Vemma is an illegal pyramid scheme, allegedly

Sourced from: the FTC:

At the Federal Trade Commission’s request, a federal court has temporarily halted an alleged pyramid scheme, Vemma Nutrition Company, that lures college students and other young adults with the prospect of getting rich without having a traditional 9-to-5 job. The FTC seeks to stop the operation, which earned more than $200 million annually in 2013 and 2014 and has affected consumers throughout the United States and in more than 50 other countries, from continuing as an unlawful pyramid.

“Rather than focusing on selling products, Vemma uses false promises of high income potential to convince consumers to pay money to join their organization,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “We are also alleging that Vemma is an illegal pyramid scheme.”

Vemma is a multilevel marketing company that claims to use its members, called “affiliates,” to promote its health and wellness drinks. According to the FTC’s complaint, the defendants claim affiliates can earn substantial income by enrolling others either as affiliates or as customers, but Vemma focuses on recruitment rather than retail sales of its products to generate this income. The vast majority of participants make no money, and most of them lose money.

According to the FTC’s complaint, the defendants’ websites, social media, and marketing materials show seemingly prosperous young people with luxury cars, jets, and yachts, and falsely claim that Vemma affiliates can earn substantial incomes – as much as $50,000 per week. The defendants allegedly claim that affiliates’ earning potential is limited only by their own efforts and that Vemma provides young adults an opportunity to bypass college and student loan debt. Vemma urges consumers to make an initial investment of $500-$600 for an “Affiliate Pack” of products and business tools, buy $150 in Vemma products each month to remain eligible for bonuses, and enroll others to do the same.

Consumer losses are inevitable because Vemma is an illegal pyramid scheme that rewards affiliates for recruiting participants rather than for selling products, the FTC alleges. The defendants provide affiliates little guidance for selling products, but instead teach them to give away products as samples when recruiting new participants. Vemma offers no meaningful discounts or incentives to encourage retail sales, according to the complaint.

In addition to allegedly running an illegal pyramid scheme, the defendants are charged with making false earnings claims, failing to disclose that Vemma’s structure ensures that most people who join will not earn substantial income, and furnishing affiliates with false and misleading materials to recruit others.

The defendants are Vemma Nutrition Company, Vemma International Holdings Inc., Tom Alkazin, and Benson K. Boreyko, who is under a 1999 court order after settling with the FTC for his involvement with New Vision International Inc.,  a multilevel marketing company that sold nutritional supplements. The complaint names Bethany Alkazin as a relief defendant who profited from the scheme. On August 21, 2015, the court halted the deceptive practices, froze the defendants’ assets, and appointed a temporary receiver over the business pending a trial.

The Commission vote authorizing the staff to file the complaint for permanent injunction was 5-0. The order was entered by the U.S. District Court for the District of Arizona on August 21, 2015.

The FTC appreciates the assistance of the Attorney General Offices of Arizona, South Carolina, and Michigan, the Tempe Police Department, and the nonprofit organization Truth in Advertising in bringing this case.

To learn more about multilevel marketing, read Multilevel Marketing and Business Opportunity Scams.

NOTE: The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook(link is external), follow us on Twitter(link is external), and subscribe to press releases for the latest FTC news and resources.


I'm sure that many are happy that the Federal Trade Commission shut Vemma down, and that this paves the way for other shut downs.. Plexus Worldwide .. .perhaps could be next!

Plexus Worldwide faces Legal Action

Plexus Worldwide is facing Legal Action, not by the ambassadors it has screwed over, or by the customers it has done wrong, but by past Plexus Worldwide "President", Alfred Pettersen!

Pettersen filed paperwork in the Maricopa court system on May 15, 2015.

Canadian born, Alfred John Pettersen, former Enrich distributor under Ken Pontious (Tarl Robinson's "step" dad)  and "TEAM Paragon",  and "co-founder" of Plexus Worldwide, has been absent from Plexus since his "leave" in 2014 where a company memo was sent claiming him to be taking time off to spend with his new wife. (Now soon to be ex-wife).

""As a stockholder in the company, you can be sure that Plexus will never be far from my mind." - Alfred Pettersen, Plexus Int'l President "" (dated June 2014)

In fact, just the opposite is true. 

During this "leave" Alfred Pettersen teamed up with Dennis Harris. Harris was dubbed the Plexus Medical Director. (his departure from Plexus Worldwide was very sudden and quiet). Harris is well known for the "Snore Formula".

Together with Mark Derr and Ronald General, they formed a company: GHPD LLP.  GHPD LLP has not made public any business ventures as of yet.

Alfred Pettersen has filed paperwork against Tarl Robinson, current Plexus CEO, shown below in the white shirt, beside his cousin and "Senior Marketing/Communications Manager" Chris Pike. Tarl Robinson was recently voted #1 in a Direct Selling "compliant" poll, not something to call mom, Shirley Pontious, and brag about!

Named in the Civil Court Case are Tarl Robinson, and the 5 differently named Plexus companies:

1. Plexus Worldwide Inc 
2. Plexus Worldwide LLC 
3. Plexus Worldwide LLP
4. Plexus Holdings Inc 
5. Plexus Holdco LLP

Left to Right: Alec Clark, Tarl Robinson, Alfred Pettersen

How long has this bad blood existed between Tarl and Alfred? What role does Alec Clark have in this? Those 3 smiles are just saying "money, money and more money"

Not many have speculated about what is really going on here. Is this a Corporate take-down and what is his motivation behind it?   Is this part of the conspiracy to destroy Plexus Worldwide? Does Alfred Pettersen have his hand in the TruVision business?  or, perhaps as Plexus Slim Dave Brown has once said, "smoke and mirrors", is huge in this industry. Are these 3 wise men up to something else? After all, the FDA is still investigating the company, I'm sure that the FTC and other legal entities have been or will be involved in this investigation.


At this point in time all that is known is that papers have been filed. The content of those legal documents have not been publicly released.

U.S. Marshals have seized unapproved prescription drug products valued at over $1,500,000

At the request of the U.S. Food and Drug Administration and the U.S. Attorney for the Southern District of Florida, U.S. Marshals have seized unapproved prescription drug products valued at over $1,500,000 from Stratus Pharmaceuticals, Inc., of Miami, Florida. Stratus Pharmaceuticals marketed and distributed unapproved prescription drug products that were manufactured by Sonar Products, Inc., of Carlstadt, New Jersey.

The seized products include:

• a solution used to treat excessive sweating;
• an antibiotic cleanser for treatment of skin conditions, such as acne, rosacea and seborrhea;
• a topical ointment used to treat wounds;
• a topical cream and gel to treat psoriasis, eczema and other skin conditions; and
• analgesic ear drops used to treat ear pain.

These products have not been proven safe and effective for their intended uses. The FDA recommends that consumers who believe they have drugs marketed by Stratus Pharmaceuticals consult a health care professional or pharmacist about discontinuing the use of these products and identifying an alternative treatment option.

“Companies that market unapproved drugs are placing consumers at risk because the products may not be safe, effective or made using quality manufacturing practices,” said Cynthia Schnedar, director of the Office of Compliance in the FDA’s Center for Drug Evaluation and Research. “The FDA is committed to protecting consumers and will continue to take actions against companies that do not meet these standards.”

The U.S. Attorney’s Office filed a complaint on behalf of the FDA in the U.S. District Court for the Southern District of Florida, alleging that the products are unapproved new drugs and misbranded drugs under the Federal Food, Drug, and Cosmetic Act.  

The complaint follows an FDA inspection conducted in November and December 2014 that revealed the company was marketing these drug products without FDA-approved drug applications. The new drug approval process plays an essential role in ensuring all drugs are safe and effective for their intended uses. Unapproved drugs have not been shown to be safe and effective, may be of uncertain quality and do not have FDA-approved labeling. As a result, these drugs may pose risks to patients. 

The seizure of these products is consistent with the enforcement policy set forth in the FDA’s Marketed Unapproved Drugs Compliance Policy Guide, which, among its other provisions, provides notice that any product that is being marketed illegally and the persons responsible for causing the illegal marketing of the product are subject to FDA enforcement action at any time.  

The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, products that give off electronic radiation, and for regulating tobacco products.

This has been reprinted from original source

Snoopalicious

MLM Snoop was created because I needed to know what the heck was going on in a pyramid company that I was involved in. That experience has led me to new doors and a new chapter in my life. Sharing what companies don't want you to know, exposing people and companies, and hopefully helping others that find themselves in the same shoes.

Stopping these companies is almost impossible as they have the money. 

Stopping the individuals that promote these companies is also challenging,
they need the money.

Money, It's all about the Money

Being educated and informed is a good weapon to use to protect ourselves.

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