Doug

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 http://www.complaintsboard.com and http://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?

The first website is info about FHTM getting banned in Montana and ordered to pay $1 million back to the residents of the state. According Montana state law, the courts found FHTM was guilty of running a pyramid scheme.

http://www.ripoffreport.com/multi-level-marketing/fortune-hi-tech-mark/fortune-hi-tech-marketing-fhtm-be4b5.htm

Second website is has the video of live news coverage on the courts ruling FHTM as nothing more than a pyramid scheme.

http://mlmblog.net/2010/04/fortune-hi-tech-montana-pyramid-scheme-video.html

You people are ignorance mongers and perpetuate stupidity, those that criticize FHTM. There are illegal MLM’s but FHTM is not one of them. There are reputable companies like Amway, AVON, Mary Kay.

This in legal in ALL 50 states, the UK, Canada and Puerto Rico. So get your facts straight.

I can smell the ‘networking’ a mile away. For all of you who claim “OMG none of you know anything” or “I suggest you just have a conversation with the CEO of this company” … BS … how about you give me $299 and I’ll send you on your way with another “good idea” to make a billion dollars a week that will never work. If your that naive, hand over the cash. 97% of new recruits quit within a year. The big dogs make money from your $299 dollar sign-ons, not from the actual products sold. That’s where the money is made.

Here’s another thought, you MLM supporters; I work for a very reputable company that has been around for over 100 years and even helped to get the entire US out of the depression. I make a very nice salary and have invested in REAL assets over the years. Stocks, Bonds, Real Estate. Assets generate income. And soon, my assets will generate enough income to support my lifestyle with out me having to work at all. That’s the smart way to become wealthy.

Back to the point. My company, and ANY reputable company wants to hire great employees that will last. There is an application process, an interview process, a training process, a probationary period, THEN and only then if you are good enough, the company will keep you around.

MLM’s don’t care who works for them at all. Their so-called employees have to PAY a sign-on fee to work for them? You can be a serial killer, or a child molester and you can still work for MLM’s. And interestingly enough, MLM’s will never FIRE you. IF that company was worried about reputation, and was a legitimate company, don’t you think they’d NOT allow just anyone to work for them?

No matter your supportive opinion of MLM’s, they are only legitimate because the people they bribe to work for them are naive and/or desperate, and sign-on and pay the fee with NO contracts signed. With out a contract, nothing will hold up in court. AND the money is given freely by the giver, so the giver has NO backup on anything and will never recoup that fee.

Another note. Have you seen this company’s website? I’ve seen teenagers design and maintain better looking, more professional websites that this.

Get a clue ppl. If not, just send me your check. I’ll donate it to a church and put it to good use.

Don’t feed the fat cat with your hard-earned money, you skinny runts. Invest your money, and your dollars will be your employees for the rest of your life, and for generations to come.

Fortune HI-Tech Marketing ordered to stop doing business in North.

Cease & Desist report against FHTM
http://www.ag.state.nd.us/documents/FortuneCeaseandDesist.pdf

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.

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.