2Xtreme Illegal Pyramid Scheme Alleged In FTC Suit
This article was originally published in The Rose Sheet
Executive Summary
Beauty care direct seller 2Xtreme Performance International is based on an illegal pyramid scheme that uses deceptive earnings claims to enroll representatives, the Federal Trade Commission alleges in a Dec. 9 injunction request filed in Baltimore, Md. federal court.
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FTC ruling
Executives of beauty and nutritional supplement marketer 2Xtreme Performance International barred from future involvement in multi-level marketing programs under settlements announced Jan. 29 by FTC. Settlements include judgments totaling $2.5 mil., $1.4 mil. of which will be suspended based on financial disclosures provided by defendants, commission notes. Charged with operating illegal pyramid scheme disguised as a multi-level marketing plan, corporate successor USAsurance Group, 2Xtreme founder and CEO John Polk, Chief Operating Officer Patrick Farah, USAsurance President Peter Hirsch cited in FTC's original complaint, filed in Baltimore, Md. federal court in December 1999 (1"The Rose Sheet" Dec. 20, 1999, p. 8)
FTC ruling
Executives of beauty and nutritional supplement marketer 2Xtreme Performance International barred from future involvement in multi-level marketing programs under settlements announced Jan. 29 by FTC. Settlements include judgments totaling $2.5 mil., $1.4 mil. of which will be suspended based on financial disclosures provided by defendants, commission notes. Charged with operating illegal pyramid scheme disguised as a multi-level marketing plan, corporate successor USAsurance Group, 2Xtreme founder and CEO John Polk, Chief Operating Officer Patrick Farah, USAsurance President Peter Hirsch cited in FTC's original complaint, filed in Baltimore, Md. federal court in December 1999 (1"The Rose Sheet" Dec. 20, 1999, p. 8)
Equinox Pyramid Marketing Scheme Halted At FTC, States Request
Multi-level pyramid marketer Equinox International was the subject of a temporary restraining order issued Aug. 4 by a Las Vegas, Nev. federal court at the behest of the Federal Trade Commission. The company also is the subject of suits filed in six states for its illegal pyramid marketing scheme in which it encourages recruits to invest money up front.