U.S. Second Circuit - The FindLaw 2nd Circuit Court of Appeals Opinion Summaries Blog

Trumps Sued for Pyramid Scheme

A recently filed federal lawsuit accuses President Trump, Eric, Donald Jr., and Ivanka, as well as several of the Trump family's organizations, of deliberately defrauding thousands of individuals via the ACN pyramid scheme.

The lawsuit alleges that ACN preyed upon individuals who simply couldn't afford to be scammed and were seeking new ways to earn a living. The Montana Securities and Insurance Commissioner even shut it down two years ago in the state as an unlawful pyramid scheme (rather than the multi-level marketing scheme that it purports to be).

What Did the Trumps Do?

It is alleged that Donald Trump, in an advertisement directed at potential ACN investors, assured everyone that he had done his due diligence and that it was a good investment. He also gave many speeches as a paid spokesperson for ACN.

Unfortunately, it was never disclosed that Trump was paid for his endorsement, and he even admitted to not even knowing how the company operated after announcing his bid for the presidency in 2015 and attempting to distance himself from the pyramid scheme.

Notably, the Trumps were also involved in The Trump NetworkTM, which was a multi-level marketing company selling sketchy supplements, which has also been accused of being a pyramid scheme.

Relief Sought

The plaintiffs in the action against the Trumps have opted to remain anonymous, and seek class-wide relief of reimbursement and damages. Interestingly, Trump is no stranger to these sorts of actions. Soon after his election, the action against Trump University settled. And though no liability or fault were admitted, everyone knows what a $25 million payment to plaintiffs in that case really means.

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