Ohio v. Harper

When is the owner of a pyramid scheme company personally liable for statutory violations?


The Ohio Court of Appeals held that if the owner performs sufficient acts, and receives sufficient benefits from the company, they will be held personally liable for the company's violations the state Anti-Pyramid Statute, and the Consumer Sales Practices Act. Plus Gold operated a pyramid scheme where new members paid a fee in exchange for travel coupons and the right to solicit new members. The trial court found the company liable for violating the Anti-Pyramid and the Consumer Sales Practices Act, but not Harper. He was not found liable because all of his actions were authorized by the company, and were done only for its benefit. The Court of appeals reversed, reasoning that as the owner of the company, he personally benefited from his actions on behalf of the company, and was therefore liable for his actions under both statutes.

Case and case summary are also available online at: http://www.mlmlegal.com/legal-cases/Ohio_v_Harper.php

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Reference Info:State, 6th Circuit, Ohio | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »


Welcome to MLM Legal - a valuable resource to the Multi-Level Marketing and Direct Sales Industry. ... View Profile »

Follow Babener & Associates:

Reporters on Deadline

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* 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.