A federal court has ordered a popular business among college students to shut down after the Federal Trade Commission accused them of acting as a pyramid scheme.
According to the FTC, Vemma Nutrition promised false riches to lure college kids into joining the company.
The FTC complaint says Vemma told recruits they could earn a high income by getting others to join. The company made most of its money by focusing on recruitment, instead of selling its products. Those who choose to participate made no money or lost some.
The FTC also said Vemma attracted college students by showing people their age with luxury cars, jets, and yachts. They claimed it was possible to make up to $50,000 per week.
Recruits were required to spend $500 to $600 dollars to join the company. They then had to spend $150 a month to buy the company’s products.
Along with the company, Vemma CEO Benson Boreyko is also named as a defendant in the complaint, as is Vemma promoter Tom Alkazin and his wife Bethany Alkazin.