Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Friday, May 24, 2024 | Back issues
Courthouse News Service Courthouse News Service

Alleged Pyramid Schemer Settles With Texas

(CN) - A Kentucky-based direct-sales operation agreed to refund up to $1.3 million to Texas customers to settle allegations that it ran a pyramid scheme, the Texas Attorney General's Office said. Fortune Hi-Tech Marketing, based in Lexington, Ky., agreed not to do it again, and said it will pay up to $299 to each qualified customer.

"In a typical illegal pyramid scheme, a purchaser or investor pays a fee for the opportunity to receive profits in the future. Those payments are primarily derived by inducing others to join the operation and pay a fee, rather than from the sale of an actual product or service," prosecutors said in a statement. "Fortune Hi-Tech's customers complained that the defendant falsely represented the earnings they would achieve if they became one of the defendant's independent representatives."

Victims may obtain information about the settlement and submit a refund claim to the company by downloading a claim from the Attorney General's web site: https://www.oag.state.tx.us.

Claims must be submitted by Nov. 28.

Follow @davejourno
Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.