Vemma Is An Illegal Pyramid Scheme FTC

Vemma FTC Warning

The Network Marketing MLM world will never be the same again.  Truthinadvertising.org has published the FTC’s complaint against Vemma.  This is not a minor complaint.  This is a company ending complaint.  The sealed complaint was filed on 8/17/2015.

Here are some highlights from the FTC’s complaint against Vemma:

FTC vs. Vemma, B.K. Boreyko, Tom Alkazin, Bethan Alkazin.

Vemma’s business model depends upon recruiting individuals to participate in Vemma as Affiliates and encouraging them to purchase Vemma Products in connection with such participation, rather than selling products to ultimate-user consumers. Vemma’s sales and marketing activities and their compensation plan place little emphasis on sales to consumers outside of the Vemma organization.

Affiliates do not primarily earn bonuses for actual sales of Vemma Products. Instead, Vemma rewards Affiliates for personally purchasing Vemma Products to maintain bonus eligibility, and for recruiting others who likewise purchase Vemma Products to maintain bonus eligibility.

Vemma’s promotion of this type of scheme, often referred to as a pyramid scheme, constitutes a deceptive act or practice.

Through their sales and marketing activities, Vemma misrepresents the nature and income potential of Vemma.  They repeatedly tout that Vemma can provide anyone an easy path to financial freedom and independence.

The likelihood of Affiliates earning profits on retail sales is minimal.

Vemma’s income representations are false or misleading and constitute a deceptive act or practice.

Consumers have suffered and will continue to suffer substantial injury as a result of Vemma’s violations of the FTC Act.  In addition, Defendants have been unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and harm the public interest.

The FTC wishes to freeze assets and prevent future violations.  They want to refund all ill-gotten money and wish to appoint a receiver to handle this.

– Source FTC Vemma Complaint

Here is the response from B.K  Boreyko to this complaint:

Hello Vemma faithful –
Just wanted to clear up a couple of phone calls I’ve received about moving to other companies. Although I know there’s panic out there, I want you to hear it from me…hang tight. We have a hearing scheduled for September 3rd. I think we’ll win. Until then, I know you want to do the best for your teams and that’s a sign of great leadership. I will and have always complied with the court’s order in this matter. I’m the kind of guy that would never violate the terms of that order. If you hear anything different, tell them you talked to me and I said buckle up because there’s great things ahead for Vemma!

In my opinion, this case will affect a vast amount of network marketing and MLM companies.  The illegal practices described in this case for Vemma are standard practices for many other companies.  These practices are the exact things I warned you about Vemma back in 2013.