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Judge Orders Injunction Against 2Extreme
Following a hearing which concluded on February 25, 2000, a preliminary injunction against 2Extreme was ordered. Deciding that the government is likely to prove its case against 2Extreme, which involves charges of running an illegal pyramid scheme, the company's assets have been frozen pending trial. The Federal Trade Commission had requested the injunction, claiming that
"the pyramid scam, disguising itself as a legitimate multi-level marketing plan, used deceptive earnings claims to lure consumers to enroll in the scheme. The company claims to have recruited more than 60,000 consumers."
The injunction ordered by the U. S. District Court for the District of Maryland prohibits the defendants from operating an illegal pyramid scheme, and from making misrepresentations. Defendants' personal and corporate assets have been frozen.
A trial date has not been set.
The FTC claims that 2Extreme, operating via web sites, infomercial, direct mail, and seminars, made fraudulent income claims to consumers, and that 2Extreme's practices violate federal law.
The injunctions named John T. Polk, Patrick Farah, Peter Hirsch, 2Xtreme Performance International, USAsurance Group, Inc., Akahi Corp., Akahi.com Inc., and AFEW, Inc.
Consumers who wish to file a complaint can contact the Federal Trade Commission directly for more information, at 202-326-2081, or can use the FTC's online form.
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