June 19, 2013

Officials: Thousands lost cash in Ky.-based scheme

BY: AP Staff Writer JANUARY 28, 2013 | MODIFIED: JANUARY 28, 2013 AT 4:16 PM
Leave a comment

LEXINGTON, Ky. (AP) — Tens of thousands of people in the United States and abroad may have lost millions in what federal and state officials are calling a classic pyramid scheme being run by a Kentucky-based company.

Kentucky Attorney General Jack Conway said Monday the state and the U.S. Federal Trade Commission are investigating Fortune Hi-Tech Marketing of Lexington. The company charged fees to consumers in exchange for allowing them to sell consumer goods such as satellite television service.

Conway says members only received substantial payments when they signed up new members.

The states of North Dakota, Montana and Texas have previously taken legal action against Fortune and reached settlements. The attorneys general of North Carolina and Illinois contacted Conway and the FTC regarding complaints from consumers in their states.

View article comments Leave a comment

More from washingtonexaminer.com

From the Weekly Standard

  • Frack to the Future

    Williston, N.D.

    Read More...
  • Downsize Ike

    The beleaguered Eisenhower Memorial Commission holds its next public gathering later this month, and before its members duck-walk into the hearing room, huddled in a hoplite phalanx against a...

    Read More...
  • The Lesson of Kermit Gosnell

    What was the lesson of the Kermit Gosnell trial? Since the Philadelphia doctor was convicted last month of murdering three born-alive infants, two competing viewpoints have emerged.

    Read More...