Business

May 13, 2014

Pyramid scheme operators ordered to repay $7.75 million to NC consumers

The employees of a Kentucky-based marketing company have been banned from all multi-level marketing activities in North Carolina and ordered to repay consumers $7.75 million, Attorney General Roy Cooper's office announced Tuesday.

The employees of a Kentucky-based marketing company have been banned from all multi-level marketing activities in North Carolina and ordered to repay consumers $7.75 million, Attorney General Roy Cooper’s office announced Tuesday.

Fortune High-Tech Marketing operated a pyramid scheme that recruited more than 350,000 participants between 2009 and 2012, including about 20,000 people in North Carolina.

The company told participants they could earn tens of thousands of dollars a year by buying into an operation to sell satellite television services, home security services, beauty products and other consumer goods, according to the AG’s office. Most made little if any money from the scheme.

The ban and the refund are part of a court settlement approved Tuesday by the U.S. District Court for the Eastern District of Kentucky. The refunds are expected to begin once all funds are collected from the defendants.

Any North Carolina consumer who participated in the FHTM scheme and may be eligible for a refund should file a complaint with the Attorney General office’s Consumer Protection Division. To file a complaint call 1-877-5-NO-SCAM or fill out a form at www.ncdoj.gov.

Related content

Comments

Videos

Editor's Choice Videos