FTC Adds New Charges, Additional Defendants in Case Against Alleged Pyramid Scheme

The Federal Trade Commission has added new charges and defendants to its ongoing case against the operators of multiple alleged pyramid schemes.

In a case first filed in January, the FTC alleged that Success By Health and its executives James “Jay” Dwight Noland, Jr., Lina Noland, Scott A. Harris, and Thomas G. Sacca were operating an “instant coffee” pyramid scheme that used false promises of wealth and income to entice thousands of consumers to join.

The amended complaint alleges that the defendants were operating an additional pyramid scheme known as VOZ Travel. According to the amended complaint, the defendants sold consumers VOZ Travel “memberships” for at least $1,000 each. In exchange, they allegedly promised consumers access to a discount travel booking platform and the ability to earn rewards for recruiting other consumers to buy memberships. The complaint alleges that the defendants told consumers that some VOZ Travel members would be “making $1.53 [million] per year.” 

In fact, the amended complaint alleges, the VOZ Travel booking platform was never launched and had no imminent launch date as of the time the FTC filed its case.

In addition to the VOZ Travel charges, the complaint adds two additional corporate defendants: Nevada-based Enhanced Capital Funding and Uruguay-based corporation Rinpark SA.

The Commission vote authorizing the staff to file the amended complaint was 3-0-2, with Commissioners Rebecca Kelly Slaughter and Christine S. Wilson recorded as not participating. The amended complaint was filed in the U.S. District Court for the District of Arizona.

NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.