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Kentucky Attorney General Jack Conway speaks at a news conference today regarding Fortune Hi-Tech Marketing. (January 28, 2013) |
Attorney General Jack Conway and the U.S. Federal Trade Commission announced today they have taken legal action against Fortune Hi-Tech Marketing, an alleged global pyramid scheme operating since 2001 from its corporate headquarters in Lexington.
The headquarters and a warehouse in Danville were secured Monday morning by a receiver appointed by the U.S. District Court for the Northern District of Illinois. The receiver now has possession of FHTM’s assets.
“Today’s actions are the beginning of the end for one of the most prolific pyramid schemes operating in North America,” General Conway said.
The Kentucky Office of the Attorney General, the FTC, the North Carolina Attorney General and the Illinois Attorney General filed a lawsuit on Thursday in federal court against FHTM and its principal operators — Danville native Paul Orberson, president, and Thomas Mills, vice president.
Orberson was a sports star and later teacher and coach at Boyle County High School. Mills is a former superintendent of Boyle County schools as well as former coach and principal at the high school.
The judge issued a temporary restraining order against the company, which requires FHTM to stop any pyramid operations. The receiver will report back to the court regarding its findings after a thorough review of FHTM’s finances and business model.
Kentucky’s investigation into FHTM started in 2010 after the Attorney General of North Dakota and the State Auditor of Montana took legal action against the alleged pyramid operation in their states and ultimately reached settlements with FHTM.
The Texas Attorney General also subsequently settled pyramid allegations with the company. The Kentucky Office of the Attorney General had received about a dozen complaints regarding FHTM and issued subpoenas to the company in August 2010 and August 2011 to see if it violated Kentucky’s Pyramid Sales Act and/or the Consumer Protection Act.
“After our office began reviewing the documents, we believed that Fortune Hi-Tech Marketing was operating a massive pyramid scheme that involved more than 100,000 people across the United States and in several other countries,” General Conway said. “We think damage to consumers could be in the hundreds of millions of dollars.”
The Kentucky Attorney General’s Office and the FTC were contacted by the North Carolina Attorney General and Illinois Attorney General regarding complaints from consumers in those states.
“Operations like this claim to offer career success and high earnings. But the reality is that only the few at the top make money, and they make it at the expense of new recruits who end up losing,” said North Carolina Attorney General Roy Cooper.
"The perpetrators of this pyramid scheme promised big returns but instead delivered significant losses for thousands of families in Illinois and all across the country," Illinois Attorney General Lisa Madigan said. "In collaborating with our state and federal partners, we’re seeking to bring the full force of the law against this entity to ensure that it is put out of business for good.”
The headquarters and a warehouse in Danville were secured Monday morning by a receiver appointed by the U.S. District Court for the Northern District of Illinois. The receiver now has possession of FHTM’s assets.
“Today’s actions are the beginning of the end for one of the most prolific pyramid schemes operating in North America,” General Conway said.
The Kentucky Office of the Attorney General, the FTC, the North Carolina Attorney General and the Illinois Attorney General filed a lawsuit on Thursday in federal court against FHTM and its principal operators — Danville native Paul Orberson, president, and Thomas Mills, vice president.
Orberson was a sports star and later teacher and coach at Boyle County High School. Mills is a former superintendent of Boyle County schools as well as former coach and principal at the high school.
The judge issued a temporary restraining order against the company, which requires FHTM to stop any pyramid operations. The receiver will report back to the court regarding its findings after a thorough review of FHTM’s finances and business model.
Kentucky’s investigation into FHTM started in 2010 after the Attorney General of North Dakota and the State Auditor of Montana took legal action against the alleged pyramid operation in their states and ultimately reached settlements with FHTM.
The Texas Attorney General also subsequently settled pyramid allegations with the company. The Kentucky Office of the Attorney General had received about a dozen complaints regarding FHTM and issued subpoenas to the company in August 2010 and August 2011 to see if it violated Kentucky’s Pyramid Sales Act and/or the Consumer Protection Act.
“After our office began reviewing the documents, we believed that Fortune Hi-Tech Marketing was operating a massive pyramid scheme that involved more than 100,000 people across the United States and in several other countries,” General Conway said. “We think damage to consumers could be in the hundreds of millions of dollars.”
The Kentucky Attorney General’s Office and the FTC were contacted by the North Carolina Attorney General and Illinois Attorney General regarding complaints from consumers in those states.
“Operations like this claim to offer career success and high earnings. But the reality is that only the few at the top make money, and they make it at the expense of new recruits who end up losing,” said North Carolina Attorney General Roy Cooper.
"The perpetrators of this pyramid scheme promised big returns but instead delivered significant losses for thousands of families in Illinois and all across the country," Illinois Attorney General Lisa Madigan said. "In collaborating with our state and federal partners, we’re seeking to bring the full force of the law against this entity to ensure that it is put out of business for good.”
