SEC Files Lawsuit Against Traffic Monsoon Founder Charles Scoville, Alleges $207 Million Ponzi Scheme

By | 2018-05-04T18:54:54+00:00 July 26th, 2016|Categories: MLM Lawsuits, Multi-Level Marketing, SEC|

Today, federal regulators filed a lawsuit in Salt Lake City, UT, alleging that Charles Scoville has been running Traffic Monsoon as a massive Ponzi scheme. Scoville and Traffic Monsoon's assets were immediately frozen and a receiver will be appointed to secure and eventually allocate the $60 million that Scoville is alleged to be hoarding in U.S., Canada, [...]

What is a High-Yield Investment Program (HYIP)?

By | 2018-05-09T15:26:01+00:00 July 25th, 2016|Categories: MLM Glossary, Multi-Level Marketing|

A high-yield investment program, or HYIP, is a type of investment scam or Ponzi scheme that promises unsustainable returns for investors by paying previous investors with funds garnered from new investors. While these types of programs can achieve incredible growth very quickly, they become a victim of their own success by eventually not being able to meet their outstanding [...]

What is Multi-Level Marketing? What You Need to Know About the Industry

By | 2018-05-10T04:07:59+00:00 July 23rd, 2016|Categories: MLM Glossary, Multi-Level Marketing|

Multi-level marketing is a form of business where the primary income is generated by employees recruiting other employees, rather than product sales to independent customers. This stands in stark contrast to most standard businesses, where employees are rewarded for sales made to other businesses (B2B companies) or to consumers (B2C companies). Additionally, obtaining a higher rank [...]

ZeekRewards CEO Paul Burks Convicted of Running $900 Million Ponzi Scheme, Faces 20 Years in Prison

By | 2018-05-04T18:55:32+00:00 July 21st, 2016|Categories: MLM Lawsuits, Multi-Level Marketing, Zeek Rewards|

Former ZeekRewards CEO Paul Burks was convicted today of running a massive Ponzi Scheme that at one point included over 1 million investors. The decision concludes a 4 year long investigation and conviction process that began when the SEC filed a complaint against Burks in August 2012. After the conviction was handed down by the jury, U.S. Attorney Jill Westmoreland [...]

Herbalife Slammed With $200 million Penalty for MLM Scheme

By | 2018-05-04T18:55:43+00:00 July 15th, 2016|Categories: Herbalife, MLM Lawsuits, Multi-Level Marketing|

Herbalife agreed this week to restructure their business operations and pay a $200 million settlement. In exchange, the federal government has agreed to close investigations into the company and refrain from classifying the company as a pyramid scheme. While $200 million is a large sum of money, avoiding this classification has a much bigger upside for the [...]

What is the Direct Selling Association?

By | 2018-05-09T15:26:22+00:00 July 10th, 2016|Categories: MLM Glossary, Multi-Level Marketing|

The Direct Selling Association (DSA) is the lobbying group for direct selling companies in the U.S., United Kingdom, Australia, Malaysia, Singapore, and New Zealand. Members of the DSA consist primarily of companies that utilize a multi-level marketing structure to generate revenue. MLM companies are characterized by large incentives to recruit other members or distributors, and less [...]