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 in violation of federal law. The FTC had earlier found that Trek Alliance was a pyramid program, an unlawful deceptive act and practice. Jacobson was one of the top distributors in the program, managing recruitment centers in multiple states. The State of Maryland charged that she sold unregistered investment contracts, a type of security under Maryland law. The Complaint sought an injunction of Jacobson's activities, rescission of any contracts in furtherance of the program, restitution and disgorgement of profits.
Full case and case summary are available at: http://www.mlmlegal.com/legal-cases/FTCStateMaryland_v_Jacobson2005.php
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