Skip to content

Fortune Hi-Tech Marketing Shut Down by FTC as Pyramid Scheme

January 28, 2013

Fortune Hi-Tech Marketing Shut Down

Another MLM company bites the dust as the FTC announced it has shut down Fortune Hi-Tech Marketing. The government has accused Fortune of being a pyramid scheme where 96% of its distributors were losing money. Fortune reps sold a variety of products and services including Dish Network subscriptions, vitamins, and cosmetics. The FTC stated that the real money was not in the sale of these goods but in the recruiting of new members.

What will happen to all those happy, successful FHTM representatives shown on this pro-FHTM website? Did they know they were participating in a pyramid scheme? Check out these tweets from FHTM distributors from just a few days ago about all the great things coming to their business:

https://twitter.com/FHTMPaul/status/295152987146424320

https://twitter.com/FHTMTom/status/295531521169825796

Somehow, I don’t think getting shut down by the FTC was on their list!

Read more news about the shut down here:

Finally, read what the Federal Trade Commission has to say about Pyramids of Fortune. If you want to file a complaint with the FTC, do so by visiting this webpage.

80 Comments leave one →
  1. Melanie Morgan permalink
    January 28, 2013 4:59 pm

    Amthrax~

    You are Amazing! Kudos for your research and time!!!! And a big high-five to the FTC!! Hope if they are reading this site, they will continue to!…Can only imagine how many hundreds of multi-millions of dollars will be saved from the fraudsters are scamming and ripping people off blind… Americans and others from around the world will be so much better offf without these Pyramid Schemes reeking havoc in EVERY area of people’s lives….. finally another one caught and shut down!

    I can see a domino effect, Hurrah!!!! It appears the momentum is picking up and eventually they will all the pyramid schemes (that others are defending and claiming they aren’t pyramid schemes) looks like this is going to make some people very uncomfortable and running scared…when will their number be up?!

    I hope everyone has sent in a complaint to the FTC & SEC from this site!

  2. freedomhaha permalink
    January 28, 2013 5:51 pm

    Team members are jealous of the fact that 4% could make a profit!

  3. Melanie Morgan permalink
    January 28, 2013 7:44 pm

    http://www.businessforhome.org/2013/01/ftc-and-kentucky-attorney-general-shut-down-fortune-hi-tech-marketing/?fb_comment_id=fbc_155032811313252_406319_155122284637638#f33905d4d8

    “The fact that they targeted people who just wanted to better themselves in this economy is unconscionable,” Conway said in an interview.

    More than 85% of the compensation paid is from recruiting new members, the complaint said. The compensation plan is designed so the majority of people will spend more than they earn. As Conway noted in an interview, about 90% of people made less than $15 a year, yet were asked to spend about $1,500 a year on products and membership fees.

  4. Melanie Morgan permalink
    January 28, 2013 7:46 pm

    “Violation of Kentucky’s pyramid law is a felony, said Conway, who will refer the case to Kentucky’s commonwealth attorney in Lexington for possible criminal prosecution.”

  5. Melanie Morgan permalink
    January 28, 2013 8:09 pm

    Raquel you are absolutely on, everyone should send in their complaints to all those and the BBB.

    It just kills me that people CONTINUE to promote this industry and the companies their with aren’t like this and the companies that are getting nailed rightfully so are the ones giving the industry a bad name…hahahaha…

    As if the majority of companies out there are any different!!! When I believe it is the other way around! They need to get their heads out of the clouds or out of the sand or out of their well, you know….their days are numbered!

    It’s about time!!!! Oh and maybe those who say the industry will never go away….hmmm…the FTC and AG seems to me have even scratched the surface….And good for the “industry” that the companies are getting shut down (cleaned-up) as the adherents say lol..Something tells me this is going to be a GREAT year!!!! 🙂

  6. January 28, 2013 8:20 pm

    @Amthrax
    “What will happen to all those happy, successful FHTM representatives shown on this pro-FHTM website? Did they know they were participating in a pyramid scheme?”

    And,

    “Somehow, I don’t think getting shut down by the FTC was on their list!”

    Oh you are so funny! Those lines are killing me ROFL! You go Amthrax!

  7. January 28, 2013 8:22 pm

    “What will happen to all those happy, successful FHTM representatives shown on this pro-FHTM website?”

    I have a theory – they will are pro’ly busy conducting a highly secretive “benchmark study” and will soon announce the “best, bar none” MLM to lead their flocks into. Oh these charlatans!

    Great job FTC.

  8. January 28, 2013 8:26 pm

    @Melanie,

    I propose you all identify a week within which every former TEAMer should lodge a complaint FTC. The barrage of these complaints should get some attention on this scam. I understand they are jealous of FHTM’s payout of 4%? Sounds to me like a big welcome sign by TEAM/LIEf for FTC!

  9. Rascal Teamster permalink
    January 28, 2013 8:31 pm

    Oh MaMa……I got pitched on this company by a guy named Steve while I was active in the Team. He called Team a pyramid.

    I only have one thing to say.

    It takes one to know one, Steve.

  10. January 28, 2013 8:44 pm

    I meant propose you all identify a week within which every former TEAMer should lodge a complaint to FTC.

  11. January 28, 2013 8:47 pm

    @Amthrax

    So what do you predict will happen to this scam’s Canada and UK, etc operations due to this shutdown here?

  12. January 28, 2013 9:12 pm

    You guys oughta check out this MLM’s charlatans’ tweet page. It’s hilarious – their adherents are claiming to stand strong against aggressors, organizing prayers, binding the devils and all to … restore an illegal MLM. Can’t make up what they are saying, too much comedy. Thanx FHTMbots!

  13. Melanie Morgan permalink
    January 28, 2013 9:17 pm

    ExAmbot, Rascal & Amthrax,

    You guys keep me laughing! Exactly on sending more complaints all at the same time! Needs to happen quick I think EB would have a real hard time with his defamation harassment case if the FTC & AG gets hold of those complaints. 😀

    I’m pretty sure all those paid-for-reputation-managers will be “working their jobs” overtime! Haha…wonder how many of those reputation managers on their cheesy radio stations are promoting or have promoted all those pyramid schemes as if they were a great business with great leaders… that now are being shut down!!!

  14. January 28, 2013 11:25 pm

    Reading the tweets from the #FHTM hashtag are eerily similar to those from LIFE members. They’ll continue to believe in their scam in the face of overwhelming evidence to the contrary.

  15. freedomhaha permalink
    January 29, 2013 5:12 am

    The thing that makes me so happy about this shutdown is the tweets from right before the crash of the company that look JUST LIKE TEAMS! It means that they could be crushed out of nowhere any day now.

    Also, I agree finding a day where we all send in complaints is a great idea. I personally won’t stop until they are shut down. For the PC members the loss of TEAM would not be enough for me I think they should be in jail for LIFE (pun intended) for the decades of crimes they have committed. Very few people have ruined as many lives, and the lives of innocent children in these families as the PC have.

  16. ageofwisdom51 permalink
    January 29, 2013 6:06 am

    Anthrax: egad! FHTM is/was very eerily like LIFE/Team in exuberance and zealousness (except they actually had viable products like cosmetics and vitamins). That they had actual products is likely what brought them down—OW has his set up so ALL can be labeled “end consumers” (and the “sellers of dreams” independent contractors), but I still don’t know (said faecetiously) how he/they get away with it.

  17. Mike Bickel permalink
    January 29, 2013 6:25 am

    My understanding, from what I have read in these AMTHRAX posts, is that TEAM/LIFE has anticipated this type of thing happening to them and therefore they have first encouraged and then intimidated their own people by having them sign illegal paperwork and making everyone think that they will be sued if they divulge ANYTHING about the secret workings of TEAM/LIFE – as if they are their proprietary and successful marketing methods. In fact, such paperwork is designed only to hush up and intimidate anyone who would dare to expose the top of the pyramid. Once they have you, it’s just like a mafia boss who will do whatever they have to do to control the communication – (your own legal right to justice, your own legal right to sue them, communication on the web, denial of service attacks on offenders, what you can and cannot say, etc.). In my own company, it is neither right, legal or ethical to ask an employee to sign new paperwork AFTER they have already been hired. There is no equity in that transaction. It seems to be to constitute wrongful dismissal and trying to control a person’s ability to walk away and pursue a new career. But from what I’ve read, everyone seems too scared (by such documentation and fear of reprisal and damage to your families) that everyone is scared into a corner with false names and secret identities. I would encourage everyone to do what EXAMBOT and Melanie suggest – a 2-pronged approach – CONTACT THE FTC and CONTACT YOUR OWN STATE’S ATTORNEY GENERAL! Give them BOTH the link that AMTHRAX has given you. #POWERTOTHEPEOPLE (oops – excuse me – I’m an old hippie at heart).

  18. ageofwisdom51 permalink
    January 29, 2013 6:53 am

    Mike: the contract you sign for LIFE is listed elsewhere on Amthrax. It’s perfectly legal for you to sign an independent contractor contract and sign your potential earnings away at their whim, if that’s what one so chooses to do–which is why they get away with it. The LIFE contract is different than earlier distributorship contracts.

  19. Brent Hansen permalink
    January 29, 2013 10:36 am

    @freedomhaha, I love the reality of your statement. Made me giggle too.

    “Team members are jealous of the fact that 4% could make a profit!”

  20. Chris permalink
    February 1, 2013 1:52 am

    Team, life, life training – they always admitted it was a pyramid scheme, just said it was not an illegal one…no wander I didn’t have any success at the business opportunity ( ha)…I was too honest.

  21. Rascal Teamster permalink
    February 1, 2013 4:45 am

    Raquel, that might be the best post you’ve ever published.

    The prepping for the negative criticism is their main tactic, and it’s very effective. There were things I knew in my heart to be true, but because someone that I trusted with more results in the business told me something different I discounted the truth. Amazing!

    You want a healthy dose of, “was I really that crazy?” I am still following the Fiotune crowd on Twitter. They are just like the Teamies. What denial. One girl was saying, “Hang in there guys. We’re going to come back bigger and stronger than ever.”

    No you won’t, Fortune dorks! Who the hell would ever trust you again? I suggest going out and getting a real job or building a real business. Or you can always take the spot on the Team that I vacated. Sounds like you guys would fit right in.

  22. February 1, 2013 9:39 am

    Add a link to a Lexington Herald-Leader article that interviews current FHTM members about the shut down of their accused pyramid scheme.

    http://www.kentucky.com/2013/01/30/2496697/some-fortune-hi-tech-marketing.html

  23. February 1, 2013 9:47 am

    Can’t wait to see FTC ?shut down LIFE/TEAM/WHATEVERITSCALLEDNOW :-p lol

  24. February 1, 2013 11:05 am

    Rascal

    Everyday that FHTM crowd on twitter sure is creating loads of spectacularly bad unintentional hilarity! I just can’t stop laughing :-), much as I wish, pray & know that they are better off without the kool-aided slumber.

  25. Rascal Teamster permalink
    February 1, 2013 11:22 am

    Yeah buddy, simply amazing. It’s a real case study in psychology. I’m dumbfounded watching it; finding hard to believe that I sounded just like them.

    I just Tweeted this earlier. Haven’t used Twitter in ages, but I feel compelled to start again. If you do Twitter, feel free to follow me.

    @acgiftos: If the FTC can do this to Fortune, how many other MLM’s are frantically trying to hide from them? #MLM http://t.co/ttf8ktWv

  26. Chris permalink
    February 2, 2013 1:16 am

    Raquel – basically they claimed, ” isn’t your job a pyramid scheme ” that was the question they gave me to answer the criticism. I remember this in English 101, its called circular logic. They never answer you directly, they answer a question with a question.

  27. February 4, 2013 4:17 am

    What is so hilarious here is what the top leaders of FHTM, the ones that remain loyal to Orberson to this day still, have to say about the FTC shut down of the company that made them millions. Cheryl Orberson is running prayer vigils via the internet with daily calls to support the cult still while her husband scrambles to stay out of prison on felony charges.

    One leader recently referred to the federal and state action as a business colonoscopy and a minor speed-bumb that all businesses go through. The cool-aid just got stronger.

    They all think the hearing on February 7th is going to prove that FHTM was never a pyramid scheme and they will be back in business on the 8th. How unrealistic is this.

    The following article says it best.

    http://www.scribd.com/doc/123612878/Paul-Orberson%E2%80%99s-titanic-FHTM-crashes-into-Iceberg

    The twitter chatter from a select few leaders is so insanely hysterical. They are holding on by their teeth and have no idea what is about to come down on them personally from the court appointed receiver.

    Read about the whistle-blower at http://www.joseph-isaacs.com

  28. February 4, 2013 8:26 am

    @Skapegoat – This goes to show how the concept of the “cult of personality” is so often associated with MLM companies and its (1) corporate leadership and (2) salesforce leadership. Will be looking forward to hearing news about the hearing in three days.

    Would like to know more about the whistle-blower in the case; how did he go about raising this to the attention of the federal government? If people on this site believe they have a case against MLMs like MonaVie and The LIFE Business, what approaches should they take to raise visibility?

  29. February 4, 2013 8:32 am

    Here’s a pro-FHTM website:

    http://www.getresponse.com/archive/general_fortunefreedom_list/CONTACT-subscriber_name-Its-working-DO-YOUR-PART-10425388.html

    Catch this request to post a comment on their blog to raise search result rankings. Sound familiar?

    Subject: Friend, It’s working! DO YOUR PART

    #1 GET YOU AND YOUR TEAM TO COMMENT ON THE BLOG
    IT’S WORKING FHTM FAMILY, WE ARE MOVING UP IN THE GOOGLE SEARCH RESULTS. DON’T STOP, PEOPLE ARE WATCHING AND READING. OUR BLOG WAS IN THE NEWS, AND IT’S ALL OVER THE INTERNET!

    Read the blog comments (http://www.growateam.com/blog/files/ecffb7105b0c89bfabfeea1afb23429f-32.html) and you’ll notice many similarities between TEAM/LIFE members and FHTM members.

  30. February 4, 2013 3:39 pm

    Here’s an 8-minute video by ABC News on FHTM that aired back in 2010.

    Tom Mills, one of the owners behind Fortune, uses a variant of the Dallin Larsen line about “herding cats” to explain how he can’t control what his distributors say (i.e. illegal income claims, etc.).

  31. Wade permalink
    February 4, 2013 6:46 pm

    Youtube has the whole press conference on the take down of FHTM with Kentucky Attorney General Jack Conway and the midwest director of FTC Steve Baker.

  32. February 4, 2013 7:35 pm

    Here’s a Today in America with Terry Bradshaw video from last year where he’s basically plugging the FHTM “opportunity.” He probably wishes he could have had that pass back:

  33. Rascal Teamster permalink
    February 4, 2013 9:07 pm

    I couldn’t help this. I had to post this here. I’ve been following the Fortune members on Twitter #FHTM. Here is a Tweet I lifted. I know what the guy meant, but now that I’m no longer jacking the juice, I find this deeply ironic.

    Maybe you’ll find it as humorous as I do. Maybe not. That being said, I sympathize with this guy. I could hear me saying this a year ago. Sounds like an illness to me now.

    https://twitter.com/BuzandKimberly/status/296310933704298497

    [Editor’s note: Added twitter embed for tweet]

  34. freedomhaha permalink
    February 5, 2013 5:02 am

    Rascal- They do have a problem- its called math.

  35. wade permalink
    February 5, 2013 5:12 am

    The sources are indisputable since it reveals what most reps don’t want you to know, especially – The NYPost April, 19, 2009 “GUMBEL’S INFOMERCIAL SCAM RAISES STINK”. It exposes the truth of these infomercial made to look like news. Another good read “Financial Infomercials Cleverly Disguised As News?” on CBS News July 1, 2010 10:13 AM. Companies pay up to $20,000 to be on Today in America with Terry Bradshaw. It’s pretty clear FHTM paid to advertise, at least $25,000.

    What is even more interesting is the company behind the Today in America. That company was in trouble by the Florida Attorney General for Deceptive and Unfair Trade Practices Act back in 2007. The joseph-isaacs website has a court papers

    FHTM is not new to the infomercial made to look like news. They did this with
    “Champions of Industry” with Pat Summerall back in 2001. The NYPost artcle above also talks about it and calls the infomercial a scam.

  36. Dan permalink
    February 5, 2013 9:03 am

    I’ve been following Lazyman’s website and found your site through his. Great Article on FHTM and their tweets! FHTM reps are hysterical!

    Check out FHTM’s BBB report:
    http://www.bbb.org/lexington/business-reviews/multi-level-selling-companies/fortune-hi-tech-marketing-in-lexington-ky-14004419

    They went from a D+ rating to an F rating. D+ is already bad, but it can’t get any worse than an F. Some reps may claim the BBB report is unfair with their rating, but you can’t get the Government action wrong. Just look at the troubled history there. How would you like to see “! There is an alert for this business !” slapped on an MLM’s company BBB report? That “should” be a big red flag for people to think twice before joining a company with so many problems.

  37. Rascal Teamster permalink
    February 5, 2013 9:45 am

    Great post, Dan. That BBB rating is an amazing find.

    Sounds like we should also include the BBB in our formal complaints.

    Amthrax, can you post a BBN link down by the FTC link?

    [Editor’s note: Done]

  38. February 6, 2013 2:57 pm

    @WADE

    Those articles are a great read, thanx!

    Knowing how MLMs can’t help to prostitute themselves (and actually pay $20k for it!!!) to anything that purports to render credibility it’s no surprise FHTM would be all over those scams like stink on a skunk. Those scams were quite the gut wagon!

  39. February 6, 2013 3:06 pm

    From the BBB article

    “FHTM will provide a disclosure brochure to each current and prospective representative outlining FHTM’s program, including the average amount of income achieved and the average amount of time in the program required to reach each level,
    FHTM will reinforce with representatives that product sales are not primarily for self-consumption but for sale to non-participants, and
    FHTM will require its representatives to maintain records of non-participant customers and submit those records on a monthly basis.”

    This is sufficient to a thinking mind that the owners of FHTM were operating in bad faith and thus, a good enough reason to distance one self from them, their scam and by extension, the entire predatory, pretend MLM “industry.” The same indictment can be leveled successfully against all MLMs. I am keeping an open mind if any can be excepted but so far I see none.

  40. wade permalink
    February 6, 2013 7:00 pm

    Anytime! Here is another great article on the Today In America show with Terry Bradshaw where a town’s counsel approved the infomercial

    http://parsippany.patch.com/articles/letter-to-the-editor-did-council-approve-a-20k-scam

    There is an interesting debate under the comment section with the Senior Vice President of the media group for Today In America and the Parsippany Patch.

    Then Parsippany, NJ rescind their 15mins of fame with Today In America. Hummmm I wonder why?
    http://parsippany.patch.com/articles/township-rescinds-today-in-america-contract

  41. Wade permalink
    February 8, 2013 4:42 am

    Here is the latest on the first court hearing by FHTM yesterday…..

    http://www.kentucky.com/2013/02/07/2507241/hearing-delayed-in-pyramid-scheme.html

    “Judge John Darrah of the U.S. District Court for Northern Illinois granted a continuance to Fortune Hi-Tech Marketing, which recently hired the law firm of Perkins and Coie of Chicago. The next hearing will be held March 13 in Chicago.”

    I guess the two retired A.G. on FHTM’s legal board, which is also part of ACN’s legal board, wasn’t enough…..FHTM hires a law firm in Chicago. In the meantime, FHTM remains shut down, all assets are still frozen, and no one is getting paid, maybe for good.

  42. February 8, 2013 9:22 am

    @Wade – Thanks for the update. We wait until March now!

    From what I’ve seen, ACN is a clone of FHTM. Their primary focus has been on telecommunication services, but the real money comes from the sign-up fees (which they say go back to corporate… yeah right). There’s only pennies to be made signing up people for the services.

  43. February 8, 2013 11:18 am

    This scam needs vanished faster than a donut at a Police convention!

  44. February 9, 2013 1:58 pm

    True. Pernicious, predatory MLMs make me sick and mad at the same time. I could chew a wire and spit nails!#@$%

  45. lancs turner permalink
    February 15, 2013 2:19 pm

    its sounds like a lot of you are people that has been in mlm’s companys before and were the ones that did nothing and expected to get rich!!!! my wife and i was in fortune from 2005-2008 and made over $100,000 in 2 and a half years, i think it was a great company and feel bad for the reps that were still active and working hard to make a better living for thereselves1

  46. MemoryLame permalink
    February 16, 2013 3:39 pm

    Sorry, Lancs. Many of the people on this site were a part of the 1% who did do the work and make money, but either left because they finally had the realization that the income was still also based on the effort of others (99.99% of which would not be profitable), or because their income was suddenly and unexpectedly cut off – or both.

    I don’t know anything about fortune. What I do know is that outside a very few product driven direct selling organizations (Pampered Chef, Mary Kay, etc) when most MLMer’s talk about “doing the work” what they mean is “getting new people to get new people, putting them in multiple groups, and figuring out how to continually motivate (more like manipulate) others to do the same.”

    If that is not what you did, then great! However, if it is and you were okay making $100,000 a year doing that, knowing that there was no real product flow and no profitability for 99% of your organization, then frankly your opinion of “work” is not one I care to emulate.

    One thing I am curious about in either case is why did you leave? If you were at the top of your game there, what did you find that was better? Better money or better work?

  47. Rascal Teamster permalink
    February 16, 2013 4:06 pm

    I too am curious as to why someone would leave in 2008 after making $100,000.00. Sounds like you were just getting the snowball rolling. Why stop? You can’t leave that dangling like that.

    One of the reasons I find that many stop with one company is that they switch to another one. While in Team, that happened to me 3 times. I’ll wait for your answer, but I can only see business hopping or lying about your income as two options.

    Took me years to realize that every time Orrin business hopped, someone upline who was promised residual income just got hosed! Can’t believe I never saw that it thought that could happen to me one day.

    The interesting thing I find is that the worst business hopping offenders are generally the ones who scream about loyalty the loudest. Ever notice that? Orrin talks loyalty like it’s a religion.

    If that’s your style of networking, I do not envy you or your income. If your business model relies upon the signing up of new members to keep growing, as opposed to the sale of products, I don’t envy your business model. You have a pyramid!

    Companies like these….and apparently the FTC feels that @FHTM is one, really put the Cult into Culture. Have you listened to the way your people sound on #FHTMStrong? They are nuts….just like the Team Lifers….just like I was.

    I’m beginning to think that Avon and Mary Kay may have the only legitimate business models…relying on product sales to customers….who AREN’T in their downline.

  48. February 16, 2013 5:08 pm

    @Rascal Teamster

    Lift the pink, same devil different color – much pink horror on the fold as well. Don’t know much about Avon’s underbelly if any at all.

    BTW aptly said to lancs turner.

  49. Melanie Morgan permalink
    February 16, 2013 9:43 pm

    lancs turner~

    Fortune? Is that FTHM the one that just got shut by the FTC for an alleged pyramid scheme?

  50. March 6, 2013 11:02 am

    90.39%, 86.96%, 81.36% and 62.16% of total commissions paid in 2009, 2010, 2011 and 2012, respectively. These results demonstrate that in 2009, 2010, and 2011, FFITM’s compensation plan encouraged and rewarded recruitment far greater than product and service sales………bam BUSTED!!!

  51. Rascal Teamster permalink
    March 6, 2013 1:43 pm

    @Skapegoat,

    Can you explain how you looked at those figures and could tell that their comp plan encouraged recruitment.

    What did the drop from 80-some percent to 60-percent really indicate?

  52. Wade permalink
    March 7, 2013 4:31 am

    @ Rascal

    The independent receiver appointed by the courts recenly supplied the courts, on Feb. 20th, their own internal investigation on FHTM which confirms what the FTC’s two year investigation has uncovered. All this can be found on FHTM’s website which is still under control by the receiver.

    http://www.robbevans.com/html/fortunereports.html

    The Lexington-Herald Leader also wrote an article about this on Feb. 27th.

    http://www.kentucky.com/2013/02/27/2534620/report-ky-leaders-of-alleged-pyramid.html

  53. Melanie Morgan permalink
    March 7, 2013 8:43 am

    Wade~

    Thank you for posting those links!! Did you see the petition to sign on here, please sign!

  54. letsendit@life permalink
    March 7, 2013 9:09 am

    So until the FTC investigates and rules the Team business a scam it will more than likely continue operating the way it does. I can’t imagine that none of the PC/RT members were never sued or threatned to be sued. (not the PC/RT suing another member like in Raquels case) Sued or threatned to because of someone like myself found out the business wasn’t what the people got me in said it was or how it worked. For things like not being told once in I would have to make monthly product purchases to maintain certain levels, told when I wasnt making the money they said i could I needed to recruit more people, or if i kept doing what they told me to do, i to could get a 5/sometimes 6 figure checks they showed me they were getting. Basically was it common if you were a higher up in the business to be threatned by individuals who thought they were getting screwed over to sue you or demand there money back? Not suing the Team as whole but there upline.

  55. March 15, 2013 6:31 am

    Ever since FHTM was shut down by the FTC and three AG’s from NC, Kentucky and Illinois, January 2013, a few of the top leaders like Joel McNinch were preaching the wait and see game. Comments found on various blog sites sounded like, “Hang in there. It will be tough but we will get through this. Paul & Tom are fighting for all of us.”

    Websites from ESM Brock Keen popped up all over the place and they thought they could take back Google searches with URL’s like http://www.fhtmstrong.com and http://www.fhtmftc.com .This small group of representatives led by McNinch promised FHTM would be back, bigger and better than ever. They were excited about FHTM 2.0, as they called it.

    They claimed the FTC was illegally harassing FHTM and they stood by the bogus principles of honesty, integrity and love for one another. They claimed the FHTM family was strong and could and more importantly, would, survive this attack by the federal government.

    The select few leaders to follow Paul, or shall I say Cheryl Orberson (that is the name they had to use at Zija to prevent Paul from being in contempt of the TRO) included Joel McNinch, JoAnne McMahon, Kevin Mullins, Alexis Adame and Pastor Brown. Joel was heard bragging that he earned the Zija Mercedes in the first 3 days. Will the FTC go after Paul for intentionally using the reps and customers of the defunct FHTM for his own benefit? Time will tell.

    The saddest part of this giant fiasco is that many of these folks on his team believed them. They hung in there. They claimed that during the first hearing set for February 7th that FHTM and Paul would be vindicated by the truth that they had done nothing wrong for the past 12 years. A handful of NSM’s and ESM’s still believed that Orberson was a God and would never be found guilty of any wrong doing. Some of these cult followers actually thought they had done nothing wrong. They truly believed they were helping people. Many had already left. The low hanging fruit was falling off the tree very fast.

    During the past few weeks, Cheryl Orberson was leading prayer vigils to save herself and FHTM. This was just a way for Paul and a select few to keep people hanging in there while he tried to save himself from prison.

    The vultures were out trying to solicit as many FHTM members for their own MLM’s. Solicitations and offers were running rampart all over the social media sites.

    By Valentine’s Day weekend 2013, the truth surfaces and the real motives become more apparent. The tone has changed radically with the comments on Twitter, Facebook, etc. The blogging stopped.

    What will happen to all of those Executive managers that committed to leasing a new Lexus or BMW for four years on the hopes they would continuously qualify for the $800 a month reimbursement from FHTM? Many of them had lost those cars to repossession prior to FHTM being shut down. Now that it’s been over a month, and all of these full time clowns have zero income from the FHTM scam. Will the rest of the high end autos be given back to BMW leasing? A better and more interesting question is, “How will these lease defaults and repossessions, effect the long credit rating of those who cannot now, nor could they ever, afford the payments on these toys? So many had an aura of success when it was nothing more than a balloon filled with hot air. The recent action let the air out of these balloons and the permanent harm will be felt for decades to come.

    When Paul and his group of new Illinois attorney’s asked for a continuance of the February 7th hearing until March 13th it was for one thing and one thing only. It was designed to give him enough time to figure out what he was going to do next in life and to try to negotiate a deal with the FTC lawyers to keep his ass out of prison. Was he negotiating for just himself or did he include Tom Mills and others in the talks?

    Orberson & Mills knew, in the back of their minds, that they had been boxed into a corner and regardless of the amount of money they could throw at the situation, it wouldn’t get them out of trouble this time. This wasn’t like the previous actions of Montana and Texas. They couldn’t manipulate and lie their way out of it this time because a receiver had seized everything belonging to Paul, Tom and all of the FHTM related companies.

    These gangsters should have heeded the warning signs back in 2010 and made peace with Isaacs, but their giant egos wouldn’t allow common sense to guide their actions. Had they bought his toolset, for the $2.5 million in 2010, instead of suing him they wouldn’t have lost their multi-million dollar cash cow and probably would have been able to continue operations for many more years? Hindsight is definitely 20/20. Even if they had bought Isaacs out and shelved his social network and webinar system they would be millions ahead of the game and Orberson wouldn’t have had his glorious reputation destroyed in the process. FHTM had spent ten times more money on lawyers to save them, than Isaacs had ever wanted for his toolset. Stupidity rules when business common sense isn’t part of the equation.

    In spite of it all, and in contradiction to the terms of the Temporary Restraining Order prohibiting Paul or Tom for taking advantage of the customer lists of FHTM, they continued to mislead everyone affiliated with FHTM. The very essence of the FTC action continued for Orberson. He continued to plan behind the scenes to find a way to abandon FHTM while searching for a new scam to affiliate himself with. Paul was still just being his arrogant self-centered self as he had been for the past 20 years. No humility, no truth, and no compassion for the hundreds of thousands that had been intentionally hurt or destroyed by his evil corrupt scandalous ways.

    How and why did he choose to affiliate with a company that is not a member of the DSA and never made it onto the DSN Global 100 list? Was he, or more likely a family member, not a party to the FTC lawsuit, paid big bucks to come their? Did he once again promise more than he could deliver? After all, he claimed FHTM would be a billion dollar company in 2010 and now it’s defunct. Was he making the same ridiculous promises to the owners of Zija? It was mentioned that way in the Joel McNinch team call over the weekend.

    #1 FHTM rep, from Excel originally, Ruel Morton had taken his team to Shaklee. The #2 FHTM rep, Todd Rowland, made a startling revelation to the world, on Valentine’s Day that he no longer wanted to be associated with the Paul Orberson name any longer. Todd supposedly had made millions with FHTM yet was always broke. He refused to follow Paul and let his family be manipulated by the “King of Crap” any longer. He obviously had enough. The class action lawsuits that ruined his good name, the AG investigations and now the total closure of FHTM had been more than he could mentally bear. Todd didn’t just move his team to another MLM to keep his revenues flowing. He blatantly told everyone he had had enough of the Orberson lies and troubles. Where did the other Presidential ambassador’s go? Were they done with network marketing? I highly doubt it.

    The next day, Friday, another wonderful conference call was held. This time it was the entire Canadian Team. They had all held together and held strong. They were willing to go to the ends of the earth for Paul as long as they continued to believe that Paul was fighting for them. Jordanna Linic opened by saying she was so distraught in what she had been told by Paul Orberson personally the night before she was in tears then and still was. They were angry, confused and stunned by Orberson’s latest actions. The shock that Orberson had thrown everyone under the bus by abandoning FHTM was too much for these good people. She claimed that Paul no longer wanted to fight for anyone but himself and that he had, a week earlier, agreed to a deal with the FTC, so he could go to Zija and start again.

    This is a bit confusing. In 2009 representatives claimed that Orberson was the Michael Jordan of the network marketing industry. He was an icon that made more money that anyone else had. He was the first guy to make a million a month and did so for 44 consecutive months. If this guy had made so much money in the past, like close to 100 million, why would he have to go to work now? Was Orberson finally as broke as all of the families he had harmed all of these years? Did he have money stashed outside the USA in other family member’s names? Was the FTC going to give him back any of his money they had already seized or was he broke and forced to get an MLM job and start from the bottom? What was going to happen to Tom Mills in this fiasco?

    It is unlikely that Zija would put Orberson in a position of having to build anything. In all reality they gave him a position at or near the top of their pyramid, because he promised to bring thousands with him who would do most of the dirty work. He was setting up Joe McNinch for failure again and he for glorified egotistical success.

    If he brought enough leaders from FHTM that still felt he was worth following, he would quickly become a shining star in Zija, at the expense of many again. The leaders would pound the streets for recruits and the sale of self-consumed, garage qualified, representatives.

    What was happening to Jeff Orberson and Tom Mills? No rumbling have been heard about these two since the FTC raid in January. Were they thrown under the bus by Paul too? Were they going to resurface in another deal someday soon or had they turned against Paul to save themselves? How loyal was the Jr. Orberson to his dad and visa-versa?

    What happened to their high priced in house general counsel? Was Keith Kuder going to be able to find a job elsewhere in the MLM industry or did the FTC action seal his fate forever? His reputation now supersedes itself. He went from general counsel at ACN to unauthorized (not a Kentucky Bar member) general counsel at FHTM that was closed. How does one put that on a resume when seeking a position with another MLM? The wording will be interesting and his new career even more fascinating.

    Orberson finally conceded this past weekend that he buried FHTM a week earlier. He left everyone hanging thinking he was going to win the battle, even though he knew otherwise. He finally begins to call his top leaders informing them that FHTM will no longer be. He tries to recruit those he feels might still be loyal to him and could be beneficial in his fight to make a comeback once again. He has very little luck. Too many individual leaders are fed up. The worst part is that they are still subject to claw-back, from the court appointed receiver, for all of the ill-gotten gains they received during their tenure with Paul. Will the hearing on the 13th of March also be cancelled and a deal entered into the case. What will happen to the battered offices and warehouses of FHTM, Alan Clark Holdings and True Essentials? When will the liquidation begin and how long will it take for the victims of the Orberson scam to see restitution?

    The best part of Orberson finally conceding that FHTM is dead is that he can no longer be a parasite to Isaacs, the whistle-blower that became famous by exposing the truth about FHTM and Orberson back in 2010. Once Fortune Hi-Tech Marketing is finally closed permanently, either by agreement or court order, the Motion for Breach they filed last year against the settlement agreement must be dropped. A company no longer in business can’t pursue Isaacs any longer. A company with no money can’t pay a team of high priced attorneys to destroy him any longer. Will Isaacs finally get the opportunity to try and put his life back on track and fully recover from the series of heart issues caused by the stupid FHTM litigation over the past three years? Is the roller-coaster ride finally over for Isaacs?

    Even better will be when the receiver allows the release of funds, held by the Arbitrator in escrow, to rightfully go back to Isaacs. After all, these funds weren’t earned by affiliation with the FHTM pyramid scheme. They were earned by Isaacs as a result of legal bills incurred when this upstanding Good Samaritan decided to begin a process of truth telling that resulted in Orberson finally relinquishing FHTM to the courts. The battle has been three long years. He deserves closure and certainly the return of monies agreed to in 2011 for legal bills incurred by him. The funds were definitely not ill-gotten gains.

    Isaacs has already agreed to stay on and help the receiver recover as much as they can, from the select few, in hopes of refunding as much as possible to the 500,000+ victims that have been run over by FHTM since 2001. This will be the satisfaction and gratification he has wanted since day one.

    “My heart and prayers go out to the masses that have been harmed financially, emotionally and mentally by Orberson, Mills, FHTM and their group of hand-picked cronies”, say Isaacs.

    “I am truly sorry for all of the victims that have been devastated by FHTM over the years. Being the only one, at times, who stood up for all of you wasn’t easy, but it was something I thought I needed to do. I only hope everyone appreciates my motivation and one day the thanks will come back to me. I have been ridiculed, lied about, my online reputation has been destroyed and I almost died in 2011 but I never lost sight of my goal to let everyone know the true meaning of what FHTM was doing”, he adds.

  56. March 15, 2013 6:35 am

    Keep current on all of the latest filings in the FTC case against FHTM at
    http://www.joseph-isaacs.com/courtcases/court-cases-fhtm.html

  57. Rascal Teamster permalink
    March 15, 2013 7:03 am

    Now that is an incredible report. Thank you thank you.

    Amazing….the top if the networking pyramid looks the same everywhere doesn’t it. Different face, but the same Pharaoh.

  58. Melanie Morgan permalink
    March 19, 2013 8:26 pm

    Scapegoat~

    Amazing post, Thanks! What is most disturbing is reading the cult followers comments. They are almost identical in nature to what I have seen and experienced in Team, Orrin Woodward, PC, etc…Different leader on the throne.. Different name.. different followers but all the same!

  59. Melanie Morgan permalink
    March 19, 2013 9:29 pm

    I think the greatest part of your report was about Joesph Isaacs..and if you know him please pass along this message.

    Dear Mr. Isaacs,

    I would like you to know I think you are an incredible example of one courageous person can do, the true hero in this story! Although you must have had a heavy burden to carry being the whistle-blower, you rose to the occasion, with a strong conviction of seeing this to justice and never gave up!You must feel the victory of all your sacrifice!

    I do not know all or very little of what you have endured, but your selfless act is an inspiration for all to see! Whatever you had to endure during this, I hope it is over. I commend you for doing the right thing, you must feel moved, and God willing, it was not in vain!

    I wish many blessing and a continued long life and Thank You really couldn’t describe the gratitude but I want to Thank You anyway!

    Because of what you have done along with many on here and many others who are walking that same walk, fighting the same battle, it has created a wave of ripples that I believe is just the beginning of what is to come! And thanks to your courageous efforts, more will see they can make a difference, they need to stand strong, let their voices and stories to be heard.

    Thank You also.. For standing up, having the Guts, and heart to do the right thing!

    I know this isn’t over, and I hope the FTC doesn’t cut anyone, any “deals” that would turn and already giant tragedy for so many victims, into another one! The guys who have received any ill gotten gains, need to be prosecuted, because I believe the punishment needs to fit the crime, if they let them off the hook and hop into another MLM…serves no one and imo, has not served any justice!

    Your efforts are admirable, thanks for your courage! I will continue to follow this.

    Scapegoat, you seem to be an insider, and if so, I hope you continue to share and keep all the readers updated.

  60. Melanie Morgan permalink
    March 20, 2013 7:18 am

    Scapegoat~

    Can you share more about Joesph Iaacs, I hit the link and it didn’t work, then I googled it and it still didn’t come up. Was that site taken down? There seems to be a lot of “negative” on the internet on him?

  61. March 20, 2013 8:24 am

    @Melanie – I had no problem going to http://www.joseph-isaacs.com/ to learn more about Joseph Isaacs. Try a different browser if the link didn’t work. Basically, he was a former FHTM distributor who got into a battle with FHTM over some free tools he was offering. According to his site, he blew the whistle on the company nearly at the expense of his own life. Today, he feels vindicated now that FHTM has been shut down.

  62. Melanie Morgan permalink
    March 20, 2013 9:22 am

    Amthrax, I did try to google that after I posted and it didn’t work, I will try your suggestion! Thank YOU!

  63. March 20, 2013 9:28 am

    @Scapegoat

    Great report, Thanx!

  64. March 20, 2013 9:29 am

    @Melanie Morgan
    “There seems to be a lot of “negative” on the internet on him?”

    Those “negatives” are from FHTM ill-advised die hard adherents, my guess.

  65. Melanie Morgan permalink
    March 20, 2013 9:57 am

    ExAmbot~

    Yes, I figured, imagine that, the most “positive” people on the planet..who HATE the “negative” on the internet! It reeks of hypocrisy..go figure.. Oh how we relate!

  66. May 6, 2013 8:45 am

    Joseph Isaacs – I am not sure why anyone is having an issue with the link to my website http://www.joseph-isaacs.com

    I would like to thank Melony and all of the others that have shown support recently. My plight was not an easy one. The saga with FHTM almost cost me my life. We need more people with courage and determination to stand up for what is right and the evils that permeate the unsuspecting.

    My book needs promotion as the money received helps reimburse me for the hundreds of thousands sustained in legal costs not to mention astronomical medical expenses over the past few years.

    If anyone wants to communicate directly I am available at author@joseph-isaacs.com

    THANK YOU EVERYONE!

  67. Melanie Morgan permalink
    May 6, 2013 4:31 pm

    Skapegoat-

    You are most welcome, and it maybe all We can do but we can all be supportive, support you and buy and read your book! I know those who support you understand where you have walked. Although, we may not have walked in your direct foot prints you can see all of ours right next to yours. You are an inspiration and a true hero with more guts than any bully on the planet! We need others to have the guts you do and quit being afraid, stand up and speak out!

    I believe everyone should read your book and educate themselves on what happens in so many cases when someone has the guts to do the right thing, speaks out about corrupt and wrongs, especially if it has to do with something hat hurts everyone! I have tremendous respect and empathy and am sorry for your pain and suffering but know it was not in vain and your courageous story will resonate and give courage to others.

    Those who have had a familiar experience and the multi-millions who have been churned through these recruitment based Mlm’s, including the ones in denial..have had the unfortunate/ fortunate lessons of the reality the greed and evils..the brush with evil…we all know your story and cannot deny the reality…

    You would have to live in a cave, be blinded by cognitive dissonance to not recognize the greed and corruption in this industry and our society or be the one one who perpetrated it for the cult of personalities who cast and control the spell…just because someone can use millions of dollars…other people’s money…to try and eliminate the whistle-blower does not make it right, just or true and does not make the whistle-blower a loser or liar….quite the contrary….asked of most honest people…they would be in awe or wished they had your courage…

    Even a moron, knows the man/men with the money tries to spend others into silence, those who don’t want the truth to be told all will use tactic to destroy or eliminate to protect any ill-gotten gains…check out the drug cartels, study the history of the mafia , gangs, the Enron’s of the world, banking, wall street, watch American Greed…there is no shortage of how the ones with the money work….py attention..perhaps it is the greedy criminal who maybe in your own town who embezzled millions from the city for over a decade, like I have seen near my old town…or.how about the criminal lobbyists who have been caught…they all use highest big ticket attorney’s..and appear to claim they did nothing wrong, I have been a volunteer in a women’s prison, and know of others, Tod they admit they are guilty?

    I The find it tells a story all of itself when who are trying to protect the Industry because of the Money not the truth, truth, they call the critics, liars, whiners, haters, etc..and they do not anything but spread negative….but yet it is the critic or whistle-blower who I believe ha made (forced the changes in the industry, with the truth…exposure) than any other person who claims they have or are!

    I would love to see One example that has made the change you have that promotes and as corrected the things you share in your story…..JUST ONE!!!!

    My hope is somewhere someone cares enough and stands up, snaps out of the denial that the critics are just complainers and proves it. you But I will continue to bet there will be more stories like yours that make the real changes! So your courageous effort is a true example of change and of a real hero.

    I know from my own experience that the ‘guy'(s) at the top are worshiped as a heros, but take away theirs (other peoples money) the high ticket lawyers , gang of worshipers ..making the playing field level….compare your’s and many others courage, integrity, honesty, and guts…which one’s will tell the truth?…they would lose every time!

    Your story blew me away, had the same all to familiar war tactics I have, read and seen used against others. And some very familiar to our own experience.

    Nothing happens without purpose. Just yesterday I was reading and
    I read 1 Timothy 6:5-10…I won’t put it up here but that personally spoke volumes.

    Thanks for the contact invite, you an expect and count on a call 🙂

    THANKS FOR EVERYTHING YOU HAVE DONE!.

  68. Melanie Morgan permalink
    May 6, 2013 5:59 pm

    Sorry for errors and long post ….just passionate….and am typing on a device that likes to do its own thing…

  69. bankalchemist permalink
    May 13, 2013 5:44 am

    Scapegoat is Joesph Isaacs selling his on narrative of “I was the Victim” while trying to rip them off. FHTM may not have been completely on the up and up but until they came after Joseph Isaacs he was busy selling their program to thousands of friends. Isaacs has a long line of questionable enterprises. Russian Brides, Bikini Models, Selling unregistered Fl Real Estate as an income source, Banks (see the local business journal) and Scientology.

  70. May 13, 2013 7:35 am

    @bankalchemist

    Your impartation -NOT!- means about as much to me as a strawberry up a bear’s butt.

  71. Melanie Morgan permalink
    May 13, 2013 4:15 pm

    Pretty sure the Main Thing and only relevant to me or where the harm is going to show up, you have already stated: “FHTM May not have been on the up and up” …so therefore many thousands have been hurt, right?

    Pretty much sums it up for me! I am sure in not too distant future that could be verified.

    The rest of what you accuse Iaasc of..no worries from my perspective…I believe eventually life has a way of finding you out … but if he did play a part in FHTM being found out and 100,000s are no longer “victims” then…amen to that!

  72. Melanie Morgan permalink
    May 13, 2013 4:17 pm

    Btw- Care to share your real name?

  73. bankalchemist permalink
    May 15, 2013 6:24 am

    one of the most prolific bloggers on this subject seems to be missing….Barbara Bushe RIP, maybe she was overcome by SKAPEGOAT himself. Someone here mentioned picking strawberries out of a bears ass that was on the discovery channel recently…great call. You must catch the excerpts and adventures of SKAPEGOAT on the web via the free samples. I read some of the early reviews which gave it 5 Porcelain Throne awards an ONE power flush note. That seemed good. The reviewer mentioned that being a paperback was a considerate move so one could use the read pages to complete the paperwork on the throne.

  74. Melanie Morgan permalink
    May 15, 2013 1:47 pm

    I am beginning to get it, but something doesn’t make sense or does it?…pretty clear on your message about Joesph Iaasc. You are only focused on discrediting him but you brush off FHTM as if it is no big deal or want to ignore that. Seems telling…what may be found to be probably one of the largest illegal pyramid schemes that has scammed and for damaged and created 100, 000 “victims”…intetionally mind you….at least the number from what I have read (we know would be way more based on the churn rate). Is that important to you, what is your personal experience or know about that?

    Again, What is your story? What are you trying to gain? Are you a participant in any class action against FHTM?

    It seems you are only interested in pointing out Iaacs credibility or lack there of, why? I noticed your comments on Kevin THompson’s blog, again nothing about FHTM and all about Iaasc, what about FHTM, you stated they weren’t completely on the up and up,…really?….that could be the award winning understatement of the year IF the allegations are found to be true, of course. 🙂

    Were you in FHTM, or have you moved into another MLM with a down line from FHTM?

  75. Melanie Morgan permalink
    May 15, 2013 2:00 pm

    You could be completely on with Joesph Iaasc,…don’t know him, ….but based on my experience with this industry…well, let’s just say we learned and know most if not all the pathetic games played…..is there links you wanted to direct people to?

    On last thing, other than you clearly stating Isaacs is claiming the victim, and basically the bad guy here, do you believe the story and facts in his book are are truth or do you have proof they are lies?

  76. Daina permalink
    August 6, 2013 5:19 pm

    I was never notified by email or other means for refunds in joining this company. Any ideas on how to finally get something from them.

    [Editor’s Note: Robb Evan and Associates was appointed as the receivership. Former customers/distributors can get information about refunds and the like here.]

Trackbacks

  1. Fortune Hi-Tech Marketing Scam Halted by the FTC
  2. File a Complaint About LIFE, LIFE Training and TEAM with the FTC « AMTHRAX
  3. Ackman Compares Herbalife with Pyramid Scheme Fortune Hi-Tech Marketing | AMTHRAX
  4. FHTM and ZeekRewards Update | AMTHRAX

Leave a Reply. Because your thoughtful opinions are valued, you are encouraged to add a comment to this discussion. Don't be offended if your comments are edited for clarity or to keep out questionable matters. Off-topic and inflammatory comments may be deleted. Comments on this website are the sole responsibility of their writers. The accuracy, completeness, veracity, honesty, exactitude, factuality and politeness of comments are not guaranteed.