Federal Court Shuts Down Alleged Pyramid Scheme Selling ‘Healthy’ Mushroom Coffee And Freezes Executives’ Assets

From: businessinsider.com

A federal court has temporarily shut down a mutli-level marketing company called Success By Health, which sells instant coffee that claims to offer health benefits from mushrooms.

The ruling this week by a federal judge in Arizona also froze the assets of the company’s top executives, including its founder, James “Jay” Dwight Noland, Jr.

The decision came in response to a Federal Trade Commission complaint claiming that Nevada-based Success By Health is a “pyramid scheme” designed to enrich the company’s top executives by emphasizing member recruitment over the sale of its products.

The FTC complaint calls Noland a “serial pyramid scheme promoter” and says the company’s executives “bait entrepreneurial consumers into a financial abyss by telling them that they will attain ‘financial freedom,’ and never have to work again, if they enroll as ‘Affiliates’ in Defendants’ Success By Health (‘SBH’) program and follow Noland’s instructions.”

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