St Louis Business Lawyer

YTB (Your Travel Biz) faces legal actions from California Attorney General Jerry Brown for being an illegal pyramid scheme. Ca. Atty. Gen. Brown Sues To Topple Online Pyramid Scheme LOS ANGELES–California Attorney General Edmund G. Brown Jr. today sued YourTravelBiz.com for operating a gigantic pyramid scheme that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies. “YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else,” Attorney General Brown said. “Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam.” YourTravelBiz.com and its affiliates operate an illegal pyramid scheme that only benefits members if and when they find enough new members to join the scam. Once enrolled, members who join the pyramid scheme earn compensation for each new person they enlist, regardless of whether they sell any travel. The company lures new members by offering huge income opportunities through online travel agencies yet the typical person actually makes nothing selling travel. According to company records there were over 200000 members in 2007 who typically pay more than $1000 per year–$449.95 to set up an “online travel agency” with a monthly fee of $49.95. In 2007, only 38 percent of the company’s members made any travel commissions. For …

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