Source: Npros.com 4/27/2010

FHTM To Pay 840K Over Pyramid Scheme Charges

Fortune Hi-Tech Marketing will be paying $1 million to settle allegations that it was operating a pyramid scheme in Montana.

In March, the Montana Commissioner of Securities and Insurance, Monica Lindeen; put a halt on company operations and filed an action against the company based on consumer complaints that her office received and investigated.

"This agreement sends a clear message to businesses operating illegally in Montana that I am committed to protecting consumers. Montanans work hard to support their families and I will not tolerate the sale of false promises to them." Lindeen stated.

FHTM representatives were also reported to have suggested company affiliations with Travelocity, General Electric, and The Home Depot, even though such affiliations and income opportunities were non-existent.

Details of the Consent Agreement and Order with Fortune Hi-Tech Marketing: FHTM agrees to refund up to $840,000 to more than 3,400 Montana participants.

FHTM and the company's founders, Thomas Mills and Paul Orberson, will pay a fine of $100,000 to the Montana general fund. Dianne Graber, a Montana FHTM representative, will pay a $5,000 fine to the general fund.

FHTM will contribute $50,000 to the Investor Protection Trust, a non-profit organization that provides investor education in Montana.

FHTM will be required to change its business practices in Montana, including the following actions:

New participants in FHTM will only be required to pay $75.00 to become a representative,

FHTM will conduct training seminars along with representatives of the Commissioner's Office, in Billings, Bozeman, Great Falls, Helena, Kalispell and Missoula, and will conduct web-based training that is mandatory for all current or prospective representatives,

FHTM will provide a disclosure brochure to each current and prospective representative outlining FHTM's program, including the average amount of income achieved and the average amount of time in the program required to reach each level,

FHTM will reinforce with representatives that product sales are not primarily for self-consumption but for sale to non-participants, and

FHTM will require its representatives to maintain records of non-participant customers and submit those records on a monthly basis. Montana FHTM representatives who are entitled to refunds will be receiving a letters from Lindeen outlining the requirements to get their money.

The refund amount is equal to the participants' cost, minus any earnings they received from FHTM.

View Fortune HiTech Marketing Review

Related News

  • FTC Bans FHTM from Multilevel Marketing
    Frankfort, KY, May 13, 2014 -- An order entered by the U.S. District Court for the Eastern District of Kentucky bans Fortune Hi-Tech Marketing (FHTM) and its operators from multilevel marketing under a settlement with the Federal Trade Commission and the Attorneys General of Kentucky, Illinois and N...  Read More...
  • Fortune HiTech Marketing Principals Issue Statement Denying Wrongdoing
    Fortune Hi-Tech Marketing, Inc. principals Paul Orberson and Thomas Mills issued the following statement relating to litigation with the Federal Trade Commission (FTC) and Attorneys General of Illinois, Kentucky and North Carolina: LEXINGTON, Ky., Feb. 7, 2013 -- "We deny any wrongdoing and will...  Read More...
  • Fortune Hi-Tech Marketing Shut Down-Assets Seized-by Kentucky AG
    The headquarters and warehouse of Fortune Hi-Tech Marketing were seized Monday, and the business placed in receivership, when the FTC and Kentucky Attorney General Jack Conway's office alleged in a lawsuit that the company operated a "massive pyramid scheme".The lawsuit alleges that more than 90 ...  Read More...
  • Federal Judge Rescinds FHTM Class Action Dismissal
    Lexington, KY September 22, 2012 -- On Friday, September 13, 2012, the United States District Court Eastern District of Kentucky rescinded its dismissal and reinstated a proposed class-action lawsuit against Fortune Hi-Tech Marketing, Inc. (FHTM). The judge ruled in favor of the Plaintiffs and again...  Read More...

 

Fortune HiTech Marketing News Archive

New Companies on Npros

Receive News and
Updates from Npros.com

 Send me news updates
 Send me New Companies

RSS Npros News Feed