Fortune Hi-Tech Marketing, a pyramid scheme that enrolled over 350,000 consumers across the United States, Puerto Rico, and Canada, faced a judgment of more than $169 million following its 2013 shutdown by the Federal Trade Commission. Kentucky Attorney General Jack Conway described FHTM as "one of the most prolific pyramid schemes operating in North America."
The company, launched in 2001, claimed to have 160,000 independent representatives. These individuals supposedly sold products and services such as Dish Network subscriptions, vitamins, cosmetics, and security systems. The FTC later found FHTM deceived consumers by promising significant income.
Participants paid substantial start-up costs and monthly fees to maintain their positions. Any income they earned resulted primarily from recruiting new consumers to become FHTM representatives, not from selling products or services.
A court-appointed receiver conducted its own investigation. It determined FHTM's main business was recruiting new members. More than 81 percent of payments to participants were based on recruitment.
Most of FHTM's revenue stemmed from its affiliates. This contrasts with revenue from actual retail customers external to the income opportunity. Products and services were attached to the fees affiliates paid, but this was not enough to justify the business model.
The case concluded approximately eighteen months after the FTC filed charges. Fortune Hi-Tech Marketing's operators are now banned from multi-level marketing under a settlement with the FTC and the states of Illinois, Kentucky, and North Carolina.
The settlement requires the surrender of at least $7.75 million in assets. These funds will be returned to consumers. This amount is part of the over $169 million judgment. The full judgment becomes due immediately if the defendants misrepresent their financial condition. This includes assets from the estate of deceased defendant Paul C. Orberson.