Former Top Vemma Distributor Facing Threat of Clawbacks
9/12/2015
September 11, 2015 -- A former top earner at Vemma may have to give up millions of dollars in earnings after the Federal Trade Commission halted operations at Vemma late last month, pending a September 15 hearing.
Anthony Powell, a former distributor for Vemma, was singled out in a report by the temporary receiver appointed to oversee the company, which found that 42% of the complaints about Vemma were related to Powell's lead generation business, Global Pro System, which he used to promote his Vemma distributorship.
In prior shutdowns of MLM companies, receivers have initiated clawbacks against high earners. If Vemma is found to be a pyramid scheme at the hearing, Powell may be forced to turn over all of his profits (estimated to be as much as $10 million) from his time with Vemma.
Meanwhile, Vemma founder BK Boreyko, whose assets were frozen by the FTC, asked a federal court to release some of his funds so that he can pay alimony and child support. The filing by Boreyko's lawyers called the FTC's actions an "ambush" and stated that talks with the FTC to release funds for "ordinary and necessary family expenses and obligations" were denied, precipitating the court filing.