Warning others to not get suckered into FHTM pyramid scheme pt 2!
Posted in the Richfield Forum
#1 Mar 17, 2010
Montana State Auditor: Pyramid Scheme Stole $1.8 Million from Montana Residents
By KFBB News Team
By The Associated Press
Story Updated: Mar 15, 2010 at 10:38 PM MDT
The State is trying to stop an alleged pyramid scheme from operating here in Montana. The State Auditor has issued a Cease and Desist order against a company that has reportedly taken more than $1.8 million from participating Montanans.
After many phone calls and complaints over the last few months, Montana Commissioner of Securities and Insurance Monica Lindeen announced that her office has ordered Kentucky-based Fortune Hi Tech Marketing to stop operating in our state.
"What they do is convince people that it's a great money-making venture, Lindeen said.Unfortunately, very few people actually make any money."
Nearly 1,300 Montanans have been recruited to be part of the alleged pyramid scheme. Commissioner Lindeen advises those people to immediately end their involvement with Fortune Hi-Tech Marketing.
She adds that especially during difficult economic times, more schemes surface and people are more likely to look for alternative ways to generate income.
"They have more scams today than ever, said Helena resident Bud Lee.People have to be wise."
"I think it happens everywhere, so Im not surprised it happened here," said Joey Carter of Helena.
"When you lose your job, you find ways to keep the electricity on. So, I bet more of these things start to crop up," said Raylean Garrison of Helena.
Lindeen adds that members only benefit if they recruit others to join this alleged scam. She says her office is committed to keeping pyramid schemes out of Montana.
"In Montana, we will not tolerate forms of pyramid schemes and we are going to stop it. We don't want to see hard-working Montanans lose their money."
On its website, fortune hi tech marketing says it hopes for a quick resolution to the matter, but asks its montana reps to refrain from doing business in the meantime.
Lindeen says she anticipates a hearing against FHTM and hopes that some Montanans can get their money back.
For more information or to make a complaint, she encourages you to call 1-800-332-6148
That is 2 cease and desist orders in a few months. Not Good!!!!
#3 Mar 19, 2010
Great stuff Douglas I miss the original blog. Here is some more info inside the cease and desist order.
FHTM violates Securities Act of Montana (Act). The Commissioner has authority to take action under the provisions of Mont. Code Ann. 30-10-102, 30-10-301, 30-10-304, 30-10-305, 30-10-307, 30-10-309, 30-10-324, 30-10-325, and 30-10-326. Specifically, the Department is proposing that the Commissioner impose appropriate fines, appropriate restitution with interest, and permanently prohibit the Respondents from violating the Act. Service of process is pursuant to Mont. Code Ann. 30-10-107(8).
Conclusion of Law
14. FHTM is not a multilevel distribution company, but rather a pyramid promotional scheme because the compensation each participant in the program receives is derived primarily from obtaining the participation of other persons in the program and not the sale of goods or services.
15. FHTMs plan or operation is not exempt from Mont. Code Ann. 30-10-324(6)(a) because it does not meet the requirements of Mont. Code Ann. 30-10-324(6)(c)(i)-(v).
16. As a company which is promoting, conducting, or causing to be promoted or conducted a pyramid promotional scheme, FHTM is in violation of Mont. Code Ann. 30-10-325(1).
17. As someone who is promoting, conducting, or causing to be promoted or conducted a pyramid promotional scheme, Respondent Orberson is in violation of Mont. Code Ann. 30-10-325(1).A person conducting or promoting or cause to be conducted or promoted a pyramid promotional scheme.
18. As someone who is promoting, conducting, or causing to be promoted or conducted a pyramid promotional scheme, Respondent Mils is in violation of Mont. Code Ann. 30-10-325(1).
19. As someone who is promoting, conducting, or causing to be promoted or conducted a pyramid promotional scheme, Respondent Graber is in violation of Mont. Code Ann. 30-10-325(1).
20. As someone who may be promoting, conducting, or causing to be promoted or conducted a pyramid promotional scheme, Respondents John and Jane Does 1-2500 may be in violation of Mont. Code Ann. 30-10-325(1).
#4 Mar 19, 2010
Im not one to jump for anything that sounds too good to be true. Most the time people make it out to be more than what it is and that is the category FHTM falls into. It's considered a quasi pyramid scheme.
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