COLUMBIA, SC (TPS) - The Palmetto Scoop has just learned that former University of South Carolina fullback Rob DeBoer is one of four men implicated in a Federal Trade Commission lawsuit aimed at bringing down one of the largest pyramid schemes in the nation. According to court documents filed this week, DeBoer helped recruit others into the scheme by selling product packages to the Internet-based, virtual music store BurnLounge.
The men also improperly represented their income earned from the site, the reports noted.
As a result, the FTC seeks to shut down the BurnLounge and has frozen the defendant’s assets.
The agency is asking for “an accounting and expedited discovery,” and has ordered that DeBoer “show cause why a preliminary injunction should not be issued.”
As one of those named in the case, DeBoer could be forced to pay thousands of dollars in restitution.
Such schemes are a violation of federal law because, by design, a majority of participants end up losing a great deal of money and inevitably cause millions of dollars in consumer injury. The BurnLounge scheme led participants to believe they could “cash in” on a current shift in music technology (editor’s note: according to the court documents).
Participants purchased one of three tiered packages and paid a monthly fee. The more expensive packages offer add-ons such as DVDs about the music industry, downloadable music selected by the company, and preferred seating and entry to select concert venues.
They were then given the opportunity to earn monetary rewards by recruiting others into the scheme and for selling digital music through the “on-line stores.” (editor’s note: according to the court documents).
DeBoer’s naming as one of the masterminds of the scheme certainly comes as a major shock to the Gamecock community. DeBoer is well-respected for his athletic achievements in both football and baseball during his time at USC in the early 1990’s.
DeBoer was born in Omaha, Neb. and he led the Gamecocks to large upsets on the football field as a popular fullback. Since college, DeBoer has been involved in various businesses in Columbia and was one of five men in charge of the BurnLounge scheme (editor’s note: according to the court documents).
There is a lot that remains to be discovered in the coming days and weeks, so check back with The Palmetto Scoop as this story unfolds.
This entry was posted on Friday, June 8th, 2007 at 8:02 pm and is filed under Around the state, Featured. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
All accounts requested by the FTC were denied in court today against DeBoer and all others in this suit. Assets were not frozen. This is the first time in history FTC has has been denied request against a defendant.
OK, who are the other 3? You failed to mention that.
My mistake, the other 4. A few others in Columbia, including other former athletes, were pushing the same thing. Are they also implicated?
who else?
It is only a matter of time, before we see more celebs in the same spot as DeBoer. DeBoer must have made at least a million dollars on this account - and all of it came from other innocent moghuls. Very little, if not nothing, came from actual sales of songs. And the common factor amongst all these high-level pyramid schemers is the company Burnlounge. To me, it is not a matter of “If?” but “When?” that Burnlounge will be shut down.
3 people in other states. Funny how comments are made with no facts. Did you not read my first comment. The FTC lost all request to have them shut down and assets frozen because they could not prove it was not legitimate. In a “Pyramid” the top only makes money, now how could others below DeBoer make more than he did???????Do your homework before you comment because it really makes you seem very unintelligent.
Justine is a tool bag. Read the State Newspaper (that is if you can read). I guess the big mean FTC just went after poor innocent DeBoer for no reason? I bet it’s Justine DeBoer making these comments.
Roger et. al,
As far as we know, the other three implicated in the lawsuit were NOT from South Carolina. Former Gamecock quarterback and Columbia lawyer Todd Ellis IS involved in BurnLounge, but was NOT named in the suit.
Again, this news story is just now breaking - The State JUST picked up on it this morning - so there is a lot yet to be discovered.
BurnLounge is in no way a “scheme”, and the manner in which the above article was written (stating mere accusations in a way that makes them sound like established facts) may in fact be libelous. I know Rob DeBoer and many other people in BurnLounge. I have in-depth, first-hand knowledge about it. I have spent many hours evaluating the BurnLounge company in the past two-and-a-half months since investing in BurnLounge myself. The highest amount that can be invested is $430 per year and $15 per month. BurnLounge is so highly ethical and legally sound that virtually all major record companies, whose lawyers scrutinized every aspect of the company, turned over literally all of their music content (over 2.5 million songs and climbing) to BurnLounge and its Retailers. Anyone with any familiarity with the red tape involved in merely being licensed to use 10 seconds of a given song, let alone all of the content of Sony/BMG, Warner Records, EMI, and Universal (four companies who are part of the BurnLounge distribution system), would recognize the allegations for what they are: false, or as a court might say, nonmeritorious. When a company or person is successful, it is almost inevitable that someone will come out of the woodwork to attack it. I am curious about who is behind this FTC filing and what the actual motive is.
One clear requirement repeatedly emphasized in all of Rob DeBoer’s presentations, and in all the presentations I have heard from anyone involved, is that each individual’s store must sell a minimum of $20 per month of music or other media downloads per month. That is not a sign-up scheme. It is a retail business. I have met with Rob DeBoer in person, have spoken with him repeatedly by phone, have listened in on conference call presentations by him and others at least 10 times, and have met a number of others who are part of Rob’s BurnLounge team (as I am). Rob DeBoer and all the others I have dealt with in BurnLounge have convinced me far beyond any reasonable doubt that not only is Rob DeBoer an honorable and ethical man, but he and BurnLounge Corporation itself have created an opportunity that allows millions of people to access music in a way that creates income for many, not just a select few. The accusation that someone gets “scammed” is baseless.
The above article published in “The Palmetto Scoop” was written in an irresponsible manner. It knowingly blurred the line between allegation and fact. Besides issuing a retraction and apology (not for reportinng the fact that there was an FTC filing, but for moving beyond that), it may also need to keep its readership informed about how the libel case against it is progressing. The “Scoop” can only hope that Rob DeBoer and the other falsely accused individuals are willing to forgive it for its irresponsibility toward one in its own community. Come to think of it, the “Scoop” might need forgiveness from a lot of people in BurnLounge who invested the same $430 that I did, including Shaquille O’Neil, Cadillac Corporation, Justin Timberlake, World Vision, Steve Nash, Elvis Presley Enterprise, to name a few of the 80,000 people already involved in BurnLounge. BurnLounge has nothing to apologize for. If anything, it has earned the right to boast, if it chose to do so, about the unprecedented opportunity it offers and puts within the reach of nearly anyone who seeks it. It will soon be a worldwide name and a major internet success story. That’s the real scoop.
Roy,
We have added three editor’s notes to clarify that these are claims made within the official FTC report. Hope this helps.
How does that kool aid taste Roy? I am curious your comment of…”who is behind this FTC filing and what the actual motive is.” Is President Bush behind the conspiracy take down Burnlounge or is it just the media?
Once this accusation is settled…I think the real retribution that needs to be made should come from whatever irresponsible reporting that was made and who is behind the false charges. From their slant, here’s another mud slinging story splattering our “GUILTY until proven INNOCENT” victim; while thinking “all they have to do is to infect BurnLounge with negative momentum to stop it from being what it is built to be - a retail store owned by individuals who can network with others for personal or business reasons across the globe”.
The explanation that the pryamid schemed companies by design, have a majority of participants end up losing a great deal of money and inevitably cause millions of dollars in consumer fraud and injury is not new. There are people who resent the notion that the money made in a MLM goes immediately to the top and to the early participants. Really? …. show me a company who doesn’t pay it’s owner and early investors the top money.
Mr Vogel is correct: Rob DeBoer is a decent, hard working, and honorable man who is being attacked by others including a media source. In the initial statement, the Palmetto Poop proclaims that Mr Deboer “…is one of four men implicated in a Federal Trade Commission lawsuit aimed at bringing down one of the largest pyramid schemes in the nation. ” Nice headline, but there seems to be a key word missing … “ALLEDGED…”
The editorialized slant that the BurnLounge management has “schemed” their recruits or anyone else for that matter is totally false. The company has been scruitinized by tons of legal beagles and recruits alike - who are now owners.
Here’s your lead: GUILTY UNTIL PROVEN INNOCENT.
Save your ink until all the facts are in….and once they are, write the REAL storyline: ” All false accusations are dropped against BurnLounge. BurnLounge is only guilty of offering to pay money to anyone who is willing to work for it”
Tim and Roy you burnlounge people probably have more important things to worry about than attacking some small internet blog. Like maybe, I dunno, the fact that you’re involvedin a pyrmaid scheme?
Billy are you 12. Tool Bag. Give me a break. I know the DeBoer’s personally and his wife is Kim. I think you drank a glad of idiot kool-aid that has no life.
Please explain how Burnlounge can be a scam if they will give you 100% of your registration fee back if you are not happy with their product. I would say this company is hardly trying to scam anyone.
Roy,
Burnlounge didn’t sign deals with those record labels. They signed a deal with Loudeye/Muse and THEY have the deal with the record labels. But you’re reading straight from the talking points that you got at your last BL meeting, right?
Tell me Justine…. out of the $1M+ that Rob has made, what percentage has come from music sales? The answer to that will tell you whether or not this is a scam.
This is going to be fun to watch.
Eddie In Irmo
Has anyone with burnlounge EVER discussed how to sell music from your music store? EVER? The only sales information that is discussed is how to sign more people and how to penetrate foreign markets with more people… That is really strange that a company who generates its revenue from sales of music does nothing to encourage the sale of music…. that is weird. If you haven’t figured out that the way to make money is through sales of the network and not sales of the music, then you are a full blown idiot.
Business lesson. Who is the #2 seller of CD’s in the US? Anyone? Anyone? Starbucks. A coffee company. Weird. Why? Distribution. A whole bunch of Starbuck’s stores. Each one sells just a little bit of music. As a whole though, #2 in the US. Now, DeBoer. I’m sure he sells a little bit of music through his store. The network he has built (the Starbucks stores) sells a ton of music (a little through each store). There’s not a lot of money in music though. There is however a lot more profit built into other products such as movies, video games, electronic devices, e-books, ad revenue etc. These are all products slated to be introduced into the BurnLounge library over time. Movies will be the first at the end of this month. When this happens, DeBoer’s retail commissions will be very large. But what then? Oh, I know! He was good at what he did and became wildly successful. That means some idiot who has no real drive and motivation to better him or herself will say that he did something “illegal” to make all these people buy the products. When McDonald’s, Burger King, Papa John’s and Taco Bell franchised, where do you think the majority of the money was made? From the people who drank the “kool aid” and thought it would be a good business to own. Man, I can’t believe they were so stupid!
Robespierre and deepthroat:,
I’m not attacking a small blog site … I have no idea how ‘big’ these bloggers are. Pretty BIG accusations though! I’m trying to enlighten some dark recesses while defending one that is being unnecessarily attacked. If you read the compensation plan you would find you can earn commissions and bonuses in several ways… much like many sales organizations.
These quotes have been taken from the BurnLounge management blog, published and available for all to read:
” Bottom line…..Burnlounge sells music and entertainment products (movies, ring tones, games, audio books, merchandise, etc) through a digital platform (i.e. website store), directly to consumers, people like you and me, and earn commissions on the sale of those products - like any business. Burnlounge simply re-routes the same commissions that companies such as iTunes or Best Buy would receive for example, but pays YOU - the retailer, instead. In addition, retailers can set other people up to do the same, which in turn, expands the company. When they do this, they earn bonuses. Additional commissions and bonus overrides can be earned from developing “teams” of Burnlounge retailers …”
AND….
(Mr ??) deepthroat:
(Q) Has anyone with burnlounge EVER discussed how to sell music from your music store? EVER? (A) Absolutely!! Downloading digital media is the EXACT business BurnLounge is in. Here’s another snipet from a (management) blog on Burnlounge (again) for ALL to read:
The Focus of Distribution:
“It is important for Burnlounge retailers who want to build a successful Burnlounge business to understand the power of creating distribution. While downloading music and entertainment products are the strength of our business model, it is important to effectively distribute those products. To effectively sell your product, it is important for you to realize that you are ultimately in the distribution download business. Let me explain: When you hear “Starbucks” you quickly think coffee! What you probably don’t realize is that Starbucks is a leading retailer of music CD’s in the United States . Why? They have an incredible distribution network. When you hear “Dominos” you quickly think pizza! What you probably don’t realize is that Dominos is a leading retailer of Coca Cola in the United States . Why? They have an incredible distribution network. Your Burnlounge business should be treated no differently. To effectively move music, movies, ring tones, etc…through your Burnlounge business, you must begin developing a distribution network. ”
I feel confident that your questions and concerns (and many others that you haven’t touched on) have been addressed by lawyers and to this point have given BurnLounge a clean bill of health (which is more than I can say about many companies).
Tim and Roy these guys didn’t “accuse” Deboer of anything the federal trade commision “accused” Deboer of this stuff. Go look at the report online these guys are just reporting. Its nice of them to allow you idiots to come on here and have an open discussion and you spit in their face.
If you dont like how they report thats fine but at least respectful and dont come up here and start saying your gonna start suing people and all that. Its people like you that kill free speech.
And lawdog theres a huge difference between Starbucks and burnlounge.. Burnlounge decieved people to believe it was all about music when it was really about signing people up to earn money for the guys at the top (of the pyramid.) Starbucks does’nt claim to be all about music and decieve people to get their friends to the store to buy music. BIG diff.
Your right, it’s not about music. It’s about the distribution of digital media. It’s all about signing up as many people that want to be part of the distribution. I don’t know anyone who is a BurnLounge Retailer that thought it was all about music. If they did, they’re an idiot. It’s about distribution. It’s about how many people want to engage in the business. It’s about how many people want a free site called a BurnPage (similar concept to MySpace) and free desktop software (similar to iTunes) to purchase their media. Cool thing for the free person, they can buy at the same thing at the same price point, only get rewards points for their purchases. Nobody in BurnLounge has been deceived. And your right, BurnLounge isn’t like Starbucks, they don’t sell coffee, yet. Someone brought a complaint to the FTC about Deboer. They asked for assets to be frozen. It was denied.
Wow, deranged and wound tight - good combination!… I sure didn’t see where Tim and Roy are spitting in anyone’s face or threatening to sue. If anything, being called “a full blown idiot” is somewhat insulting … especially from the source. It looks to me like the right to FREE SPEECH in your mind is mindless accusations from you and NO SPEECH from anyone else.
I’m local and from my research, I don’t believe BurnLounge HAS EVER been convicted of deceiving people to sign up to be part of a pryamid. These 2 guys have countered the statements made by others fairly by sticking to their facts, that’s all.
Hey Todd… uh, I mean, LawDog,
Do you care to site where you got the little “factoid” that Starbucks is the #2 retailer of CDs?
Meaninglesss Gator…the FTC complaint was filed this week and is online now if you want to look at it. They have one quote from DeBoer saying he doesn’t focus on music sales but on recruiting more members to the network. Doesn’t look good for the boy.
I wasn’t aware that franchising was illegal in the great state of South Carolina. MY BAD!
Published on BurnLounge blog:
“…We have said all along that the most important thing you can do to create long-term residual income is build a team of people who sell a lot of music (or movies!). You may have heard this analogy before, but I will use it again. When the founder of Papa John’s began franchising his pizza stores all over the country, he made more money in the first few years by selling the franchise than he did by selling the actual pizzas. But did he begin franchising to make a bunch of money at the beginning and then stop? Of course not! He opened all those stores to sell more pizza! In the long run, a broad and effective organization consistently selling entertainment products to consumers has the potential to make substantially more money for you than simply selling them a Store.”
Simple question for you, Gatorbait: Is Burnlounge a franchise?
I think Steve Spurrier, Jr. summed it up best in his quote in “The State” today:
“It made extremely legitimate sense to me. People I talked to said, ‘Listen, if you get a few people that get under you and they sell a few things, you get your money back.’”
That, in a nutshell, is a pyramid scheme. The simple fact that you HAVE to get people under you to just break even, much less make money, means you’re getting into a ponzi operation.
Perhaps somebody at the Moore School of Business can help you with the difference.
Rob’s story…. a regular Horatio Alger, that guy:
http://tinyurl.com/28lrl3
I do not believe BurnLounge is a pryamid scheme. or a MLM (Multi Level Marketing) scam… or whatever you want to call it, but even I will admit that it could look like, or “MIRROR’s one”.
How many times has BurnLounge has been asked that question since it’s inception?..Is it direct sales (i.e. pryamid scheme) or a music and entertainment retailer? Ultimately, the answer is…both. BurnLounge’s product is music and entertainment download service and their distribution model mirrors some effective direct sales programs. A better answer would be: “It’s a hybrid…something like this has never been done before.”
Here’s why: The Burnlounge concept is giving unlikely people like me (someone who loves music, but has no music industry understanding), the chance to play an important role in the sagging music and entertainment industry. (1) You can be a CUSTOMER and strictly buy and download your music and movies (and additional items) and earn rewards points. No different than a multitude of other sites (except for possibly the reward points), OR (2) you can be a RETAILER (or seller) and own your own webstore and earn commissions. You DO NOT have to get people under you to just break even. If you were real smart and energetic you could sell enough downloadable music and videos, and games, and audio books, and merchandise, etc and more than make your money back. If you want to make MORE money, you can develop teams of retailers that you can get paid downloaded residuals from. The higher level of RETAILER you invest in, the better the opportunity for a higher return from commissions and bonuses. Just like the Papa John’s early franchising strategy in the earlier post, the more stores, the more revenue..
The opportunity is there but one must earn it. Like every other job, there is no guarantee or promise that you’ll get rich just by joining. I’m obviously not a lawyer but if it was illegal, one of many hundreds of lawyers who have scruitinized the company since its’ inception, would’ve shut it down. I also wouldn’t have any part of it. Why is it that others haven’t accepted their findings ? How is it they know more?
Simple: The product: digital media. The service: downloading service. The choices: Customer, or (one of 3 levels of) Retailers.
I’m not sure how much you’ve read into this, but obviously all the rulings about BurnLounge being a legitimate, digital media distribution business is not acceptable by your interpretation of the meaning…..Moore School of Business grad?
Tim..many lawyers say it and think its legit? Wrong! FTC lawyers saw it and thought it was illegal. Also that smart lawyer Todd Elliss is quoted in the FTC filing saying that he doesn’t worry about selling music…his focus is recruiting more moguls. In other words, building the scam.
Honestly Tim you must be crazy or too far up Rob and Todds butt. Have you ever even heard of a ponzi or pyramid scheme? If this isn’t one then I don’t know what is. And its only going to get worse for everyone involved, watch as the federales keep working their way down the pyramid.
Or maybe that’s what your worried about?
Fellas, why can’t we wait until a verdict comes in before you start hanging everybody?
Tim,
If getting “IN” cost $5,000 instead of $500 and the guy above you took a $500 cut instead of $50, would you think that it was still legal? Why or why not?
If you can show me how somebody on the bottom can succeed in this without signing up anybody else, then I would like to see it. I think you need to read Spurrier, Jr’s quote above one more time.
BTW… what rulings have there been about BL being legit? Links, please.
Does anyone know where to find these complaints online?? Any links??
this is definately a pyramid scheme. and i know that some of yall may be friends with the deboers, but that does not mean theyre not capable of greed. it happens to a lot of people that you think are completely innocent. just look at the big picture and get your head out of the sand. -its a pyramid scheme, no doubt.
Why is there no mention of this on the FTC website? Where are you guys finding this information? Where can I view the complaint??
As usual, the Burnlounge zealots can defend themselves simply and easily by just posting evidence that ONE person in Burnlounge (or his/her downline) has made a significant percentage of revenue from sales.
They’ve been asked to provide this evidence a million times. They never do. Ever. Why? Because, as everyone who was ever in Burnlounge knows, 95%+ of the money comes from signing up new suckers. Music/product sales range from minimal, to solely for self-use, to non-existent.
I suggest any of you wondering about this now under-investigation scam to just make the request: ask a Burnscammer to show you their SALES vs. Signups numbers. It’s on their “BMS” page. They can pull it up in 3 seconds.
What you will see will prove beyond doubt what the FTC now knows - its a Ponzi scheme, an illegal pyramid. Basically, a chain letter.
Rob DeBoer himself was asked REPEATEDLY to just post his numbers. He will not do so. WHY do you think he won’t? I’ll answer for you: because his numbers can’t lie. His numbers show the truth.
And if you ask a Burnlounger to show you the sales numbers … and they won’t … do you really need to know anything else about this scam? Isn’t that the whole story?
—————————————-
And could we please - please - lose the PapaJohn’s myth? Burnlounge con artists have been spewing that lie for years, and its been debunked 1000 times.
Anyone who would like to know the REAL story of PapaJohn’s, how the founder and now CEO originally grew the company, when he began franchising, and where the money came from … can find all that information at the corporate website (Papajohns.com, I think). It won’t sound even vaguely like what the Burnloungers tell you.
But you can’t blame them. It’s one of a thousand lies told in their meetings and conference calls, then repeated endlessly, with nobody thinking to fact-check what they’re told.
The only interesting thing in all this is that it took the FTC this long to come down on this very, very, very obvious scam. Any professional who’s deal with the FTC knows exactly how flagrant violations have to be before the FTC or SEC step in. I guess Rob DeBoer’s embarrassingly big mouth was enough to catch their attention.
Even if Burnlounge dodges this bullet, here’s some simple advice: before you get involved, just do your homework. Do the math. Ask to see those numbers. And think for yourself … do not get caught up in the cult-ish hype. Just do the homework. It can’t hurt.
Plain and simple, after the 19th we’ll have the ruling from this. It will be at this time that all speculations will be put to rest one way or the other. Once the ruling comes down, that’s it. Either illegal or legal. I’m in law enforcement, did a lot of research with a lot of people and legal organizations. I believe with all I am that it’s 100% legit. However, I could be wrong. I’m pretty sure though that no one who has posted here, myself included, can speak with any real legitimacy in regard to this. I’ve built one heck of a good business and hope all turns out well. I am confident that it will. I’m shocked that the FTC has had this for over a year and the court only gave the BurnLounge team 24 hours notice to appear but they still prevailed in stopping the restraining order. Looks pretty good for BL.
And to you Eddie, I got my factoid from a local business owner that I know. I honestly can’t tell you if that’s true or not. I know they are a power house in the distribution of cd’s but I can not tell you exactly where they rank. Also, the guy that told me is not in BurnLounge and saw me with Starbucks coffee in my hand about 6 months ago. He asked me if I bought a CD with my coffee. I felt like an idiot because I didn’t even notice that they had cd’s!
Please try to answer this SOMEONE????????
#1 when you buy a V.I.P. package with burnlounge you get: a V.I.P. membership to LiveNation Events that alone is worth hundreds of dollars, burnlounge university training/development dvds, ( I have paid hundreds of dollars for training/development cds from amazon), a years subscription to burnlounge magazine, 120 songs to download from burnlounge presents, and a monthly dvd subscription of new artists in the music industry.
(ARE THOSE THINGS PRODUCTS?)
#2 burnlounge pays commissions on the sale of those packages of products
#3 Who says burnlounge has to pay out more commissions on music than on a magazine subscription or dvds or anything else for that matter???
I dont think ANYONE CAN ANSWER #3 with a well thought out answer.
To the editor:
I hope you don’t consider your website fair and balanced.
Its obvious that your article is heavily weighted on one side.
your the one that has to look yourself in the mirror
Mr LawDog,
I guess I have to take you at your word that you extensively investigated this. On what basis did you or your legal counsel come to the conclusion this is legal? There’s practically no product being sold to end customers. That’s THE definition of a pyramid/ponzi scheme. Do you not realize this?
It takes customers…. that’s right, END customers, to be legit.
http://www.mlmwatchdog.com/Archives2007-2.html
BTW, how are the folks at the BOTTOM of your downline doing? Any hope they can make enough to cover their sign-up fee WITHOUT signing up more people?
If you need any more legal advice on MLMs, I’d recommend Babener & Associates: http://www.mlmlegal.com/
Eddie
“And to you Eddie, I got my factoid from a local business owner that I know. I honestly can’t tell you if that’s true or not.”
IF YOU DON’T KNOW IT ITS TRUE OR NOT, WHY ARE YOU SPREADING THE INFORMATION AS IF YOU KNOW THAT IT IS TRUE?
Answer: because that’s what people in Burnlounge do. They take lies, or information that may or may not be true - but they heard it from somebody - and pass it on to people who won’t fact-check, in order to perpetuate the scam.
Almost every “fact” Burnloungers repeatedly use is either suspect, questionable, unsupported by fact, or simply an intentional lie.
And then when you ask for a little simple evidence - they get angry. I give LawDog credit: he at least admits he has no clue what he’s talking about.
But LawDog, this statement from you is just embarrassingly wrong:
“Plain and simple, after the 19th we’ll have the ruling from this. It will be at this time that all speculations will be put to rest one way or the other.”
I assume by “law enforcement” you don’t mean the practice of law (although I suspect I know exactly who you are - which means your law firm ought to carry a warning label).
Do you really think that’s how it works? That on the 19th there will be a definitive answer? In your experience, is it common for a single legal proceeding of any kind - with the exception of a criminal trial perhaps - to settle a matter entirely?
There won’t be appeals?
Neither side will pursue other legal avenues?
If the FTC chooses to search further, they can’t seek redress via other means?
Criminal charges can’t be brought? (You are aware this is currently a civil action I hope)
Other states’ attorneys general can’t file suit?
The FTC can’t look closer and find entirely different violations?
The SEC can’t get involved?
For those interested in the truth of how the system worked, rest assured: a single proceeding on the 19th will not settle the matter.
Ask Amway. They’re currently in litigation yet again.
—————————-
Now the better questions:
Why are people in Burnlounge always, always wrong? Why do they claim to have information they don’t have? Why do they make inaccurate statement’s like LawDog’s so blatantly and so publicly?
And the best question of all: why won’t LawDog (or any leading retailer) just spill his sales data so that the public can decide for itself what Burnlounge really is?
Why does anybody need the FTC to tell them what LawDog’s sales versus sign-ups figures will already make clear?
Tex,
I’ll bite on your point #3:
http://burnloungescam.blogspot.com/
Mr Jeffrey Babener is the leading legal authority and widely published author on direct sales, network marketing and MLM.
Some comments Mr. Babener has made:
Almost all states pyramid statutes prohibit the payment of an investment for the right to be involved in a multilevel type business. Many of the states specifically hold that the purchase of an “at cost” sales kit from a company is not considered to be an investment. Sales kits typically cost between $15 and $75. The term “at cost” means that the sale of the mandatory sales kit does not generate profit for the company. Profits for the company and its distributors should come from the sale of the company’s products and services.
The professor has dropped a surprise quiz on his students. Glad it’s multiple choice..
Q. Why are people in Burnlounge always, always wrong?
A. Nobody is ALWAYS, ALWAYS wrong … just as nobody is ALWAYS, ALWAYS right.
B. They’re possessed.
C. They have intentionally been led astray with misinformation not limited to, but including the Harvard Business School, industry experts, and trade rags like Billboard.
D. They’re losers; liers; conspiracies; or former World Wrestling Federation officials.
E. They’re ALL incompetent, challenged and not responsible for their actions.
Q. Why do they make inaccurate statement’s so blatantly and so publicly?
A. SEE ABOVE…
B. They have political aspirations.
C. They can’t wait to see what’s going to happen.
D. Some people are just FULL of themselves.
E. They have no clue they are making inaccurate, blatant statements.
Q. IF YOU DON’T KNOW ITS TRUE OR NOT, WHY ARE YOU SPREADING THE INFORMATION AS IF YOU KNOW THAT IT IS TRUE?
A. SEE ABOVE…
B. Because they want to sway public opinion.
C. People want to sound as if they’re more well-versed and informed.
D. People trust others to tell them the truth and may not have the time or resources to verify all the sources.
E. They can’t wait to watch it on the evening’s news.
Q. This is the forum to debate the validity of BurnLounge and of ALL of it’s members’ intentions without all the information being in?
A. True
B. False
C. I dunno…heard there was a WitchHunt goin’ on.
Follow the money…
To all the burn lounge defenders/cohorts I ask the same thing they have been asking on burn lounge message board for weeks, show us your numbers. Just show us a screen shot of your stats and redeem yourself. You wont though because it will show that almost all of your money comes from signing people up and not music. Rather you dodge it every way tyou can and accuse people of stuff and make up bullsh*t. If your so innocent if its so legit then just prove it with a quick screenshot of your numbers. It will take what 3 minutes and youll be totally vindicated.
This is a classic pyramid scheme and no one will believe these jerks until they prove otherwise and good luck with that.
If anyone can do this I’ll shut up.
:- Max
[...] Comments Maxwell on EXCLUSIVE: Former Gamecock football star named in federal investigationdeepthroat on EXCLUSIVE: Former Gamecock football star named in federal investigationThe Race Card [...]
eddie,
you still CANNOT answer my question!!!!!!!!!!!!!!!!!!!!!!!!!!!!
NO ONE CAN!!!!!!!!1
Burnlounge does not pay for recruiting, they pay commissions for selling V.I.P. packages that have massive value in the marketplace!!!!!!!!!!!
What gives it “massive value” texas? The fact maybe that you can turn around and sell packages to others maybe? Because we all know it isn’t the massive value earned selling music. So the massive value would be ????
From 10 Lessons for Consumers from the Equinox Case: http://www.falseprofits.com/EquinoxLessons.html
9. MLMs that don’t gain most of their sales revenues from retail sales to non-distributors are probably pyramid schemes.
The FTC and the states that prosecuted Equinox used this definition of a pyramid scheme:
“‘Pyramid scheme’ means a sales scheme, Ponzie scheme, chain marketing scheme, or other marketing plan or program in which participants pay money or valuable consideration to the company in return for which they receive: (1) the right to sell a product or service; and (2) the right to receive in return for recruiting other participants into the program rewards which are unrelated to sale of products or services to ultimate users.
********* For the purposes of this definition, “sale of products or services to ultimate users” does not include sales to other participants or recruits in the multi-level marketing program or to participants’ own accounts.”
The FTC experts showed that Equinox’s rebate payments to upliners, which amounted to 48% of all wholesale sales to distributors, were really just “payments for recruiting.” Only a small percentage of Equinox sales were ever retailed to people who were not also recruited as distributors.
Lesson: If you are in a MLM that does not emphasize retailing over recruiting, you are very likely a party to an illegal scam.
–How much of burnlounge’s revenue was based on record sales vs recruitment?
–How much emphasis did burnlounge put on record sales vs recruitment?
–How much of the music purchased was purchased outside of the organization?
These appear to be the important questions, and if burnlounge can produce evidence to contradict the FTC’s charges, then burnlounge will probably be just fine. Since I do not know anyone who has ever downloaded a single song from burnlounge who wasn’t a burnlounger, I am unable to speculate at how many of them are out there. I guess we will soon find out.
http://www.wistv.com/Global/story.asp?s=6635881
Henry McMaster turned him in this is going to be fun to watch. I invested but never signed anyone up I knew better but said what the heck it’s only $ 500.00. I lost more than that at the Black Jack table in Vegas and had fun doing it. LOL Wonder if I can get my money back since I’m not satisfied with their product. LOL Heck I’ll just wait for the class action lawsuit that’s sure to follow. I hear Rob quit his day job to do this full time what a shame.
Don’t wait for the class action suit. You won’t get all your money back. You’ll probably get a ridiculous settlement (discount certificates, or something else) while some lawyers walk away rich.
Don’t ask; DEMAND your money back now! They’re running scared and will quickly give you a refund now.
[...] June 8, The Palmetto Scoop broke the news that BurnLounge executives, including former Gamecock star Rob DeBoer, were being sued by the FTC [...]
[...] State is reporting that former Gamecock Running Back Rob DeBoer, who was implicated in a Federal Trade Commission lawsuit in June, has agreed to turn over financial records to authorities. DeBoer also agreed to not drain [...]
[...] a leave while under a federal investigation. For what? According to a number of websites, including The Palmetto Scoop, the Federal Trade Commission is investigating him as part of a large pyramid scheme, one selling [...]
[...] Former Gamecock football star named in federal investigation [...]
Stated above by Justine, “Please explain how Burnlounge can be a scam if they will give you 100% of your registration fee back if you are not happy with their product. I would say this company is hardly trying to scam anyone.” I’d like to know how any ex-mogals can get their fee back. I asked for a refund and it was ignored. I only got confirmation that my “store” had been closed. Being on an interest-from-savings-only income, I need aomething that will generate money for me, not continually take it away from me.
Hey, someone find Roy Vogel and ask him what he thinks about Burnlounge and the “falsely accused” defendants now.
Hey, Mr. Ellis… I mean… “LawDog”…
Where is your practice so I can be sure NEVER to hire you. FIrst you stated falsely that the motion to have assets frozen was denied. WRONG! DeBoer is defending hiimself because he had his accounts frozen. You then said it “looks pretty good for Burnlounge”. WRONG! Tell me, how much music have you sold in the past year?
Thanks for playing, pyramid scammers… and Todd… I mean, “LawDog”, I hope you’re not the next one slapped down by this lawsuit.