Class Calls Liberty League a Pyramid Scheme

LOS ANGELES (CN) - Liberty League International reaps tens of thousands of dollars from customers by promising them six-figure incomes in less than a year, but the only success stories are the sales the pyramid scheme makes hawking its programs and seminars, a class action claims in Federal Court.

The plaintiffs claim they bought into the company through its aggressive marketing program, which touts the ability to earn $200,000 in one year. Liberty tells its customers that the "New Associate Business Development Kit" is the only required purchase, but the plaintiffs claim they had to spend at least $22,500 each on Liberty's products and seminars in order to become a qualified seller and earn commissions on all sales.

According to the complaint, the start-up kits contain scripts on how to rope in new recruits, with questions such as, "What would your goal income/ideal income be for the next twelve months if there were no limitations placed on you?"

The script then states, "Their answer should be $100K or more per year. If it isn't, say, 'I'm sorry but that answer doesn't qualify for my time.'" If a recruit claims he or she cannot afford the products, the Liberty League seller says, "It's not the money, it's the decision. Are you ready to have the results I'm having? Then make it happen. I'm penciling you in my register now. Can you get the money together in 48 hours?"

Other talking points include: "If you are serious about making real money, people are putting money in their pockets immediately, to the tune of $1K-$5K and more per week" and "Anyone will have results, as long as they follow our system."

However, plaintiff Vicki Huff claims she followed the program and saw no results. She allegedly dropped $30,000 on Liberty League products and seminars, but was unable to make a single sale. The other named plaintiffs echo her experience.

They seek to shut down the alleged pyramid scheme, and force it to pay actual and punitive damages.

Plaintiffs are represented by Bonnett, Fairbourn, Friedman & Balint of Phoenix and San Diego, and Brower Piven of New York.

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.

Email *

Submit