Wake up and smell the deception! FHTM is collecting millions and disbursing a mere pittance. As to top tier companies aligned with FHTM that’s crap! Validate your information, I went back and carefully listened to the video by Joel McNitch and others talking about FHTM and noticed they are VERY precise in their selection of words and terms. Name recognition is a key point in their presentation. During their scripted presentation they ask if you’ve heard of a company called Home Depot, of course you have, then they go on to say “How would you like to get paid for shopping there?” but they do not say they are partnered with them, (because they are NOT) they talk about their partnership with a company called BSP then they pop up a sign with Home Depot, Macy’s, Best Buy and Chili’s. This is a true representation of BSP rewards, NOT FHTM. But the allure of making a few thousand (or at least that’s what you’re lead to believe) is just too much. Open your eyes, I’m sure you believed you could make tons of money and you've enlisted the help of family and friends to accomplish this. Now you can't go back and tell them you were wrong. This company is NOT here to help you they are here to exploit you!
This is a product only available to Representatives and costs $19.99 a month. So clearly buying this won't make you money as a representative, and in fact will cost you $19.99 a month.
Peter Lamas has a direct affiliate program paying 20%, that is free to sign up for. So going through FHTM pays you .5%, and signing up for a free affiliate account pays 20%.
Choice Plans RX
This is a FHTM company that they pay Ocenture to set up and run for them. When you go to the website, it has copyright FHTM, but when you look who owns the domain name, all contact emails are to ocenture.com email addresses. If you use this product, remember you are actually buying from FHTM, and be sure to check prices you are paying against a site such as drugstore.com. A spot check of the price list shows the drug Pegasys for 180MCG/0.5 for $1, 482.23. It appears to be available from drugstore.com as a 1ml vial for $651.98. If the 0.5 in the ChoicePlanRX price refers to half a ML, then you pay $2, 964.46 for 1ml, while at drugstore.com you can get it for $651.98. I suggest you look at the prices yourself.
This product is yet another product that FHTM paid Ocenture to run, and Ocenture uses VantageAmerica Solutions, Inc. to run the card discounts. It looks like FHTM paid Ocenture to rebrand their pre packaged product called MedAffordable. so you can work with just one middle man instead of three (FHTM, Ocenture, and VantageAmericaSolutions)
This is another service where FHTM paid Ocenture to rebrand and rename their existing product called TrotHop, and to set up an affiliate site through Travelocity, to book tickets through an airline. If you buy from TravelFHTM, you are going through three middlemen to reach the airline (FHTM, Ocenture, & Travelocity). Basically this service uses Travelocity, rebranded to look like TravelFHTM, adding on a fee to each ticket. Tickets tend to be $5 – $10 dollars more on TravelFHTM than buying straight from Travelocity, you can test this by checking the price for an identical flight through Travelocity and TravelFHTM. Also, in order to offer this product, the representative must pay $49.99
This is simply a service set up by Ocenture to provide roadside assistance. You can go to http://ocenture.com/PrePackPrograms to look at all the services Ocenture can set up for your organization. It looks like this is what FHTM did.
Ingrid Home Security
The link to this service did not work, so I was unable to assess what this service was. If the link is not working, it's safe to say you can't use this service.
This appears to be a GE security product that FHTM markets, by going through an authorized dealer, greatalarms.com. So you have 2 middle men, (FHTM and greatalarms.com) As of 2.26.10, the FHTM's site had free* sign up options, but the asterisk beside the FREE does not have an explanation. It should include this: * "Standard monitoring agreement required with approved credit. ", FHTM is misleading if they don't show the disclaimer. It is not free.
This is a product only available to Fortune Representatives, and so is not a way for FHTM reps to make money.
This is a Quick Website Creation Company that welcomes Multi Level Marketing Companies as affiliates. If you want to set up a simple website, I suggest you use a reputable company like wordpress.com, who can have you online on your own domain name for $15 a year
Anyone can become an affiliate of Dish Network, and be paid $150 per installation, you can become an affiliate at vmc satelliet on the net.. Compare that to 8 cents through FHTM, and the best choice is clear.
The Wireless Shop
One of the most talked about services at FHTM is the wireless shop. This is a website that FHTM uses Simplexity to run. You can buy cell phones and cell phone contracts through this service. Simplexity uses linkshare.com to purchase these services. By going through FHTM Wireless Shop you appear to be using three middlemen (FHTM, Simplexity, and Linkshare). Linkshare can be joined for free by going to simplexity's site which can be joined for free by going to Simplexity or Link Share and clicking on "Join Our Wireless Program Today" and create a free affiliate account, and start earning the full commission instead of the .05 cents FHTM gives back to their representatives. With this free account, you can earn affiliate money from many companies, So FHTM does not really have a direct relationship with Verizon and AT&T, contrary to the impression given by the company.
As I pointed out above the wireless shop is an affiliate membership which pays from $35 to $51 dollars per contract sold. FHTM is then taking this breaking it down into 24 equal payment and calling it a 1/4 percent. When in fact they are only paying out .05 cents of what you earned, which totals $1.20 which leaves $49.80 in FHTM’s pocket. Look at their schedule of payments in their Policies and Procedures pamphlet page 46.
Looking at the attached chart you can see the two columns highlighted are “The Wireless Shop” and “Dish Network” both of which the dolar amount listed is the payout per contract, NOT 1/4 percent! So they are paying 5 cents for your wireless and 8 cents for Dish Network. Would it surprise you to know that Dish network pays $150 per contract.
By level 8; FHTM makes $2, 952, 00 paying out $984, 100 In so called residuals they make approximately $1, 238, 489 don’t forget to take into account annual dues which total $1, 312, 200 and $2, 952, 000 annually and that’s for the use of their website of which you make absolutely nothing. How many times over (since 2001) has FHTM made it to level 8?
No legally this is not against the law but no matter how you look at it, THIS IS A SCAM!
Whistleblower fights back after frivolous suit by FHTM for exposing their ILLEGAL Pyramid Scheme
Lexington, Kentucky - June 16, 2010 - In light of all of the recent investments scams including the infamous Bernie Maddoff, whistleblowers and those with morals fear that the frauds they expose will result in unjust lawsuits filed against them by the companies they complain about. One such situation was that of the lawsuit filed by Fortune Hi-Tech Marketing against Fortune Social LLC and Joseph Isaacs in May 2010.
Joseph Isaacs and Fortune Social, LLC (collectively “Isaacs”) deny each and every claim brought by Fortune Hi-Tech Marketing, Inc. (“FHTM”) in a filing made today with the American Arbitration Association, who is overseeing this case. In addition, Isaacs fights back and asserts his own counterclaim for relief against FHTM, Paul C. Orberson (individually and in his capacity as President of FHTM), Jeff Orberson (individually and in his capacity as Chief Operating Officer of FHTM), and Thomas A. Mills (individually and in his capacity as Vice-President and Chief Executive Officer of FHTM) (collectively “FHTM”). Isaacs counterclaim claim Breach of Fiduciary Duty, Breach of Contract, Common Law Fraud, Unfair & Deceptive Business Practices, Failure to Register Securities, Fraudulent Practices Regarding the Sale of Securities, Civil Racketeering Conspiracy (violation of the Federal RICO statutes) and Defamation.
FHTM operates an unlawful product-based endless recruiting pyramid scheme that relies on untrue and misleading representations and unlawful, unfair, and fraudulent business practices. While FHTM purports to be in the business of selling name-brand services like wireless, satellite television, home security, vitamins, nutritional products and travel services, its true business is using consumers to generate fee income for representing non-existent partnerships, major sports figures, and prominent businessmen. To entice consumers to participate, FHTM makes untrue or misleading claims regarding its relationship with Fortune 100 companies like Verizon Wireless, GE Security, Dish Networks and Travelocity to create the illusion that consumers can become millionaires in three to five years.
FHTM’s growth exploded when it began to lure consumers disenchanted with traditional jobs and the recession that began in 2007 to inspirational and high-pressure business opportunity seminars touting an innovative business model that promises huge financial rewards through multi-level network marketing. FHTM erring presenters claim to have proprietary tools, special relationships, and other support that allow consumers to grow their own business by partnering with FHTM’s “companies”.
It would not be long before Isaacs (and the world) made several troubling discoveries about FHTM’s business plan and practices that doused his enthusiasm: (1) Paul Orberson had not made any special arrangements with the companies mentioned at the business opportunity/presentation seminar or in the company produced videos; (2) the only way to earn a significant income and be promoted up the ranks was to recruit additional IRs; (3) FHTM had not received regulatory approval for its pyramiding scheme in every state; (4) only a handful of IRs had earned anywhere near the residuals projected; (5) the prominent businessmen, politicians, former attorney generals and sports figures to whom FHTM constantly alluded were in fact IRs actively promoting their own FHTM business; and (6) a growing number of state attorneys general had already begun investigating FHTM in response to numerous complaints.
It turns out that FHTM’s ‘innovative’ marketing plan is nothing more than a face lift to an age-old scheme. According to the FTC’s Consumer Protection Bureau:
Pyramid schemes now come in so many forms that they may be difficult to recognize immediately. However, they all share one overriding characteristic. They promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure. There are two tell-tale signs that a product is simply being used to disguise a pyramid scheme: inventory loading and a lack of retail sales. Inventory loading occurs when a company's incentive program forces recruits to buy more products than they could ever sell, often at inflated prices. If this occurs throughout the company's distribution system, the people at the top of the pyramid reap substantial profits, even though little or no product moves to market. The people at the bottom make excessive payments for inventory that simply accumulates in their basements. A lack of retail sales is also a red flag that a pyramid exists. Many pyramid schemes will claim that their product is selling like hot cakes. However, on closer examination, the sales occur only between people inside the pyramid structure or to new recruits joining the structure, not to consumers out in the general public.
Nonetheless, the truth is catching up with FHTM. On December 10, 2009, The North Dakota Attorney General's Office filed a Cease and Desist Order for violation of the Consumer Fraud Law, the Transient Merchant Law, the Home Solicitation Sales Law, and the North Dakota Pyramid Schemes Act. On January 19, 2010, FHTM entered into a Assurance of Voluntary Compliance with the North Dakota Attorney General's Office. On March 16, 2010, the Montana State Auditor's Office filed a Temporary Cease and Desist Order against FHTM, Paul C. Orberson, Thomas A. Mills, and Dianne Graber (a Montana IR). According to the Montana State Auditor's Office, FHTM has engaged in acts or practices constituting violations of the Securities Act of Montana, Montana Code ANN.30-10-101 et seq. On April 22, 2010, FHTM agreed to pay nearly $1 million and to change its business practices to resolve the charge that it is operating a pyramid promotional scheme.
With each passing day, more states are jumping on FHTM’s bandwagon. The alarming rise in consumer complaints and governmental sanctions has prompted the Better Business Bureau of Central and Eastern Kentucky to downgrade FHTM’s rating from “B-” to “F”. At the same time, a proliferation of online bulletin boards and blogs, such as http://www.complaintsboard.com
and www.scams.com criticize FHTM’s pyramid scheme confirms that Isaacs’ experience is not unique. Will those operations be the next target of Fortune’s high price legal team?
If you go to the BBB Web site, you will also see how many conflicts FHTM has been able to resolve. FHTM reps clearly make an effort to resolve differences. There are alot more complaints on this Web site about FHTM than listed in the BBB web site because the BBB only takes legit claims. The following information came from the BBB Web site:
Selling Practices (19 complaints)
3 Delayed Resolution
5 Company made every reasonable effort to resolve
1 The parties could not provide sufficient information to support their positions nor agreeable to make reasonable efforts toward resolving the issue of the dispute
Advertising Issues (3 complaints)
2 Company made every reasonable effort to resolve
Service Issues (4 complaints)
2 Company made every reasonable effort to resolve
Credit or Billing Disputes (4 complaints)
Delivery Issues (1 complaints)
Refund Practices (17 complaints)
1 Delayed Resolution
1 Company made every reasonable effort to resolve
Product Quality (1 complaints)
Contract Disputes (2 complaints)
1 Company made every reasonable effort to resolve
Guarantee or Warranty Issues (2 complaints)
Don't fabricate crap like this the BBB does not have this on their web site you are making this up! FHTM is a scam!
Fortune caught in lie that they were debt free!
Everyone has been lied tooo! FHTM used the entire companies assets as collateral and put all reps into a bad position to be the perpetuators of the lie!
to see all of the court documents
FHTM makes it onto the FTC list of rip-offs. Looks like this company is about to implode
FTC Steps Up Efforts Against Scams That Target Financially-Strapped Consumers
More Than 90 Actions Brought By Commission and Its Law Enforcement Partners
The Federal Trade Commission today stepped up its ongoing campaign against scammers who falsely promise guaranteed jobs and opportunities to “be your own boss” to consumers who are struggling with unemployment and diminished incomes as a consequence of the economic downturn.
“Operation Empty Promises, ” a multi-agency law enforcement initiative today announced more than 90 enforcement actions, including three new FTC cases and developments in seven other matters, 48 criminal actions by the Department of Justice (many of which involved the assistance of the U.S. Postal Inspection Service), seven additional civil actions by the Postal Inspection Service, and 28 actions by state law enforcement agencies in Alaska, California, Indiana, Kansas, Maryland, Montana, New Jersey, North Carolina, Oregon, Washington, and the District of Columbia.
In a press conference at the FTC, David Vladeck, Director of the FTC’s Bureau of Consumer Protection, was joined by Tony West, Assistant Attorney General for the Civil Division of the Department of Justice; Greg Campbell, Deputy Chief Inspector of the U.S. Postal Inspection Service; North Carolina Attorney General Roy Cooper; and a California consumer who had bought into a program to start his own Internet business.
“The victims of these frauds are our neighbors – people who are trying to make an honest living, ” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “Under pressure to make ends meet, they risked their limited financial resources in response to the promise of a job, an income – a chance at a profitable home-based business. But these turned out to be empty promises – and the people who counted on them ended up with high levels of frustration and even higher levels of debt.”
The FTC has updated consumer education materials to help consumers avoid falling victim to these scams. Screen shots from the websites of some of the operators charged in this law enforcement sweep, as well as video footage of FTC Consumer Protection Director Vladeck and FTC attorney Daniel Hanks, are also available at ftc.gov/bizopps or youtube.com/FTCvideos.
www.fhtmclassaction.info for all of the details
Courtesy of David at Corporate Frauds watch:
The owners of this scam continue to take advantage of 1000’s of new victims weekly by convincing them into joining as they reap the benefits of a purported $500Million dollar nationwide criminal enterprise. 2010 started off with the Attorney General of North Dakota issuing a cease and desist for operating a business in that state without the proper licensing. That was followed by the Montana Securities Commissioner, Monica Lindeen also shutting them down, but this time, it was for operating as an illegal endless recruiting pyramid scheme.
The company was forced to change their business practices (in an attempt to make their business appear to be legal. Can you do that if you were already legal or is that an oxymoron), charge only $75.00 entrance fee (from the then current $299.00) to new Montanans who wished to explore the American Dream through FHTM and refund almost $1, 000, 000 to the good folks of that state who made no money and wanted a refund of monies paid.
FHTM was also forced to produce (one time only) an income disclosure statement (“IDS”) which according to industry expert, Robert FitzPatrick who is the President of Pyramid Scheme Alert, is so skewed that it isn’t worth the paper it is written on because the figures do not include the almost 30% who did not make even a dime in this business opportunity. Looking at the numbers produced by FHTM itself, over 90% fail.
In talking to FHTM reps, they insist on telling the story that every business is a Pyramid and so is the government. What they fail to differentiate is what is a legal and an illegal pyramid scheme. They go on to explain that 95% of all businesses in America fail and the team they have an opportunity to build in FHTM will produce a lifetime of residual income. FHTM claims that building the Fortune opportunity is a willable, trustable and saleable enterprise, but that is false. They have coined the phrase, “Loyal Customer”. In fact, the reality is that when reps drop out of this business (and 90% or better will do so within 6 months) all of those “loyal customers” are gone along with the residual income. Most sales of products and services are to the IR’s that have paid for the right to be part of this business opportunity.
Existing IR’s saw multiple compensation changes that were sold to them as a message from God and as “another pay raise” yet it was merely a way to screw more at the bottom of this pyramid and enrich those that were hand-picked by the self proclaimed King of MLM, Paul Orberson.
In fact there were more than a half dozen compensation changes that occurred in 2010 which somehow parallels the ½ dozen state Attorneys General (IL, TX, SC, NC, CA, KY, ND and MT) that began active investigations into this alleged pyramid scheme. FHTM had an “F” rating with the KY BBB until November/December 2010, when top leaders in the organization posted bulletins asking for their IR’s to report FHTM as a model company which assisted in raising the current rating to a “C”. What a sham that system is. Self rating goes against the grain of having the BBB in the first place.
Like the bosses, and reality-inverting propagandists, of the 'Amway' mob, the bosses, and reality-inverting propagandists, of the 'Fortune Hi-Tech Marketing' mob have steadfastly pretended that: Their direct selling company is perfectly lawful and is associated with all manner of trusted household-names in the USA. They cannot be held responsible if some rogue 'Independent FHTM Business Owners' do not obey the company's own rules which oblige them regularly to sell significant quantities of good-value products, and services, to the public for a profit.
At the same time, numerous dissidents, testify that the 'FHTM' plan for financial freedom is, in point of fact, a dissimulated closed-market swindle, in which unlawful internal payments (in exchange for effectively-unsalable wampum) have been arbitrarily defined as lawful external 'sales.' In this way, tens of thousands of 'FHTM' adherents continue to be deceived into handing over regular cash-payments to a counterfeit 'direct selling company' controlled by a little gang of sanctimonious racketeers, on the pretext that anyone can retire from work by being their own loyal 'FHTM ' customer and by recruiting their friends and relations to be their own loyal customers, etc. ad infinitum.
Fortune Hi-Tech has lied about everything in their business presentations since day one including statements about being debt-free, its D&B rating and its business relationships/partnerships with real fortune 100 companies to cover up their illegal ways and to produce the aura that they are some way legal because of these affiliations (Legal by Association). Since 2010 major companies like GE, DuPont, AT&T, Verizon Wireless, Travelocity, Home Depot and Peter Lamas have either run from these relationships or claimed they never existed in the first place including the their demand that FHTM discontinue the unauthorized use of their coveted logos, trademarks and names in presentations and printed materials. Fortune thought it was ok to use the logos of major international enterprises to enhance their own image in order to appear as if they were legal when in fact their entire enterprise is built on misrepresentations. They attempted to tie themselves to Fortune Magazine until ex-representatives revealed the truth, henceforth the recent (end of 2010) disclaimer on the bottom of the FHTM corporate website that now states “FHTM is not sponsored by, endorsed by, affiliated with, or otherwise associated with, Time Inc. or Fortune Magazine. For years this company has used the names of famous people to provide evidence of legitimacy, all which were lies http://www.youtube.com/watch?v=DyGaQfDP--c&feature=related
The nightmare for representatives deepened as FHTM was about to hold its national convention in Lexington, Kentucky in September 2010. On the eve of the convention USA Today appeared there to interview IR’s and attend its presentations. It was the same day that Fortune, its officers and 40 top distributors were served with its first of two class action lawsuits claiming mail and wire fraud, RICO violations, pyramid scheme and money laundering.
The FHTM outside legal team got an early Christmas present with the filing of the 2nd class-action lawsuit in the Southern District of California on December 22, 2010. This lawsuit mirrors, in many ways, the one originally filed in Kentucky in early September with the addition of multiple violations of California consumer protection laws. The California judge recently sent that case to combine with the Kentucky one.
FHTM has only succeeded in recent years because of the recession and the fact that its top reps in 2004 brought their teams from the defunct Excel Communications (Another MLM that operated in the gray area of the law until it went bankrupt). They were hand-picked by Paul Orberson to be the top reps in FHTM, paid to bring their teams, given large cash bonuses and a back door deal which included a piece of the pie (equity). They are referred to as the “Fab 6” by Paul Orberson. This enterprise will always remain private to hide these side deals and the money made by its founders.
How can representatives in 2011 continue to tout this as the best marketing plan and business opportunity ever when the founders have been caught in so many lies, changed the compensation plan to further enrich those at the top, have such a huge 95%+ failure rate, are being sued in Federal court by ex-reps as well as ex-vendors and have multiple states investigating their illegal ways?
They buy magazine covers, give to charity and self published their own autobiography in an effort to prove legitimacy. Some reps even claim that they are approved to do business in all 50 states. That is far from the truth as no State ever approves or disapproves the business plan of any business.
In 2010 Fortune made a decision to solicit the Latino markets throughout the USA and recruit by promising green cards. They don’t care whether the Latino immigrants are legal or not. Anyone can join FHTM if they pay the fees. If you are an illegal immigrant, an unemployed truck driver or just a fool – this business is for you. If you don’t mind operating an enterprise that never can be willed, sold or profitable - this business is for you. If you don’t mind screwing your friends and family to get into a business with you that you know they will lose money in – this business is for you. If you don’t mind buying or selling overpriced goods and services – this business is for you. If you have the ability to tell folks this is your destiny per God’s word – this business is for you. If you are a great liar – this business is for you.
Most of the revenues created by FHTM reps are made by recruiting others into this Ponzi scheme and not from the residual income as they claim. 80% or better sales are to the reps themselves so they can qualify their business in order to get paid bonuses for bringing in others. This violates the FTC rules and the laws in almost 50 states.
In 2011 FHTM was added to the joint investigation by the FTC and individual state AG’s “Operation Empty Promises”. It was recently discovered that many representatives at the Executive and National level are pocking huge sums of cash from presentations and meeting and skirting their obligations to the IRS. This is not only promoted by but is also endorsed by Paul Orberson – the self proclaimed highest paid network marketer of all times.