Top Bauer Aide Involved In Alleged Pyramid Scams
Lt. Gov. Andre Bauer’s Chief-of-Staff is a veteran of several “multi-level marketing” (or MLM) businesses, according to documents obtained by FITS.
In fact, former Secretary of State Jim Miles and his wife Betty have reportedly made millions of dollars off of these companies, which critics insist are nothing but elaborate pyramid schemes that rip off thousands of unsuspecting citizens.
The latest alleged scam involving Miles and his wife is Fortune Hi-Tech Marketing (FHTM), a Kentucky-based firm that claims to be a “leader in the industry,” although what that “industry” is appears to be somewhat murky.
Ironically, Miles association with this company began circulating in S.C. political circles only after a “scam alert” warning people about FHTM was posted on the Lt. Governor’s Office on Aging website.
“My wife was recently approached by a friend about joining a network marketing group called Fortune Hi-Tech Marketing (FHTM),” the post reads. “She was told that she could make a significant amount of money if she joined and was invited to attend a meeting about the ‘opportunity’ at a friend’s house.”
Heard this pitch before?
It’s eerily similar to the one that suckered hundreds into Burn Lounge, a music sharing outfit that was recently exposed as a pyramid scam – or a business model that achieves the majority of its profits by signing up new “investors” rather than producing a legitimate good or service.
In many pyramid scams, a low-cost good or service is offered as “cover” for the true profit-generation device – which consists of referral fees from new members.
“(My wife) asked for some additional information about the ‘opportunity” and was told that it would cost $299 to become a member and that she could make money by selling products online and by signing up friends to become company representatives,” the post on Bauer’s website continues. “She declined to attend the meeting and expressed concern that the “opportunity” might actually be an illegal pyramid scheme.”
Miles’ connection with Fortune Hi-Tech Marketing is documented here.
The company vigorously defends its reputation, pointing to an infomercial that aired on FOX News in which it was ostensibly endorsed by Forbes.
Forbes has never endorsed the company, however, and statements of FHTM’s legitimacy seem to come exclusively from its “top earners” and an army of Internet trolls who constantly scour the web for any mention of the company’s name.
Whenever FHTM is mentioned on the web, almost immediately anonymous testimonials touting the company’s legitimacy begin popping up – which as far as we’re concerned only adds to the “shady factor.”
FHTM would not be the first questionable business model that Miles and his wife have been associated with.
The couple were also ground-floor “top sellers” in Excel Communications, which went bankrupt in November 2004.
At the time Excel went under, only 99 of its 106,426 U.S. “representatives” were making more than $1,000 a month.
The rest?
They were paying the freight for those 99 “top sellers,” including Jim and Betty Miles – both of whom not only profited from but extensively promoted Excel (click here and here).
Needless to say, Fortune Hi-Tech Marketing has not earned a “Senior Scam” seal of approval from the Lt. Governor’s Office, which is surprising.
We figured one good scam would “deserve another.”
Comments
By Rick on April 7th, 2009 at 11:18 am
This is disturbing. There are a certain sect of people in society who make their money by getting involved in these MLM businesses. It’s usually shady and sometimes cult-like among the couples who do this stuff. I am surprised our former secretary of state is involved in this stuff.
Do the Miles’ also own a bail-bond agency or are they friends with the Irish Traveller gypsy’s in Aiken County?
By Snead on April 7th, 2009 at 11:43 am
So this scam draws critical attention but predatory lending deserves a pass? Make up your mind. Or how about some of that transparency for your client list?
By Shark on April 7th, 2009 at 11:58 am
and why is bauer still keeping Miles around?
By fitsnews on April 7th, 2009 at 12:03 pm
Snead-
That’s it … pop the messenger. All you did was validate us, dude.
-FITS
By Cliff on April 7th, 2009 at 1:42 pm
I can’t believe that Jim and Betty Miles have not signed up for Senior Shield. If they want others to give money to the state in order to be investigated, they should submit themselves to the same expense and scrutiny.
By Rick on April 7th, 2009 at 2:57 pm
Who goes from being a Secretary of State to failed candidate for governor to chief of staff for a Lite Gov? And aren’t there like tons of younger GOP politicos in this state who would enjoy pimpin Andre’s agenda other than some washed up old guy politician?
By Snead on April 7th, 2009 at 3:28 pm
Why not put the cross down for a second and explain how one crooked industry earns your protection while the other catches your scorn? Just curious.
By Um, no on April 7th, 2009 at 6:13 pm
That Snead asks good questions. Are you going to answer him or just continue the usual smart-ass sidestep? Not much doubt about that one.
By James the Foot Soldier on April 7th, 2009 at 8:13 pm
How about an expose on the LARGEST Ponzi scheme ever run – run by the United States Government no less:
SOCIAL in-SECURITY
Illegal if not legislated legal.
By Paull on April 8th, 2009 at 12:42 am
This is very disturbing. People who don’t understand how network marketing really works seem to feel compelled to call it a scam. The industry has been in existence for over 50 years and has been a source of legitimate income for countless numbers of people. The industry isn’t for everyone just like flying a jet plane isn’t for everyone. That doesn’t make it evil!
I highly recommend you sit and talk with FHTM founder Paul Orberson. Discuss your concerns with him and get if from the horse’s mouth. It’s easy to criticize from afar. Get yourself down to Lexington, KY and talk to the man! I DARE YOU!!!! Add some legitimate content to your articles.
By bob on April 8th, 2009 at 6:29 am
Let’s cut to the chase:
Does FITSNews or any of it’s employees, owners or relations take money from anyone connected to the payday lending industry?
Just so we are clear about things.
By baker on April 8th, 2009 at 9:34 am
Fascinating to read this story on this blog….after all, the AMWAY folks are HUGE into the private school choice movement. Major, major players.
Here’s what an Education Week article reported:
http://www.edweek.org/ew/articles/2006/09/27/05politics.h26.html
“Mostly financed by a handful of mega-rich entrepreneurs — including the founding families of Amway Corp. and Wal-Mart Stores Inc. — All Children Matter is becoming an influential political arm of the school choice movement….
The national group and its network of local political action committees are targeting not only Utah this year, but also Colorado, Florida, Indiana, Missouri, SOUTH CAROLINA, and Wisconsin—states where they were active during the 2004 elections….
All Children Matter is a small political action committee with a big bank account. The group was started in 2003, three years after a state voucher initiative failed in Michigan. That effort was led by former Michigan state GOP Chairwoman Betsy DeVos and her husband, Dick DeVos Jr., who is running for governor in Michigan this year against Democratic incumbent Jennifer M. Granholm.
Mr. DeVos, whose family made its fortune with the Amway company, originally known for direct sales of cleaning products, was the founding chairman of All Children Matter before stepping down to run for governor. Betsy DeVos is now its chairwoman.
‘I don’t think there’s anything they wouldn’t have done to defeat me,’ Mr. Cox (a former legislator in Utah) said. He said the group’s local affiliate sent out a postcard that seemed to twist a vote he cast on a resolution urging Congress to help children of illegal immigrants. Mr. Cox said he was painted as a supporter of illegal immigration. ‘I think they’re unscrupulous,’ he said. Mr. Cox was elected in 1998 and has since worked against school vouchers.”
I wonder how much money SCRG receives from the Amway honchos?
By cgi-bin laden on April 8th, 2009 at 9:53 am
Excel Communications? Haven’t heard of them in a while. If he was in any way associated with that outfit, then he’s a crook.
By cgi-bin laden on April 8th, 2009 at 9:57 am
BTW, how is shit like FHTM even legal in this state?
SECTION 39-5-30. Pyramid clubs and similar operations declared unfair trade practices.
Any contract or agreement between an individual and any pyramid club, or other group organized or brought together under any plan or device whereby fees or dues or anything of material value to be paid or given by members thereof are to be paid or given to any other member thereof, which plan or device includes any provision for the increase in such membership through a chain process of new members securing other new members and thereby advancing themselves in the group to a position where such members in turn receive fees, dues or things of material value from other members, is hereby declared to be an unfair trade practice pursuant to Section 39-5-20 (a) of the South Carolina Unfair Trade Practices Act of 1971.
Last time a “friend” of mine tried to get in me one of those MLM scams, I just sent that to him and told him if he ever called me again I was contacting the AG’s office. Never heard from him again.
By Glutton on April 9th, 2009 at 12:06 am
Um, is it me, or does all this sound a whole lot like the giant pyramid Speaker Harrell and Senator Leatherman are pitching with Dan Cooper and Glenn McConnell and a bunch of rich university elites? Their plan is in fact a pyramid, and somewhere a few people are getting rich off it. But no one can show any actual products or jobs from it, nor has it generated any income.
Lots of high-priced consultants are being paid to pitch it. And even though they’ve gotten all this money, no one is actually doing anything. Sound familiar?
Jim Miles’ little crooked cons are nothing compared to the “economic development” government gravy train. Talk about a scheme. And we are at the bottom paying for it.