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Based on the FTC complaint alleging Success By Health (SBH) is a ‘Pyramid Scheme’, A federal judge in Arizona has temporarily shut down the MLM company. The court also froze the assets of the company’s top executives, including its founder, James “Jay” Dwight Noland, Jr.
In response to the FTC complaint, Success By Health MLM attorney David Eisenstein said the allegations are baseless and the company plans to contest this case vigorously.
The Federal Trade Commission complaint alleging that Success By Health MLM (SBH), which sells healthy instant coffee, tea, and dietary supplements, is operating a pyramid scheme to enrich the company’s top executives.
The scheme “bait entrepreneurial consumers into a financial abyss by telling them that they will attain ‘financial freedom,’ by enrolling as ‘Affiliates’ of SBH and recruiting other people to do the same.
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The scheme requires the company’s 5,000 affiliates to place a minimum monthly product order and attend the two-day training called “Millionaire Workshop” led by Noland that costs about $1,000 to attend.
According to the FTC complaint, SBH affiliates had spent more than $5.7 million, or roughly $1,100 per person, on products and training through June 2019. But affiliates earned about $1.03 million in commissions or about $200 per person.
Meanwhile, Success by Health executives earned about $1.3 million, the complaint says.
To read the full FTC Story, click here.
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