meisterstuck montblanc pen Charges Executives in Pyramid Scheme
International Heritage Inc., a North Carolina company that describes itself as a direct sales organization, and three of its founders were charged Monday with luring 155,000 investors into a giant pyramid scheme that raised $150 million.
The Securities and Exchange Commission said the company recruited people to buy interests in ”business centers,” which generally required investors to acquire a $500 product and $100 sales kit from the company. said. It lost $12.8 million last year on sales of about $107 million, according to a company statement yesterday.
On March 6, International Heritage was acquired by Kara International, a public ”blank check” company that had been looking to buy a business venture.
In a message from Mr. Van Etten on the company’s Internet home page, he praised the direct sales industry as ”the greatest opportunity that I have ever seen.”
”If you put out a dollar, you should get 10 back in return,” he said. ”I believe in that concept, so we built a company around that concept by empowering the average independent sales representative to make money on a weekly and monthly basis.”