Illegal Pyramid Scheme |
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The Texas Attorney General has filed suit against Bigsmart.com for violations of the Deceptive Trade Practices Act. According to the suit, Bigsmart's operations and commission systems are based primarily on the introduction of others to purchase more "malls." Attorney General Comryn seeks a temporary injunction to prohibit this illegal pyramid scheme as well as restitution for consumers, penalties and attorneys' fees. The suit joins a growing list of actions and investigations against Bigsmart across the United States. The company, accused of illegal pyramiding in Maine, entered into a consent decree there. It also faced suit in Maine by retailer L.L. Bean, which accused Bigsmart of misrepresenting itself as being affiliated with Bean. The company came under intense media scrutiny in July in Pittsburgh, PA. Bigsmart's CEO, Richard Slaback, has been associated with other companies which have been scrutinized by regulators. He was affiliated with KM.net, which is under investigation in Michigan; and was a principal in a company called Destiny Telecom, which was investigated by the state of California. copyright September, 2000 |
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You are Survivor #
This page updated Sep-27-00 |