The most hilarious part of this scheme is that these people who bought into this actually believed they could make $50,000 a week selling these beverages, keep in mind that this market is COMPLETELY saturated, anyone who thinks they could make $50,000 a WEEK is dumb enough to lose money falling for such a gimmick. FTC: Vemma shut down for running pyramid scheme 40 Mins AgoThe Associated Press 28 SHARES COMMENTSStart the Discussion Anthony Behar | Sipa USA | AP Nutritional beverage Vemma. The Federal Trade Commission said Wednesday that Vemma Nutrition has been temporarily shut down for operating a pyramid scheme that promised college students riches if they sold its nutritional drinks, but most ended up losing money. (Tweet this) The consumer protection agency said that Vemma told recruits that they could make as much as $50,000 per week selling its nutritional beverage Vemma, energy drink Verge or protein shake Bod-e. An initial investment of $600 was paid for products and business tools and $150 in Vemma products had to be bought each month to receive bonuses. The FTC said Vemma provided little help on how to sell its products and instead rewarded them for recruiting more people. Vemma earned $200 million a year in 2013 and 2014, according to the FTC. A representative from Vemma, which is based in Tempe, Arizona, did not immediately respond to a request for comment. The Ponzi scheme hall of shame Archive Photos | Getty Images A federal court in Arizona temporarily seized the company's assets. Products on Vemma's website could not be bought Wednesday. The website said that products were "temporarily unavailable at this time." In the complaint, the FTC said Vemma employees visited college campuses and told students that selling the beverages was an alternative to a regular job. Its marketing materials features young people in luxury vehicles, jets and yachts, the FTC said. Chris and Heidi Powell, two married stars from ABC's reality show "Extreme Weight Loss," appear in promotional videos and packaging of weight-loss drink Bod-e. Representatives of the Powells and ABC did not immediately respond to a request for comment. Along with the company, Vemma CEO Benson Boreyko is also named as a defendant in the complaint, as is Vemma promoter Tom Alkazin and his wife Bethany Alkazin.
Talk about a captive audience...Minimal job prospects, enormous college debts to be repaid...and gullibility off the charts...
I've seen countless acquaintances get involved with these. Primarily they have been my wife's friends, or the wives of my friends. Seems like a lot of stay at home moms think there is a free lunch out there by selling useless stuff to friends. I'm pretty sure none of them have made any net income from these "business ventures" they proclaim to be involved in.
I had someone trying to sign me doing some kind of solar panel pyramid scheme, I laughed at them, she said once Im making $10,000 a month or some 5 digit income a month Im going to quit my job...anyway she tried signing me up, I said I know what this is, its a pyramid scheme, as soon as I said that she got very defensive, I said I know all about these schemes, you get me to sign up and then I sign up more people and then it just snowballs from there... I said why do I need you if I can do it myself, she then got defensive once again, she said because Im going to get you started, I have all the info you need, I have the connections, I laughed again, I wanted to rip right into her but I was at work and didn't want to cause a scene because she was trying to get another co-worker to put solar panels on their house. One thing I can stand are sales people, I hate them, especially ones trying to push pyramid schemes, I will call them straight out but usually I wait to hear their scheme first, look at them, ask them questions like Im interested in signing up then blast them.....
They are not all money losers. My best friend since 2nd grade got involved in the "gold home party" business where he hired housewives to buy gold jewelry at tupperware like home parties. He netted $8.4 million in 20 months starting with a $5000 credit card loan---- and i thought it was a ridiculous idea. surf
hmmmm.....sounds like he showed you his very own black and white tax return on that $8.4 million income...
Thanks for your concern. Again, these are mostly acquaintances, and these are high income stay at home moms for the most part. Countless is obviously an exaggeration, but the fact is these pyramid schemes function by selling people a dream of running their own "business" without the structure of traditional work.
Yep, best friends share-- his 100 unit apt. building bought with cash and a variety of other items confirm its real. This was during the gold spike frenzy..---- i don't think it could be done again today.
likely it cannot be repeated. it is an interesting story but there are always new frenzies. what new frenzies did your friend participate in?