Source: 6/19/2007

BurnLounge CEO Resigns Amid FTC Probe

BurnLounge CEO Alex Arnold has resigned from the multilevel music store company after the FTC branded the company a pyramid scheme and is seeking ot shut down.

BurnLounge co-founders Ryan Dadd and Stephen Murray along with the company's board unanimously approved the appointed of Alex Arnold's succesor, Grand. D. Johnson. Johnson is currently on the BurnLounge board and is a BurnLounge investor.

BurnLounge co-founder Stephan Murray said, "This change in management is a first step toward a reinforced focus on building the entertainment company we've always envisioned."

The company maintains that it's "revolutionary business model" is legal, and said it is "working to understand and address any legitimate issues and concerns the FTC may have."

A hearing will be held on Tuesday in California Federal Court on the FTC's demands for an injunction and asset freeze.

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