Victims of BurnLounge Pyramid Scheme will Receive Refunds, Checks Total $1.9 Million
Victims of a pyramid scheme will be soon receiving refund checks from federal regulators.
The Federal Trade Commission (FTC) is mailing about 53,000 checks totaling almost $1.9 million to consumers who lost money to a pyramid scheme that pretended to be a legitimate multi-level marketing program selling opportunities to operate online digital music stores.
In June 2014, the FTC won an appeals court ruling upholding a district court finding that BurnLounge had operated a pyramid scheme.
Consumers who receive the checks from the FTC's refund administrator Gilardi & Co. LLC, should deposit or cash them within 60 days of the mailing date.
The FTC never requires consumers to pay money or to provide information before refund checks can be cashed. The amount will vary based upon the amount of each consumer's loss.