Attorney General Issues Cease And Desist Against Fortune Hi-Tech Marketing

On December 10, 2009 the North Dakota Attorney General issued a cease and desist order against the network marketing company Fortune Hi-Tech Marketing.

It appears that the primary reason for issuing this order was the failure of Fortune Hi-Tech to purchase a transient merchant license.

As many states suffer budget shortfalls during this “depression” the states are looking for any method to shore up their bottom lines.

As you read the article written at KSJB, released by the North Dakota Attorney Generals Office, it seems one-sided. There could be a valid reason they did not purchase a license, but there is no mention of it.

Or is it, the North Dakota Attorney General is up for re-election in 2010? And Fortune Hi-Tech looks like an easy target and free publicity that goes along with it? That’s for you to decide…

It’s quite interesting, the North Dakota Attorney Generals reelection campaign website has a warning placed on it by Google for spyware and malware, “visit at your own risk!”

It would be interesting to hear from Fortune Hi-Tech members the other side of the story… So we will have a balanced approach on the story that is not being told!

9 comments… add one
  • yvonne day Dec 15, 2009 @ 9:01

    The truth is that FHTM was given every chance to file for this license and they did not follow the rules. Every business has to do this, it is not something new or only for Network Marketing companies. Funny how all of the other network marketing companies out there have filed theres! This is not the only things FHTM has to worry about now.

    A company is only as good as it people and they have people that are executives that are committing fraud by signing peoples signatures stating that they were trained so they may get paid. These same people are also stealing people and doing many other things that have turned hundreds off to the opportunity. FHTM has been made aware of this and has chosen to do nothing because these people have developed a relationship to Paul and the team. Instead of doing what is right they are doing what is profitable to them.

    I am not saying the company is a scam, but when you allow people in the field to commit federal fraud then things will begin to come down around you.

    North Dakota will be the first of many states to file charges. I am affraid since this info has be sent out to all of the Attorney Generals and BBB in the country, that FHTM will suffer huge lossess of people and the hundreds of thousands of supporters that helped him build this business will be left out in the cold.

    They are lawsuits pending in Texas against some sponsors and with that info that will come out regarding how FHTM knowingly accepted traning papers that were forged by them will bring up many other federal laws that have been broken.

    Before all of this came out Paul was asked to meet with the people who have suffered by the hands of these sponsors and witnesses who will testify as to if they had been the ones who signed the papers and they were turned down! The were told that they had investigated this and that they were choosing to do nothing. Yet not ONE person who was listed as a witness or as a victim was ever contacted. MMMM…… so what is happening to FHTM is what we call …..Karma

  • Yvonne Day Dec 28, 2009 @ 16:01

    Dear Glenn,

    The items of concern are not assumtions. We do have documented proof and it has been turned over to the authorities. Forgery is a serious crime. Also stealing someones income is wrong in any business. If we are to be the best then you need to have the best which means cutting those out who do wrong by the company and its people.

    Who are we to question a states Attorney General? They did not do this without everything being handled properly. FHTM has problems that need to be addressed and now that the public has been made aware of some of these problems they can make an informed decision if they want to work with them.

    But Networking is hard enough as it is and people will see this and run away from them with all of this hanging over there heads. Truth is none of this would be happening if they would have taken care of business and stopped the Fraud that was occuring in the field.

    I pray that they do the right thing and take care of this and return the public trust that they lost in this. I dont want to see people get hurt any more than they already have.

  • Mark Skovron Jan 7, 2010 @ 19:30

    Glenn:

    Thanks for reporting on this valuable information about FHTM.

    The failure to aquire the proper license, will only be as

    “big an issue” as the AG decides to make of it.

    The more serious issue, is that now that pandora’s box is opened, the rest of the complaint reads:

    “The Consumer Protection Division is reviewing Fortune Hi-Tech’s activities and it appears there also may be violations of the consumer fraud and home solicitation sales laws. “I’m concerned about this assortment of violations,” said Stenehjem. Stenehjem has requested information about the extent of the company’s business transactions in North Dakota including dates of transactions, customers, and payments received.

    In addition to these violations, Stenehjem asked the Consumer Protection Division to review whether this company is engaged in any violations of North Dakota’s pyramid law. North Dakota law prohibits promotional pyramid schemes in which the participant pays for the opportunity to receive income primarily from the recruitment of other participants rather than the sale of goods or services.”

    It would seem, that the ND AG is now creating, or posturing for the more serious charges carrying much more damaging consequences.

    The bottom line is this: Network Marketing is misunderstood at best by most AG’s (all due respect).

    If you’re going to survive in our industry, you need to be associated with a company that runs on the squeaky-clean side of things, and stay out of the way of fast moving objects

    (Regulators).

    I’m not saying that justice doesn’t get done, but several companies have been shut down over the years for the wrong reasons, and still others, continue to operate that blatantly create a bad name for all of us.

    I’m a 20+ year veteran of the industry, and a multi-million dollar earner. I love our industry for all it continues to mean for so many, especially in today’s economy.

    I was asked years ago, by a prospect, after I presented my program to him, “OK, but what are the short cuts?”

    After thinking for a moment, I smiled and replied,

    “Do it RIGHT the first time.”

    We must all share the burden together of being a shining example of what network marketing can be, when done professionally as if the whole industry’s future rests on each of our actions.

    Because it does!

    Gratefully,

    Mark Skovron

  • tom meleney Jan 13, 2010 @ 18:46

    PER Mark Dickey ESM Florida…… the Attorney General that is investigating this complaint said: There was a complaint that was filed that misrepresented how FHTM operates. She told me that ND was not saying that FHTM is a bad business, it is just the fact based according to the complaint and the way it was filed, we may not be properly licens…ed in ND. She also stated that FHTM was doing all they could to provide the necesaary documents and was working very closely to getting this issue resolved.

  • Clyde Snider Jan 20, 2010 @ 18:45

    This has all been resolved.

    To read about it go to:

    http://www.fhtm.net/news.aspx

  • Glenn Dec 15, 2009 @ 13:03

    Hi Yvonne,

    It does appear that you have major grievances against FHTM. Yet, in some of you statements you are indicating items of concern that appear to be assumptions without documented proof.

    The issues of cross-recruiting or stealing people occurs in every industry. It does not happen just within network marketing.

    Every year we witness A.G’s going after one company or another. It is another notch in their belt as they advance their political career, nothing wrong with that.

    And some companies do need to be shutdown, I’m not sure FTHM does.

  • Glenn Jan 9, 2010 @ 16:06

    Hi Mark,

    As we all know who watch these suits come forward each year most end up going now where. Often even when the companies are at fault “Not to say the FHTM is.”

    And, you’re quite right “Do it right the first time” as there are no shortcuts on the road to success. Yet, many would prefer to trade short term gains vs long term success.

  • Glenn Jan 13, 2010 @ 19:16

    Hi Tom,

    Thanks for updating the situation here. I’m sure many people are very concerned over this issue.

  • Glenn Jan 20, 2010 @ 19:27

    Hi Clyde,

    Thanks for the update and the link to the resolution. Although it still does not say anything about the license that they originally went after FHTM for.

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