FTC Claims Vemma Nutrition Energy Drink Was a Pyramid Scheme Aimed at College Students

On Wednesday the Federal Trade Commission shut down the alleged pyramid scheme Vemma Nutrition for promising college students they'd get rich for selling their drink. Much like the AMWAY knife scam from the old days, most people ended up losing their money. The worst part about this is while these kids were hit in the wallet, Vemma earned more than $200 million a year in both 2013 and 2014. It was a lucrative business for everyone involved but the people fronting their drinks.

The Vemma website states it's "easy" to get started: "You don't have to worry about keeping inventory, shipping out product or even owning a building. In fact, you don't even have to worry about a website! We provide you with the tools. All you have to do is share our premium, innovative Vemma products with Affiliates and Customers who purchase products and help others create their own Vemma businesses. Those product purchases result in a commission."

The reality was that an investment of $600 had to be made so the person could buy the drink. In order to receive bonuses, they'd have to sell $150 worth of Vemma each month. According to the FTC, the company provided no help when it came to selling the drink. Instead, they were more intent on getting more people to join.

Vemma lured college kids in by promising a lavish lifestyle through their promotional videos. In their videos, young people were seen in luxury cars, jets and yachts. Even Chris and Heidi Powell from ABC's Extreme Weight Loss were in that video backing Vemma.

Here is one of the promos:

Vemma CEO Benson Boreyko and promoters Tom and Bethany Alzakin have also been named in the complaint.