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Pyramid Scheme Alert (PSA) provides current and historical news items that are of interest to our members and visitors. None of the reports or commentaries is intended to imply that any of the referenced companies have been charged or convicted as illegal pyramid schemes.

Related Information

PRSI Charged with Pyramid Law Violations

PRSI Shut Down

Permanent Injunction Against PRSI in Louisiana

PRSI Principals: Where Are They Now?

Florida Judge Rules Against PRSI

PRSI, Professional Resources International, Inc., burst onto the news media scene on January 5, 2000, when gun-toting agents raided the company's offices in Boca Raton, FL. The state's Attorney General claimed PRSI was an illegal pyramid scheme. Now, in a decision has which garnered almost no attention, a Florida judge has confirmed those allegations, finding in addition that the company was also a Ponzi scheme.

PRSI paid commissions to its members for selling "Small Office/Home Office Systems," supposed to include websites for ecommerce, to others. However, the websites were nonexistent. The company which was supposed to create them, CitX Corp., was working frantically to produce a few "model" websites at the time PRSI was shut down.

Judge Stephen Rapp has forbidden PRSI from selling or offering its "business opportunities" for sale in Florida or to Floridians. A hearing will be held to determine the company's liability to consumers.

PRSI has previously been banned from operating in the state of Louisiana.

Between April, 1999 and last January, PRSI had collected about $13 million from 46,000 consumers worldwide.

Company Founder and CEO William "Bill" Caudell was convicted of securities fraud in Kansas in 1993. Another principal decision maker in the company, Joseph Rotunno, has a lengthy string of convictions for loan sharking, embezzlement, and fraud. In June, he was charged with running a gambling operation.

Copyright December, 2000, MLMSurvivor.com. Used by Permission.

This page last updated on 10/11/2004