I heard that some are heading from YTB over to Fortune Hi Tech. Fortune has a similar compensation plan and has recently been in trouble with an Attorney General, (see previous MLM Blog post), Could this be out of the frying pan and into the fire for YTB associates?
Speaking of YTB. Is this the end?
YTB International faces a new legal challenge with the year-end filing of a class action lawsuit that alleges that YTB has “perpetrated an illegal pyramid scheme that represents one of largest fraud(s) in the history of the State of Illinois and the history of this nation.” The plaintiffs are requesting $ 100 million in actual and punitive damages and was filed U.S. District Court for the Southern District of Illinois, East St. Louis Division. The action has once again focused attention on multilevel marketing companies and industry standards.
“The defendant corporations have taken over half a billion dollars from their unsophisticated customers, selling them on the dream of cheap travel and million dollar pay-outs when the only way that Plaintiffs and their class could make a net profit was by recruiting others to join the illegal pyramid scheme,” the plaintiffs argue. “While over half of the its customers received no travel commissions at all, the directors of YTB International, Inc. each paid themselves multi-million dollar salaries while also siphoning tens of millions of dollars from their publicly traded corporation to privately owned corporations that they owned and controlled. Plaintiffs and their proposed class ask this Court to end Defendants’ massive fraud and to enter a judgment that compensates them for the hundreds of millions of dollars that Defendants swindled. Plaintiffs’ claims are typical to those of their proposed class because they arise out of Illinois common law.”