Saturday, January 26, 2019

BREAKING: Washington State Attorney General Sues Lularoe, Allege "Pyramid Scheme"

On Friday, 25-JAN-2019, the Washington attorney general filed a lawsuit against LulaRoe, the clothing marketer, for operating as a pyramid scheme that defrauded the "fashion consultants" it employs.

Without going into too much detail, LuLaRoe is best known for selling leggings (and other stuff) on a lottery system. Each consultant is expected to buy $2000 to $9000 worth of stuff upon signing up. Yet they will not know what they will receive.  Since 2014, over 3500 Washington residents signed up, but less than 2000 remain active today. Between 2014 and 2017, LuLaRoe consultants receive bonuses based on how much inventory they and their recruits have PURCHASED (not sold) from the company.  It is obvious that the more the consultants recruited (and each recruit bought THOUSANDS of dollars of stuff), the more bonuses were paid out. The compensation plan was changed in 2017 to be only based on sales of the consultant alone.

There are PLENTY of other problems with the company's practices. The leggings have to be unpacked to be show to potential customers (including for eBay), yet LuLaRoe have refused to provide refund if the package was opened. There were frequent charges of "low quality". Multiple designers have charged LulaRoe of stealing their designs and patterns without their permission. After multiple complaints, LLR seems to have moved to taking vector art and remixing them, but again, many seems to have been used without the proper license.

MLMSkeptic had penned a commentary "Is LuLaRoe eating its own tail?" in 2017, when LuLaRoe attempted to serve a "discovery" on a blog critic who goes by MommyGyver, claiming she had disclosed company secrets.

Sunday, January 20, 2019

How One Woman Scammed a Dozen People out of $5.4 Million

Woman claimed to have purchased software from Europe that can let doctors to remotely examine and talk with patients, and need more money to pay taxes and fees.  But it was all a ruse. In the end she got $5.4 million from about 50 people and spent it mostly on herself and her friends, only 300K actually went to the software, and it's not even purchased.

But what's really disturbing is how she exploited her friends and victims, making them believe they just need to lie a little, she'll get the money soon. Even more, she convinced two ex-air-marshals into pretending to be still active to intimidate people into coughing up more money.

What's even more disturbing is she apparently believes she will be offered probation because of her education and career... as she somehow has degrees in electrical engineering and law...

Unfortunately, this time, the law has documented all of her lies... Like her claim that a fictitious billionaire will "lend" her 74 million, and the time she claimed to be in negotiation for the "loan", she's actually in Jamaica, celebrating one of her girlfriend's birthday. And she had been to Bora Bora and other ritz-y resorts around the world, all while claiming medical emergencies and tough negotiations to her victims, trying to squeeze even more money... Once, the victims even sent her the social security check...

And it's not just the money, but the devastation it left behind on the victims. Most of the victims had invested their life savings, and even mortgaged their homes and businesses to put in even more money for a "sure bet". Now they have lost everything, all based on lies, lies, and more lies.

Meet Keisha L Williams, who will be spending the next 15 and a half years in Federal prison. And this is her story.