I received an email alert from Len Clements tonight regarding the shut down of A.C.N. in the State of Montana.
Here is the full MarketWave alert from Len (posted with permission):
Earlier today the Montana Commissioner of Securities and Insurance Monica Lindeen (D) announced the issuance of a Cease and Desist Order and Notice of Proposed Agency Action against ACN, Inc. and several of its founders for allegedly operating a "pyramid scheme."
One of the primary concerns cited in the announcement was the allegation that Montana participants "must personally buy" and sell a phone service that is "largely not available for use in Montana".
The Commissioner also cited the low average earnings of ACN reps based in Montana. Allegedly, in 2008 ACN recruited 91 Montana participants who "paid approximately $61,741.69 to be a part of the program", averaging $678 each. All but two lost money, with one making $696 and the other making $700. In 2009 "over 300" Montana participants joined ACN and paid about $234,800, averaging about $775 each. According to the Commissioner's Office ACN's records show $896.86 was paid out to these participants, in total.
The Commissioner's announcement can be viewed here:
http://www.sao.mt.gov/news/20100803ACN.html
Commentary:
(click the dots to read more)
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