FRANKFORT, Ky. (AP) — A Kentucky-based company has been ordered to return $7.75 million in assets to more than 350,000 people who were caught up in what officials say was one of the country's largest pyramid schemes.
The Federal Trade Commission along with attorneys general in Kentucky, Illinois and North Carolina announced the settlement Tuesday with Lexington-based Fortune Hi-Tech Marketing. Officials said the company would charge people $249 for the rights to sell products like satellite TV service and home security systems. Officials said more than 98 percent of the people who paid the fee lost money.
Kentucky Attorney General Jack Conway called it a classic pyramid scheme. An attorney for Fortune Hi-Tech Marketing did not immediately return a call seeking comment. The Federal Trade Commission is responsible for returning the money to consumers.