Company Accused Of Pyramid Scheme To Pay $7.75M In Settlement
A Lexington marketing company has been ordered to return millions of dollars to its former customers.
While flowing testimonials mix with uplifting sights and sounds on one of Fortune Hi-Tech’s online ads, it was quite a different picture Tuesday as Attorney General Jack Conway announced a settlement that will force the company to pay back $7.75 million.
Conway had dubbed Fortune Hi-Tech a “classic pyramid scheme,” with more than 90 percent of its subscribers losing money. The accusations are hardly a first for the company. Similar allegations have led to fines in Montana, North Dakota, and Texas.
FHTM would sign up representatives at a cost of $99 to $299 to the individual. Representatives would then receive commissions for selling goods and services and for signing up new recruits.
The settlement did not require Fortune Hi-Tech to admit any wrongdoing.