Vemma program
The couple lives in a 6, square foot home in Carlsbad, California. Vemma was founded in by Benson K. Boreyko and his two sisters. The company is based in Arizona at the following address:. Outwardly, the company seemed to be doing pretty well: the official website claims the company has won over awards.
However, the company has started showing signs of trouble in the last 2 years. The U. District Court has appointed a temporary receiver to assume full control of the Vemma companies, and that receiver has suspended activities and operations of all Vemma companies. This is an important case. At that point, Kevin Thompson believes the injunction a court order to cease business will be lifted.
Some pessimistic people see the Vemma lawsuit as the beginning of the apocalypse for the MLM industry. Many other MLMs operate similar business models to Vemma, and that has left network marketers worried for their future. As long as your MLM company discloses its expected earning potential properly and generates most of its profit from product sales not through recruitment , then you have nothing to worry about.
See why after a decade of digital dollar domination, we have only ONE online opportunity you need for optimal results! Enter your best business email now. The result, the agency alleged, was a pyramid scheme that compensated participants mainly for recruiting others rather than for retail sales based on legitimate consumer demand for the products. Vemma expanded throughout the U. Under the stipulated order announced today, the Vemma companies and Boreyko are banned from any business venture that:.
The order also bars these defendants from involvement in any pyramid, Ponzi, or chain marketing schemes and prohibits them from making misrepresentations about the profitability of business ventures or the health benefits of products.
It also requires Vemma to provide compliance reports from an independent auditor for 20 years. The Commission vote approving the stipulated final orders was TINA [truth in advertising] has a article out explaining the long and short of the FTC case against vemma and the characters involved.
Given the amount of evidence the FTC has amassed, a betting person would likely side with the FTC — especially when one considers that in its last 24 cases against an MLM alleging pyramid scheme, the FTC has either won the case outright or obtained a favorable settlement. What about the employees? Shipping clerks, secretaries, whoever else. Are they on unpaid leave or do they still show up and get paid. Are management even allowed to show up — what about any business decisions that need to be made.
Does the receiver now make them? Will the company still be liable for any fees and penalties for late payments to banks and vendors? Employee wages will be dealt with if a Receiver is put in place.
As I understand it the Receiver is now running the show. If a preliminary injunction is granted on the 3rd, expect Vemma to pretty much go into liquidation mode. A 1 week unplanned shutdown combined with the ill will created by having your company seized by the government can be quite damaging — and expensive to a company.
Of course if college students are still being recruited they may love it and flock to the Vemma banner. Spin doctors will have a field day. Maybe periscope the whole case. We had live feeds into the TelexFree bankruptcy hearing, until the Judge put a stop to it. Lead counsel is based out of Arizona. It worked because you had many readers who had followed the case closely, and the hearing was a major event with many important decisions to be made.
Oz : We had live feeds into the TelexFree bankruptcy hearing, until the Judge put a stop to it. Another reason for why it worked was because Jordan Maglich already had planned to cover it live on ponzitracker. He was looking for a solution too, i.
People are saying that Darik Alexander, another Vemma high level, joined Morton over at Jeunesse a while back. Kevin Thompson prefer video reports after the hearing, but only in certain cases of high interest e. Jordan Maglich also offered access to audio recordings. That may be a better solution than liveblogging — less work intensive than live solutions. All you have to do is share our premium, innovative Vemma products with Affiliates and Customers who purchase products and help others create their own Vemma businesses.
Hi all. Hope everyone is well. The District of Arizona along with most other federal courthouses prohibits communication or transmitting devices in its courtrooms. For TelexFree, I was able to use a service called Court Call, and specifically indicated I was covering the hearing in a journalistic capacity.
Jordan Maglich : For TelexFree, I was able to use a service called Court Call, and specifically indicated I was covering the hearing in a journalistic capacity. Vemma is a high interest case of a different type. Kevin Thompson tried to be proactive a while back, when he sponsored legislation ish? The rest are MLM high flyers who is worried about the entire industry without understanding the implications, on how badly Vemma reflects on the entire MLM industry, esp.
Now here is the question… are you ready to roll up your sleeves and get to work and create a Mark Hughes type of business? Linville also pointed that she believed Vemma to be a pyramid based on that fact Italy through the Italian equivalent of the Federal Trade Commission. Just like Google is having issues in in Europe and a lawsuit has been filed based on their business practices, which are legal in the USA.
Italy filed and found Vemma a pyramid based on their laws. A lot has happened in the past week, all without this team and myself being able to stand in front of a judge. Only yesterday were we able to access the home office computers in order for us to produce the data to prepare our defense and prove our innocence. Because of that, and along with the importance of preparing the best defense possible to help secure a win at this hearing, we have requested a delay.
Just last week, Vemma was the number 1 trending story on Facebook. A quote from Boreyko on: businessforhome. We are always sorry to hear about instances where Vemma Affiliates are not successful, but find it unfortunate that Mr. Carlucci is making accusations that are not true. According to our records, Mr. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email.
Leave this field empty. Alex Morton, a former top earner in Vemma, is not named in the lawsuit. A lot of non-MLM examples have been tossed around, in an attempt to confuse the issue. This is the hallmark of a product-driven pyramid scheme. Conversely, Vemma provide no guidance on where to market or sell Vemma products.
And so retail sales activity within Vemma is non-existent. Vemma affiliates do not primarily earn bonuses for actual sales of Vemma products. Defendant Alkazin also directs his downlines to make income claims. The FTC conclude that unlike legitimate multilevel marketing businesses, Vemma reward affiliates for recruiting and for purchasing products to maintain bonus eligibility rather than for selling products to ultimate-user consumers.
Count 2 — Income Claims In numerous instances in connection with the advertising, marketing, promotion, offering for sale, or sale of the right to participate in the Vemma program, Defendants have represented … that consumers who become Vemma affiliates are likely to earn substantial income. Count 3 — Failure to Disclose In numerous instances … defendants have represented … that individuals have earned substantial income from participation in the Vemma program, and that any consumer who becomes a Vemma affiliate has the ability to earn substantial income.
Count 4 — Means and Instrumentalities By furnishing Vemma affiliates with promotional materials to be used in recruiting new participants that contain false and misleading representations, Vemma have provided the means and instrumentalities for the commission of deceptive acts and practices.
To that end the FTC have requested a preliminary injunction be granted against Vemma freezing all known and unknown assets and the appointment of a Receiver a permanent injunction against Vemma, B. To date I have not seen a response from B. Boreyko or Vemma corporate. Aug 26th, at pm anjali Q. The FTC complaint against Vemma was filed on the 17th of August in an Arizona District Court whoops, i was thinking the FTC would be handling this complaint internally, and settling the issue with some fines and agreements.
Aug 26th, at pm Oz Q. Only if they have no retail sales. If they did, none of this would have happened. Oz : this is how the eventual Herbalife complaint is going to go down too wrong. Well what do you think Herbalife is? Sign up, order product each month and get paid by recruiting affiliates who do the same.
Aug 26th, at pm M Norway Q. Oz : The core issue in FTC complaint against Vemma alleges no retail activity with affiliates instead getting paid to recruit new affiliates who make monthly product orders the core issue in the FTC complaint against vemma is the forced selling of products to affiliates and paying commissions on such sales, without any indication of Real Demand for these products.
K Chang. Aug 26th, at pm K Chang Q. Stay positive. Aug 26th, at pm EmJay Q. Hi all,.. A Catch 22? EmJay Please consume the products you purchased from me, but whatever you do please DO NOT sign up as an affiliate Why would a retail customer need to sign up as an affiliate?
Yes, you can become an affiliate as long as you promise NOT to use our products. As Anjali says above: Why are you buying? Aug 26th, at pm GlimDropper Q. This will be a watershed decision, no matter which way it turns out. Aug 26th, at pm Mike Q.
Based on all I just read here, the best candidate for the next compliant is Melaleuca. Good luck with that. Aug 27th, at am GlimDropper Q. Aug 27th, at am M Norway Q.
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