LEXINGTON (AP) — A court-ordered report shows the top two executives of a Lexington company accused of running a pyramid scheme made almost $40 million in the last few years.
The Lexington Herald-Leader reports the document also shows almost all independent representatives for Fortune Hi-Tech Marketing made less than $1,000 per year in commissions.Federal authorities shut down the company’s operations in January, alleging it was an illegal pyramid scheme because it rewarded representatives more for recruiting than for selling products.Attorney Stephen Amato, who represents the company, denied that it was running a pyramid scheme. Amato said Fortune Hi-Tech was a legitimate business.
“Fortune was not operating as a pyramid scheme and in our opinion, Fortune Hi-Tech Marketing was operating a safe and legal business in the marketplace,” he said.
The report says founder Paul Orberson received $21.2 million in salary and dividends since 2007 and CEO Thomas Mills made $18.1 million in the same time frame.“Other shareholders, many of whom appear to be family members of either Mr. Orberson or Mr. Mills, received approximately $9.5 million in dividends and salary,” the report states.Meanwhile, the report said 98 percent of representatives got less than $1,000 a year and 74 percent received less than $10 annually. –
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"A court-ordered report shows the top two executives of a Lexington company accused of running a pyramid scheme made almost $40 million in the last few years…Meanwhile, the report said 98 percent of representatives got less than $1,000 a year and 74 percent received less than $10 annually."
Hardly surprising. That is how MLM's work.
There are three players in MLM – the owners, the minute few top recruiters and MLM fluff. The former keep the money, give wheeling and dealing deals to the minute few top recruiters to tell the fluff that even they, fluff, can do it too. The latter don't make any money in fact they provide the wealth shared by the former two. Just another day MLM industry.
FHTM is dead and gone forever. Read the whistleblower’s book “Skapegoat the FHTM Blame Game Story” available via Amazon & Barnes and Noble.
Paul Orberson and Tom Mills banned from MLM by the FTC.
http://www.scribd.com/doc/144134467/Paul-Orberson-and-Tom-Mills-Banned-From-MLM-permanently
Read the entire stipulated agreement here:
http://www.joseph-isaacs.com/courtcases/Stipulated%20Preliminary%20Injunction%2005.24.13.pdf