If Company Shut Down. What happens to representatives?

[BigLaw]

If a business that presents herself as Multi Level Marketing (MLM) turns out by FTC/FBI/SEC to be ilelgal and pyramid scheme shuts downs.
What happens to the simple Representatives (reps) of that company? I know that the owner of the company, and maybe other persons in the Board of Directors will have legal issues, apying millions of dollars and maybe years in prison as well.

What happens to the people that just were recrutting people being representatives and were gaining (if any) money.From 1$ to 10000$/month. Do they also have any legal issues?

I guess they can't all the members have problem.For example 5.000-10.000 representatives in many countries around the world can't have legal issues. Maybe just the top paid representatives?

What happens with the reps in general?

 

[Zigner]

Your question is way too broad to receive any accurate answers. Please consult local legal counsel.

You're probably out of luck though.

 

[quincy]

If a business that presents herself as Multi Level Marketing (MLM) turns out by FTC/FBI/SEC to be ilelgal and pyramid scheme shuts downs.
What happens to the simple Representatives (reps) of that company? I know that the owner of the company, and maybe other persons in the Board of Directors will have legal issues, apying millions of dollars and maybe years in prison as well.

What happens to the people that just were recrutting people being representatives and were gaining (if any) money.From 1$ to 10000$/month. Do they also have any legal issues?

I guess they can't all the members have problem.For example 5.000-10.000 representatives in many countries around the world can't have legal issues. Maybe just the top paid representatives?

What happens with the reps in general?

What is the name of your state, BigLaw?

Those recruited to work in a company of the type you describe are often looked at as innocent players. What happens with the representatives in general could just be the loss of their jobs.

It depends in large part on an employee's role in the company and the employee's knowledge of the company's illegal operations.

Were you working for a company that was shut down? If so, and you find yourself part of an investigation into the company's operation, you will want to seek out the help of an attorney in your area.

 

[BigLaw]

What is the name of your state, BigLaw?

I don't reside in the U.S. I live in Europe (Greece). The company though central if this is necessary is in the US. more specifically in the SC (South Carolina)

It depends in large part on an employee's role in the company and the employee's knowledge of the company's illegal operations.

The company is presented as legally working and i do believe also it is a legal one but since there is very small line and difficult to distinguish the legal and illegal in MLM i just wanted to know to be sure what could happen if turned out illegal. The role of the employee/representative is just enrolling new customers/representatives and new companies contracted. They have no role in the desicions of the Board of Directors and make no calls for the company. They just enroll people and get their paycheck accordingly to their efforts as usual.

Were you working for a company that was shut down? If so, and you find yourself part of an investigation into the company's operation, you will want to seek out the help of an attorney in your area.

The company is not shut down. I'm thinking giving it a try and I just want to know for any possible (legal )complications for me as representative IF it is found illegal any time. Such companies though are enrolling people from all over the world online. So i don't know if i should care/consult a local lawyer for any complications or if it has to do with the law of SC since the company is located there.

Thanks for the interest and the replies so far

 

[quincy]

I don't reside in the U.S. I live in Europe (Greece). The company though central if this is necessary is in the US. more specifically in the SC (South Carolina)




The company is presented as legally working and i do believe also it is a legal one but since there is very small line and difficult to distinguish the legal and illegal in MLM i just wanted to know to be sure what could happen if turned out illegal. The role of the employee/representative is just enrolling new customers/representatives and new companies contracted. They have no role in the desicions of the Board of Directors and make no calls for the company. They just enroll people and get their paycheck accordingly to their efforts as usual.



The company is not shut down. I'm thinking giving it a try and I just want to know for any possible (legal )complications for me as representative IF it is found illegal any time. Such companies though are enrolling people from all over the world online. So i don't know if i should care/consult a local lawyer for any complications or if it has to do with the law of SC since the company is located there.

Thanks for the interest and the replies so far

If any legal issue arises for YOU, it will be under the laws of Greece that you will be prosecuted/sued and so it will be an attorney in Greece who you will need to look to for assistance. We handle US laws only.

I would investigate the US-based company thoroughly, however, before becoming a representative of it, if you have any doubts at all about it being a legal operation.

 

[signalhill]

What kind of rating does this 'company' have with Better Business Bureau, if any??

 

[quincy]

What kind of rating does this 'company' have with Better Business Bureau, if any??

signalhill, I suggest you read about the Better Business Bureau and its rating system a bit before you mention the BBB in any more of your posts. Thank you.

 

[davew128]

Lamont Sanford summed up threats to the BBB perfectly. "We're not a member."

 

[quincy]

Lamont Sanford summed up threats to the BBB perfectly. "We're not a member."

Sanford and Sons probably would have had a good BBB rating if they had been a member, though - regardless of the number of complaints.