Mr. Rodriguez was the Founder and Managing Director of Operations at Stream Energy.
I have several concerns about the Epiq Energy opportunity?
1) CLASS ACTION LAWYERS AFTER STREAM ENERGY
Class Action Federal Lawsuit Against Stream Energy, Executives, Alleging Unlawful Pyramid Scheme
HOUSTON — Attorneys from the Clearman Law Firm announced a federal class action lawsuit filed yesterday under the Racketeer Influenced Corrupt Organizations Act against Dallas-based Stream Gas & Electric, Ltd., Ignite Holdings, Ltd., their related companies and affiliated individuals.
A retail electricity and gas provider in Texas and Georgia, Stream has grown in only three years to become the 29th largest private company in the Dallas/Fort Worth area based on revenues of more than $800 million in 2008. Stream’s marketing division, Ignite, has fueled Stream’s growth through what the company calls a “multilevel marketing program.”
The 89-page federal complaint alleges that Stream- Ignite’s multilevel marketing program is actually an unlawful pyramid scheme. Pyramid schemes are inherently doomed programs in which investors recruit people to pay money to those above them in a first-come-first-served hierarchy with the expectation that they will get payments from other investors who enter the program later. When the number of newly recruited investors eventually dwindles, the payment structure collapses.
Specifically, the lawsuit filed in the U.S. District Court for the Southern District of Texas in Houston alleges that Stream and Ignite induced the plaintiffs and others to invest in the “Ignite Services Program” at a cost of $329 and purchase an “Ignite Homesite” web page for a charge of $29 per month. The lawsuit claims that a large portion of the $329 is paid to those higher in the pyramid.
“Some of the individuals at the top of the Stream and Ignite pyramid earn millions of dollars a year, while most of those that are now joining the scheme will likely never recover their investment,” says Scott Clearman of the Clearman Law Firm, lead counsel for the plaintiffs. “Stream promises recruits that they can make vast sums of money, but the fact is that most will lose their money.”
In addition to Stream and Ignite, individual defendants named in the complaint include Ignite founders Chris Domhoff, Rob Snyder and Pierre Koshakj [sic], as well as several Stream employees. Additional defendants include Donny Anderson, Steve Fisher, Randy Hedge, Logan Stout and Presley Swagerty, all of whom are near the top of the alleged pyramid.
2)AMBIT ENERGY HIT WITH BILLION-DOLLAR CLASS ACTION LAWSUIT
CAB BONUS COMPLANS UNDER ATTACK
A Distributor has filed a suit against Ambit alleging breach of contract, and Ambit's multi-level marketing network is a "pyramid scheme" contrary to law. To date, no suit alleging that multi-level energy marketing is prohibited by federal law has been sustained, though there are pending lawsuits. The suit alleges that Ambit's form of multi-level marketing is a "pyramid scheme which makes false and misleading statements that constitute deceptive acts or practices in violation of Section 5(a) of the Federal Trade Commission Act."
3) THE TEXAS ATTORNEY GENERAL DOESN'T LIKE
CUSTOMER ACQUISITION BONUSES AS SEEN IN THE FORTUNE HIGH TECH CASE!
BIG HIT FTC + 3 STATES CLOBBER FORTUNE HIGH TECH MARKETING! HERE IS WHY!
Jan 30, 2013 -UR editor bets that in the future you will see the case law developed by these four law enforcement entities USED IN OTHER ATTACKS ON COMPANIES USING THE
CAB BONUS COMPLAN.
THAT IS THE REASON ALL FOUR OF THESE AGENCIES JUMPED IN… TO SET FEDERAL CASE PRECEDENCE AND TO KILL ALL CAB PAY PLANS.
Fortune Hi Tech Marketing has been shut down by the FTC and three state attorneys general.
The U.S. Federal District Court of Northern Illinois gave the go ahead... “At the request of the Federal Trade Commission and the states of Illinois, Kentucky, and North Carolina, a federal court has halted an allegedly illegal pyramid scheme pending trial."
The WatchDog reported that FHTM came under fire back in 2010 with North Dakota and Montana. The WatchDog talked to the owner Paul Orbinson and told him that since they were using the CAB bonus plan they should ensure that when a distributor complained about the amount of money he spent – give them their money back fast, via overnight FedEx or wire transfer.
The court also froze Fortune Hi Tech’s assets. The receiver appointed by the U.S. District Court of Northern Illinois raided the headquarters and warehouse in Lexington, Kentucky and seized FHTM Property.
FTC NEWS RELEASE “At the request of the Federal Trade Commission and the states of Illinois, Kentucky, and North Carolina, a federal court has halted an allegedly illegal pyramid scheme pending trial. The FTC and the state attorneys general seek to stop the allegedly illegal practices of the Fortune Hi-Tech Marketing (FHTM) operation, which claimed consumers would make substantial income by joining the scheme. The operation affected more than 100,000 consumers throughout the United States, including Puerto Rico,
+++Will someone or a group of people please reply to this post telling me why Epiq Energy's compensation plan is any different from this other MLM Companies??
1) Epiq Energy has a $397 entry fee just like Stream and Fortune?
2) You have to get a monthly website at a fee?
3 You need gather points to earn income?
I am confused!! Please someone take the time and explain how anyone can trust this opportunity for the long term??
Why is there a $397 entry fee? And why does the up line receive most of the money? Not the recruiter?
Please tell me where I am wrong? And confused? Or Blind?