Vemma Shut Down by FTC - Assets Frozen
8/26/2015
A copy of the sealed court order in the FTC action against Vemma was released today. The FTC accuses Vemma of:
Operating an illegal pyramid scheme
Falsely representing that members of the Vemma program ("affiliates") are likely to earn substantial income
Representing that individuals have earned substantial income from participating in the Vemma program and that consumers who become Vemma Affiliates have the ability to earn substantial income, while failing to disclose, or disclose adequately, that Vemma's structure insures that most consumers who become Vemma Affiliates will not earn substantial income; and
Providing the means and instrumentalities for the commission of deceptive acts and practices by furnishing Vemma Affiliates with promotional materials to be used in recruiting new participants that contain false and misleading representations.
An ex-parte application for temporary restraining order with asset freeze and appoint of a receiver was granted, freezing the assets of Vemma, CEO BK Boreyko, Tom Alkazin, and Bethany Alkazin.