Tag Archive for MLM Lawsuits

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Amway India Faces Money Laundering Probe Over Alleged Pyramid Dcheme

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An Amway spokesperson stated:

“The Prosecution Complaint currently filed by the Indian Enforcement Directorate pertains to an investigation dating back to 2011 and since then we have been cooperating with the department and have shared all the information as sought from time-to-time since 2011. Since we began our operations in India 25 years ago, we have been committed to legal and regulatory compliance, and have diligently maintained a culture of compliance and integrity to the present day.
We want to reiterate our continued confidence in the Indian legal and judicial system following the due process of law as we pursue our legal rights.
Amway is proud of its rich history in India and will vigorously defend itself, as well as the over 2,500 employees and hundreds of thousands of independent distributors in India who are critical to its mission of helping people live healthier, better lives.”

According to several press agencies in India:
A money laundering probe against Amway India Enterprise Pvt Ltd, which has 5.5 lakh direct sellers (Approx. 555,000) across the country, was started in 2011 based on various FIRs filed by the Telangana police.
The Enforcement Directorate (ED) has filed a charge sheet against Amway India, a popular direct marketing company that pretty

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Justin Prince Sues Modere

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Attorneys for Plaintiff Justin K. Prince
IN THE FOURTH JUDICIAL DISTRICT COURT UTAH COUNTY, STATE OF UTAH
Justin K. Prince, an individual, Plaintiff, vs.
Modere, a business enterprise that is part of Maple Mountain Enterprises, Inc., a Nevada corporation; Maple Mountain Group, Inc., a Utah corporation (formerly known as Neways, Inc.), dba Neways, Inc.; James J. Zenni Jr., an individual; George Russell, an individual; Z Capital Partners, LLC, a Delaware Limited Liability Company; Z Capital Commercial Finance L.L.C.;
Z Capital Group, LLC, a Delaware limited liability company; and John Does 1-99, Defendants.
COMPLAINT
Discovery Tier 3
Plaintiff Justin K. Prince (“Justin”) hereby alleges and complains against the Modere Defendants, Z Capital Defendants, and John Does 1-99 as follows:
INTRODUCTION
1. Until recently, Justin was the largest distributor for a multi-level marketing business enterprise known as “Modere.”
2. Justin went from selling products out of a mall kiosk with no college education to becoming an equity holder/partner in the company and the number one earner at Modere, generating during his time there over $2.5 billion dollars in total revenue and over 4 million customers.
3. Modere came under the control of a private equity investor, Z Capital. Revenues grew and Z Capital seized an opportunity to restructure its debt on the back

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Modere Sues Justin Prince

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Attorneys for Plaintiffs Maple Mountain Enterprises Inc., d/b/a Modere Enterprises, Inc., and Neways Holdings, L.P.
 IN THE FOURTH JUDICIAL DISTRICT COURT IN AND FOR UTAH COUNTY, STATE OF UTAH
Plaintiffs Maple Mountain Enterprises Inc., d/b/a Modere Enterprises, Inc., and Neways Holdings, L.P. (collectively, together with their predecessors and controlled affiliates, “Modere”), by and through their counsel of record, hereby allege, assert and complain against Defendants Justin Prince (“Prince”), Prince’s company, JPBG, LLC (“JPBG”), (collectively, “Defendants”) as follows:
INTRODUCTION 

This case involves a deliberate effort by the Defendants to, under contract with Modere, to sabotage and cripple Modere’s business, solicit its salesforce, use Modere’s trade secret and proprietary information, and set up a business to compete with Modere.
Beginning around August 2023, if not earlier, while under contract and associated with Modere as a senior leader of the company, Prince (together with his company) violated their contractual obligations and fiduciary duties owed to Modere and disseminated to key Modere associates—independent contractor distributors titled “Social Marketers”— throughout the company highly confidential business information and misinformation regarding Modere’s debt obligations, its financial wherewithal, its future business outlook, the status of its CEO, and its commitment to improved technology and new The clear purpose of this information campaign was

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iX Achieves Significant Legal Victory as Court Dissolves Temporary Restraining Order

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On October 6, iX Global achieved a monumental win in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
In a recent TRO hearing, the presiding Judge made the crucial decision to dissolve the Temporary Restraining Order (TRO) previously levied against iX Global and DEBT Box.
The Court’s decision comes after scrutinizing the evidence presented and recognizing discrepancies and potential misrepresentations in the SEC’s complaint.
The importance of this hearing was underlined by the presence of Tracy S. Combs, Director of SEC’s Salt Lake Regional Office, who was summoned by the Judge just hours before the hearing. The Court’s stance was clear – maintaining the highest standards of accuracy and fairness in all proceedings.
“We are gratified by the Court’s decision, which we view as a validation of our unwavering commitment to transparency, innovation, and community values,”
said Joe Martinez, CEO & Founder of iX Global.
“While we respect the regulatory role the SEC plays, it is vital for the truth to prevail. Today’s decision is a testament to our continued dedication to uphold our guiding principles.”
The recent ruling has strengthened iX Global’s resolve to continue its mission of innovating, inspiring, and decentralizing access to strategic education and groundbreaking

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Breaking News: Neora Wins Landmark Case Against FTC

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After nearly seven years of a “David vs. Goliath” fight against the FTC, Neora, a leading science-based skincare and wellness company, celebrates a historic victory. On Thursday, Sep. 28, the judge overseeing the case, Fed. Trade Comm’n v. Neora LLC, Civil Action 3:20-cv-01979-M (N.D. Tex. Sep. 28, 2023), ruled that the FTC’s claims were invalid, handing a monumental victory to Neora.
“When we proactively filed suit against the FTC on Nov. 1, 2019, challenging the over-reach of the FTC, we knew we would have a battle on our hands, but we were supremely confident that the facts and data would show the truth,”
says Jeff Olson, CEO of Neora.
“Living out our mission statement of making people better sometimes means taking the road less traveled, making the hard choice to defend what is right at all costs. This isn’t just a win for our industry, it’s a win for American entrepreneurship.”
According to Olson, the FTC’s overreach poses a real risk for American small business, the backbone of the U.S. economy. These efforts are so egregious, that one of the FTC’s own commissioners, Christine Wilson, recently resigned from the agency. In doing so, she cited her concerns over the FTC’s leadership and its

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Sebastian Greenwood – OneCoin Sentenced To 20 Years In USA Prison

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Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARL SEBASTIAN GREENWOOD, who co-founded OneCoin with RUJA IGNATOVA, a/k/a “the Cryptoqueen,” was sentenced to 20 years in prison for his orchestration of the massive OneCoin fraud scheme.
OneCoin, which began operations in 2014 and was based in Sofia, Bulgaria, marketed and sold a fraudulent cryptocurrency by the same name through a global multi-level-marketing (“MLM”) network.
As a result of misrepresentations that GREENWOOD, IGNATOVA, and others made about OneCoin, millions of victims invested over $4 billion worldwide in the fraudulent cryptocurrency.
Today’s sentence was imposed by U.S. District Judge Edgardo Ramos.  IGNATOVA, who was added to the Federal Bureau of Investigation’s (“FBI”) Top Ten Most Wanted List in June 2022, remains at large.
U.S. Attorney Damian Williams said:
“As a founder and leader of OneCoin, Karl Sebastian Greenwood operated one of the largest fraud schemes ever perpetrated.  Greenwood and his co-conspirators, including fugitive Ruja Ignatova, conned unsuspecting victims out of billions of dollars with promises of a ‘financial revolution’ and claims that OneCoin would be the ‘Bitcoin killer.’
In fact, OneCoins were entirely worthless, and investors were left with nothing, while Greenwood lined his own pockets with over $300 million. 

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iX Global Response On SEC Allegations In The USA

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According to an iX Global press release, this letter was created for iX Global Brand Ambassadors and the response of Joe Martinez – CEO iX Global.
“As you may have read, on August 3rd, D.E.B.T was served a civil lawsuit by The Securities and Exchange Commission, headquartered in Salt Lake City. Additionally, as mentioned in the SEC press release, iX Global was also named in the lawsuit.
We can assure you that iX Global has been fully committed to due diligence, compliance and transparency as an education and marketing company fostering education and innovation.
Based on our own experience as a marketing company, we have not been exposed to any evidence that would cause us to question the integrity in the operations of D.E.B.T. Box or the validity of their software technology. Yet our position is, as it always has been, that we are a reseller of D.E.B.T. mining software and or hardware.
We Do Not offer any guarantees of ROI.
We are very clear in our disclaimers on every call, every zoom, etc. that getting involved with crypto is unregulated and risky. Never risk more than you can afford to lose, past performance does not guarantee future results, and most importantly educate

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Plexus Worldwide Agrees To Pay $600,000 To Resolve Alleged False Claims

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United States Attorney Gary M. Restaino announced today that Plexus Worldwide, LLC (Plexus), an Arizona limited liability corporation that directly markets health and wellness products, agreed to pay $600,000 to resolve allegations that the company violated the federal False Claims Act (FCA).
The settlement resolves allegations by the United States that Plexus presented mail to the United States Postal Service (USPS) for delivery with postage that was based upon and calculated with attributes not associated with the items mailed, which resulted in underpaid postage.
The United States also alleged that Plexus mailed other items with re-used postage. According to the United States’ allegations, the postage Plexus affixed to the mailed items represented that postage had been appropriately paid, when in fact, it had not, and the misrepresentations facilitated Plexus’ underpayment or non-payment of postage.
“The Postal Service is a unifying force in America,” said United States Attorney Restaino.
“It has always delivered mail through snow and rain and heat and ‘gloom of night’; during the pandemic it delivered free masks to protect our Nation; and it increasingly connects our fellow citizens with access to the ballot box for local, state and federal elections. It is therefore incumbent on all businesses to pay their fair

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Isagenix Elect Not To Renew An Associate Contract?

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Jay Bennett is / was a top earner and the “Golden Boy” in Isagenix and earned a total of more than $22 million dollars from Isagenix. He joined the company back in 2002.
This year Isagenix completed a recapitalisation transaction and a transition to new ownership, as the company was closed to bankruptcy.
As of May 2023, Bennett and his family own five income positions within Isagenix’s MLM opportunity. Jay Bennett has sued Isagenix over what he refers to as “The False MLM Promise”.
From an “independent” distributor point of view this is an interesting case. Can I company just throw you out?
Recently the termination policy for all Isagenix distributors was changed to:
“Isagenix may, at its reasonable discretion, elect not to renew your Associate Contract. Isagenix will notify you of its intent not to renew on or before the anniversary of your enrollment.”
Bennett and his family refused to agree with above policy and stated:
“Once an Associate works hard to achieve a high rank with the corresponding residual income, Isagenix will confiscate that income for its own pecuniary benefit.
Worse, since Isagenix cuts off the Associates income, the Associate is left without any funds to assert his or her rights, and this is what Isagenix

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MLM Blacklist Member Clayton Thomas Sued By The SEC

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The Securities and Exchange Commission today charged Brentwood, Tennessee resident Clayton R. Thomas and the now defunct entity he controlled, Personalized Healthcare Solution, LLC, with selling fraudulent promissory notes and misappropriating investor funds.

The SEC’s complaint, filed in the United States District Court for the Middle District of Tennessee, alleges that, from February until June 2019, Thomas and Personalized Healthcare Solution raised approximately $730,000 from a single investor, telling that investor that they would purchase certain medical devices and place the devices in medical offices to generate an investment return from usage fees.
In reality, according to the complaint, Thomas and Personalized Healthcare Solution overstated the purchase price of the medical devices and fraudulently inflated the medical devices’ anticipated returns.
The complaint also states that Thomas knew that the investment would likely be far less profitable than what he told the investor based on prior experience with a different investor in which the medical devices produced little to no return.
Finally, the SEC alleges that the investor lost substantially all of its original investments, and that Thomas misappropriated investor funds for his personal use by pocketing the difference between the actual cost of the medical devices and the amount that he represented to the

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