Officials: Thousands lost cash in Ky.-based scheme

Officials: Thousands lost cash in Ky.-based scheme

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by The Associated Press

WCNC.com

Posted on January 28, 2013 at 6:47 PM

Updated Monday, Jan 28 at 7:01 PM

LEXINGTON, Ky. (AP) -- Tens of thousands of people in the United States and abroad may have lost millions in what federal and state officials are calling a classic pyramid scheme being run by a Kentucky-based company. 

Kentucky Attorney General Jack Conway said Monday the state and the U.S. Federal Trade Commission are investigating Fortune Hi-Tech Marketing of Lexington. The company charged fees to consumers in exchange for allowing them to sell consumer goods such as satellite television service. 

The State Attorney General's Office says the company recruited more than 100,000 participants in North Carolina.

Conway says members only received substantial payments when they signed up new members. 

The states of North Dakota, Montana and Texas have previously taken legal action against Fortune and reached settlements. The attorneys general of North Carolina and Illinois contacted Conway and the FTC regarding complaints from consumers in their states.


 

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