Ambit Energy ScamAmbit Energy customers represented by national consumer-rights law firm, Hagens Berman, have filed a class-action lawsuit against Ambit Energy alleging that the provider of electricity and natural gas services illegally operates a massive pyramid scheme, in which Ambit uses customers as consultants to market to friends and family, lures consumers to switch energy providers with the promise of lower rates, and causes the rates to increase.

“Our investigation has shown that not only does Ambit use deceptive tactics to reel in its customers, but it then exploits them for its own gains – calling them ‘consultants’ and developing more pawns in its twisted scheme for higher profits.”

Ambit customers through this lawsuit state that the energy company has defrauded its customers for years, growing its revenue from $1 million in 2006 to $1.2 billion today.

The lawsuit says that Ambit Energy has violated the Racketeer Influenced Corrupt Organizations Act (“RICO”) by “preying upon consumers in the deregulated energy market.” The 31-page lawsuit was filed on Mar. 26, 2015 in the U.S. District Court for the Northern District of Illinois.

“We believe Ambit has created a massive pyramid scheme built on a deceptive, illegal marketing campaign, Our investigation has shown that not only does Ambit use deceptive tactics to reel in its customers, but it then exploits them for its own gains – calling them ‘consultants’ and developing more pawns in its twisted scheme for higher profits.” – Source Steve Berman, managing partner of Hagens Berman.

“We believe Ambit should be held accountable for these massive overcharges passed on to its customers, Ambit’s way of business is nothing short of illegal – from using its customers to develop fraudulent business, to failing to offer its energy at a fixed monthly rate – it’s a rotten business.” – Source Steve Berman, managing partner of Hagens Berman.

Oleg Kostovetsky is the person that started the lawsuit and was approached in September 2013 by an Ambit consultant who told Kostovetsky that he would receive lower energy bills and consistent savings if he became an Ambit Consultant and switched to Ambit from his current energy provider. After switching to Ambit, Kostovetsky’s bills doubled compared to his rate with his previous supplier.