Showing posts with label Bermuda. Show all posts
Showing posts with label Bermuda. Show all posts

Friday, August 29, 2008

Bermuda Investigating YTB

Bermuda appears to be investigating but their laws have no teeth.  I wonder if this may have been a reason for the expansion into Bermuda in the first place?

From the Bermuda Sun, they know YTB is a pyramid, but the antiquated laws make it difficult to prosecute.

One legal source, who has links to the DPP said: "A file has been on the fraud unit's desk twice. We know they've looked at it, and continue to look at it, but it's a question of getting a prosecution. There's no doubt that this is a pyramid scheme, but the chances of getting a prosecution here are close to nil. In California, and elsewhere in the States, they tailor legislation for exactly this kind of situation. In Bermuda, our laws are more broad-ranging, so not much can be done."

And the Authorities appear to be cooperating with the Cal;ifornia Attorney General as well:
In a separate development, the Office of the Attorney General in California warned Bermudians not to get involved in YTB. A spokesman said: "This office does not undertake lawsuits lightly. Every action follows a thorough and complete investigation of the evidence. We hope that Bermudians will take note of what is happening here and will protect themselves from this kind of aggressive marketing."

Share/Save/Bookmark

Friday, August 8, 2008

Bermuda Takes An Interest

According to the Royal Gazette, Bermuda is interested following the charges as well. I know when YTB launched in Bermuda, they were questioned for being a pyramid scheme (here and here)  as well, but apparently their argument was persuasive enough to allow them to go forward and recruit 700 Bermudian citizens into the program.

A recognized authority on MLMs has told me that in the MLM business, international expansion can lead to federal inquiries. Foreign governments can see that the US is sending their "trash" to operate in their country, and now the Stste departments begin to talk. Before long, State asks the FTC to find out what is going on and then the FTC brings out the hammer.

So Bermuda and Canada might be worth watching in the coming months.

Share/Save/Bookmark