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FTC ruling

This article was originally published in The Rose Sheet

Executive Summary

Executives of beauty and nutritional supplement marketer 2Xtreme Performance International barred from future involvement in multi-level marketing programs under settlements announced Jan. 29 by FTC. Settlements include judgments totaling $2.5 mil., $1.4 mil. of which will be suspended based on financial disclosures provided by defendants, commission notes. Charged with operating illegal pyramid scheme disguised as a multi-level marketing plan, corporate successor USAsurance Group, 2Xtreme founder and CEO John Polk, Chief Operating Officer Patrick Farah, USAsurance President Peter Hirsch cited in FTC's original complaint, filed in Baltimore, Md. federal court in December 1999 (1"The Rose Sheet" Dec. 20, 1999, p. 8)

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