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January 16, 2002
Attorney General Jennifer M. Granholm today announced that she has reached settlement agreements with KM.NET and its president Stewart Giardina. Granholm alleged that KM.NET, and its affiliated companies PowerCard International and ECB4U.COM, violated Michigan law by selling Internet "malls" through an on-line pyramid scheme. KM.NET officials have indicated that as many as 23,000 Internet malls were sold to Michigan residents. Granholm expects the settlement agreements to lead to refunds for thousands of those residents. The eventual number of consumers affected by the settlement will be determined, in part, by when those consumers joined the program, when their bank account was debited, and whether they received any commission while in the program.
10/3/2002:Michigan Attorney General Press Release
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