Vemma, Boreyko & Alkazins propose settlement with FTC
It’s increasingly looking like Vemma will not front court to prove they aren’t a pyramid scheme, as alleged by the FTC last year.
On September 6th a joint motion to stay proceedings was filed, requesting 60 days for the FTC to consider the proposed settlement agreements.
Specifics of the settlement agreements are at this time not known. The joint filing only states that Vemma, BK Boreko and Tom and Bethany Alkazin have signed a proposed settlement containing a permanent injunction and monetary judgement.
Whereas Vemma and Boreyko’s proposed settlement might appear out of the blue for those who bought into their marketing, the reality behind the decision to settle is pretty solid.
Upon being ordered to stop paying recruitment commissions and operate as a pyramid scheme, here’s what happened to Vemma’s business over the past year:
BK Boreyko has two options at this point. Continue to fund the legal battle against the FTC and eventually lose in court anyway, or settle now, lose but save some money.
Both scenarios will see Boreyko cop monetary fines so he’s screwed either way in that regard. And Vemma as it was known is toast.
The failure of the business post-FTC lawsuit has conclusively proved Vemma is not viable as a legitimate retailer.
Tom and Bethany Alkazin cannot defend the FTC action if Vemma and Boreyko settle, so they’ve decided to cut their losses too.
The joint motion was granted on September 7th, giving the FTC 60 days to review the submitted settlement proposal and take a vote on it.
In related news on September 9th, Judge Tuchi approved the Temporary Receivership’s Final Accounting filing. Vemma was also ordered to pay the Temporary Receiver $15,000 for supplementary legal costs.