Posted on 08/14/2015 3:11:35 PM PDT by 2ndDivisionVet
Donald Trump's endorsement of a phone marketing company pursued by the Australian consumer watchdog for allegedly operating as a pyramid scheme, has put the American presidential candidate's business dealings under new scrutiny.
Mr Trump earned more than a $1 million from promoting ACN, a North Carolina multilevel marketing firm that the former reality TV show host trumpeted as making "amazing" video phones.
"I simply can't imagine anybody using this phone and not loving it," Mr Trump reportedly said in 2011, as part of a promotion tied to the Celebrity Apprentice show he fronted.
However, the video phone failed to be a success due to competition enabled by new technology and ACN was subject to legal pursuits by regulators in the state of Montana, as well as Canada and Australia.
An investigation by the The Wall Street Journal this week pressed Mr Trump on his links to the company and noted the court cases in Australia.
Searches by The Australian Financial Review reveal that the Australian Competition and Consumer Commission prosecuted the local subsidiary, Australian Communications Network, alleging it was running a pyramid selling scheme.
Under the system, people paid ACN $548.90 to sell telecommunications services to consumers. They could recruit other independent representatives who received commissions from their personal customers and collect downline commissions from customers of people they recruited. Customer acquisition bonuses were also paid.
The Federal Court of Australia originally found in March 2005 the scheme breached the Trade Practices Act. However, in October of that year the Full Federal Court upheld the appeal of ACN and disagreed with the ACCC the payments were "recruitment payments".
The ACCC, then led by Graeme Samuel, was ordered to pay ACN's costs and was rejected by the High Court from appealing the decision.
The media examination of the billionaire's financial history underlines how Mr Trump's past is likely to be dug up as his campaign ensues. His links to a firm operating in Australia also highlight the mogul's sprawling global business network.
Mr Trump, whose rise to the top of Republican presidential polls has shocked seasoned political analysts, has said his business experience leaves him well placed to steer the US economy as president.
He reportedly defended and downplayed his link to ACN, according to a media report in the US.
"I know nothing about the company other than the people who run the company," Mr Trump said.
"I'm not familiar with what they do or how they go about doing that, and I make that clear in my speeches."
A statement on ACN's website says it is the world's largest direct seller of telecommunications, energy and essential services for home and business, "but more importantly, they've provided a vehicle for countless individuals to change their lives."
"At ACN, Independent Business Owners simply offer the services that people are already using and spending money on every day, including phone service, wireless, natural gas and electricity, merchant services, high-speed Internet, TV, home security and automation and more.
"So there's no change in buying habits, and you'll never have to convince someone to purchase products they don't need or can't afford."
Mr Trump's commercial links to Australia run deeper. A recent disclosure with the US electoral commission shows he owns Telstra depository receipts in the US, via his Barclays brokerage account.
The listed value is between $US1000 and $US15,000, with the dividend income put at between $US201 and $US1000.
Sounds like a total non-story.
” in October of that year the Full Federal Court upheld the appeal of ACN and disagreed with the ACCC the payments were “recruitment payments”.
The ACCC, then led by Graeme Samuel, was ordered to pay ACN’s costs and was rejected by the High Court from appealing the decision.
No? Really?
Eff them and their headline innuendos. The content disproves the context of the head line...
Ha getting hissed at by the Letterman audience is good for the resume.
So he made an endorsement, got paid and the corrupt company went belly up.
Sounds like Obama and Solyndra.
Which was worse?
And just how is Trump involved? This seems like very misleading non-story. Just love the last line noting how $10 BILLION Trump has a couple hundred dollars in another company (what connection?).
ACN is doing fine, they haven’t gone anywhere.
Rush warned us about this just yesterday....don’t believe any of it....
RUSH: I’m just warning you — You Trump people keep a sharp eye, because this is what they’re going to try to do, and in the process you’re supposed to watch it and get mad. And the general public, the low-information voters are supposed to watch it and think Trump voters are stupid. That’s the latest tactic being employed by the Drive-By Media, ‘cause they’ve tried to take Trump out, and they can’t.
thats about right
ACN is a great capitalistic model which marxists hate. I am in it and love picking up extra income.
Pray America is waking
Trumps involvement with the ACN pyramid scheme is going to be a negative for him. Not going to be easy for him to make this go away.
They are not a “pyramid scheme” as defined under In re Amway Corp. (93 F.T.C. 618; full name In the Matter of Amway Corporation, Inc., et al.) 1979.
https://en.wikipedia.org/wiki/In_re_Amway_Corp.
For a year or so my wife was involved in multilevel marketing
I was forced to look into it and I did not like what I saw
Vast scams abound and Trumps involvement tells me a lot about Trump.
My wife lost money and eventually dropped out
Multi level marketing ventures are “pyramid schemes” with a product..... which gives them enough cover to survive scrutiny....Utah should change its laws
These things have hurt thousands of people
Panties must be so tight they're causing constipation that is backing up into some "brains".
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