Search This Blog

Translate

White House.gov Press Office Feed

Tuesday, June 16, 2015

FTC RETURNS NEARLY $2 MILLION TO CONSUMER VICTIMS OF MULTI-LEVEL MARKETING PROGRAM FRAUD SCHEME

FROM:  FEDERAL TRADE COMMISSION
FTC Returns Almost $1.9 Million to Consumers in BurnLounge Pyramid Scheme

The Federal Trade Commission is mailing 52,099 checks totaling almost $1.9 million to consumers who lost money to a pyramid scheme that pretended to be a legitimate multi-level marketing program selling opportunities to operate online digital music stores.

In June 2014, the FTC won an appeals court ruling upholding a district court finding that BurnLounge had operated a pyramid scheme.

Consumers who receive the checks from the FTC’s refund administrator for this matter, Gilardi & Co. LLC, should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed. The amount will vary based upon the amount of each consumer’s loss.

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.