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 pool shortly had outstanding obligations to investors of $51.6 million on assets of $2.7 million. The SEC sued, alleging that the "Advertising Pool" was a Ponzi or pyramid scheme and charged Taylor and Better Life Club with selling unregistered securities and securities fraud. Defendants claimed that since the Advertising Pool notes had a maturity of 60 to 90 days they fell into the commercial paper exemption, which exempts certain commercial paper that has a maturity of less than nine months from registration requirements.
Case and case summary are also available at: http://www.mlmlegal.com/legal-cases/SEC_v_BetterLifeClubInc.php
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