Lawsuit alleges unlawful pyramid scheme affecting thousands of Canadians
VANCOUVER, May 13 /CNW/ - A national class action has been commenced against Business In Motion Corporation, Alan Kippax and Ashif Mohamed (the "Defendants") alleging that the Defendants operated an illegal pyramid scheme that caused substantial losses to persons recruited to participate in the "business".
The Statement of Claim alleges that beginning on or about March 6, 2007, the Defendants engaged in the establishment, operation, advertisement and promotion of a multi-level marketing plan which employed the "Time Leverage System" developed by Kippax. It is alleged that, with the promise of extraordinary compensation, the Defendants actively recruited participants who were required to pay an annual registration fee to Business In Motion Corporation, and purchase one of certain "Perpetual Motion Products" marketed by the company.
The original Perpetual Motion Product was the "Ultra Life Club" which purported to offer substantial travel discounts for members. Perpetual Motion Products also included other offerings which typically cost several thousand dollars and were not necessarily consumable products for which there would be repeat demand.
The focus of the plan was on the sequential recruitment of new participants who would gain entry into a "Perpetual Motion Corporate Ladder" with the purchase of Perpetual Motion Products sold by existing participants already on the Perpetual Motion Corporate Ladder. As the initial eight vacant positions on the bottom of each Ladder were filled with new participants, the Ladder would split into two new ladders, and the participants who were on the bottom moved one level up.
The cycle continued through a number of "split ladders" with representatives not receiving compensation unless the ladder split three times within a prescribed amount of time. If that did not occur, the Ladder was "crushed" and participants had to pay another fee to transfer into another active ladder.
The Plaintiff claims that he never received the compensation he was told he would receive through his participation in the plan, nor was he able to secure the promised travel discounts through the use of his Ultra Life Club membership.
The Plaintiff also alleges that in order to entice membership in Business in Motion Corporation, the Defendants encouraged existing distributors to be "secretive" about the business opportunity to be presented to potential recruits when asked to attend a recruiting seminar. Further, once the recruits were in attendance at the seminars, claims of extraordinary potential for compensation were made.
The action is brought in Federal Court on behalf of all persons in Canada who purchased a Perpetual Motion Product from or through Business in Motion Corporation. The complete statement of claim and further information about how to join the Class in this action is available at www.branchmacmaster.com.
SOURCE Branch MacMaster
For further information: For further information: Luciana Brasil, Branch MacMaster, (604) 654-2960, firstname.lastname@example.org