CLASS ACTION LAWYERS AFTER IGNITE ENERGY
Class Action Federal Lawsuit Against Stream Energy, Executives, Alleging Unlawful Pyramid Scheme
2 July 2009 HOUSTON — Attorneys from the Clearman Law Firm announced a federal class action lawsuit filed yesterday under the Racketeer Influenced Corrupt Organizations Act against Dallas-based Stream Gas & Electric, Ltd., Ignite Holdings, Ltd., their related companies and affiliated individuals.
A retail electricity and gas provider in Texas and Georgia, Stream has grown in only three years to become the 29th largest private company in the Dallas/Fort Worth area based on revenues of more than $800 million in 2008. Stream’s marketing division, Ignite, has fueled Stream’s growth through what the company calls a “multilevel marketing program.”
The 89-page federal complaint alleges that Stream- Ignite’s multilevel marketing program is actually an unlawful pyramid scheme. Pyramid schemes are inherently doomed programs in which investors recruit people to pay money to those above them in a first-come-first-served hierarchy with the expectation that they will get payments from other investors who enter the program later. When the number of newly recruited investors eventually dwindles, the payment structure collapses.
Specifically, the lawsuit filed in the U.S. District Court for the Southern District of Texas in Houston alleges that Stream and Ignite induced the plaintiffs and others to invest in the “Ignite Services Program” at a cost of $329 and purchase an “Ignite Homesite” web page for a charge of $29 per month. The lawsuit claims that a large portion of the $329 is paid to those higher in the pyramid.
“Some of the individuals at the top of the Stream and Ignite pyramid earn millions of dollars a year, while most of those that are now joining the scheme will likely never recover their investment,” says Scott Clearman of the Clearman Law Firm, lead counsel for the plaintiffs. “Stream promises recruits that they can make vast sums of money, but the fact is that most will lose their money.”
In addition to Stream and Ignite, individual defendants named in the complaint include Ignite founders Chris Domhoff, Rob Snyder and Pierre Koshakj [sic], as well as several Stream employees. Additional defendants include Donny Anderson, Steve Fisher, Randy Hedge, Logan Stout and Presley Swagerty, all of whom are near the top of the alleged pyramid.
THE MLM ELECTRIC - ELECTRICITY WARS
TEXAS - U.S. THE HOME OF MLM ELECTRIC COMPANIES!
Update: Jan 2009 - Zurvita founder Mark Jarvis is being sued by Ameriplan because he was one of the top dogs at Ameriplan and is charged with pulling Ameriplan Distribtuors over to Zurvita under the new Dental Plan backed by Amacore Group who is the backend to Zurvita. Amacore Group OTC BB: ACGI),
Update: Jan 2009 - Ambit Energy was busted by Shell Oil for claiming that Shell was their backer. Shell was upset because Ambit used thier logo as a partner See Ambit below.
Deregulated Energy What MLM Electric Providers to go With?
See chart below Ignite beats Ambit
There are over 50 different electric companies in Texas. This hot dry summer of 2008 over 5 different Non- MLM electric companies went out of business like Blu Power, Etricity, PreBuy Electric, National Power Company, and Riverway Power. Texas is always an MLM favored state has started really spinning off new energy companies.
Starting after after Ignite & Ambit Energy Afordable Energy has had a running start backed by Affordable Power Plan, LP, a Retail Electric Provider, PUCT #10105. Affordable Power has a big credit line (confirmed at $7 million) provided by Shell Oil Company so that puts the Network Marketing Company with great staying power. They lead with a super lube that lowers the cost of operating air conditioning (and heat pumps). If the FTC comes investigating this part of the Energy Market the solid goods Affordable Energy (out of Houston, Tx) sells will give Affordable Energy safety the others don't have (the "Burnlounge" shutdown).
AMBIT BUSTED SEE BELOW: Following after Ignite Ambit Energy company has also snagged several executives from the bankrupt Excel. Ambit Energy Dallas started with a little hotter complan and jumped ahead of Ignite but at this time has lost some ground. Ambit snagged several Ignite Energy leaders. Every thing said about Ignite below applies to Ambit. Editors Note: Ambit was doing MLM opportunity presentations claiming that Shell Oil was their partner. For some reason Shell did not like and slammed Ambit to the ground! Graphic coming from Shell?
Ignite Energy started in the "Dallas Infomart" E. Ross Perot's Crystal Palace. Great showcase job. Ignite Energy was the first electricity MLM and was hot in Texas after Excel telephone went broke. The Ignite Energy company picked up some Excel top leaders and MLM sales reps to jump start their new electricity company in Texas. The deregulation of Texas electricity allowed Excel distributors to jump out of phone service over to electric energy.
Both of the last two companies have Ex Excel reps in their works. The sales pitch is not different from telephone in regards to the ease of selling electric energy. Electricity is something needs and uses and the billing systems are very similar. The sales pitch among Excel representatives used to be "get paid everytime someone picks up the phone" Now they say: “Get paid everytime someone turns on the lights!” That is great!
Amacore Group's Zurvita is competing (also other products besides energy) with Ambit Energy and Ignite Energy. Some big money here - but often that causes problems as much as it helps. For energy they contracted with MXEnergy already in multiple deregulated states. Zurvita Energy can sell electric service in Texas, Georgia, Ohio, New York, New Jersey, Michigan, and Massachusetts. Texas and Massachusetts gives them more markets to build MLM dowlines in. Zurvita can also sell natural gas in states that are deregulated to switch between natural gas providers, but there is not much money in gas.
Traffic By Website Visits - Ignite Wins End of July
NEWER SMALLER MLM ELECTRIC/ENERGY COMPANIES
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Probably there are some more that we haven't been solicited about! There is a lot of MLM - Network Marketing competition in the Texas’ deregulated energy - electricity market which will carry over to other states.
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