Temporary Injunction Against Trek Alliance Granted
July 4, 2003
A federal judge has granted the Federal Trade Commission's request for an injunction against Trek Alliance and its principals. On December 6, 2002, The FTC filed a complaint against Trek Alliance, Inc., Trek Education Corp., VonFlagg Corp., Jeffrey Kale Flagg (Kale Flagg), Richard Von Alvensleben (Rich Von), Tiffani von Alvensleben (Tiffani Von), and Harry M. Flagg.
Defendants were charged with running an illegal pyramid scheme, making false and deceptive income claims, and similar allegations which have become all too familiar in the MLM world.
The defendants' assets were frozen, and the court ordered an immediate halt to all business activity by Trek Alliance and the other defendants.
On June 24, 2003, the court granted the FTC's request for a Temporary Injunction against the defendants.
Temporary Injunction
A temporary injunction is usually granted when the court believes that the plaintiff (in this case, the FTC) has a strong probability of proving its case, and when the defendants are likely to violate laws if allowed to continue their activities.
Asset Freeze
The Temporary Injunction freezes the assets of the defendants, allowing the individual defendants an allowance for reasonable monthly living expenses and legal fees. Rob Evans has been named as Receiver and Special Master, and will oversee the payment of this allowance.
Business Activities
The defendants are further enjoined from engaging in any business ownership or involvement activities whatever without prior approval of the court.
No Bankruptcy
The defendants will not be permitted to file for bankruptcy protection during the duration of this temporary injunction.
More Information About Trek Alliance
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