A consumer organization is asking Congress to investigate the
actions of the FTC, charging that the FTC, like the SEC, has ignored
and protected pyramid and Ponzi schemes, causing as much as $10 billion
per year in consumer losses. The losses over time are far greater than
those suffered by investors in Bernard Madoff's Wall Street Ponzi.
Pyramid Scheme Alert, a non-profit consumer group founded in 2000, has released a 21-page whistle-blower's report that details a dramatic shift in FTC policy that began in 2001 and has left the public exposed to deceptive "business opportunity" frauds. Written by the group's president and investment expert Robert L. FitzPatrick, the report says most of the schemes are disguised as "multi-level marketing" (MLM) companies or as online "cash gifting" schemes. The report is entitled, "The Main Street Bubble: A Whistle Blower's Guide to Business Opportunity Fraud; How the FTC has Ignored and Now Protects It."
Excerpted from PRWeb.com.
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