Montana Attorney General is Claiming It Is An Illegal Pyramid Scheme
Read the complete story history here: http://www.mlmwatchdog.com/Report_ACN.html
The Montana AG filed pyramid charges against ACN Inc., a North Carolina-based multilevel-marketing company that bills itself “The World’s Largest Direct Seller of Telecommunication Services,” the state of Montana accused ACN of operating a pyramid scheme. ~ Rod Cook
The Commissioner of Securities and Insurance (Monica J. Lindeen), has just issued a cease-and-desist order against the popular telecommunications company ACN. (The state of Montana in my opinion is on top of the MLM industry and watching out for you the distributor, many scams are being caught by this State…go Montana!)
A Pyramid Scheme is characterized like this…the biggest profits are made by the very few at the top and it is a complete waste (loss) for those at the bottom.
“The actions against ACN and its officers seek to shut down the company’s alleged unlawful operation before more people lose their hard-earned money.”
Those who have been involved in the investigation determined that it was “overwhelmingly against” any distributors/participants to make any money in ACN.
“In 2008, ACN recruited 91 Montana participants who paid approximately $61,741.69 to be a part of the program,” Lindeen’s office said. “Only two of the participants made any money, with one participant making $696 and the other making $700.”
“ACN’s records indicate a mere $896.86 was paid out in compensation to these participants,” Lindeen’s office said.
Rod Cook of MLMWatchDog had these closing remarks that perhaps a few should take into consideration if you are in a similar pay plan as that of ACN.
"OUCH FOR ACN !!!!!!!!! Also watch Electrical Energy companies using same complan!"
Oddly enough some telecommunication and utility MLMs have been modeled similarly to the old Excel compensation plan. Beware of companies where the primary commissions are paid from sign on bonuses or such things as Train the Trainer bonuses where the back end residual is pennies or less.
Folks numbers do not lie. This is an income disclaimer from Ignite (Electrical Energy Co.) provided on their own website athttp://pdfs.streamenergy.net/pdfs/Disclosure_Page.pdfThe reporting period was from July 08 to June 09
The income statistics shown above are for all qualified Ignite Associates who were eligible to earn commissions and bonuses during the 12-month reporting period of July 2008 through June 2009. A “Qualified Associate” is defined as an Associate who earned at least one
commission or bonus payment during the reporting period. The average annual income for all qualified Associates was $591.69. During the reporting period 79.24% of all qualified Associates earned at least one commission or bonus payment.
Rod Cook has had his eye on Ignite and other energy companies for a while. Are they on the State Attorney Generals radar as well?
To Your Success
Dave and Darlene Mills
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