Fortune HiTech Marketing News

FTC Sends Checks to Former FHTM Representatives

Npros.com | 11/13/2016

FHTM and its top two executives were sued by the FTC and the attorneys general of Kentucky, North Carolina and Illinois for "unfair and deceptive actions" that violated state and federal laws. Among the charges: misrepresenting income potential and claiming average people could attain financial independence through FHTM.

About 90% of FHTM independent representatives earned less than $15 a year, but they were expected to spend about $1,500 a year on products and membership fees, former Kentucky attorney general Jack Conway said in 2013.

FTC Bans FHTM from Multilevel Marketing

Npros.com | 5/13/2014

The FTC and the states jointly filed a lawsuit against FHTM in January, alleging that instead of incentivizing its distributors to sell actual consumer goods and services, the company's promotional materials focused almost entirely on signing up new members. Distributors only received pennies for selling goods and services such as satellite TV service, home security systems and beauty products, and received substantial payments for each new distributor they recruited. The court-appointed receiver confirmed the allegations by the FTC and the states. More than 98 percent of FHTM's distributors lost more money than they ever earned, and more than 81 percent of the payments to participants were based on recruiting and not for the sale of products.

In addition to the multilevel marketing ban, the settlement permanently bans Thomas A. Mills, Fortune Hi-Tech Marketing Inc., FHTM Inc., Alan Clark Holdings LLC, FHTM Canada Inc., and Fortune Network Marketing (UK) Limited from misrepresenting material facts about any product or service, selling or otherwise benefiting from customers' personal information, or collecting any additional money from consumers. The founder of FHTM, Paul C. Orberson, died during the course of the litigation. The assets of Orberson's estate will be included in the $7.75 million which will be used for restitution to consumers.

Fortune HiTech Marketing Principals Issue Statement Denying Wrongdoing

Press Release | 2/9/2013

LEXINGTON, Ky., Feb. 7, 2013 -- "We deny any wrongdoing and will vigorously contest the allegations and efforts to close our business. The claims made by the FTC and Attorneys General do not accurately describe how we manage Fortune Hi-Tech Marketing, and fail to acknowledge that we manage the business well within both the spirit and the letter of the applicable law.

We are fully cooperating with the FTC, Attorneys General and Receiver. Today, as the result of a Court approved agreement of all parties, we have been granted additional time to mount our and Fortune Hi-Tech Marketing's legal and factual response to the allegations. At a scheduled hearing with the Court on March 13, 2013, we will present our case and request that the Court dissolve the temporary restraining order and allow us to resume our business operations.

In the meantime, we want to express our gratitude for the tremendous show of support we have received from our community, friends, families, independent representatives, and employees, both locally and around the country."

Fortune Hi-Tech Marketing Shut Down-Assets Seized-by Kentucky AG

Npros.com | 1/29/2013

The lawsuit alleges that more than 90 percent of those who participated in the money lost their $249 initial fee.

The suit was filed in Illinois federal court by the Federal Trade Commission and by attorneys general from Kentucky, North Carolina and Illinois.

The lawsuit seeks a permanent injunction, plus civil penalties and resitution for damages. Company assets as well as some personal assets of the company's top officials were seized as part of the temporary injunction.

Attorney General Jack Conway said that there may be criminal penalties as violating Kentucky's pyramid scheme law is a Class C felony.

Robb Evans & Associates have been assigned as the receivors.

Federal Judge Rescinds FHTM Class Action Dismissal

Press Release | 9/22/2012

According to the lead plaintiff, Yvonne Day, "We are very excited about having our appeal approved and that we will finally get our day in court. This was a great day to all of those who have been cheated! We all deserve our day in court and this is a huge victory for justice!"

FHTM Teams Up with Packages From Home

Press Release | 9/16/2012

FHTM purchased several items for the care packages including Ramen Noodles, oatmeal, granola bars, peanut butter crackers, tuna, beef jerky, tea bags, Rice Krispie treats, hard candy, and, from their own line of products, True Essentials Whey Protein Shake Packets. Enough items were sent to the Packages From Home warehouse in Phoenix, Az. to fill 500 care packages.

As part of the FHTM Gives Back campaign, Independent Representatives were also given the opportunity to take part in the project at the FHTM IMPACT event in Dallas by writing personal letters to thank deployed military men and women. They could also make a monetary donation, which will be used to help Packages From Home with international shipping costs.

Jan Johnson, Morale, Welfare and Recreation Coordinator for Packages From Home, was especially grateful to work with FHTM. “Packages From Home is always excited to work with corporate groups like FHTM. We love getting more people involved in supporting our troops, and corporate involvement always means more goodies to send to the troops. Thanks, FHTM!”

“FHTM has always been a big supporter of our troops, and this was just one more way to show our appreciation. Packages From Home led us in the right direction – everything from what items to purchase to how our Representatives could get involved – and we are so happy to have worked with them,” says FHTM’s Chief Communications Officer, Brittney Mills.

FHTM Gives Back is a philanthropic campaign that allows FHTM Corporate Staff and Representatives the opportunity to give back to their communities, both at a local and national level. Past Give Back endeavours have included Home Runs for Hope, Cell Phones for Soldiers, Toys for Tots and Think Pink Week.

Mills and her team were the ones that brought the idea to include Representatives in this project to life. “This year, we wanted to incorporate a ‘give back’ portion to our annual convention so that Representatives and FHTM staff could come together to support a common cause. In the future, FHTM Gives Back will always have a presence at IMPACT, serving as a reminder that FHTM, as a company, firmly believes in philanthropy and service to others.”

FHTM Canada Announces the Launch of New Services

Press Release | 6/16/2012

The three services, set to launch this summer, include Identashield, Xpress Optical and EnerSeek. Identashield offers protection from identity theft, including insurance, computer protection software, legal services and complete identity restoration services.

Xpress Optical delivers contact lenses right to the door of the customer. Customers can use XpressOptical to order daily, weekly and monthly disposables, as well as color lenses, bifocal lenses and more.

EnerSeek, an independent web portal, allows customers to shop available natural gas prices and electricity rates for their homes or small businesses.

While Identashield and Xpress Optical are already available to US FHTM Independent Representatives, EnerSeek is a brand new addition to the FHTM portfolio.

“We are thrilled to add Enerseek to our list of marketable products in Canada, especially because it is a service that no other companies in our industry currently offer,” said Shannon Hewitson, Vice President of FHTM Canada. “Enerseek will make it easy and convenient for consumers to find the most competitive energy rates and services available.”

Court Dismisses Lawsuit Against FHTM

Press Release | 2/28/2012

Lexington, KY (PRWEB) February 24, 2012 -- On Wednesday, the United States District Court Eastern District of Kentucky dismissed a proposed class-action lawsuit against Fortune Hi-Tech Marketing, Inc. (FHTM). The judge ruled in favor of FHTM and all named individual defendants on their motion to compel arbitration. The judge upheld the arbitration clause contained in FHTM’s Independent Representative Agreement, determining that the Plaintiffs had contracted with FHTM, that the contract contained an enforceable arbitration clause for all of the plaintiffs’ claims, and therefore that the case should be dismissed.

FHTM is a direct selling company with a business model that has existed for over 100 years in the United States. The company has been in business for over 10 years and has operated with the highest ethical standards and business practices.

“We feel this is a just and correct decision by the federal court and we are glad that our Independent Representatives can once again conduct business without the challenge of this inappropriate lawsuit. ” said Keith Kuder, Chief Legal Officer for FHTM.

Paul Orberson, President and Founder of FHTM added, “We are excited about this ruling, but, frankly, we trusted the system to get the right result. FHTM is moving forward with the business of doing business.”

FHTM Announces Taxbot

Press Release | 2/8/2012

Taxbot, which was founded in 2011 by Sandy Botkin, Tom Murphy and Jake Randall, is a mobile and online application that provides small business owners the ability to capture expenses and turn them into IRS and CRA compliant tax deductions. Botkin has had over 30 years experience in the tax industry and was looking for a way to help small business owners and protect them from audits.

The Taxbot application will track your business mileage through your smart phone or tablet using GPS, store and organize receipts via a simple photo system, capture expenses in real time, and sync all records securely in the cloud. The application is also available online. In addition, Taxbot provides FHTM Representatives and their customers with expert tips from Sandy Botkin, including exclusive access to secrets he only shares during his Tony Robbins and Donald Trump seminars.

FHTM and Taxbot are equally excited about the new relationship and the opportunities it brings both companies. “FHTM is a great company, and I look forward to helping their customers quickly and easily reduce their taxes! I will be giving them tips, tricks and strategies such as how to capture more car deductions, how to write-off medical expenses, and how to make vacations tax deductible,” says Botkin.

Jeff Orberson, FHTM’s Chief Business Officer explains, “We wanted to provide a product that allowed customers to quickly and easily reduce their business taxes. FHTM is excited to offer home based business owners an intuitive application that allows them to track business expenses on the run."

Taxbot is now officially available to customers of US and Canadian Independent Representatives.

Fortune HiTech Marketing to Refund Texas Customers

Npros.com | 11/16/2011

Fortune HiTech’s customers complained that the company falsely represented the earnings they would achieve if they became one its independent representatives.

Customers may obtain additional information about the settlement and download a refund claim form from the Texas Attorney General’s Consumer Protection Division at www.texasattorneygeneral.gov. Refund claims must be submitted to Fortune HiTech Marketing no later than November 28, 2011.

FHTM Subject of Class Action Lawsuit in Kansas

Npros.com | 9/4/2010

The suit names Paul C. Orberson, President/Director of Fortune Hi-Tech Marketing and dozens of other employees and individuals.

The class action suit, filed by Yvonne Day, Leonard Haslag, James McCormick and John W. Turner ( on behalf of themselves and "others similarly situated" ) to "recover damages on behalf of themselves...caused by the defendants' operation of an inherently fraudulent pyramid scheme.

It is important to note that this suit has been brought by individuals, not by the State of Kansas or the Federal Government.

The complaint includes 156 pages outlining the claims against FHTM, plus letters and decrees supporting the plaintiffs' claims.

FHTM Nets High Profile Representatives

Npros.com | 5/28/2010

Both women state that their involvement with the company stemmed from a desire to help those around them who were experiencing financial difficulties due to the economy and other factors. They also state that they see FHTM as a valid opportunity for individuals to make extra money. Although Mr. Lewis’ wife is involved with the program, she does not sell, and he himself has never been involved. However, Mrs. Lewis is quick to point out, “If he thought it was wrong he would not let me be involved.”

Fortune Hi Tech Marketing came under scrutiny last year and has to date paid back millions in damages and refunds to former customers and representatives. A complaint made by the state of Montana was settled on April 22 of this year, and although they were initially barred from doing business in these states, CEO Tom Mills stated that they had “come to an agreement” and were “moving forward.”

The premise of FHTM involves signing up representatives below you who then pay a fee of $199. This, according to the BBB in Kentucky, FHTM’s home state, appears to be the only source of income generation.

The full article can be read at the link below.

Fortune Hi Tech Marketing Sponsors Bluegrass State Games

Npros.com | 5/27/2010

Fortune Hi Tech Marketing feels that its commitment to the Bluegrass State Games will help fortify the organization in addition to boosting its mission to promote healthier lifestyles for individuals and amateur athletes alike.

Paul Orberson, President and founder of FHTM, feels that his company's sponsorship of the Bluegrass State Games is an ideal fit for his company overall, and is quoted as saying; "As the old African proverb says; "alone you can go faster, but together we can go further."

"The Bluegrass State Games has a similar mission and focus. At Fortune, we are proud to support this event which has been a rich tradition in the state of Kentucky for more than 25 years." He added.

Fortune Hi-Tech Marketing is a company that gives people the opportunity to build their own businesses via marketing its line of products and services. The company states that it provides opportunities for individuals, regardless of education, experience or financial situation, to attain their goals through work and effort. The company also states that it provides its representatives with support, encouragement and guidance to assist in selling and distributing.

"Fortune Hi-Tech Marketing is one of Kentucky's best kept secrets. Their mission, like that of the Bluegrass State Games, is to improve the lives of Kentuckians, one person at a time. Through this wonderful partnership, both FTHM and the Games will be able to reach out to all our citizens of the Commonwealth. This is a true win-win, especially for Kentucky. We salute Paul Orberson and his team and look forward to a long and fruitful relationship." said Alan Stein, Chair of the BSC and BGSG.

FHTM To Pay 840K Over Pyramid Scheme Charges

Npros.com | 4/27/2010

In March, the Montana Commissioner of Securities and Insurance, Monica Lindeen; put a halt on company operations and filed an action against the company based on consumer complaints that her office received and investigated.

“This agreement sends a clear message to businesses operating illegally in Montana that I am committed to protecting consumers. Montanans work hard to support their families and I will not tolerate the sale of false promises to them.” Lindeen stated.

FHTM representatives were also reported to have suggested company affiliations with Travelocity, General Electric, and The Home Depot, even though such affiliations and income opportunities were non-existent.

Details of the Consent Agreement and Order with Fortune Hi-Tech Marketing: FHTM agrees to refund up to $840,000 to more than 3,400 Montana participants.

FHTM and the company’s founders, Thomas Mills and Paul Orberson, will pay a fine of $100,000 to the Montana general fund. Dianne Graber, a Montana FHTM representative, will pay a $5,000 fine to the general fund.

FHTM will contribute $50,000 to the Investor Protection Trust, a non-profit organization that provides investor education in Montana.

FHTM will be required to change its business practices in Montana, including the following actions:

New participants in FHTM will only be required to pay $75.00 to become a representative,

FHTM will conduct training seminars along with representatives of the Commissioner’s Office, in Billings, Bozeman, Great Falls, Helena, Kalispell and Missoula, and will conduct web-based training that is mandatory for all current or prospective representatives,

FHTM will provide a disclosure brochure to each current and prospective representative outlining FHTM’s program, including the average amount of income achieved and the average amount of time in the program required to reach each level,

FHTM will reinforce with representatives that product sales are not primarily for self-consumption but for sale to non-participants, and

FHTM will require its representatives to maintain records of non-participant customers and submit those records on a monthly basis. Montana FHTM representatives who are entitled to refunds will be receiving a letters from Lindeen outlining the requirements to get their money.

The refund amount is equal to the participants’ cost, minus any earnings they received from FHTM.

Fortune Hi Tech Marketing Reaches Settlement in Montana Case

Npros.com | 4/26/2010

The damages also cover charges and consumer complaints that FHTM distributors were promoting the company to participants as an income potential, as long as they agreed to recruit new distributors. The operation of a business where the only income and profit stems from signing up other people who pay for membership, is a pyramid scheme.

The consent agreement states the following particulars with regard to FHTM and any business they conduct in Montana:

- Agreement to refund more than 3,400 Montana participants in an amount of up to $840,000

- Company founders Paul Orberson and Thomas Mills will pay a fine of $100,000, and Dianne Graber, a Montana FHTM representative will pay $5,000, to the Montana general fund

- The Investor Protection Trust, a Montana investor education non-profit, will receive $50,000 from FHTM

Required changes to business practices include:

- A $75.00 fee for new representatives

- Training seminars in six Montana communities throughout the state and include mandatory web based training for all current and future representatives

- Full disclosure to current and future FHTM participants that includes average income and time commitment necessary for achieving same

Reinforcing sales of products to non-participants as well as participants, and maintenance of non-participant sales records to be submitted monthly.

Any participants eligible for a refund will be notified by the Commissioner’s office. Refund amounts will be determined by subtracting any earnings received from FHTM from the cost of enrollment in the program.

FHTM Ordered to Pay Nearly 1 Million to Settle Pyramid Allegations

Npros.com | 4/23/2010

The Order and Proposed Action alleged that FHTM representatives were marketing the company as income potential to participants who agreed to recruit new participants. Those individuals were asked to pay $299 to join the program. FHTM representatives also lured new participants by claiming it offered huge income opportunities through partnerships with large companies such as Travelocity, General Electric, and The Home Depot, when such partnerships did not exist.

Details of the Consent Agreement and Order with Fortune Hi-Tech Marketing (FHTM):

• FHTM agrees to refund up to $840,000 to more than 3,400 Montana participants.

• FHTM and the company’s founders, Thomas Mills and Paul Orberson, will pay a fine of $100,000 to the Montana’s general fund. Dianne Graber, a Montana FHTM representative, will pay a $5,000 fine to the general fund.

• FHTM will contribute $50,000 to the Investor Protection Trust, a non-profit organization that provides investor education in Montana.

• In addition, FHTM will be required to change its business practices in Montana:

-New participants in FHTM will only be required to pay $75.00 to become a representative,

-FHTM will conduct training seminars along with representatives of the Commissioner’s Office, in Billings, Bozeman, Great Falls, Helena, Kalispell and Missoula, and will conduct web-based training that is mandatory for all current or prospective representatives,

-FHTM will provide a disclosure brochure to each current and prospective representative outlining FHTM’s program, including the average amount of income achieved and the average amount of time in the program required to reach each level,

-FHTM will reinforce with representatives that product sales are not primarily for self-consumption but for sale to non-participants, and

-FHTM will require its representatives to maintain records of non-participant customers and submit those records on a monthly basis.

Approximately two weeks from the settlement, Montana FHTM representatives entitled to refunds will be receiving letters from Commissioner Lindeen outlining the requirements to get their money. The refund amount is equal to the participants’ cost less any earnings they received from FHTM.

The settlement agreement can be found at www.csi.mt.gov. For more information about FHTM, call the Montana Commissioner of Securities and Insurance at 1-800-444-2040

FHTM New Legal Troubles in Montana

Npros.com | 3/17/2010

FHTM's first issue was with the North Dakota Attorney General. According to company press releases, the issue was minor and was cleared up quickly.

The company is prohibited from doing business in Montana until there is a hearing or a settlement in the matter.

State Commissioner of Securities and Insurance Monica J. Lindeen stated that Fortune Hi-Tech Marketing took nearly $1.9 million from over 1000 Montana participants between July 2006 and June 2009.

According to Lindeen, the company lures new members with income opportunities with companies such as Dish Network and General Electric. But, she says, members only benefit if they recruit others to join in the alleged scam.

FHTM Press Release

Npros.com | 3/9/2010

However, there is one company out there that has something for everyone. Now, what if you had services and products that you used every single day? Now just think if you were able to get a percentage of what you are paying for the services that you are using right now. Wouldn’t that be exciting?

Well a company called Fortune Hi Tech Marketing which is also known as FHTM, and founded by multi-millionaire Paul Orberson came up with a brilliant plan to bring together Fortune 500 companies that have services and products that people use every single day.

“People all over the country in both the U.S., Canada, U.K., and Puerto Rico use cellular phones, satellite services, internet connections, and travel just to name a few, states Sherri Russell, founder of the Your Travel Buddy and Your Travel Buddy Adventure Tours, “everyone has been doing Fortune Hi Tech for years they just haven’t been getting paid for it.”

Fortune Hi Tech Marketing was founded by Orberson back in 2001 with a compensation plan that was designed to put more money in the independent representative’s pockets then any other compensation plan in existence.

In fact, the editor of Millionaire Blueprint magazine stated, “If I ever made a decision to get involved with any network marketing company, this is the company I would join!”

So here’s a company that is debt free, has a solid foundation of seven years, has a compensation plan that has no equal and has a team of leaders that are interested in your success to succeed in a business that can build you a lifetime of residual income for the rest of your life.

And now with the economy in its current stance and thousands of people loosing their homes and jobs, it’s nice to see that there is one company Fortune Hi Tech Marketing who is interested in helping people find their success once again.

FHTM in the Lexington-Herald Leader

Npros.com | 3/9/2010

"In Lexington, where Orberson lives and runs his firm, Fortune Hi-Tech Marketing, he keeps a fairly low profile. The most recent exception was his January bid of $100,000 in the Hoops for Haiti fund-raiser to have dinner with University of Kentucky basketball coach John Calipari and actress Ashley Judd — a gathering he says he might not even attend.

But in Nashville, and in multi-level marketing meetings across the country, he is not just a star, but a legend. He's the high school basketball coach turned multi-millionaire, a man who could see no future, but found one.

Multi-level marketing is sometimes known as using a pyramid sales force because of the triangle shape of the hierarchy of people who are both a recruiting force and a sales force. It usually requires a sign-up fee (in the case of Orberson's company, $299), a lot of energy, and, at least two marketing experts say, a willing suspension of disbelief."