FHTM - Fortune Hi-Tech Marketing reviews and complaints

Found in another blog and thought I would share this:

'Amway' and 'Fortune Hi-Tech Marketing' are the American Dream made Nightmare

Here are two recent articles from 'USA Today' for your free-thinking readers.

http://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_CV_N.htm

http://www.usatoday.com/money/companies/2010-10-15-multilevelmarketing14_CV_N.htm

The criminogenic organization known as 'Fortune Hi-Tech Marketing' is an 'Amway' copy-cat. i.e. 'FHTM' is the reality-inverting label over the entrance to yet another self-perpetuating 'MLM business opportunity' cult. 'FHTM' was instigated, and is run, by a gang of exceedingly-greedy, but otherwise-mediocre, little raketeers from Kentucky. These narcissistic parasites have begun to grow rich by peddling an unoriginal lie whilst steadfastly pretending moral and intellectual authority.

In the adult world of quantifiable reality, the authenticity of the 'FHTM' lie is currently being challenged all over the USA, after the State of Montana charged that 'FHTM' was actually a dissimulated pyramid scheme. However, exactly like the billionaire bosses of the 'Amway' mob, the millionaire bosses of the 'FHTM' mob posed as innocent Christian businessmen/philanthropists under attack and instructed their aggressive echelon of attorneys to negotiate a 'settlement' with the plaintiffs. i.e. Without admitting any fault, they agreed to hand-over a significant chunk of their ill-gotten gains in Montana, in order to continue their clandestine criminal activities elsewhere.

It is common knowledge in the USA that 'FHTM' is a pernicious blame-the-victim scam http://www.youtube.com/watch?v=oZxCK4adtuA . Indeed, it is common knowledge in the USA that all so-called 'Multi-Level Marketing' companies are shielding essentially the same, premeditated, closed-market swindle.

This general video warning has been recently produced by the Bureau of Consumer Protection at the US Federal Trade Commission http://www.youtube.com/watch?v=OoB2PKYbu4Q . However, it beggars belief that senior FTC officials like Eileen Harrington can use public funds to pretend that the FTC wants to protect the American people from 'MLM business opportunity' fraud, when, for decades, other senior FTC officials have allowed this cancer not only to gnaw its way into the USA, but also into the rest of the world.

Despite more than half a century of damning-evidence, senior US government trade officials prefer to remain blissfully-ignorant of the fact that behind so-called 'MLM' companies has lurked the ongoing historical phenomenon of criminogenic, or pernicious, cultism. Meanwhile, the self-appointed bosses of these reality-inverting, totalitarian groups continue to rake-in vast fortunes by peddling variations of the same Utopian fiction as fact.

'MLM business opportunity' fraud is undoubtedly a form of major organized crime spawned in the USA. It should never have been left to ill-informed, and/or corrupt, American regulators to deal with this internal threat to democracy and the rule of law.

'Amway' and 'FHTM' are the American Dream made Nightmare.

David Brear (copyright 2011)

Boom or Bust, a year in review
2010 has been a bone chilling year for the Fortune Hi-Tech Marketing representatives or IR’s as known in their world. It started with the Attorney General of North Dakota issuing a cease and desist for operating a business in that state without the proper licensing.

That was followed by the Montana Securities Commissioner, Monica Lindeen also shutting them down, but this time, it was for operating as an illegal endless recruiting pyramid scheme. The company was forced to change their business practices (in an attempt to make themselves legal. Can you do that if you were already legal or is that an oxymoron), charge only $75.00 entrance fee (from the then current $299.00) to new Montanans who wished to explore the American Dream through FHTM and refund almost $1, 000, 000 to the good folks of that state who made no money and wanted a refund of monies paid.

FHTM was also forced to produce (one time only) an income disclosure statement (“IDS”) which according to industry expert, Robert FitzPatrick who is the President of Pyramid Scheme Alert, is so skewed that it isn’t worth the paper it is written on because the figures do not include the almost 30% who did not make even a dime in this business opportunity. Looking at the numbers produced by FHTM itself, over 90% fail.

In talking to FHTM reps, they insist on telling the story that every business is a Pyramid and so is the government. What they fail to differentiate is what is a legal and an illegal pyramid scheme. They go on to explain that 95% of all businesses in America fail and the team they have an opportunity to build in FHTM will produce a lifetime of residual income. They have coined the phrase, “Loyal Customer”. In fact, the reality is that when reps drop out of this business (and 90% or better will do so within 6 months) all of those “loyal customers” are gone along with the residual income. Most sales of products and services are to the IR’s that have paid for the right to be part of this business opportunity.

Existing IR’s saw multiple compensation changes that were sold to them as a message from God and as “another pay raise” yet it was merely a way to screw more at the bottom of this pyramid and enrich those that were hand-picked by the self proclaimed King of MLM, Paul Orberson. In fact there were more than a half dozen compensation changes that occurred in 2010 which somehow parallels the ½ dozen state Attorney General’s (IL, TX, SC, KY, ND and MT) that began active investigations into this alleged pyramid scheme. FHTM had an “F” rating with the KY BBB until November/December 2010, when top leaders in the organization posted bulletins asking for their IR’s to report FHTM as a model company which assisted in raising the current rating to a “C”. What a sham that system is.

Fortune Hi-Tech has lied about being debt-free and its business relationships/partnerships with real fortune 100 companies to cover up their illegal ways and to produce the aura that they are some way legal because of these affiliations. Major companies like GE, DuPont, Travelocity, Home Depot, Dish Networks and Peter Lamas have either run from these relationships or claimed they never existed in the first place. Fortune thought it was ok to use the logos of major international enterprises to enhance their own images. They attempted to tie themselves to Fortune Magazine until ex-representatives revealed the truth.

The nightmare for representatives deepened as FHTM was about to hold its national convention in Lexington, Kentucky in September 2010. On the eve of the convention USA Today appeared there to interview IR’s and attend its presentations. It was the same day that Fortune, its officers and 40 top distributors were served with its first of two class action lawsuits claiming mail and wire fraud, RICO violations, pyramid scheme and money laundering.

The FHTM outside legal team got an early Christmas present with the filing of the 2nd class-action lawsuit in the Southern District of California on December 22, 2010. This lawsuit mirrors, in many ways, the one originally filed in Kentucky in early September with the addition of multiple violations of California consumer protection laws.

Paul Orberson has managed to keep this cash cow alive for ten years and the company just celebrated that anniversary on New Year’s Eve 2010 in Florida. The amazing thing is that out of the supposed 104, 000 IR’s it has in the USA – only 250-300 attended this $450.00 a couple event. How many other companies that do 500MM in annual revenue charge their people to attend a ten year celebration? What a joke!

FHTM has only succeeded in recent years because of the recession and the fact that its top reps in 2004 brought their teams from the defunct Excel Communications. They were hand-picked by Paul Orberson to be the top reps in FHTM, paid to bring their teams, given large cash bonuses and a back door deal which included a piece of the pie (equity). They are referred to as the “Fab 6” by Paul Orberson. This enterprise will always remain private to hide these side deals and the money made by its founders.

How can representatives in 2011 continue to tout this as the best marketing plan and business opportunity ever when the founders have been caught in so many lies, changed the compensation plan to further enrich those at the top, have such a huge 95+ failure rate, are being sued in Federal court by ex-reps as well as ex-vendors and have multiple states investigating their illegal ways?

If you are an illegal immigrant, an unemployed truck driver or just a fool – this business is for you. If you don’t mind operating an enterprise that never can be willed, sold or profitable - this business is for you. If you don’t mind screwing your friends and family to get into a business with you that you know they will lose money in – this business is for you. If you don’t mind buying or selling overpriced goods and services – this business is for you. If you have the ability to tell folks this is your destiny per God’s word – this business is for you. If you are a great liar – this business is for you.

Network marketing and word of mouth marketing are phenomenal business models - unfortunately FHTM doesn’t operate under that guise.

For more on this company go to www.fhtmclassaction.info

Fortune Hi Tech Being invesigated By North Carolina Attorney General
From MLM review website:
Another State Attorney General is investigating Fortune Hi Tech Marketing (FHTM) as a Pyramid Scheme. At some point, the reps in the field are going to become weary of the story about several former attorney generals saying everything is OK at Fortune. North Carolina is the third state in a very short period of time to investigate FHTM. Having 2 old ex Attorney Generals and an ex Reagan AG on their staff has not made them nor kept them legal. In North Carolina the consumer protection laws are very clear: If you charge to get into the business or pay anything as a bonus for recruiting (regardless if products are sold) YOU ARE ILLEGAL!

StarNewsOnline:
A spokeswoman for the attorney general, Noelle Talley, said investigators with the consumer protection division are concerned about Fortune Hi-Tech Marketing's operations in North Carolina. Investigators are reviewing more than a dozen consumer complaints to determine if the company's activities violate state laws, and the office was contacting other attorney generals to exchange information and review what kinds of complaints they had received, Talley said. The investigation began earlier this fall.

This is after Montana and North Dakota shut down Fortune Hi Tech for periods of time.

You have it almost right...the FHTM gurus are very slick and smart...just not legal.

Chuck needs a new source of income.
1) he starts FFFM(fortune fastfood marketing)
2)take free fastfood affiliate websites and change them to FFFM fried chicken etc and add 3% to prices
3)tell person for $300 he can have the opportunity to sell fastfood and make money without leaving your home

use phrases like- "know anyone that likes fast food? wanna make $100000 just by eating what you are already eating?

4) tell him he gets $100 for every person he signs up plus a whopping .5% commission every time someone orders fastfood from his site.(got to keep it legal)
5) also charge him $25 month for free affiliate website.
6)pay yourself $50, 000.00/month and tell everyone you are doing it for them.

But remember, it's not a get rich quick scheme. It's going to take a lot of hard work.

Geez doesn't that sound familiar?

same ol banter fromthe same ol people.
you must have not worked the business either
IT'S NOT FREE MONEY PEOPLE!

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.[protected] 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 www.complaintsboard.com and 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?

http://www.sao.mt.gov/legal/securities/S10_HITECH Cease and Desist.pdf

http://www.whas11.com/news/business/I-Team-Inivestigation-Fortune-Hi-Tech-Marketing-94266814.html

http://www.whas11.com/community/I-Team-Investigation-Fortune-Hi-Tech-Marketing-94273719.html

Dec 10, 2009
North Dakota Attorney General issues a Cease and Desist against Fortune Hi-Tech Marketing for several violations
http://www.ag.state.nd.us/documents/FortuneCeaseandDesist.pdf

http://www.ag.state.nd.us/NewsReleases/2009/12-11-09.pdf

March 4th, 2010
Montana State Auditor issues a Cease and Desist against Fortune Hi-Tech Marketing after receiving numerous complaints
http://www.sao.mt.gov/legal/securities/S10_HITECH Cease and Desist.pdf
KFBB News video
http://www.kfbb.com/news/local/87709867.html?video=YHI&t=a

March 7, 2010
A thin line between legal and illegal in multi-level marketing
http://www.kentucky.com/2010/03/07/1171075/a-thin-line-between-legal-and.html

March 10, 2010
Peter Lamas Pulls out of FHTM in the U.S.
http://gravittefhtm.info/wordpress/?p=234

March 17, 2010
Kentucky Lexington Herald-Leader writes “Montana says Lexington Company is a pyramid scheme, Fortune Marketing company Banned”
http://www.kentucky.com/2010/03/17/1184218/montana-says-lexington-company.html

March 26, 2010
Better Business Bureau News Center
http://spokane.bbb.org/article/fortune-hi-tech-marketing-of-ky-holding-meetings-in-region-recruiting-in-wa-state-18461

March 27, 2010
Washington KNDO News aired “Better Business Bureau warns about possible pyramid scheme”
http://www.kndo.com/Global/story.asp?S=12214040

April 22nd, 2010
FHTM agrees to pay nearly $1 million to settle allegations that FHTM was operating a pyramid promotional scheme in Montana.
http://www.sao.mt.gov/news/20100422HiTech.html

May 18th, 2010
San Antonio, Texas Ken5 news airs false claims about FHTM
http://www.kens5.com/news/local/Shady-network-marketing-company-comes-to-San-Antonio-area-94208419.html

May 19th & 20th, 2010
I-Team Investigation in Louisville, KY, FHTM’s home state, did a 2 part investigation into FHTM. Supported by supportive facts
http://www.whas11.com/news/business/I-Team-Inivestigation-Fortune-Hi-Tech-Marketing-94266814.html

May 27th, 2010
Charlotte, NC WCNC News exposes high profile people in FHTM found to be untrue
http://www.wcnc.com/home/Pyramid-scheme-recruits-high-profile-sales-reps-94971214.html

May 27th, 2010
Charlotte, NC – Charlotte, Observer
'Pyramid scheme' recruits high profile sales reps
http://www.charlotteobserver.com/2010/05/27/1462263/pyramid-scheme-recruits-high-profile.html

July 15, 2010
WCNC News Charlotte, NC I-Team Investigation exposes FHTM’s earnings
http://www.wcnc.com/home/IN-FHTM-PYRAMID-SCHEME-FEW-EARN-MUCH-MONEY---98543069.html

Lexington, KY BBB has given FHTM the lowest rating for a company an F for most of the year
http://www.lexington.bbb.org/commonreport.html?compid=14004419