MI2N
Music Industry News Network
SATURDAY, OCTOBER 21ST
Advanced Search
MusicDish Advertising Network
HOME | FREE NEWS SUBMISSION | PREMIUM PR DISTRIBUTION | PR COPYWRITING | RSS FEEDS | TESTIMONIALS | CONTACT

Sections: Band | Business | Career | Events | Label | Music Releases | Radio | Tech | Video | Web Events
Genres: Country/Folk | Dance/Electronica | Jazz/Blues | Latin | Rock | Urban | World
International: Asia | Canada | Europe

Advertise | Artist Development | Submit Video | MusicDish*China | MusicDish e-Journal | MusicDish Network | Urban Music News Network
Business News (more headlines) 06-13-2007

FTC Asks Court To Shut Down Illegal Pyramid Operation BurnLounge

Bookmark and Share

On June 6, 2007, the FTC filed a complaint in the U.S. District Court for the Central District of California against BurnLounge, Inc. The complaint charges that BurnLounge sold opportunities to operate on-line digital music stores that was, in fact, an illegal pyramid scheme. The agency is seeking a permanent halt to the illegal pyramid practices as well as other illegal practices alleged in the complaint.

According to the FTC, BurnLounge recruited consumers through the Internet, telephone calls, and in-person meetings. The sales pitch represented that participants in BurnLounge were likely to make substantial income. BurnLounge recruited participants by selling them so-called "product packages," ranging from $29.95 to $429.95 per year. More expensive packages purportedly provided participants with an increased ability to earn rewards through the BurnLounge compensation program.

The BurnLounge compensation program primarily provided payments to participants for recruiting of new participants, not on the retail sale of products or services, which the FTC alleges would result in a substantial percentage of participants losing money.

The FTC specifically alleges that the defendants operate an illegal pyramid scheme, make deceptive earnings claims, and fail to disclose that most consumers who invest in pyramid schemes don't receive substantial income, but lose money, instead. These practices violate the FTC Act, the agency alleges.

The FTC has asked the court to halt the deceptive practices and misrepresentations and to freeze the defendants assets, pending a trial, to preserve them for consumer redress. At a hearing on the FTC's request for a temporary restraining order, on June 8, 2007, BurnLounge's attorneys asked for more time to respond fully, and U. S. District Court Judge George Wu ordered that a full hearing on the FTC's request for a preliminary injunction and asset freeze be held on June 19, 2007, after which he will rule on the FTC's requests.

In addition to naming BurnLounge, Inc., a Delaware corporation based in New York City, the Commission's complaint also names: Juan Alexander Arnold, of Studio City, California; John Taylor, of Houston, Texas; Rob DeBoer of Irmo, South Carolina; and Scott Elliott of Forney, Texas.

This case was brought with the invaluable assistance of the Office of the Attorney General of South Carolina.

Over the last 10 years, the Commission has halted 17 pyramid schemes and has collected almost $90 million in consumer redress and tens of millions of additional dollars in suspended judgments.

Bookmark and Share

back | top



MusicDish Advertising Network

Mi2N Music PR

The Phoenix Keeps Rising!

Sheep Got Waxed First Tour in China

Canadian Singer/Songwriter & Pianist Michael Kaeshammer To Tour China

Harmonica Extraordinaire Sugar Blue Performs In Beijing

Wreckshop Nation Releases Big Moe 4 Ever, A Tribute Documentary To A Legendary Southern Hip Hop Artist

Roger D'Arcy Releases New Album 'House Of Heads'

Hybrid Studios Announces Online Mastering Services



MusicDish*China Song Blast
Promote Your Music Single In China

News Headlines
Mi2N EDITOR'S PICKS
» Coversion, The Sync-Focused Covers Catalog, Launches In North America
» Sampling Techniques For Modern Musicians With Yeuda Ben-Atar
» Universal Music Group Launches Accelerator Engagement Network
» Aneek's Urban Voice To Be Presented In Hollywood
» Global Women's Empowerment Network Launches GWEN Radio And GWEN.Live Website
» Drew Blakeley Announced As VP Of 117 Management
» Soundplate Launch Free Spotify Playlist Submission System
» Rising Singer/Songwriter Julia Michaels To Receive Breakthrough Artist Award At Music Biz 2018 In Nashville
» Out Of This World! The Dawn Of Science Fiction Television Releases For Halloween
» Reservoir Extends Deal With Multi-Platinum, Award-Winning Songwriter-Producer Jamie Hartman


Get your music news covered...
Have your press release written
by the pros at Mi2N

Articles
MUSICDISH E-JOURNAL
» FUGA Accelerates Growth With 6m Investment
» Vinyl Evangelist Jack White To Keynote 'Making Vinyl'
» Sync-Focused Covers Catalog Coversion Launches In North America
» Deezer Joins With Esports Team FNATIC For First-Ever Music Partnership
» Most Girls Smell Good Music Promotion Masterclass And Launch Party
» Canadian Singer/Songwriter & Pianist Michael Kaeshammer To Tour China
» SOCAN And Muzooka To Streamline Live Show Reporting For Artists
» Submit Proper Signs Up SRD For Fulfilment
» Harmonica Extraordinaire Sugar Blue Performs In Beijing
» Will One Genre Rule Them All? China's Love Affair With EDM
» China-Based Experimental Rock Soloist HUMANS ETCETERA To Dispatch Intelligent Skeleton
» Career Moves: Live Nation, Warner Music, Capitol Music, Atlantic Records & Allihoopa

Mi2N's Music PR distribution service guarantees online exposure for your press release. Choose from seven (7) different packages.


HOME | FREE NEWS SUBMISSION | PREMIUM PR DISTRIBUTION | PR COPYWRITING | RSS FEEDS | TESTIMONIALS | CONTACT

Sections: Band | Business | Career | Events | Label | Music Releases | Radio | Tech | Video | Web Events
Genres: Country/Folk | Dance/Electronica | Jazz/Blues | Latin | Rock | Urban | World
International: Asia | Canada | Europe

Advertise | Artist Development | Submit Video | MusicDish*China | MusicDish e-Journal | MusicDish Network | Urban Music News Network
Copyright © 1997-2017 MusicDish LLC, all rights reserved. Text, graphics, and HTML code are protected by US and International Copyright Laws, and may not be copied, reprinted, published, translated, hosted, or otherwise distributed by any means without explicit permission.