amway's parent company, Alticor Inc., announced record sales of more than US$8.4 billion for the year ended Dec. 31, 2009, which was a 2.3 percent increase over 2008. Sales were negatively impacted by foreign currency fluctuations, which in local currency grew 5.9 percent.

"Our focus on using innovation to transform the Amway business is showing results," said chairman Steve Van Andel. "The global economy challenged every business in 2009. Our continuing investment in products, technology, and connecting with consumers helped us weather the storm."

Said president Doug DeVos: "Our distributors around the world deserve a lot of credit for persistence in a difficult economic climate. We put a lot of effort into improving our product offerings and building consumer awareness; the distributors put in the work to drive sales to our customers."

The company also made gains in another key measure. Said Van Andel: "In 2009, we increased our market share in the direct selling industry, and continued to drive improvements and adjustments to our business that will help us, and our distributors, succeed over the long term."

Continue Reading

Arbonne Emerges From Chapter 11 Bankruptcy

Posted on 08. Mar, 2010 by Ty Tribble.

Arbonne has emerged from Chapter 11 Bankrupcy...

Under the deal, lenders owed about $530 million took control of 85 percent of the stock in the reorganized company.

The case is In re Natural Products Group LLC, U.S. Bankruptcy Court, District of Delaware, No. 10-10239.

Continue Reading

ASEA Clinical Trials and Research

Posted on 05. Mar, 2010 by Ty Tribble.

Here is some information about ASEA clinical research or lack there of:

From the ASEA Web Site:

“9. Have any clinical trials been conducted on ASEA™?

ASEA™ is a nutritional supplement. Besides extensive safety and antimicrobial testing, no other studies have or must be performed. ASEA™ does not claim to mitigate, prevent or cure any disease. ASEA™ simply contains the raw materials that our body and the immune system need to help protect us and defend us. There is extensive evidence, based on studies done on the individual reactive molecules contained in ASEA™, that these reactive molecules are indeed produced and used in large amounts by the body and the immune system. The role that these reactive molecules play in the body is becoming increasingly well understood and is actively being studied all over the world.”

What? No clinical trials have or must be performed?

Continue Reading

More Fun With ASEA Salt Water MLM Product

Posted on 04. Mar, 2010 by Ty Tribble.

A Network Marketing company recently came out with a new product and the label says Sodium Chloride (salt) and Water.  (see the label here)

Here is a video that I made about it...

So continuing on with my fake story...I had some "friends" of mine scouting around for a new manufacturing facility for my MLM product idea and they captured this video of the facility:

Continue Reading

Herbalife Sponsors Indy 500 Entry

Posted on 02. Mar, 2010 by Dan Mitchell.

Herbalife, a global nutrition and direct-selling company, announced today that the company will serve as the primary sponsor for the No. 99 Sam Schmidt Motorsports/Chip Ganassi Racing entry in the 2010 edition of the Indianapolis 500-Mile Race driven by Herbalife-sponsored athlete Townsend Bell.

Bell, 34, of San Luis Obispo, Calif., comes back to the "Greatest Spectacle in Racing" in the bright green HERBALIFE SSM/CGR Dallara Honda open-wheel car after recording a sensational charge at the famed Indianapolis Motor Speedway in finishing fourth behind the wheel of the Herbalife machine in the 2009 running of the world's biggest auto race.

"Bringing Herbalife on board for this year's Indy 500 is very exciting for our effort in 2010," said Schmidt, a three-time Indy Lights champion team owner. "A worldwide nutrition company such as Herbalife gives our SSM/CGR program a strong foundation to prepare a winning machine for Townsend. Again partnering with Chip's operation puts us in a position to qualify well and race for the ultimate motorsports prize, the Indianapolis 500. We have an excellent team led by Chris Griffis and I am very proud to enter a solid effort for the Indy 500."

Source: Market Watch

Continue Reading

March Madness at EIRO Research

Posted on 01. Mar, 2010 by Ty Tribble.

March Madness has struck at EIRO Research.

EIRO is launching a new promotion in March that gets more money into the hands of the newest associate...

Someone with some experience in Network Marketing could come in and make over $5,000 in their first month with only 10 people in their team.

Enroll 10 People who purchase the EIRO Leader Pack and earn $5,500:

$2,000 in Fast Start Income

$2,500 in EIROStar Bonus Money

$1,000 in Sr. Executive and Director Cabinet Bonus

Enroll 20 People who purchase the EIRO Leader Pack and earn over $15,000!

Even 5 people would earn you $2,000!

Ty Tribble will be hosting an invitation only compensation plan webinar for select leaders over the next 10 days.  Click here to request a seat.

Continue Reading

Is CieAura Holographic An MLM A Scam Similar to LifeWave?

Posted on 24. Feb, 2010 by Ty Tribble.

Seems a little mlm hocus-pocus, but you can judge for yourself, is CieAura an MLM Scam?

From the web site:

The CieAura Transparent Holographic Chip™ - employs a revolutionary technological approach to the re-alignment of two of the body's most important functions... the Human Life Functions and the Immune System Functions. Once these functions are re-aligned to where they should be for your given age, the immune system's ability to perform the removal of pathogens in the human body (Bacteria, Viruses, Fungi) is enhanced.

There seems to be a connection between the management of a company called LifeWave and 8ight.com (from another source):

In the meantime, those who look at the new pretender to the throne , CieAura, will see an amazing similarity to the LifeWave management offshoot company 8ight.com.

http://www.8ight.com/

As we know, Warren Hanchey was reported, by Joel in September 2007, to have come up with a similar range of products to LifeWave but using holographic discs.

http://www.museumofhoaxes.com/hoax/forums/viewthread/4333/P33/#252280

“Warren Hanchey has the following catalog of SCAM “holographic data disc” products:

1. An “action” disc (for improved strength and endurance),
2. A sleep inducing disc,
3. A weight loss disc, and
4. A pain relief disc

http://www.8ight.com/category_s/41.htm

That sounds like an exact copy of LifeWave’s SCAM product catalog. How low is this guy Hanche(y)? I mean, he has to SCAM people using his former employer’s SCAM playbook almost exactly.

What’s next, Hanchey? A DefenseDisc that gives a surgery free face lift and protects against malaria and hearing loss, and restores eyesight, just like LifeWave?”

Here we are a almost 2 years later with an upstart company selling a similar product.

How many more will jump on the bandwagon?

So what do you think?

Continue Reading