Regulators Charge Fortune Hi-Tech Marketing
Apr 29, 2010
Fortune High Tech Marketing Charged with Illegal Operations in Two States
Update: The MLM scheme, Fortune High Tech Marketing, was ordered in ’09 to stop doing business in the state of North Dakota by state regulators. FHTM is one of fastest growing new versions of “endless chain” recruitment schemes based in the USA. Promoters are making the usual promises of high income and “making money while you sleep.” The company reached a “settlement” with ND regulators that allowed the scheme to continue operating. The state’s charges about pyramid fraud were not clarified.
Then, the state of Montana also ordered the scheme to cease operations in December, 09. A “settlement” was reached in April ’10 with Montana regulators in which the scheme will pay up to one million in effective restitution, modify business practices and renew operations under the changes. The base of the Montana’s charges involved deception regarding income promises and false claims of “partnerships” wth major vendors. FHTM is a typical pay/buy/recruit scheme which claims to be “direct selling.” In reality, virtually all its customers are its “salespeople” and the only viable way to reach the promised income is to recruit others to become “salespeople and then get them to recruit other salespeople, etc. Such a plan dooms the vast majority to be in bottom ranks where they cannot reach the promised rewards.