Monday, May 6, 2024

MSU students and Vemma affiliates react to FTC's claims

September 10, 2015
<p>Hannah Administration Building on Aug. 29, 2015. Courtney Kendler/The State News</p>

Hannah Administration Building on Aug. 29, 2015. Courtney Kendler/The State News

In late August, at the Federal Trade Commission's request, a federal court temporarily halted operations of  Vemma Nutrition Company based on claims that it was existing as a pyramid scheme, which has affected students here at MSU. 

The bulletin the FTC posted on its website makes claims that Vemma allegedly provides its affiliates with little guidance to actually sell its products. 

“Rather than focusing on selling products, Vemma uses false promises of high income potential to convince consumers to pay money to join their organization,” the  FTC's bulletin says. 

Vemma Nutrition Company is a multi-level marketing company, founded by Benson “BK” Boreyko, Karen Boreyko, and Lauren Boreyko in 2004 that sells health and wellness drinks. Vemma lures its investors or “affiliates” in with promises of potentially earning large amounts of money by selling its products or recruiting other members. 

“I got involved with Vemma because a good friend of mine presented the opportunity and the product to me in a correct manner,” said Deleon Marks, a 22 year old bronze member within Vemma.

Once on board, new affiliates are required to purchase an “affiliate pack” that contains Vemma products and business tools costing $500 to $600. After that, affiliates must purchase $150 worth of products each month to remain eligible for bonuses, according to the FTC.

"They’re profiting off of making people look stupid, wasting their money."

"They’re profiting off of making people look stupid, wasting their money," media and information sophomore Justin Kim said.

Vemma reportedly earned more than $200 million annually in both 2013 and 2014 through selling its products to its affiliates. 

“I was kind of leaning towards it being a scam especially because a lot of my friends who participated with Vemma dropped out so I felt like that shows that it may be a scam,” said Uchechukwumere Onwudiwe, food science and packaging senior.

"From a business standpoint I think they do things the right way, but it's a scheme at the end of the day, you can't do much with it cause once you get caught it goes to shambles," advertising senior Matthew said. He wished to have his last name omitted from this article.  

Vemma focuses on its affiliate recruitment more than selling its products, according to the FTC. Making false earnings is also on the list of complaints and failing to disclose that its structure won’t make its affiliates much money. Some affiliates believe otherwise.

“I feel like the business model is truly motivating to people who seek or desire sustainable change, long term residual income and people desiring to be more healthy overall,” Marks said.

Tom Alkazin and Benson “BK” Boreyko were the two people named in the bulletin with Bethany Alkazin as the relief defendant because she also profited from the scheme. A Facebook post by Tom Alkazin on September 2 denies all accusations made against him and his wife.

Dear Friends,First, our thanks to each of you for the prayers,love and support that you have expressed for ourentire...

Posted by Tom Alkazin on Wednesday, September 2, 2015

Using college students and other young people to promote nutritional drinks with a misleading business model promising to increase their affiliates cash flow is just plain wrong, according to the FTC’s indictment.

Although Vemma’s business plan is focused on recruitment instead of sales, some students on campus partake in their product for nutritional gains.

“I believe the products were still good based off of what I've seen and the results people got,” said Tionna Parker, a nutritional sciences junior and a previous affiliate of Vemma.

Support student media! Please consider donating to The State News and help fund the future of journalism.

When asked about what he thinks about the claims presented by the FTC, Marks summed up his entire opinion into one word. "Ridiculous," he said.

Vemma was initially slated to face a judge on September 3rd but was pushed back to September 15th. Boreyko has taken to social media to express his optimistic beliefs. 

#grateful #Vemma

Posted by Benson Keith Boreyko on Thursday, September 3, 2015

Discussion

Share and discuss “MSU students and Vemma affiliates react to FTC's claims ” on social media.