Vemma (/ˈviːmə/) Nutrition Company was a privately held multi-level marketing company that sold dietary supplements. The company was shut down in 2015 by the FTC for engaging in deceptive practices and pyramid scheming.

Why was Vemma shut down?

Vemma (/ˈviːmə/) Nutrition Company was a privately held multi-level marketing company that sold dietary supplements. The company was shut down in 2015 by the FTC for engaging in deceptive practices and pyramid scheming.

Who owns Vemma?

CEO BK Boreyko
BK Boreyko launches Bode Pro, a new network marketing company with a uni-level compensation plan.. Boreyko’s first two start up companies New Vision and Vemma each exceeded $1 billion in career sales and his 3rd venture could be his best work yet.

Is Vemma a pyramid scheme?

Vemma billed itself the “Young People Revolution,” marketing mostly to college students as a way to get easy money. Then the Federal Trade Commission filed a lawsuit, calling the nutrition company an illegal pyramid scheme.

What is Verve drink?

Vemma is an illegal pyramid scheme that “lures college students and other young adults with the prospect of getting rich” but left most of them with no profits, according to the Federal Trade Commission, which seized all the inventory and halted its operation.

How does vemma work?

Vemma, founded by Benson ‘BK’ Boreyko in 2004, sells energy and weigh loss drinks through a network of independent distributors, so-called ‘affiliates’, with the promise they can earn income buying product direct from the company and selling them to customers.

Can you get your money back from a pyramid scheme?

Once Ponzi schemers are discovered, it is usually the case that the schemer has spent all or most of the money. So while you could certainly sue the Ponzi schemer and very likely win a judgment against them in court, it’s unlikely you’ll recover any money at the end of the day.

What is the history of Vemma Nutrition?

Vemma Nutrition Company was incorporated in 2004, and by 2011, New Vision had been entirely folded into Vemma.

What happened to The Alkazins and Vemma Nutrition?

Vemma Nutrition Company was ordered to pay a US$238 million fine as a company, restructure its compensation plan, and forfeit certain company assets. The Alkazins, on the other hand, were fined US$6.7 million as individuals. As part of the settlement the defendants were banned “from involvement in any pyramid, Ponzi, or chain marketing schemes.”

Who is the CEO of Vemma?

The company itself, CEO Benson Boreyko, and distributor Tom Alkazin were named as defendants. On September 18, 2015, the judge ruled that Vemma had been operating as a pyramid scheme and that their marketing material had been “deceptive and misleading”.

What happened to the Vemma pyramid scheme?

^ Maynard, Christopher. “FTC agreement puts a permanent stop to the Vemma pyramid scheme”. Consumer Affairs. Retrieved 21 December 2016. ^ Woods, Alden. “Tempe’s Vemma settles with FTC; fined $238 million, admits no wrongdoing”.