In August 2015 the Federal Trade Commission (FTC) – an USA Government institution – hit Vemma with full power, many agents entered the head office in Phoenix, Arizona on a monday morning. A raid.
Bank accounts and credit cards were seized, 150+ employees were fired within a couple of hours, and a receiver took over.
A $180 million company was ruined, Vemma’s world wide distribution channel burned to the ground.
It was a direct attack on the MLM – network marketing industry.
The allegations: illegal pyramid scheme, income claims, failure to disclose, means and instrumentalities, relief defendent.
The FTC was granted a court order, to freeze the company’s and CEO B.K. Boreyko’s assets, as well as a temporary restraining order.
“Defendants are running a global pyramid scheme that has likely victimized hundreds of thousands or millions