Vemma Temporarily Shut Down Amid Pyramid Scheme Claims

By Kurt Orzeck (August 26, 2015, 9:45 PM EDT) -- An Arizona federal judge has granted the Federal Trade Commission's request to temporarily shut down Vemma Nutrition Co. after the agency alleged it made more than $400 million by recruiting college students for an illegal pyramid scheme, the agency said Wednesday.

U.S. District Judge John T. Tuchi granted the FTC's ex parte application for a temporary restraining order with an asset freeze, according to an Aug. 21 order that was previously sealed. A trial is pending, according to Wednesday's statement.

The FTC had filed a sealed complaint four days earlier, alleging that Vemma made more than $200 million annually in 2013...

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