The Federal Trade Commission (FTC) is seeking to introduce new evidence against Tom Alkazin, alleging his involvement with Xango, a multi-level marketing company. This action stems from Alkazin’s prior association with Vemma, which the FTC previously declared an illegal pyramid scheme. The commission argues Xango’s marketing program shares striking similarities with Vemma’s structure.
Alkazin joined Xango after the FTC’s 2015 shutdown of Vemma. An FTC filing from yesterday indicates the agency believes Alkazin would engage in deceptive income claims and pyramid marketing if not subject to a preliminary injunction. The FTC asserts that Alkazin’s activities with Xango demonstrate a pattern of behavior consistent with his previous involvement with Vemma.
The FTC’s motion asks for permission to submit evidence from Alkazin’s deposition on June 9th. During that deposition, Alkazin stated he was still an active Vemma affiliate and held no positions or ownership in any other multi-level marketing company. However, the FTC claims that after this deposition, counsel became aware of evidence showing Alkazin was promoting Xango.
This evidence includes a March 21st Facebook post promoting a “Thirty2Earning” conference call featuring Alkazin and individuals identified as Xango affiliates. Additionally, the FTC wants to present a January 12th, 2016 Xango live-stream that also featured Alkazin. These exhibits, according to the FTC, prove Alkazin was actively promoting Xango as of January 2016, continuing presentations with Xango affiliates through March 2016.
The FTC filing highlights that Xango, like Vemma, appears to rely heavily on affiliate autoship recruitment. Xango offers mangosteen products and promotes a business opportunity for “limitless potential” and a “lifestyle upgrade.” Its compensation plan requires distributors to maintain a personal “Automatic Delivery Program” order to qualify for certain bonuses. The "PowerStart" bonus, in particular, rewards distributors for recruiting new members.
Despite these parallels, the FTC filing explicitly states it draws no conclusions regarding the legality of Xango’s operations. The focus remains on Alkazin’s alleged deceptive practices and his promotion of a company with business characteristics similar to the Vemma pyramid scheme. The FTC is requesting the court allow the introduction of this new evidence to bolster their case against Alkazin.