Does The Receiver Report Support The FTC Claim VEMMA Is A Pyramid?

'Unfair And Deceptive': The FTC's Prosecution Policy On Multi-Level Marketing

Angle Of Justice

The receiver appointed and approved by the court hearing the FTC case against Vemma for running a pyramid scheme, Robb Evans, has released his initial findings. To review the original articles you can click here: Part 1: FTC Claims VEMMA Illegal Pyramid, Part 2: What Does The DSA Have To Say About The FTC Claim VEMMA Is A Pyramid?, Part 3: What Can We Learn From The FTC TRO Application Against VEMMA?.

Before I get into the receiver’s report, I want to share a link to an article written by Robert FitzPatrick. FitPatrick is one of the most outspoken critics of network marketing/MLM and one of the most quoted anti-pyramid experts by the FTC.

He wrote an article over at Seeking Alpha titled – ‘Unfair And Deceptive’: The FTC’s Prosecution On Multi-Level Marketing. 

What Can We Learn Of The FTC Motives By The Vemma TRO Applicaiton

Certification & Declaration Of FTC Counsel Angeleque P. Linvelle In Support Of Ex Parte Application For TRO & Motion To Seal

Last week I wrote an article about the FTC filing a complaint against BK Boreyko (Vemma Founder) for running a pyramid scheme called Vemma Nutritional. I titled the article “When Does Aggressive Sales Team Recruitment In MLM Become Enticement Into An Illegal Pyramid Scheme?”

After reading all the court documents, I have decided to continue to the series to see what can be learned from each court document filed by the attorneys for the FTC.

When the News came out the Vemma had been temporarily shut down by the Federal Trade Commission, it was a shock to the whole network marketing community.

In this editorial, I want to look at the TRO Application filed by Angeleque P. Linville, the leading attorney for the FTC office out of Dallas. Ms. Linville is without a doubt a very competent legal counsel, from reviewing her background.

But, when it comes to her TRO application, I respectfully disagree with her on several points, and truly take offense o the fact that in several areas she calls “Vemma a pyramid”, rather than an “alleged pyramid.” This may seem trivial to some, except that when anyone has already made up their mind in an argument, then it becomes hard for them to separate facts from their perceived reality. (Click Here To Read The Full Editorial)