Fortune Hi-Tech Marketing Class Action Suit – Update
Plaintiffs Yvonne Day , Leonard Haslag , James McCormick and John W. Turner filed a class action law suit against Network Marketing company Fortune Hi-Tech Marketing, Inc. (FHTM), the company, the owners, officers, some employees and distributor leaders in September 2010.
The suit alleges that FHTM is, and always has been, an “illegal pyramid” scheme and is a “Racketeer Influenced and Corrupt Organization.”
Others named in the lawsuit are:
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.
The suit seeks to close down the company through injunctive relief and recover treble damages, costs, and attorneys’ fees.
On 13 september 2012 the judge ruled:
IT IS ORDERED that the plaintiffs’ motion to alter or amend the court’s order compelling arbitration and dismissing this action, is GRANTED.
IT IS FURTHER ORDERED that the court’s order granting the defendant’s motion to compel arbitration and dismiss or stay the action, is RESCINDED.
IT IS FURTHER ORDERED that the parties shall file a Rule 26(f) joint written report with proposed deadlines no later than 30 days from the date of entry of this order.
It looks like Yvonne Day, Leonard Haslag, James McCormick and John W. Turner have a first victory in this battle against FTHM.
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As I remember it the lawsuit started because FHTM was going around telling people they could make huge money on bills they were already paying but because they were an affiliate for all of their services they actually had very little in the amount of commissions to pay out. That meant the only money leaders were making were off of the rep fees. Since the lawsuit started FHTM has since changed their focus to be more of a nutrition focused comp plan. Most of their start up packages and monthly fees now revolve around their nutrition line (which I believe they now own, not 100% sure about that though).
They also got into some serious trouble as some of their reps were claiming that FHTM was an “authorized” dealer for companies like Verizon, T-Mobile, GE, etc. It came out that FHTM wasn’t directly connected to any of those companies, just reselling through affiliate portals like Simplexity and other 3rd party affiliate brokers.
But I am surprised to see that the distributors won this case because of the changes FHTM made. Perhaps the decision was based off of FHTM’s previous model, not sure about that one. But it is sad, some really good people are in FHTM.
FHTM is not a more nutriton based comp plan. It’s no different than the lawsuit someone filed against Bens company when he got kicked out. Sour grapes. The other lawsuits, we won…this we will win in arbitration.
Anyone can sue anyone in this country. FHTM firmly believes that this case, brought by four people, has no merit.
The only issue in this order is how specific contract language regarding an arbitration clause in a prior Independent Representative agreement should be interpreted. This is a procedural order about only where the claims will be heard. It does not address the way FHTM does business. It does not impact our current business and is definitely not a win. It does not impact our current IR Agreement and, regardless of where the claims are heard, FHTM will prevail.
If you would like more information about FHTM, please visit http://www.FHTM.com.
My friends were recruited into this company and in my opinion it is a “Pyramid”. They were paid to recruit and recruit constantly to try and earn a paycheck. I am a business owner and knew this was not going to work out, they only figured it out after liquidating over a 100k in assets to stay in the game. Paying bills with savings while
closing companies they had worked years to build all just to chase a dream that proved to be a nightmare!
FHTM is a legitimate business marketing for other companies. I do not see how you can lose money in FHTM if you are paying attention to the system of doing business. My FHTM business costs me nothing on a montly basis. The website is $15 for the entire year. All I need to do to make money is gather a handful of customers, and show others how to gather a handful of customers. That is it. Simple. I did not say EASY, I said simple….You still have to put in the work. Just like owning a traditional business, you learn the business, implement the plan, and do it over, and over again. You have to open the doors of your business to do business. I show my partners how to get in the business, and how to generate an income without wasting money. We are here to help, but you have to follow the plan and be willing to get out and do some legwork…. FHTM is not a scam, scams don’t give you 1099’s, scams don’t pay you for 3 years, scams don’t stick around for 12 years. I am willing to help anyone learn how to do this business, as most of us are, that is why I am here…to help.
AFLAC is a recruiting company that sells insurance.They get paid not only on their sales but the sales of those that they recruit. Keller Williams is a recruiting company that sells real estate the SAME way. The car business is a recruiting company and sells cars. Best Buy is a recruiting company that sells electronics. EVERY company is a recruiting company that sells something. FHTM is a recruiting company that sells products and services. If you say, ‘well I didnt have to pay anything to get into AFLAC or real estate or whatever’ BULL CRAP. You paid for your education which was required for you to work that business too. 1099 right? Yes you owned a business that you bought with your education and upfront fees. Nothing comes without work. Any to the ones that say that FHTM reps never sell anything to anyone other than themselves. BULL CRAP again. And the ‘failure’ rates. HA 97% of EVERYONE that passes the state licensing exams to go into insurance are NOT in insurance 3 years down the road because the FAILED or in reality QUIT. 90% of everyone out there is lazy anyway. Just go out there and prove that you are not…
Funny how the media ONLY interviews the toothless, almost homeless person that joined FHTM that saw hope again and had zero credibility in the first place and couldnt even be successful running a lemonade stand and they NEVER interview the lower to middle class person or business minded person. FHTM is NOT a help the homeless business. It is a “BUILD a future for your kids and grandkids” with HARD WORK by gathering customers for these companies by building distribution points that gather customers for these companies as well. FHTM is a customer aquisition company. AND EVERY industry has unethical ‘people’ in it. Real estate, insurance, politics, medical, etc. Noone can EVER control that.
Work FHTM HARD for 5-7 years and see what happens in your life financially. Not 5-7 weeks. UGH…
Period – End of story.
What ever happened with this law suit? Aaron Decker, Riwlands, Sysan Frank who are part of Ariix