BigSmart Takes a Dive in Maine

The multilevel internet mall scheme known as BigSmart.com and its principals have entered into a consent decree with the State of Maine. The state had accused BigSmart of operating a lottery illegally, paying headhunting fees, and misrepresentation. The order prohibits BigSmart from paying commissions on anything other than retail sales of products through their "mall" websites, and forbids them from the following:

  • organizing or operating within the State of Maine or marketing to Maine residents any lottery
  • collecting fees, dues or anything of value from any Maine resident for membership in any Bigsmart.com multi-level program, or for the purchase or sale of, or the right to operate a so-called "internet mall," unless any subsequent payments or commissions to be received by the Maine resident are based exclusively on retail sales of goods or services
  • paying commissions or making payments of any kind to any person for the recruitment into any Bigsmart.com multi- level program of any Maine resident
  • falsely claiming or misrepresenting, by means of any medium accessible to Maine residents, that any retailer has entered into a contract to provide discounts or commissions to or through Bigsmart.com, or exaggerating the level of such discounts or commissions
  • representing that this Consent Decree implies or suggests that the State of Maine has in any way approved or endorsed Bigsmart.com's multi -level program, or other business practices of Bigsmart.com in any way
  • conducting any business whatever in the State of Maine without first applying for and obtaining the proper authority from the Secretary of State and other appropriate state agencies.

Additionally, BigSmart must repurchase the "mall" of any Maine resident, repaying them all monies they have "invested" in the scheme.

BigSmart.com and Richard V. Slaback are ordered to pay fines of $40,000, as well as reimbursing the state for the costs of bringing the suit and the state's attorneys' fees. In a separate but related consent decree, Jeff Fournier is bound by similar restrictions, and ordered to pay a fine of $5,000.

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This page updated Jun-02-00