We've never been a fan of the Burnlounge v.1.0 or 2.0 (aka the "pyramid scheme" versions in which "store owners" were bilked of hundreds of thousands of dollars that they've never recouped). We've been infiltrated by Kool-aid sippers repeatedly defending the illicit financial practices of the once-notorious (and we thought dismantled) pyramid scheme, several of whose "store owners" were the subject of successful lawsuits filed by the Federal Trade Commission. Their CEO resigned in disgrace. Their website has been down for months now and most people figured that was that. So what does Burnlounge have up ...
According to HypeBot, BurnLounge continues their downward spiral into historical irrelevance by eliminating their MLM "cash cow" -- the Mogul program. The Mogul package cost upwards of $500 when you bought into that program through your retailer; the bad news is that since they're abandoning the model, they will not be refunding anyone who purchased that package and have no plans to continue supporting it. So much for getting what you pay for, hm?
"All retailers who purchased the Exclusive or VIP product packages retain all of the products and services they received, but the Mogul program and Mogul ...
According to this story on HypeBot, Loudersoft's favorite online music retailer BurnLounge is, as predicted, changing its business model and moving away from its MLM past. This comes as no surprise as the company comes under fire and intense scrutiny from the Federal Trade Commission for allegedly operating a large-scale pyramid scheme. Under the new model, BurnLounge plans to do affiliate marketing not unlike other online retailers such as Amazon, giving users the tools to build their own online stores and offer commissions strictly based on sales.
What everyone is wondering: what happens to all that money ...
(Source: http://www.ftc.gov/opa/2007/06/burnlounge.shtm)
On June 6, 2007, the FTC filed a complaint in the U.S. District Court for the Central District of California against BurnLounge, Inc. The complaint charges that BurnLounge sold opportunities to operate on-line digital music stores that was, in fact, an illegal pyramid scheme. The agency is seeking a permanent halt to the illegal pyramid practices as well as other illegal practices alleged in the complaint.
According to the FTC, BurnLounge recruited consumers through the Internet, telephone calls, and in-person meetings. The sales pitch represented that participants in BurnLounge were likely to make substantial income. BurnLounge recruited participants by ...
You'll remember not long ago when I threw the book at the scam called BurnLounge, giving a list of concrete reasons as to why it was widely considered to be a humongous pyramid scheme that abused the concept of promoting and selling music by name-dropping for profit -- violating the good-natured hubris of some very vulnerable people: well-known sports figures, celebrities and music artists. On Tuesday, the Federal Trade Commission filed lawsuit against a group of BurnLounge investors, including former USC running back Rob DeBoer, for their role in promoting the company's "concentric retail" scheme, calling BurnLounge exactly what ...
Someone named TJ (Teresa) Searcy was kind enough to have invited me to attend a BurnLounge function here in Memphis on Wednesday night at Holiday Inn Select - 2nd Floor Ballroom 5795 Poplar @ I-240, Memphis on Wednesday, May 23, 6:30pm. After receiving the evite, I responded that I might be attending. I got frustrated with her emailing me the same evite repeatedly (four times in 12 hours). So after I had already responded saying I might attend, I did some research that I think people should check out. You see, folks, BurnLounge is a giant scam ...
*if you don't mind us replacing the images or sound files you've hotlinked (without any notice at any time) with audio or photo content so disgusting that it will offend you, your readers and even us. You were warned. so don't hotlink.
