CFTC-PR-9015-24 (12-10-24) (CFTC-PR-2412) CFTC Charges Washington State Pastor with Fraud, Misappropriation in Multilevel Marketing Scheme Targeting Hispanic Americans Excerpt: December 10, 2024 – WASHINGTON, D.C. — The Commodity Futures Trading Commission today announced a civil enforcement action in the U.S. District Court for the Eastern District of Washington against Francier Obando Pinillo, doing business as Solanofi, Solano Partners Ltd., and Solano […]
Category: Multilevel Marketing
Multilevel Marketing (MLM) is a business model where individuals sell products or services directly to consumers while also recruiting others to join the sales force, creating a hierarchical structure. Participants earn income through commissions on their own sales and bonuses from the sales made by their recruits. However, fraud can manifest in MLMs when the focus shifts from selling legitimate products to recruiting new members, resembling a pyramid scheme. In such cases, the business may require high upfront costs for inventory or training, and the promised earnings often rely more on recruitment than actual sales, leading many participants to incur significant financial losses. This deceptive practice can exploit the dreams of entrepreneurship, leaving individuals disillusioned and financially strained.