Lindeen shuts down alleged pyramid scheme by ACN in Montana

Posted: Aug 3, 2010 6:00 PM

HELENA - Monica Lindeen, the Montana Commissioner of Securities & Insurance, has issued a cease and desist order and notice of proposed agency action against ACN, Inc., of North Carolina, for allegedly operating a pyramid scheme.

Lindeen charges that ACN enticed hundreds of Montanan residents to sign up with the company through deceptive claims that members could earn large sums of money through the recruitment of new participants and through the sale of phone services.

In announcing the order, Lindeen said, "Pyramid schemes are immensely profitable to a few individuals at the top and a complete loss for almost everyone else. The actions against ACN and its officers seek to shut down the company's alleged unlawful operation before more people lose their hard-earned money."

According to Lindeen, members who enroll with ACN earn compensation for each new person they enlist. The company attracts new members by claiming that "the bottom line in building your ACN business is that you are acquiring customers and sponsoring 'customer getters' in order to build a residual income for yourself."

The actions also allege that the only way an ACN participant can earn compensation is the recruitment of new participants to sell a phone service that is largely not available for use in Montana.

The Commissioner's Office found an overwhelming portion of revenues earned by ACN representatives was derived from participants who must personally buy a telephone service that allegedly does not work in many parts of Montana in order to become managers or recruit new participants into the program.

According to Lindeen's office, in 2008, ACN recruited 91 Montana participants who paid approximately $61,741 to be a part of the program. Only two of the participants made any money, with one participant making $696 and the other making $700. In 2009, ACN recruited over 300 Montana participants who paid approximately $234,813 to be a part of the program. ACN's records indicate a mere $896.86 was paid out in compensation to these participants. ACN's records indicate participants are located throughout Montana.

Individuals and companies promoting a pyramid promotional scheme in Montana can be fined as much as $10,000 per violation.

People who believe they have been victimized by ACN should contact the Securities Division of the Office of the Commissioner of Securities and Insurance at 1-800- 332-6148.

The ACN website states:

ACN is the largest direct selling telecommunications company in the world, providing services people need and use every day like local and long distance calling, Internet, wireless, home security and satellite TV - as well as the very latest in technology and cutting edge services of the future with Digital Phone Service and revolutionary video phone. ACN's Video Phone provides consumers with the unique opportunity to communicate face-to-face right from the comfort of home.

For nearly two decades, ACN has provided individuals with a home-based business opportunity - their own company within the company - marketing these outstanding products. The result is impressive services with more value for the consumer, and for those who understand the importance of timing, an incredible business ownership opportunity with lucrative personal and financial rewards.

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