It’s not looking good for Burnlounge as the CEO steps down to focus on personal FTC lawsuit.
The State:
Alex Arnold — head of BurnLounge, an Internet music store popular in Columbia that’s facing federal scrutiny — has resigned.
Arnold,
former USC football and baseball star Rob DeBoer and two others were
named in a suit filed this month by the Federal Trade Commission
accusing BurnLounge of being a pyramid scheme.The company has denied the allegations, but the lawsuit cost New York-based BurnLounge one of its founders.
Arnold
“has decided to step down to focus on his personal legal situation
related to the current FTC complaint and to allow BurnLounge to focus
on building our business,” Stephen Murray, the company’s president of
entertainment, said in a statement.BurnLounge sells franchises
to sell music on the Web, like iTunes. Arnold visted Columbia at least
twice last year to pitch BurnLounge to large gatherings.But the
FTC said BurnLounge participants earn more money on commissions from
selling franchises to others than from selling music.
Alex Arnold…he was the silver-tongued pitchman, preaching the gospel of another (alleged) ponzi scheme, JOURNEY TELECOM (circa '97). JT was another MLM venture that road the wave of promising quick wealth for the common man, yet JT suddenly disappeared off the face of the earth, sans a lot of net sum gains to people's pockebooks.
Hmmm…see a trend here?
Ole alex arnold is still in the MLC biznass i see. even before Journey it was Excel Telecomunications another MLM that gave personal reps a share of the customers revenue they signed up, with a %’g going to ‘upstream’, of course. This company is no longer around. Usually takes the better ones 2-3 years for these to mature and decline, the bad ones go quicker.
Incredible, I was a bright young man, lured into this world of MLM and coached by one of Alex’s hinchmen Jerry Yerke with the company http://www.Nueworld.com. This was in the year of 98. I built a group in the DFW Metroplex.
Once I started to branch off to start my own meetings separate from the corporates, I was blackballed. Alex Arnold, Paul Rogers, nor Jerry Yerke all execs at the time, came to my T.E.A.M.S. support.
Shortly after that the Team then called the AS GROUP (attitude and support) shut the entire company down without warning to its REPS/downline. This was devastating to a lot of People for some of us had quit very good jobs to support Alex’s MISSION.
While I strongly believe in the MLM opportunities and there ability to grow a persons wealth substantially. I believe that the ethics of this Group and founder Alex Arnold is very esqued.
We also were in Journey Telecom, then it went under, right when we were getting some checks…Then all the phone cards went bust, and we lost alot of respect from family and friends….Jerry Yerke was a Huge dissappointment and con man. Lieing through his teeth every chance he got. Alex was quite the charmer and convincing, but turned out to be just a good talker. We learned alot from all this and really liked Scotty B Mercker the best of all of them. We followed them all to I-Link then Nu’E World and got shafted by investing Thousands of dollars to be a founder and never recieved any dividends in return. I believe in Carma and that is what I hope happens to all these leaders, Good Luck and good ridens…..
http://www.ftc.gov/os/caselist/0623201/index.shtm
As of March 2012 – See the final judgement filed