Last year, infamous “MLM Lawyer” Kevin Grimes was sued by the receiver in the Zeek Rewards Ponzi scheme case. The gist of the suit was that Grimes knew or should have known that Zeek Rewards “…was perpetrating an unlawful scheme which involved a pyramid scheme, an unregistered investment contract and/or a Ponzi scheme.” The lawsuit alleged that Kevin Grimes and his firm Grimes & Reese PLLC (that firm is now R&R Law Group, while Grimes has joined the scumbag MLM attorneys at Thompson & Burton) knew that ZeekRewards was perpetrating a Ponzi scheme and provided the company with a bogus “compliance program” meant to make the company look legitimate.
The case has been settled, and Grimes will pay $1.175 to the receiver. Via Patrick Pretty: Continue reading
MLM Lawyer Kevin Grimes
This may be old news to some of you, but I’m finally getting around to writing about it. In June 2014, the receiver in the Zeek Rewards Ponzi scheme case sued the infamous MLM lawyer Kevin Grimes (and his law firm) for legal malpractice, negligence and breach of fiduciary duty. The lawsuit initiated by receiver Kenneth Bell names Kevin Grimes and the law firm Grimes & Reese PLLC, and alleges damages of $100 million. (A separate lawsuit against Howard Kaplan also makes similar claims.)
The lawsuit alleges that Grimes knew or should have known that Zeek Rewards “…was perpetrating an unlawful scheme which involved a pyramid scheme, an unregistered investment contract and/or a Ponzi scheme.”
The Securities and Exchange Commission sued RVG Venture Group, LLC (dba ZeekRewards) in 2012, alleging that it was a $600 million Ponzi scheme (also called pyramid scheme). Of course, up until that point, participants in the multi-level marketing industry were claiming that ZeekRewards was a legitimate and legal MLM. (That’s what the lawyers said, anyway!) The company was forced into receivership later that year, with the receiver seizing assets to attempt to pay back victims of the scheme. Continue reading
Kevin Thompson hires himself out to multi-level marketing companies to give them legal counsel. Supposedly he knows his way around the legality of MLMs, just like my buddy Gerry Nehra supposedly does.
So I was perusing Kevin’s website and came across this interesting diatribe about what separates “legitimate” MLMs from illegal pyramid schemes. I’ve written a lot about Mary Kay Cosmetics, Usana, Herbalife, Prepaid Legal, and the like. And guess what? All of them seem to violate the most basic rule Kevin sets forth… to be legitimate you have to sell mostly to people not affiliate with the scheme, but these companies have distributors who purchase the bulk of the products! Continue reading
Another letter opposing the FTC’s Business Opportunity Rule was submitted by MLM attorney Gerry Nehra. His problem in this letter? The fact that there are many companies that would have to comply with the rule and the FTC cited the wrong number! Why would it matter if there are 150 or 1,500 companies that are multi-level marketing schemes? If they need to be regulated, they need to be regulated, no matter how many there are! Continue reading
I thought it might be some fun to do a little research on Gerald Nehra, the attorney for Shop To Earn, who likes to intimidate bloggers who write negative reviews of MLMs. I found this item from Nehra, in response to the FTC’s proposed Business Opportunity Rule.
The rule is unlikely to be enacted in any form that will do something to stop the abuses by multi-level marketing companies. Nonetheless, these comments are fun to read. Nehra’s biggest complaint in this note? The fact that it will take time to comply with the rules! Heavens, no! Continue reading
Blatant acts of consumerism are occurring all over the internet. Far and wide, bloggers are banding together to spread the word about multi-level marketing attorney Gerald Nehra threatening bloggers on behalf of his client, Shop To Earn.
It all started a few weeks ago when blogger Everyday Finance wrote a post about the ShopToEarn and ShopToEarth program. He highlighted both positives and negatives that he found with their MLM program. It wasn’t long before he got a cease and desist email from Gerry Nehra (former attorney for mlm giant Amway), threatening legal action if he didn’t take down his negative comments about the company. Continue reading
ShopToEarn is a multi-level marketing company recruiting new members who can receive a small percentage of cash back on their internet purchases. If they recruit enough new people into the scheme, who pay the $450 fee and do some shopping of their own, they can make a little more money.
I have a dim view of this program, and so does Everyday Finance. The blogger at Everyday Finance was threatened by MLM attorney Gerald Nehra about posting his opinions on the company. The blogger amended parts of his original article, making it very clear that he was citing personal opinions (both good and bad) about the program. I got my own cease and desist letter this week from Gerry Nehra and Shop To Earn. Continue reading
Earlier today I reported that I had been threatened by Gerald Nehra, attorney for multi-level marketing company ShopToEarn for writing about my opinions on the company here. I am not the first blogger that he and Shop To Earn have threatened, and the threats continue.
The blogger writing Everyday Finance has been threatened more than once by Gerry Nehra because he posted his personal review of Shop To Earn and the ShopToEarth program. He had some concerns about the program, the Shop To Earth products, how commissions are paid out, and the MLM structure. I quoted from his analysis here. He found some positives and negatives with the program.
More threats have been issued to this blogger, so he now has this posted on his blog: Continue reading
As expected, Gerald Nehra, the attorney for ShopToEarn sent me an email intended to bully me into not writing about Shop To Earn. Here’s his letter:
I represent ShopToEarn and advise them on direct selling legal matters.
You are on notice to CEASE & DESIST your disparaging and potential libelous references to ShopToEarn and the unapproved use of the ShopToEarn logo on your website.
The ShopToEarn program is legally and economically sound, and the company will take all steps necessary to protect its’ rights.
Attroney for ShopToEarn
And here is the response I sent him today: Continue reading