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The Blame Game deepens as Fortune Hi-Tech (FHTM) leaders attempt to destroy Whistleblower!
By Slavick Scungilia, The Sentinel
Talk to any of the top leaders in Fortune Hi-Tech Marketing nowadays and they will tell you that Joseph Isaacs is the key to their recent business failures, representative departures, product losses and legal woes. These stories have been fabricated by Paul Orberson and passed down to many of the leaders including Todd Rowland, Ruel Morton and Woodson Gardner, who have in turn spread the rumors through the lower ranks of the FHTM sales force. Fortune holds weekly leadership calls that include the Presidential Ambassadors and top NSM’s to discuss their legal woes and put a spin on the latest BS that they intend to disseminate to the troops in order to cover up the real truth about their scam and to totally discredit Isaacs. Instead of facing the facts about the situation, they claim he has single handedly destroyed their business relationships, their down lines, their product offerings and brought numerous AG’s up their asses. If Isaacs is capable of such a huge feat – then FHTM should wake up and hire him to rebuild their highly tarnished image. Isaacs obviously possess better determination and skills than they ever gave him credit for.
They have created elaborate stories about him that are about as real as their supposed direct relationships were with GE, DuPont, Verizon, Travelocity, Dish Networks and AT&T. Everyone now knows that those direct relationships never existed, nor did FHTM have permission to use those company logos. In fact, during the past year since the harassment against Isaacs began, FHTM has lost the ability to sell Verizon Wireless, AT&T, Travelocity, Peter Lamas, BSP Rewards Mall and GE. DuPont has forbidden them from any additional use of their logo or name (no more trying to be “legal by association”). Time, Inc., a Time Warner Company and owner of Fortune magazine, required them in 2011, to add the following disclaimer on the bottom of www.fhtm.net, “FHTM is not sponsored by, endorsed by affiliated with or otherwise associated with Time Inc or Fortune Magazine”. They have been claiming association for years.
Isaacs applauds these companies for protecting their reputations and walking from any distant relationships they may have had with FHTM. We can only conclude that their reputations were more important, to these icons, than the menial amount of business sent to them by FHTM. Maybe these entities didn’t want a public relations nightmare on their hands in the event another state or federal agency shut FHTM down in 2011, or even worse the FTC enforcement bureau charges Paul Orberson criminally. It’s unfortunate that the FHTM leaders aren’t familiar with the expression, “Keep your friends close and your enemies closer”. Isaacs was a huge ally of FHTM until regulatory authorities began their investigations and fines.
FHTM and the top leaders are so desperate for business and recruits that they have made up ridiculous stories about Isaacs in an effort to save their preverbal asses. The story lines are so bizarre and false that they sound like they are right out of the Twilight Zone. Then to make it worse they have sued this whistleblower, lied to the courts and created more BS to hide the real fact that they operate, according to Monica Lindeen of the Montana Securities Commission, an “illegal promotional pyramid scheme”. This story would make a great documentary pinning the criminals against the advocates of the truth.
They were not exonerated in Montana. It was never proven they were a legal enterprise. In fact Montana required they change their entire method of operation and refund almost $1Million to ex reps who felt they had been ripped-off. FHTM intentionally settled the case with Montana so they wouldn’t have to publically admit any guilt, have a determination and being branded a “pyramid scheme” or have a media nightmare when the lost in court. This is the modis apperendi for most MLM’s that get in trouble for operating illegally.
Newspapers and thousands of past reps talk about FHTM on hundreds of blogging sites with complaints of fraud, scam and pyramid scheme dating back to 2003, yet FHTM has decided to focus merely on Isaacs and in a recent brief to the court states that FHTM has no issues with any other reps except Isaacs. This is because FHTM has never persecuted any other reps or ex-reps for expressing their opinions or repeating what newspapers and government agencies have said. The despise Orberson and his staff has for Isaacs is borderline schizophrenic. Isaacs is the victim here yet FHTM has done everything to portray him as a lunatic out to destroy them.
“The victims of these frauds are our neighbors – people who are trying to make an honest living,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “Under pressure to make ends meet, they risked their limited financial resources in response to the promise of a job, an income – a chance at a profitable home-based business. But these turned out to be empty promises – and the people who counted on them ended up with high levels of frustration and even higher levels of debt.” “When jobs are scarce, claims to help people make money fast become plentiful,” Cooper said. “Consumers think they’re buying into a great way to earn a living, but they could end up paying far more than they’ll ever make.” Why isn’t FHTM suing the FTC director for his slanderous statements? Do we live in the United States of Cuba and Castro is our president?
According to a press release issued by the NC AG’s office in March 2011, Fortune Hi Tech Marketing claims that people who buy into its business earn thousands of dollars a year. Based on consumer complaints, Cooper’s office launched an investigation into FHTM in mid 2010. Consumers say they paid money to the company but were only able to make money by recruiting others into the scheme, not by selling any actual goods or services. A total of 25 consumers have now complained about FHTM, and Cooper’s office is investigating the company.
Although this case is currently under investigation, it’s important for consumers to know that a pyramid scheme is a violation of the law and is defined as any plan in which a participant pays money for the chance to receive money upon the introduction of new participants into the program.
The truth of the matter, according to FHTM’s own Income Disclosure statement from 2009, (before all these legal issues) 30% of the people made zero and 90% earned less than $100 a month prior to expenses. Isaacs feels this fits the FHTM business model to a tee. The old adage, “Don’t shoot the messenger” definitely applies to the FHTM-Isaacs ordeal. They should work on cleaning up their internal house of cards instead of persecuting the messenger of the truth. It appears ok when an AG makes such a statement but FHTM considers it slanderous when it’s repeated by Isaacs (according to recent motions and briefs filed in the court case). How is that reasonable? Where is the justice in this country? What happens to Isaacs’ rights as an American citizen?
“We’re looking closely at business opportunities that seem to offer false hopes, and also reaching out to educate consumers on how to recognize and avoid fraud,” Cooper said. Isaacs has done nothing but inform the public of the truth but FHTM is attempting to completely discredit Isaacs, claiming he lies about his statements regarding FHTM when in fact FHTM has lied about their entire operation since its founder Paul Orberson started the criminal enterprise in 2001.
Mr. Isaacs integrity and moral fiber runs deep and therefore he spent his own time and money to dig up and uncover the real facts about many facets of their criminal enterprise such as the fact that they a) had no direct relationships with the companies they claimed (FHTM was nothing more than a 3rd or 4th part affiliate – they were never an authorized dealer of anyone as they claim); b) did not have permission from icons such as GE and DuPont to use those company logos in the FHTM presentation, marketing materials, online or in the representative kits. FHTM had the audacity to blame their own representatives for this cease and desist even though they used the DuPont logo in all company produced marketing and presentation materials; c) FHTM was not debt free as they still claimed in their business presentations and up until mid 2010 – the entire company and all of its assets including inventory and receivables were pledged as collateral for a business loan; d) FHTM has not had a 3A1 Dunn & Bradstreet rating for many years but as recently as the summer of 2010 the NSM’s and top leaders in FHTM still used that in their recruiting presentations; and e) many Attorneys Generals had FHTM on their scope after the Montana issue arose in early 2010. Isaacs should not be blamed for the misrepresentations and deceit FHTM has perpetrated on too many people. FHTM should look within instead.
Recently rumors have circulated (as comments on various blog sites and articles posted throughout the internet) that Isaacs was terminated from FHTM for selling porn on “Fortune Social”. www.fortunesocial.com was developed by Isaacs and his team from India to be the first social network dedicated to the direct selling industry (which according to Isaacs he supports). As a former rep in FHTM he thought there was a need for such a FREE tool. FHTM has rumored that the tool made money, violated their rules and stole their intellectual property. What a delusional thought pattern they have. Others say, including verbiage in a Federal lawsuit filed by FHTM against Isaacs, it was for trademark violations for using the word “Fortune” in his website URL (even though FHTM has been issued a cease and desist from Time, Inc – the real owner of the word Fortune) and his logo for Fortune Social. This is about as far from reality as one could get. FHTM knows it has no claim to the word “Fortune” especially since the rightful owners (Time, Inc.) demanded, as far back as 2009 and prior to Isaacs being a rep or being sued by FHTM, that Fortune Hi-Tech Marketing rebrand or risk legal actions. It was demanded that Fortune Hi-Tech Marketing become FHTM and stop using the “Fortune” name in their URLs, logos, materials, etc. No more association with Fortune magazine, no more Fortune Wireless or Fortune TV, etc. How arrogant is it for FHTM to then file a trademark infringement and cybersquatting lawsuit against Isaacs for using the word they have been told to cease using as they were violating someone else’s intellectual property. This is totally an abuse of process. Soon the truth will surface and they will once again have egg on their face. Recently in a brief to the Arbitrator in the trademark case, after one year of insane litigation and abuse of process, they admitted they have no right to the word “Fortune”, although FHTM has refused to drop the case. The lawsuit against Isaacs is not about winning, which is extremely obvious by the fact that they only claim a mere $208.00 in total damages, have zero proof that Isaacs ever used or intended to use their logos in commerce and have spent, in our estimate, upwards of ½ million in legal fees to date. Who in their right mind spends $500,000 to maybe win $208.00? This is about the destruction of Isaacs and not justice.
Others, including FHTM corporate, rumor that he tried to extort millions from FHTM because he failed as an independent representative. The real fact was that after Montana shut FHTM down, Isaacs attempted to get into a financial transaction with FHTM to have them buy his software, system and programs which they could have resold to their reps. His webinar program was proprietary and would have been a great business building tool for any direct selling organization. FHTM declined his offer and then spun a story that Isaacs attempted to extort money from FHTM by trying to sell them their intellectual property. The truth of the matter is that FHTM didn’t have nor will they ever have an interest in the Isaacs webinar system. FHTM has no legal right to the word Fortune so selling them www.fortunewebinars.com or www.fortunesocial.com was something they never owned. Go to Meeting and WebEx were similar programs that are used by network marketers worldwide. This tool was one FHTM had no ability to develop, now or in the future – their loss.
Others say it wasn’t for following the FHTM rules (same rules the top leaders ignore and taught him to ignore). FHTM has a very selective enforcement team and is riddled with massive nepotism. If you make Paul Orberson millions of dollars annually you are exempt from any rules and never get punished for anything, even if you bring the heat onto FHTM – like Mike Misenheimer (Presidential Ambassador) did in Montana. If you are a peon representative at the bottom of the pyramid, you are subject to ridicule, termination and ridiculous legal actions.
FHTM has tried to convict Isaacs of running a smear campaign against them for repeating what other newspapers have written, Attorneys Generals have said and for merely telling the truth about their scam. Isn’t this the pot calling the kettle black? Clearly it appears to be insane that the company built on lies and deceit is suing the person who exposes them, claiming tortuous interference, slander and defamation. Doesn’t the US Constitution prevent such abuse of process?
They even attempted, in December 2010, to have a Federal Judge eliminate Isaacs’ right to freedom of speech by asking for an injunction. Obviously the federal court sided with Isaacs and denied such a request. They have tried over and over to destroy Isaacs financially by continuing to file frivolous and inappropriate motions in both federal court and arbitration. They have dug into Isaacs’ background in order to create stories and shed light on his integrity. It seems to be legal for FHTM, the gorilla, to do this but when Isaacs digs into the FHTM background and exposes the truth about them he gets dragged through the mud in court. When will a court or Federal regulatory authority get so deep into the FHTM lies that they are prevented from scamming so many hundreds of thousands of unsuspecting people just trying to get ahead in this world?
Current FHTM representatives have so many issues because of the loss of products, points and commissions that they need a scapegoat and an excuse for their woes. Nobody has had the balls to stand up to this MLM in a way Isaacs has. They have now used Isaacs as the poster child for what happens to those that speak out against them. If Isaacs was reporting government agency or public corporation lies in a similar fashion to his expose of FHTM he would be protected by the US Federal Whistleblower laws that prevent the type of retaliatory litigation and harassment he has had to endure for the past 14 months.
When will the crap cease and FHTM begin to tell the truth? Probably never since none of their plan is built on anything with substance and none of their lies have any proven facts attached to them. They have not won the case against Isaacs, the multiple class actions have not been decided in FHTM’s favor, as of the date of this article, and Isaacs continues to feel the wrath of the self proclaimed King of MLM, Paul Orberson. We feel sorry for Isaacs and applaud his morals and ethics in standing up for the little guy and telling the world what is right and how FHTM is wrong.
Fortune Hi-Tech Marketing loses Verizon Wireless from product offering
http://www.articlemonster.com/busine…-offering.html
So many questions and not enough answers. In a world fighting for customers and companies watching over their reputations like a hawk, what do these companies all have in common? I am referring to major Fortune 100 icons like General Electric, DuPont, Time, Verizon Wireless and AT&T as well as some smaller ones like Travelocity, Peter Lamas and BSP Rewards Mall.
The answer is simple, somehow over the past 10 years and probably unbeknownst to them, they became aligned with a Multi-Level Marketing company known as Fortune Hi-Tech Marketing (FHTM). This was mainly accomplished because Fortune Hi-Tech does business with some of their authorized dealers and 3rd party affiliates. Fortune’s attempt to prove it’s legal by association has backfired, as it normally does. It is very difficult to build your reputation at the expense of someone bigger, when they have no idea who you are.
Should these companies have a say in who gets to use their brand in the pursuit of the almighty dollar? For the first time in FHTM’s history the number of companies represented by it on the menu board at fhtm.net is shrinking. How can that be good?
According to court documents and a major USA Today expose, last September, none of these companies had direct relationships with FHTM.
In March 2010, Monica Lindeen, the Securities Commissioner for the State of Montana, issued a cease and desist against Fortune HI-Tech Marketing for operating an illegal endless recruiting pyramid scheme. Since then Texas has demanded documents in an investigation, South Carolina AG Roy Cooper, has opened an investigation into Fortune’s business practices, as part of the FTC’s “Operation Empty Promises”, and its own home state of Kentucky has done the same.
Two blistering heart pounding class-action lawsuits have pummeled FHTM in 2010 as well. The first was filed in Federal Court in Kentucky in September 2010 and the other in Federal Court in Southern California two days before Christmas last year too. Neither of these lawsuits have been certified as a class yet, and mainly due to some extensive manipulation of the legal system by the Fortune legal team.
What is the cost of that battle? Some estimate legal costs upwards of $500K monthly. That certainly will take a huge chunk out of any business’ cash flow. Fortune is not the first MLM or pyramid scheme to be involved in major lawsuits. Amway just agreed to pay a record settlement of close to $150 Million. Most top law firms and executives know they can’t win these types of suits, and mainstream media leaves a negative impact on their business. Attorneys have very little defense to RICO and pyramid scheme allegations, and after spending millions trying to defend the allegations, usually make arrangements for settlement conferences. They may win some of the small battles but not the war. What is the depth of the scars these lawsuits leave to deter others to join?
So the important question now remains, why did these huge conglomerates allow their names and reputations to potentially be smeared by a company like FHTM? The answer is simple – they didn’t know what was happening.
According to ex-representative, Joseph Isaacs from Tampa, Florida, “When these companies find out that their trademarks, names, logos and reputations are being used by FHTM in order to aide FHTM in proving its’ legitimacy they will issue a cease or desist, insist on the actions to stop or not allow FHTM to market their products”. Which others will walk when they find out the real business model and litigation history of Fortune Hi-Tech?
As of March 2011 every one of the companies listed above has either issued a cease and desist or no longer allows itself to be aligned with Fortune Hi-Tech Marketing. How has this affected their aura of legitimacy? How do they explain all of this to new and even existing independent representatives?
In reviewing some FHTM business presentations on YouTube, it was apparent that the logos of GE, DuPont, Verizon and AT&T were there for one reason. What are the repercussions of only being legal by association? According to Joseph Isaacs, “Top leaders would tell prospects during the business presentation that they must be legal because no iconic Fortune 100 company would affiliate with a scam”. “All of these major companies sent their CEO’s and legal teams to meet with founder Paul Orberson to evaluate FHTM and check out their books. This cannot be so and was nothing more than a lie used to recruit”, he added. What rhetoric do these leaders use today to explain the loss of such major brands? Only time will tell.
Will FHTM leaders and owners blame the latest Verizon fiasco on the reps like they did in their announcement pertaining to DuPont only a few weeks ago? How long will this saga continue? Which other company will research the true business model of Fortune Hi-Tech Marketing and un-align themselves next? It is too early to tell but this story is far from over.
If the massacre continues then Fortune will be nothing more than a vitamin and dog food MLM. That is not very hi-tech and not too many fortunes will be made by affiliation. How much representative revenue has been lost as a result of these major companies walking away? How many current representatives are scrambling to replace so many customer points? How many Regional and Executive managers won’t get bonuses because their team points are greatly depleted because of the latest loss? We searched high and low for the answers but didn’t find any.
Fortune Hi Tech Marketing: Real money made from recruiting, not product sales
Posted on March 31st, 2011
http://www.sequenceinc.com/fraudfiles/2011/03/31/fortune-hi-tech-marketing-real-money-made-from-recruiting-not-product-sales/
Earlier this week I showed you how Fortune Hi Tech Marketing appears to be a pyramid scheme, rather than a legitimate “direct sales” company or multi-level marketing opportunity. Today we are taking a look at the recruiting aspect, which is what I believe makes FHTM cross over the line into the world of pyramid scams and Ponzi schemes. Last time I cited claims from participants in FHTM that recruiting was the true focus of the “business,” and today we’ll look at that a little more in depth.
There are so many ways to get people to buy into the idea of joining an MLM. These days, you will hear about unemployment and financial pressures, and how companies like Fortune Hi Tech Marketing offer an opportunity for unlimited earnings. The recruiters will tell you that even if you don’t get rich with FHTM, you can still make some money to help pay bills.
Be your own boss… make an unlimited income… control your own financial future… provide a better life for your family… pay a few bills each month… make money from things you’re already buying… All of these things sound attractive to almost anyone, and that’s why they are used in recruiting pitches.
Former Fortune Hi Tech Marketing independent representative Joseph Isaacs said in an interview with USA Today that “.. the company targets desperate unemployed people, Hispanic immigrants and others who are struggling to make ends meet.” Of course, those still in Fortune spin that. The article reports: “Joanne McMahon, a national sales manager speaking at a training session USA TODAY attended here, said it is the people who can’t afford the fee to join Fortune who need the company the most.”
One common “hook” that multi-level marketing companies use to get people in is the “low cost” of startup. Representatives boast that $299 to start your own business is cheap! What other business can you start for such a small cost? Yet add up $299 for every recruit (plus another $250 for each recruit that signs up for the “optional” package), and you can see that FHTM can take in tons of money from recruiting.
Who is making money in Fortune Hi Tech Marketing (FHTM)?
Posted on April 4th, 2011 by Fraud File Blogs (see full story at http://www.sequenceinc.com)
Are people really making money from all this recruiting of FHTM Independent Representatives? The vast majority aren’t.
An income disclosure statement for Fortune Hi Tech Marketing from January 2010 shows exactly how dismal the financial results are for its representatives:
- 54% of representatives who qualified for commissions got an average of $93 per month
- 41% of representatives who qualified for commissions got an average of $256 per month
These figure are before all business expenses. Those who have been involved with multi-level marketing know that there are plenty of expenses, including fees for meetings, travel expenses, promotional materials, sign-up fees, renewal fees, and marketing costs. I doubt many of these 95% of representatives receiving commission checks actually turn a profit.
But here’s the best part of the above disclosures: They exclude the 28% of FHTM representatives who got $0 in commissions. Only a careful reading of the disclosure statement reveals this fact.
If we re-run the numbers using all of the representatives of Fortune High Tech Marketing, we find that:
- 28% of reps receive commissions of $0
- 39% of reps receive commissions of $93 per month
- 30% of reps receive commissions of $256 per month
In total, we see that 97% of people participating in FHTM make between $0 and $256 per month, before deducting any business expenses. Clearly, it’s almost impossible to make a living in this scheme.
And here’s another important fact to note: The 72% of all representatives who received a commission check during the year included in the income disclosure statement didn’t necessarily receive that average commission every month. They only had to receive one monthly commission check to be included in the 72% receiving commissions.
But don’t take my word for it! Stuart Watson, a television reporter in North Carolina dissected the same income disclosure statement from FHTM and came to the same conclusion:
In the paragraphs under the chart, FHTM notes that during the reporting period covered in the chart (January 23, 2009 to January 20, 2010) “…71.85 percent of all active independent representatives earned at least one commission or bonus payment.”
That leaves 28.85 percent of sales reps earning nothing.
Additionally, the statement says the reported average monthly income only includes the months that sales reps received some payment.
Robert FitzPatrick of Pyramid Scheme Alert took the analysis further:
The data revealed:
– 28.15% — Earn nothing
– “Manager” Level: 39% — earn $93 on average (only on the months they got a check)
– “Regional Sales Manager” Level : 29% — $256 on average (only on the months they got a check)
The first three levels at the bottom constitute 96% and the maximum, on average, earned by these three levels is $256. When the average for each level is multiplied by the number in the level and the sums are totalled, an aggregate for this 96% group is revealed:
The average paid out to the bottom 96% is $115 per mo. This is less than the initial and monthly cost of participating, not counting all other normal business costs.
Related posts:
- Fortune Hi Tech Marketing: Real money made from recruiting, not product sales
- Fortune Hi Tech Marketing: Multi-level marketing scam or pyramid scheme?
- Who is making money as a United First Financial agent?
- Scam Busting: Another cosmetics MLM
- Does this describe your MLM?
In ‘MLM business opportunity’ frauds, direct association with trusted brands has been a lie by Shyam
In a previous post, I drew your free-thinking readers’ attention to some remarkable optical illusions which clearly demonstrate that the human mind can be easily deceived simply by changing the context in which we see things http://www.bbc.co.uk/news/magazine-11553099 . A stalking-panther, when photographed in a jungle environment, is almost invisible to the human eye if shown only in black and white, but the same dangerous predator is immediately obvious to us when shown in color. Two squares of identical color and shade, appear to be of completely different color and shade when each one is surrounded by squares which alter the context in which our minds automatically see them.
No one now seriously disputes that deluded, core-‘MLM’ adherents look at ‘MLM business opportunity’ frauds only in two dimensions, ‘positive’ and ‘negative.’ A growing mountain of quantifiable evidence proves that vast numbers of ill-informed people have been deceived into entering this style of camouflaged totalitarian cult, then, on the pretext that ‘the duplication of a step-by-step positive plan will lead to success,’ they have been intellectually-castrated (without their fully-informed consent) so that their minds will only accept what their leaders have arbitrarily defined as ‘positive,’ and to exclude what these same charlatans have arbitrarily defined as ‘negative.’ When seen only in the fake ‘positive’ context of: ‘Business’, ‘Independence’, ‘Financial Freedom’ , ‘Direct Selling’, ‘Low Risk’ , ‘Income Opportunity’, etc. ‘MLM business opportunity’ frauds can appear to be authentic. This dangerous inversion of reality has been further confirmed by (apparently independent) : celebrity endorsements, glossy-advertizing, ‘Direct Selling Associations’ , etc.; all of which form a pattern of ongoing, major, racketeering activity, because all these artificially-created, fake ‘positive’ contexts have actually been financed by the profits of fraud in order to continue to perpetrate the same fraud. It is only when you take ‘MLM business opportunity’ frauds out of their artificially-created, fake ‘positive’ contexts, that their true, predatory nature becomes immediately obvious.
One of the most-deceptive, fake ‘positive’ contexts in which ‘MLM business opportunity’ frauds have been presented is there apparent direct association with trusted brands. Currently, in the USA, the millionaire racketeers behind the ‘Fortune Hi-Tech Marketing’ lie are being challenged in court for having pretended direct association with some of America’s most famous companies: including: General Electric, DuPont, Time, Verizon Wireless and AT&T, Travelocity, Peter Lamas and BSP Rewards Mall. For, according to documents presented in court, none of these companies has ever had a direct association with ‘FHTM.’ Furthermore, the officers of all these companies were actually unaware that their valuable brand-names and trademarks were being used by racketeers to commit fraud. The only connection that the ‘FHTM’ fake has had with all these authentic companies is that ‘FHTM’ has been a corporate customer of their products and services. Yet again, the use of this devious technique of psychological persuasion has been copied from the original ‘MLM business opportunity’ fraud, ‘Amway.’
According to an ‘FHTM’ whistleblower, Joseph Isaacs: ‘When these companies find out that their trademarks, names, logos and reputations are being used by FHTM in order to aide FHTM in proving its legitimacy they will issue a cease and desist order, insist on actions to stop or not allow FHTM to market their products’. Indeed, currently every one of the companies listed above has either issued a cease and desist order against ‘FHTM,’ or no longer allows itself to be aligned with ‘Fortune Hi-Tech Marketing.’
Again, according to Joseph Isaacs, ‘FHTM leaders would systematically tell prospects during presentations that FHTM must be legal, because no iconic Fortune 100 company would affiliate with a scam‘ and that ‘all of these major companies had sent their CEO’s and legal teams to meet with FHTM founder, Paul Orberson, to evaluate his MLM company.’ Self-evidently these scripted-lies were part of an overall pattern of ongoing, major, racketeering activity.
Written by David Brear (copyright 2011)
According to the North Carolina AG office and the FTC press release:
Fortune Hi-Tech Marketing lies about its 3A1 D&B rating to entice people to join its pyramid scheme. See full current report at http://www.fhtmclassaction.info
FTC Steps Up Efforts Against Scams That Target Financially-Strapped Consumers
More Than 90 Actions Brought By Commission and Its Law Enforcement Partners
Attorney General Roy Cooper today joined state attorneys general from across the country and the Federal Trade Commission to announce a national sweep targeting business opportunity scams, including actions against four companies that have targeted North Carolina consumers.
“When jobs are scarce, claims to help people make money fast become plentiful,” Cooper said. “Consumers think they’re buying into a great way to earn a living, but they could end up paying far more than they’ll ever make.”
In challenging economic times, many people in the state are looking for work. Unfortunately, sometimes they find scams instead of legitimate opportunities. Complaints to the Attorney General’s Consumer Protection Division about business opportunity, work-at-home schemes, and other employment related scams were up 11 percent last year, from 177 complaints in 2009 to 197 complaints in 2010.
Operation Empty Promises is a national sweep by the FTC, Cooper and other state attorneys general aimed at stopping business opportunity scams and educating consumers about how to avoid them. Announced as part of the sweep are actions taken by Cooper’s Consumer Protection Division against four companies including Fortune Hi Tech Marketing who claims that people who buy into its business earn thousands of dollars a year. Based on consumer complaints, Cooper’s office launched an investigation into FHTM in mid 2010. Consumers say they paid money to the company but were only able to make money by recruiting others into the scheme, not by selling any actual goods or services. A total of 25 consumers have now complained about FHTM, and Cooper’s office is investigating the company. Although this case is currently under investigation, it’s important for consumers to know that a pyramid scheme is a violation of the law and is defined as any plan in which a participant pays money for the chance to receive money upon the introduction of new participants into the program.
“We’re looking closely at business opportunities that seem to offer false hopes, and also reaching out to educate consumers on how to recognize and avoid fraud,” Cooper said.
Later this month, Cooper’s office plans to launch a tool kit to educate consumers on fake business opportunities which will include print, web and video materials. The goal is to prevent North Carolina consumers from losing their hard-earned money to scammers trying to take advantage of a tough employment market.
“Don’t let scammers use empty promises of jobs with high earnings to take your money,” Cooper warned consumers. “Before you agree to invest in any business, check it out thoroughly and always be skeptical of claims of guaranteed profits.”
Cooper has taken action against a number of other kinds of scams fueled by hard times. For example, his Consumer Protection Division has won 13 cases against foreclosure assistance and loan modification scams in the past five years, including two so far in 2011.The Federal Trade Commission today stepped up its ongoing campaign against scammers who falsely promise guaranteed jobs and opportunities to “be your own boss” to consumers who are struggling with unemployment and diminished incomes as a consequence of the economic downturn.
“Operation Empty Promises,” a multi-agency law enforcement initiative today announced more than 90 enforcement actions, including three new FTC cases and developments in seven other matters, 48 criminal actions by the Department of Justice (many of which involved the assistance of the U.S. Postal Inspection Service), seven additional civil actions by the Postal Inspection Service, and 28 actions by state law enforcement agencies in Alaska, California, Indiana, Kansas, Maryland, Montana, New Jersey, North Carolina, Oregon, Washington, and the District of Columbia.
In a press conference at the FTC, David Vladeck, Director of the FTC’s Bureau of Consumer Protection, was joined by Tony West, Assistant Attorney General for the Civil Division of the Department of Justice; Greg Campbell, Deputy Chief Inspector of the U.S. Postal Inspection Service; North Carolina Attorney General Roy Cooper; and a California consumer who had bought into a program to start his own Internet business.
“The victims of these frauds are our neighbors – people who are trying to make an honest living,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “Under pressure to make ends meet, they risked their limited financial resources in response to the promise of a job, an income – a chance at a profitable home-based business. But these turned out to be empty promises – and the people who counted on them ended up with high levels of frustration and even higher levels of debt.”
The FTC has updated consumer education materials to help consumers avoid falling victim to these scams. Screen shots from the websites of some of the operators charged in this law enforcement sweep, as well as video footage of FTC Consumer Protection Director Vladeck and FTC attorney Daniel Hanks, are also available at the FTC website.
Did another one bite the Dust? It appears as if Fortune Hi-Tech Marketing reps can no longer sell Verizon Wireless. When checking the Simplexity website this afternoon it was obvious that the Fortune referrer URL’s only displayed plans and phones for Sprint, T-Mobile and Nextel. http://www.cellstores.com/mobile/?referringdomain=fortune&Eid=7070537
Simplexity is still an authorized dealer of Verizon Wireless according to the disclaimer on the bottom of the page but FHTM is NOT! See for yourself. What does this mean to all of the current FHTM reps? They have lost the ability to market for the two largest cellular phone providers in the USA in the past 30 days.
FHTM is no longer authorized to use the DuPont name, logo, or trademark in any way. FHTM should immediately discontinue the use of any materials containing the DuPont logo. Our right to use DuPont’s name, logo and trademark was revoked because FHTM abused the system by creating and distributing unapproved marketing materials that displayed the DuPont logo.
Surprise…surprise.
FTC Steps Up Efforts Against Scams That Target Financially-Strapped Consumers – More Than 90 Actions Brought By Commission and Its Law Enforcement Partners including Fortune Hi-tech Marketing
The Federal Trade Commission today stepped up its ongoing campaign against scammers who falsely promise guaranteed jobs and opportunities to “be your own boss” to consumers who are struggling with unemployment and diminished incomes as a consequence of the economic downturn.
“Operation Empty Promises,” a multi-agency law enforcement initiative today announced more than 90 enforcement actions, including three new FTC cases and developments in seven other matters, 48 criminal actions by the Department of Justice (many of which involved the assistance of the U.S. Postal Inspection Service), seven additional civil actions by the Postal Inspection Service, and 28 actions by state law enforcement agencies in Alaska, California, Indiana, Kansas, Maryland, Montana, New Jersey, North Carolina, Oregon, Washington, and the District of Columbia.
In a press conference at the FTC, David Vladeck, Director of the FTC’s Bureau of Consumer Protection, was joined by Tony West, Assistant Attorney General for the Civil Division of the Department of Justice; Greg Campbell, Deputy Chief Inspector of the U.S. Postal Inspection Service; North Carolina Attorney General Roy Cooper; and a California consumer who had bought into a program to start his own Internet business.
“The victims of these frauds are our neighbors – people who are trying to make an honest living,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection.“Under pressure to make ends meet, they risked their limited financial resources in response to the promise of a job, an income – a chance at a profitable home-based business. But these turned out to be empty promises – and the people who counted on them ended up with high levels of frustration and even higher levels of debt.”
The FTC has updated consumer education materials to help consumers avoid falling victim to these scams. Screen shots from the websites of some of the operators charged in this law enforcement sweep, as well as video footage of FTC Consumer Protection Director Vladeck and FTC attorney Daniel Hanks, are also available at ftc.gov/bizopps
Since WHAS11 broke this news story in mid 2010 the following major events have occurred with FHTM:
1. Peter Lamas dropped FHTM
2. Cease and desist letters from GE, Travelocity, Time Inc and Dupont were sent to FHTM regarding the unauthorized use of these company’s coveted logos and names. How can that be if FHTM was partnered with each and every one of those entities.
3. The FBI & FTC opened investigations into FHTM
4. Almost a dozen AG’s have open investigations or demand letters to FHTM for production of documents including Texas, NC and Kentucky.
5. The KY BBB still ranks Fortune with a “C-” rating although it should probably be less
6. USA Today has done a major expose on their business practices of Fortune HI-Tech
7. Paul Orberson did not make it onto the Opray show.
8. AT&T dropped FHTM and other carriers are looking into FHTM’s unauthorized use of their logos and names to purport an aura of legitimacy
9. Dateline NBC is investigating the company for an upcoming show.
10. 2 class action lawsuits
11.. Rumor has it that the top 4 $$ earners are seeking refuge at another MLM and will receive upwards of $5 Million to bring their teams….
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