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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.

Skybiz Settles with FTC: $20 Million in Consumer Redress Ordered

April 18, 2003

Skybiz.com, Inc. (also known as Skybiz 2000) has settled a two-year-long suit brought by the Federal Trade Commission. In May, 2001, the FTC charged that Skybiz, based in Tulsa, OK, was operating as an illegal pyramid scheme. The company recruited participants into an "internet mall" type MLM scheme.

Defendants have been barred from involvement in any multilevel marketing schemes for periods ranging from seven years to life.

Consumers who were defrauded under the scheme will receive approximately $20 million in redress.

The FTC had been involved in actions against Skybiz in five other countries, Australia, South Africa, New Zealand, Canada, and the United Kingdom, and had assisted five states as well.

More about Skybiz

Read the FTC Press Release

Final Stipulation

Skybiz Ordered to Repatriate Offshore Assets

An Analysis of Skybiz by the FTC's Economist

Court Appoints Temporary Receiver for Skybiz

FTC v Skybiz Complaint

Temporary Restraining Order

FTC v Skybiz Findings of Fact

FTC v Skybiz First Amended Complaint

This page last updated on 10/11/2004