The SEC filed three actions following-up on its settled proceeding against Oppenheimer for selling millions of shares of unregistered penny stocks. Each individual settled with the agency. In addition, the Commission brought...more
The Financial Industry Regulatory Authority (“FINRA”) recently issued an Investor Alert (the “Alert”) to warn investors about the most prevalent types of investment fraud and provide guidance on how to avoid being defrauded....more
The Commission recently filed an amicus brief defending its Dodd-Frank whistleblower rules. Those rules specify that the anti-retaliation provisions of those amendments to the Exchange Act protect those who chose not to...more
Yesterday I blogged from the Securities Enforcement Forum 2014, Bruce Carton’s excellent one-day conference, held at the Four Seasons hotel in Washington, D.C. The posts will be fairly raw, and certainly not verbatim...more
The Commission announced its largest whistleblower action this week – an award to a person overseas of over $30 million.
The agency also filed a series of actions this week....more
On July 1st, 2014, Tennessee became the latest government/regulatory entity to adopt updated MLM/Pyramid legislation recognizing “personal use” in pyramiding analysis.
The Tennessee language is similar to language adopted...more
The legal status of many membership programs promoted via social media and spam has been called into question by a recent decision of the U.S. Court of Appeals for the Ninth Circuit, which affirmed a judgment that one such...more
The investigation was launched as a direct result of a series of news reports by the People’s Daily, China’s official newspaper released in January 2014, alleging that Nu Skin China had organized “brainwashing” gatherings,...more
Following the disclosure of the massive Madoff fraud, Ponzi scheme cases became a staple of SEC enforcement. More recently the agency seems to be focusing on another type of investment fraud scheme — pyramid schemes. At the...more
The “cloud” is a current focus for investors. There is cloud computing, cloud storage and new firms with cloud services. And the Commission discovered a “cloud” investment program that promised a 100% return in 100 days and...more
A Belgian appellate court declared December 3, 2013 that Herbalife is in fact operating in compliance with Belgian law, reports Yahoo! news. This ruling is in response to previous claims by the consumer organization,...more
New Video Featuring the Cross-examination of Dr. William Keep by Lead Travelmax Trial Counsel, Jeffrey Babener
Although Dr. Keep was called by the State of Kentucky as an expert witness to support the State’s case on...more
A gifting club usually begins unintentionally between friends, family and neighbors. Unlike the traditional pyramid scheme, gifting clubs are not promoted as an investment by fraudulent financial advisers. Gifting clubs are...more
The last thing you want to do is join an illegal pyramid scheme. Here are eight red flags to look for when considering joining a direct selling, MLM, network marketing opportunity:
1. Promotions where the business...more
Front loading is when a MLM company requires a consultant to purchase an unreasonable amount of inventory that cannot realistically be resold and/or used within a reasonable amount of time.
Apart from general pyramiding...more
Have you ever wondered what happens in an MLM trial?
In this presentation, MLMLegal.com gives you a rare, front row seat into the complexities of an MLM trial.
In more than six hours of video, partitioned in more than...more
Herbalife: What Short Sellers Missed on the Way to the Press Conference…
The Personal Use Issue in Pyramid Analysis; Who is an Ultimate User?
An excerpt from the article and link to the full article at www.mlmlegal.com. ...more
This article is the companion article to the video: A View of the Direct Selling Industry: Past, Present and Future, in which MLM Attorney, Jeffrey Babener, discusses the past, present and future of the direct selling...more
Distributors in a network marketing program that are merely buying product to buy into the “deal” as opposed to having the intention of really making a market for the product, are really working a pyramid scheme, not a...more
Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up to create your digest using LinkedIn*
Back to Top