The Wall Street Journal released the following article:
Illustrated by a sack full of dollar bills, the online pitch was simple: an “amazing and irresistible” opportunity to join a global direct-sales travel company, recruit others and enjoy a share of the profits.
The company, GoFunPlaces Inc., was going to go viral via Facebook and YouTube, making it easy for “Joe Average [and] Suzy Average” to earn money.
“You can win here! You can win!” a 2012 video said. “The longevity is going to be here.”
Within a year, GoFunPlaces closed its U.S. operations and faced scrutiny from the Federal Bureau of Investigation and the Securities and Exchange Commission over whether the company was a pyramid scheme or involved in other fraud, according to people close to the probes.
The SEC this fall shut down a company that owned half of GoFunPlaces, alleging it was a fraudulent $129 million pyramid scheme.
A lawyer representing GoFunPlaces didn’t respond to requests for comment and the company itself couldn’t be reached. GoFunPlaces hasn’t been accused of any wrongdoing by the government.
Direct-sales is more popular than ever: A record 16.8 million Americans—representing about one in every seven U.S. households—worked in the industry last year, most for companies that employ networks of