When Does Aggressive Recruitment Become Enticement In An Illegal Pyramid

When Does Aggressive Sales Team Recruitment In MLM Become Enticement Into An Illegal Recruitment Pyramid"

I have read the FTC .vs Vemma complaint alleging that Vemma is an illegal pyramid scheme. I will be reporting on what we can all learn from issue.

ComplianceMany have asked if I now after reading the FTC .vs VEMMA complaint and supporting documents, if I now believe Vemma is an illegal pyramid, and the answer is still NO!

I do however believe that BK Boreyko and the team at Vemma, may have taken their eye off the ball in some areas, and when you do this too many times, then what seems like small infractions, can mushroom into what we see has happened at VEMMA.

As I wrote earlier this week, this isn’t just a Vemma issue, this is an industry-wide issue.

I will be doing a video and editorial on this issue over the next few days, to address what I see as the most obvious issues the FTC have raised as concerns.

The two major allegations are:

  1. Pyramid Scheme
  2. Illegal Recruiting Enticement

VEMMA_VERVEOn the first allegation I believe with detailed communication between Vemma legal and compliance teams, they should be able to present to the courts ALL the facts to show that VEMMA isn’t an illegal pyramid scheme. And I personally do not believe BK, his staff, the influencers in this community, the DSA, or even the FTC truly believe VEMMA is a pyramid scheme. The evidence, when presented to the courts should prove this out without any trouble.

As to the second allegation, I fully understand and based on all the supporting evidence, (some I have talked about in past editorials and videos posts) it’s very clear that enticement of recruitment is evident.

AlkazinOne major piece of evidence which stood out, that I have cautioned against for years is the promotion of “TOP EARNERS” (Tom & Bethany Alkazin we also charged in the FTC case against Vemma) in public blogs such as Business From Home.

Don’t get me wrong, I love reading through all of Ted’s stats just like most folks. But I have warned that some regulatory agency might use those stats to support enticement charges, or for an IRS audit.

Many thought I was just being overly conservative, and that regulators never read any of our blogs!

Well, now we know regulators read the something we all read.

The take-away for EVERYONE… Don’t make any INCOME CLAIMS, which include lifestyle claims, bling videos, pictures of exotic cars, boats and planes and pretend your earned it, or lease a huge home and act like you bought it.

ALL Companies should STOP creating super-sized checks and plastering them across stage to be used out of compliance through social media.

Every enticement charge is something I work with clients on and warn against. Some still do it… But most will stop now!

Here is the link to the FTC Complaint – Curtesy of Kevin Thompson of Thompson Burton PLLC.

FTC vs. VEMMA Complaint

Linville Declaration – FTC .vs VEMMA Complaint 

Bosley Declaration – FTC .vs VEMMA Complaint

Memo In Support Of TRO – FTC .vs VEMMA

Troy Dooly is recognized internationally as an influencer in the areas of personal branding, leadership development, marketing campaigns, organizational expansion, and corporate launch strategies.

His clients include start-up companies, multi-faceted public companies, billion dollar private companies, international marketing organizations and well-respected field organizations.

Dooly is a highly sought after mentor, speaker, results coach, and radio host. He is a founding member, show host (Beachside CEO) and News Director of the Home Business Radio Network, and Christian Power Radio,

Dooly is a founding member and serves on the Board of Directors of the Association of Network Marketing Professionals, working with both companies and distributors around the world in network marketing.

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