Burnlounge had a large number of high profile members, but there is evidence to suggest that very little money was being made on sales of the actual product (downloadable music). With the resignation of the Burnlounge CEO, I have to wonder about the future of this company.
KOTV:
NORMAN, Okla. (AP) _ Oklahoma football coach
Bob Stoops confirms he invested in an online business that federal
regulators now say is an illegal pyramid scheme.Stoops says he invested less than $500 in BurnLounge after it was reviewed by a group of legal and financial advisers.
BurnLounge promotes itself as having software that lets participants
open their own digital download stores and sell music to online
friends.The Federal Trade Commission says in a lawsuit the operation is an
illegal pyramid scheme with participants at the top of the pyramid
making money by recruiting new participants who pay fees to open the
digital stores.Stoops is not named in the lawsuit.
