News & Analysis as of

MLM Consulting / Network Marketing Securities

Read MLM Consulting/Network Marketing Law updates, legal articles, and commentary from leading lawyers and law firms:

Investing in the USA for a Green Card: A Guide to the EB-5 Immigrant Visa

by Wassem Amin on

The EB-5 Immigrant Investor Visa: An Attorney and Service Provider’s Overview of Requirements for Eligibility and Implications under Different Areas of Law By: Wassem M. Amin, Esq., M.B.A. In 1990, the United States...more

Bruner v. Texas , 463 S.W.2d 205 (1970)

Bruner v. TexasTexas

by Babener & Associates on

Bruner was accused of selling unregistered securities in violation of Texas state law. Bruner sold soap in an MLM structure to Owens who bought into the program based on representations that he would not have to perform any...more

Chapman v. Rudd Paint and Varnish , 409 F.2d 635 (1969)

Chapman v. Rudd Paint and VarnishWashington

by Babener & Associates on

The Ninth Circuit held that the promotional brochure was not part of the agreement, and contained fundamental elements that did not create a security as defined by federal law. The distributor agreement specified that the...more

Bond v. Koscot , 276 So.2d 198 (1973)

Bond v. KoscotFlorida

by Babener & Associates on

The Court of Appeals ruled that the District Court erred when it did not consider the distributor agreement between Koscot and Bond to be a security. Bond signed a distributor agreement, authorizing her to purchase cosmetics...more

Bell v. Virginia , 236 Va. 298 (1988)

Bell v. VirginiaVirginia

by Babener & Associates on

The Virginia Supreme Court held that the program was a pyramid scheme. The Company defended itself on the grounds that state statute required a pyramid program to receive consideration from a member to qualify as an illegal...more

Bell v. Health-Mor, 549 F2d 342 (1977)

Bell v. Health-MorLouisiana

by Babener & Associates on

The Court of appeals held that a claim that is plainly frivolous or insubstantial should be dismissed for lack of subject matter jurisdiction. The Plaintiffs successfully made a colorable claim that the payment of a finder’s...more

Arata v. Nu Skin International , No. 92-15380 (1993) (Not reported)

Arata v. Nu Skin InternationalCalifornia

by Babener & Associates on

The Court of Appeals was asked to determine the circumstances under which a class member can object to the settlement and certification of a mandatory class action. The case is also available at:...more

Are Law Firms Going to be Replaced By Internet Based Providers of Legal Services?

by Jerome Kowalski on

Well, chicken little, the sky may indeed be falling. No, it’s not the specter of an unlikely global economic collapse, nor the danger of a double dip recession. Rather, it’s the new potent competition from Internet based...more

Private Equity Investment in Law Firms: While Busy Planning for the Royal Wedding Our UK Colleagues Seem to Already be Counting...

by Jerome Kowalski on

Our cousins across the pond are in a bit of a dither, engaging in anxious planning and preparation. No, I’m not referring to the nuptials planned by the royal family for Prince William and Kate Middleton. I refer to planning...more

People v. Frederick

When can a judge restrict an expert witness as to the type of testimony to be given, and what is the standard for an "investment...California

by Babener & Associates on

The court held that an expert need not be given an unlimited scope on which they may testify and that an investment contract is the investment of money in an enterprise with the expectation of return, but without the ability...more

FTC and State of Maryland v. Jacobson (2005) , Civil Action No. 1:04-CV-1176-CCB

FTC and State of Maryland v. Jacobson (2005)Not Applicable

by Babener & Associates on

The FTC alleged in its complaint that Sandra Jacobson, through her participation in the Trek Alliance pyramid program, made deceptive claims about employment opportunities, earnings potentials, and promoted a pyramid program...more

SEC v. International Heritage, Inc., 4 F.Supp.2d 1378 (1998)

A contract, scheme or transaction whereby a downline invests services, but not money, in a common enterprise, and expects a return...Georgia

by Babener & Associates on

The Securities & Exchange Commission brought suit against International Heritage, Inc. (IHI) for various securities violations and obtained an injunction, partly relating to the compensation plan. IHI tendered a modified...more

SEC v. Better Life Club, Inc.

Does the short maturity time of the "Advertising Pool" program exempt its notes from registration requirements under Federal...D.C.

by Babener & Associates on

The Better Life Club of America, Inc., offered people who paid $39 for membership an opportunity to join the "Advertising Pool," a "wealth-building project" which promised a double return on investment in 60 to 90 days. The...more

Harrison v. Dean Whitter Reynolds, Inc., 79 F.3d 609 (1996)

Harrison v. Dean Whitter Reynolds, Inc.Indiana

by Babener & Associates on

Kenning and Carpenter worked for Dean Witter Reynolds. They told over 100 clients (including Plaintiff Henderson) that, as Dean Witter employees, they had access to discounted municipal bonds and would buy them on behalf of...more

Webster v. Omnitrition, 79 F.3d 776 (1996)

Is Summary Judgment appropriate when a company pleads an "Amway safeguards defense?"California

by Babener & Associates on

The Court of Appeals held that to succeed on Summary Judgment by asserting an "Amway safeguards defense", a company must present evidence that their safeguards are actually effective in preventing inventory loading and...more

Tennessee v. Brewer

What is the proper definition of an investment contract? Tennessee

by Babener & Associates on

The Tennessee Supreme Court held that the proper definition of an investment contract is the definition espoused by the Supreme Court of Hawaii: (1) An offeree furnishes initial value to an offeror, and (2) a portion of this...more

In re Omnitrition International Inc. Securities Litigation, 1994 WL 655897 (1994) (Not reported)

Is the Omnitrition program a security subject to regulation under federal securities laws?California

by Babener & Associates on

The District Court granted summary judgment in favor of Omnitrition and dismissed the claim. The court found that Omnitrition had adopted programs that previous court decisions had found to be conclusive evidence that an...more

New Mexico v. Danek

What is the proper definition of a security under New Mexico State law? New Mexico

by Babener & Associates on

The New Mexico Court of Appeals held that the definition of a security under New Mexico State law is the same a the definition of the Ninth Circuit in Glenn W. Turner, an investment of money with profits to come primarily...more

Reed v. Palmer

Does the dismissal of a pendant state securities claim in federal court act as an adjudication on the merits for res judicata...Louisiana

by Babener & Associates on

The Louisiana Supreme Court ruled that because the federal court had pendant jurisdiction over the state law claims arising out of the same transaction as the federal claims, the plaintiff is barred res judicata from bringing...more

New Mexico v. Danek

What is the definition of a security for New Mexico State law purposes? New Mexico

by Babener & Associates on

The Court of Appeals held that the District Court had applied the correct definition of a security, and that the District Court's discretion concerning irregularities at trial should be respected. Danek was convicted on...more

SEC v. International Loan Network (1992), 968 F.2d 1304 (1992)

Did ILN sell "securities" in violation of federal law and is a preliminary injunction necessary?D.C.

by Babener & Associates on

The DC Circuit upheld the District Court ruling finding ILN's products were "securities" and subject to regulation by the SEC. The Defendants argued that the products were not securities because no money need be paid directly...more

Kansas v. Ridenhour

Is an airplane investment program a security, and can the promoters of the program be held liable as sellers of securities? Kansas

by Babener & Associates on

The Supreme Court of Kansas was asked if summary judgment was appropriate to determine that an airplane investment program was a security, and that the promoters of the program could be held liable as sellers of securities....more

SEC v. International Loan Network, Inc, 770 F.Supp 678

Do the facts of this case meet the standard for a preliminary injunction preventing the operation of a company that may be selling...D.C.

by Babener & Associates on

The DC District court held that the standard for issuing a preliminary injunction was a proper showing that "the evidence establishes a strong prima facie case of previous violations and a reasonable likelihood that the wrong...more

Probst v. Oklahoma

Can a partnership be a regulatable security if the partner had managerial authority on paper, but was unaware or never exercised...Oklahoma

by Babener & Associates on

Defendant Probst was in the business of estate planning. He advised clients to invest in a construction project undertaken by a firm he was intimately involved in, although that relationship was not divulged to the...more

Matek v. Murat, 862 F.2d 720 (1988)

Are the partnership interests securities under the federal securities laws?California

by Babener & Associates on

The 9th Circuit Court of Appeals decided that the focus of the analysis should be on the expectations the parties had in the original transaction. To determine the expectations, the court looked at the terms of the contract,...more

53 Results
View per page
Page: of 3

"My best business intelligence,
in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.

Feedback? Tell us what you think of the new!