FTC Recovers $17M From Pyramid Schemer In Fraud Suit

Law360, New York (March 14, 2012, 3:15 PM EDT) -- A California federal judge has ordered a digital music store to pay $17 million to the Federal Trade Commission for the company's deceptive pyramid scheme after the FTC prevailed in a rare bench trial on its fraud claims, the agency announced Wednesday.

U.S. District Judge George H. Wu entered final judgment in favor of the FTC on Feb. 29 after concluding through a bench trial that defendants BurnLounge Inc., its CEO Juan Alexander Arnold and two promoters violated Section 5 of the FTC Act by making...
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