Don't Trip Over Your Brain! - Latest Comments in #1 FHTM Rep Ruel Morton

Re: #1 FHTM Rep Ruel Morton

Business Builder — Mon, 08 Oct 2012 07:23:10 -0000

RUEL MORTON SUPPORTS CHILD MOLESTER AND SEXUAL PREDATOR.

FHTM Loses in Federal Court - Federal Judge Rescinds Dismissal of Nationwide Lawsuit

A proposed class-action lawsuit against Fortune Hi-Tech Marketing, Inc. (FHTM) was reinstated in Kentucky by a federal judge. Arbitration agreement thrown out as illusory.
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Lexington, KY (PRWEB) September 22, 2012
On Friday, September 13, 2012, the United States District Court Eastern District of Kentucky rescinded its dismissal and reinstated a proposed class-action lawsuit against Fortune Hi-Tech Marketing, Inc. (FHTM). The judge ruled in favor of the Plaintiffs and against all named individual defendants on their motion to compel arbitration. The judge denied the validity of the arbitration clause contained in FHTM’s Independent Representative Agreement, determining that the contract contained an unenforceable arbitration clause for all of the plaintiffs’ claims, and therefore that the case should once again move forward.Judge Coffman ruled that the FHTM agreement to Arbitrate was not valid because it was illusory.

According to the lead plaintiff, Yvonne Day, "We are very excited about having our appeal approved and that we will finally get our day in court. This was a great day to all of those who have been cheated! We all deserve our day in court and this is a huge victory for justice!"

Re: #1 FHTM Rep Ruel Morton

Builder — Mon, 07 Mar 2011 00:29:11 -0000

I think the end of FHTM is near. Once the training bonuses are eliminated (which they must be to avoid the pyramid label) no real money will be made. The leaders will have to jump ship in order to keep their groups together and the dominoes will all fall.

While the leaders can deny all they want, guilty or not the court of public opinion will speak (just check Google now) and not even the most enthusiastic business opportunity seeker will take the risk.

Re: #1 FHTM Rep Ruel Morton

Fhtmclassaction — Wed, 15 Dec 2010 10:13:42 -0000

Fortune, or misfortune? State looking into possible pyramid scheme

State Attorney General investigating consumer complaints against Fortune Hi-Tech Marketing

By Brian Freskos
Brian.Freskos@StarNewsOnline.com

http://www.starnewsonline.c...

A company that says its goal is "achieving success with integrity" is being investigated by North Carolina Attorney General Roy Cooper after consumers charged that it operates a pyramid scheme with approximately 11,000 members across the state, including some in the Cape Fear region.

N.C. Attorney General spokeswoman Noelle Talley said investigators are asking that anyone who has dealt with Fortune Hi-Tech Marketing to file a consumer complaint, either by calling 1-877-NO-SCAM or by filling out the complaint form at www.ncdoj.gov.

A spokeswoman for the attorney general, Noelle Talley, said investigators with the consumer protection division are concerned about Fortune Hi-Tech Marketing's operations in North Carolina. Investigators are reviewing more than a dozen consumer complaints to determine if the company's activities violate state laws, and the office was contacting other attorney generals to exchange information and review what kinds of complaints they had received, Talley said. The investigation began earlier this fall.

In a written response to questions, a Fortune spokeswoman, Brittney Mills, said the company would not comment about ongoing investigations. But in interviews, court documents and news reports, company officials and members have repeatedly disputed charges that Fortune is a pyramid scheme.

North Carolina's probe comes amid growing scrutiny of Fortune, which is also under investigation in Kentucky and Texas and has previously been ordered to stop conducting business in Montana and North Dakota. Both of those orders were later lifted after Fortune reached a settlement with the states.

Fortune, headquartered in Lexington, Ky., is part of the direct selling industry, which includes companies such as Amway, Mary Kay and Avon. These companies enroll independent representatives to sell products and services directly to consumers.

The industry, also known as network or relationship marketing, accounted for an estimated $28.3 billion in nationwide sales in 2009 and directed 16.1 million salespeople, an increase of one million people over the year before, according to the Direct Selling Association, a trade group.

Mills said the company has about 100,000 members in the United States. The company also operates in Canada, Puerto Rico and the United Kingdom, according its Web site.
Fortune enrolls "independent representatives" who earn sales commissions on a diverse array of product and service lines, including satellite television, cell phone service and vitamins, according to the company's Web site and interviews with current company members. The reps get commissions on products they sell as well as items sold by salespeople they enroll, their recruits, and so on.
But salespeople are also rewarded for recruiting new members who also gather customers. Like a majority of direct selling companies, Fortune directs a multi-level compensation plan, which promotes salespeople for enrolling new members and selling products.

Sales commissions range from a quarter of one percent to 25 percent depending on the product and the level of the sale, according to an Oct. 1 e-mail announcement distributed to Fortune members, a copy of which was obtained by Star News. In recent months, Fortune has dropped its entrance fees from $299 to $199 and most recently to $99.

Other portions of its compensation plan, including bonus payments, have also been restructured.

But interviews with former Fortune members, state authorities and experts across the country, sketch a different picture of the lucrative business plan the company portrays.

Some say it runs an endless recruitment chain, raising questions about whether the company is a legitimate business opportunity or a veiled pyramid scheme.

According to the attorney general's Web site, many companies that direct a multi-level or network marketing plan are pyramid schemes even though their promoters claim to sell a product or service.

"Fortune Hi-Tech Marketing will never be able to show you even one person who makes a sustainable profit selling products," said Robert FitzPatrick, the Charlotte-based president of the consumer advocacy group Pyramid Scheme Alert. "Anybody in that scheme who is making money is doing so by recruiting people under them."

Pyramid schemes have proliferated over the past decade, a product of federal deregulation over private-sector industry, FitzPatrick said. The common variety, and the hardest to spot, is the illegitimate multi-level marketing company, which often directs a highly elaborate compensation plan. Some of these companies seem to exist in a legal gray area, and are the subject of much debate.

Fortune comes under scrutiny
Established in 2001, Fortune saw scrutiny of its operations suddenly escalate when the Montana Commissioner of Securities and Insurance on March 4 temporarily forbid Fortune from operating there after an investigation raised questions about the company's legality.

In the 34-page order, the commissioner, Monica Lindeen, alleges that Fortune is a "pyramid promotional scheme." The order also asserts that Fortune's sales ties with the brand name companies that its salespeople market were exaggerated, or in some cases, falsified.

Fortune, without admitting any wrongdoing, settled the claim by agreeing to pay nearly $1 million in fines, contributions and reimbursements to Montana consumers. It also agreed to a sweeping overhaul in how it operated in Montana, including a $75 cap on entrance fees and new reporting and disclosure requirements.

Asked why the company settled the claim, Mills said Fortune chose "to avoid the delays and expenses of litigation."
"FHTM's (Fortune) acceptance of the settlement, which permitted FHTM to continue to do business in Montana and did not result in any finding that FHTM was an illegal pyramid scheme, was not an admission of liability on the part of FHTM and should not be construed that way," Mills said.

Part of the Montana order required Fortune to release an income disclosure statement, which showed that more than 28 percent of its sales force never received a payment between Jan. 23, 2009, and Jan. 20, 2010.

Of those who were paid, more than half averaged $93 per month during that period. And another 40.5 percent got $256 per month on average, the statement shows.

"Three out of 10 in Fortune never draw a paycheck but that's not the company's fault," said Darrell Mickel, a 54-year-old Fortune executive manager in Elkin, N.C. "A lot of people come and go and a lot of people quit, but that's just the way it is."

Re: #1 FHTM Rep Ruel Morton

Barbara Bushe — Thu, 09 Sep 2010 09:36:44 -0000

Class Action lawsuit filed against Fortune Hi-Tech Marketing claiming RICO violations

A class action lawsuit was filed against Fortune Hi-Tech Marketing (FHTM), its officers, directors, Presidential Ambassadors and all National Sales Managers claiming fraud, pyramid scheme and RICO violations in the Eastern District of the Federal Courts on September 2, 2010

Defendants listed in the lawsuit include:
Paul C. Orberson, Jeff Orberson, Thomas A. Mills, David Mills, Billy Stahl, Simon Davies, Ruel Morton, Todd Rowland, Ashley Rowland, Todd & Ashley, Inc., Mike Misenheimer, Steve Jordan, Joel McNinch, Chris Doyle, Ken Brown, Jerry Brown, Bob Decant, Joanne McMahon, Terry Walker, Sandi Walker, Sherri Winter, Trey Knight, Kevin Mullins, Scott Aguilar, Molly Aguilar, Nathan Kirby, Dwayne Brown, Aaron Decker, Susan Frank, Ramiro Armenta, Angelina Armenta, Alexis Adame, Teresa Adame, Darla DiGrandi, Matt Morse, Matt Barrett and Roberto Rivera

This is an action by plaintiffs on behalf of themselves and those similarly situated to recover damages caused by the defendants' operation of an inherently fraudulent pyramid scheme. The pyramid scheme is fraudulent because it requires the payment by participants of money to defendant Fortune Hi-Tech Marketing, Inc. ("Fortune"), in return for which participants receive (1) the right to sell products and (2) the right to receive in return for recruiting other participants into the program rewards which are unrelated to sale of the product to ultimate users.

This action is brought on behalf of a national class of persons who serve or have served as independent representatives for Fortune, pursuant to the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961-1968 ("RICO"), the Kentucky Consumer Protection Act, KRS Chapter 367, and the laws of Kentucky.

Under the Compensation Plan utilized by Fortune until at least July 1, 2010, IRs are able to earn compensation from two sources: (1) bonuses for recruiting and sponsoring new representatives; and (2) commissions from sales of products and services by themselves and by recruits in their "downline.

Fortune operates as an illegal pyramid scheme because this compensation plan affords IRs the right to receive in return for recruiting other participants into Fortune rewards which are unrelated to the sale of products or services to ultimate users outside of Fortune. Fortune's compensation plan involves an elaborate set of bonuses which are effectively the only way to earn money in Fortune and which are all tied not to real sales to outside customers, but rather to recruitment of new IRs.

To perpetuate the fraudulent pyramid scheme described above, Fortune claims to have special relationships with or to be a "partner" of several large major national companies whose products and services Fortune offers. These companies include, but are not limited to, AT&T, Verizon Wireless, Sprint, Dish Networks, General Electric Security ("GE Security"), DuPont and Home Depot. Fortune has used the trademarks of these and other companies in marketing materials and business presentations in order to convince prospective customers that Fortune is a legal business. In reality, Fortune does not have any sort of special relationship with these companies. Fortune is not a "partner" with Dish Networks. Rather it is a third-party independent contractor authorized to sell Dish Networks service. There are numerous other such third-party vendors of Dish Network.

All of the defendants in this action collectively form an "enterprise" under RICO, 18 U.S.C. § 1962, in that they are a group of individuals and entities associated in fact, although not a legal entity.

The defendants' promotion of an illegal pyramid scheme is a per se scheme to defraud under the mail and wire fraud statutes; thus, the defendants have committed racketeering acts by promoting an illegal pyramid scheme by using and causing others to use the mail and by transmitting and causing others to transmit, by means of wire in interstate commerce, writing, signs, signals, pictures and sounds, all in furtherance of and for purposes of executing a scheme or artifice to defraud, namely an illegal pyramid scheme.

Re: #1 FHTM Rep Ruel Morton

Paulie — Mon, 02 Aug 2010 09:01:15 -0000

Whistleblower fights back after frivolous suit by FHTM for exposing their ILLEGAL Pyramid Scheme

Lexington, Kentucky - June 16, 2010 - In light of all of the recent investments scams including the infamous Bernie Maddoff, whistleblowers and those with morals fear that the frauds they expose will result in unjust lawsuits filed against them by the companies they complain about. One such situation was that of the lawsuit filed by Fortune Hi-Tech Marketing against Fortune Social LLC and Joseph Isaacs in May 2010.

Joseph Isaacs and Fortune Social, LLC (collectively “Isaacs”) deny each and every claim brought by Fortune Hi-Tech Marketing, Inc. (“FHTM”) in a filing made today with the American Arbitration Association, who is overseeing this case. In addition, Isaacs fights back and asserts his own counterclaim for relief against FHTM, Paul C. Orberson (individually and in his capacity as President of FHTM), Jeff Orberson (individually and in his capacity as Chief Operating Officer of FHTM), and Thomas A. Mills (individually and in his capacity as Vice-President and Chief Executive Officer of FHTM) (collectively “FHTM”). Isaacs counterclaim claim Breach of Fiduciary Duty, Breach of Contract, Common Law Fraud, Unfair & Deceptive Business Practices, Failure to Register Securities, Fraudulent Practices Regarding the Sale of Securities, Civil Racketeering Conspiracy (violation of the Federal RICO statutes) and Defamation.

FHTM operates an unlawful product-based endless recruiting pyramid scheme that relies on untrue and misleading representations and unlawful, unfair, and fraudulent business practices. While FHTM purports to be in the business of selling name-brand services like wireless, satellite television, home security, vitamins, nutritional products and travel services, its true business is using consumers to generate fee income for representing non-existent partnerships, major sports figures, and prominent businessmen. To entice consumers to participate, FHTM makes untrue or misleading claims regarding its relationship with Fortune 100 companies like Verizon Wireless, GE Security, Dish Networks and Travelocity to create the illusion that consumers can become millionaires in three to five years.

FHTM’s growth exploded when it began to lure consumers disenchanted with traditional jobs and the recession that began in 2007 to inspirational and high-pressure business opportunity seminars touting an innovative business model that promises huge financial rewards through multi-level network marketing. FHTM erring presenters claim to have proprietary tools, special relationships, and other support that allow consumers to grow their own business by partnering with FHTM’s “companies”.

It would not be long before Isaacs (and the world) made several troubling discoveries about FHTM’s business plan and practices that doused his enthusiasm: (1) Paul Orberson had not made any special arrangements with the companies mentioned at the business opportunity/presentation seminar or in the company produced videos; (2) the only way to earn a significant income and be promoted up the ranks was to recruit additional IRs; (3) FHTM had not received regulatory approval for its pyramiding scheme in every state; (4) only a handful of IRs had earned anywhere near the residuals projected; (5) the prominent businessmen, politicians, former attorney generals and sports figures to whom FHTM constantly alluded were in fact IRs actively promoting their own FHTM business; and (6) a growing number of state attorneys general had already begun investigating FHTM in response to numerous complaints.

It turns out that FHTM’s ‘innovative’ marketing plan is nothing more than a face lift to an age-old scheme. According to the FTC’s Consumer Protection Bureau:

Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public.

Nonetheless, the truth is catching up with FHTM. On December 10, 2009, The North Dakota Attorney General's Office filed a Cease and Desist Order for violation of the Consumer Fraud Law, the Transient Merchant Law, the Home Solicitation Sales Law, and the North Dakota Pyramid Schemes Act. On January 19, 2010, FHTM entered into a Assurance of Voluntary Compliance with the North Dakota Attorney General's Office. On March 16, 2010, the Montana State Auditor's Office filed a Temporary Cease and Desist Order against FHTM, Paul C. Orberson, Thomas A. Mills, and Dianne Graber (a Montana IR). According to the Montana State Auditor's Office, FHTM has engaged in acts or practices constituting violations of the Securities Act of Montana, Montana Code ANN.30-10-101 et seq. On April 22, 2010, FHTM agreed to pay nearly $1 million and to change its business practices to resolve the charge that it is operating a pyramid promotional scheme.

With each passing day, more states are jumping on FHTM’s bandwagon. The alarming rise in consumer complaints and governmental sanctions has prompted the Better Business Bureau of Central and Eastern Kentucky to downgrade FHTM’s rating from “B-” to “F”. At the same time, a proliferation of online bulletin boards and blogs, such as www.complaintsboard.com and www.scams.com criticize FHTM’s pyramid scheme confirms that Isaacs’ experience is not unique. Will those operations be the next target of Fortune’s high price legal team?

Re: #1 FHTM Rep Ruel Morton

tara — Tue, 28 Apr 2009 13:24:44 -0000

He really is amazing!