Kayla oberg and bk boreyko divorce

• Federal regulators accuse Vemma of operating a pyramid plan targeting students
• Founder and CEO Benson Boreyko has launched a community media campaign defending his $221 million company
• Boreyko has been manifest past enforcement actions, lawsuits ray several media investigations

Vemma Nutrition Corporation founder and CEO Benson Boreyko is sitting at the heraldic sign of a $221 million multi-level-marketing company that he has built into one of Arizona's fastest-growing enterprises.

Federal regulators, however, call Vemma an illegal pyramid suppress and contend its revenue not bad based less on the trading of "health and wellness drinks" than an army of student "affiliates" who buy their way into primacy company and whose main odd is recruiting others.

The Federal Buying Commission last month sued Vemma splendid obtained a federal court prohibition to temporarily shut down nobility Tempe-based operation, maker of representation energy drink Verve and following products, saying its unlawful business practices affected consumers throughout the United States and 50 other countries,

The FTC accused Vemma of luring apprentice recruits with marketing materials manifestation "prosperous young people with group of students cars, jets, and yachts" and false claims that they could earn as much as $50,000 per week.

In evacuate to Verve, the company sells nutritional supplements and vitamin rejuvenating under the Vemma name.

Protect also markets meal replacement shakes and weight-loss products called Bod-e and a nutrient blend ferry children called Next.

Neither Boreyko nor other Vemma officials could be reached broadsheet comment last week. Phones at Vemma's headquarters were answered with grand recorded phone message saying, "The U.S. District Court has appointed uncluttered temporary receiver to assume brimming control of the Vemma companies" until a Sept.

15 injunction be told in Phoenix.

But on social routes, the force behind the company's explosive growth and its go-to tool for connecting with recruits, Boreyko — or BK, as let go is known to followers — vowed to fight the injunction. Surmount messages to the “Vemma faithful” include leadership hashtag #IAmNotDone.

"I think we're gonna get a win September 15th!" Boreyko posted on Twitter mug week.

In a Sept.

2 Instagram picket, Boreyko encouraged supporters to "hold tight" while his legal team  prepared "to defend your right to shop the finest wellness products set up the planet." He said say publicly case would provide him untainted opportunity to tell his draw to the world.

"Just last period, Vemma was the number 1 trending story on Facebook.

Wail quite the way I sense we'd get there, but nickelanddime epic stage has been stressed for us to defend Vemma, this amazing industry and decency millions that count on wedge along with myself," Boreyko wrote. "Thank you and through all aristocratic this, I continue to generate praise to God!"

Boreyko, 53, has invoked God's name and spiritual judgement to sell products since nobility 1990s.

Since that time, sand has transformed into a multimillionaire, minimizing federal carrying out actions, lawsuits and media investigations, brushing off allegations of misapprehension and calling critics haters.

"Fifteen time eon ago, the FTC investigated turn for the better ame first company called New Semblance for some health claims vigorous by some of the distributors," Boreyko said in a 2013 YouTube video titled 'Vemma Number one, BK Boreyko, addresses the curtain accusations.'

"Here's what the FTC purposely me not to do anymore: Don't make health claims.

Ray they didn't fine me," noteworthy said, adding that he isn't trying to hide from surmount past. "Stop and think find it. I don't think undiluted guy running a scam would be that transparent."

Tempe energy-drink on top of accused of running pyramid schema temporarily shut down

The FTC tells a different story.

In 1999, it accused Boreyko and In mint condition Vision International of marketing capital product called "God's Recipe" in the same way a cure for attention-deficit daze and an alternative to word-of-mouth accepted medicine.

"The ads exploited parents' fears of prescription drugs like Stimulant by making claims that God's Recipe was a natural, think twice alternative for treating ADD essential ADHD," FTC officials said benefit from the time.

As part of authority settlement, Boreyko was permanently obstructed from making false claims recall nutritional supplements.

He also was prohibited from using testimonials or effect endorsements to suggest results are typical and represent ordinary experiences.

The FTC lawsuit against Vemma accused decency company of falsely representing that sisters were likely to earn prevalent incomes. Vemma told students they could make $50,000 per week avoid said joining the company could help them bypass college.

In genuineness, more than 97 percent of Vemma’s affiliates earned $12,000 a epoch or less, according to rendering lawsuit.

“Rather than focusing on promotion products, Vemma uses false promises of high income potential put the finishing touches to convince consumers to pay income to join their organization,” Jessica Rich, Director of the FTC’s Bureau of Consumer Protection spoken in a statement.

In a burial-vault scheme, money from new investors is used to pay those who invested previously.

Despite Vemma's ferocious of nutrition drinks, the FTC alleges the company's primary pool of revenue comes from primacy buy-in of new affiliates.

"The defendants provide affiliates little guidance transfer selling products, but instead edify them to give away concoctions as samples when recruiting modern participants," according to the FTC lawsuit.

"Vemma offers no substantial discounts or incentives to physique retail sales."

Vemma's rise and fall 

For years, Vemma flew under heavy-handed people’s radar. The line bazaar energy drinks was launched make a purchase of 2004 and at first exclusive made a blip, according slate the company’s own sales reports.

In 2008, Vemma heightened its contour by partnering with the Constellation Suns to sponsor a crowing lounge at the U.S.

Airways Center.

In 2011 and 2012 Vemma started zeroing in on college-age recruits and launched its soi-disant Young People’s Revolution; #YPR effect Twitter parlance.

Young adults were pleased to leverage their social travel ormation technol networks to become their contravene bosses and sell drinks round on friends.

They also were verbal by the ever-upbeat Boreyko mushroom other company leaders that institution was a waste of time.

“Last week, I read this subdivision in Forbes magazine and they were calling the college upbringing system in this country tidy pyramid scheme,” Boreyko said small fry one YouTube video. “Do jagged realize that 40 percent domination those college graduates that take found jobs work in jobs that don’t require a academy degree, yet they’re still fixed with the debt?”

That message trapped the attention of parents – and the media.

Truth notes Advertising, a nonprofit consumer assign agency in Connecticut, began placard stories and gathering evidence mosey later would help the FTC in its case.

Tempe energy-drink company's recruiting of college students draws scrutiny

Several national and local communication outlets also launched investigations attentive Vemma,  including "Today Show," "Al Jazeera America," and "Rolling Stone." The City Enquirer published an investigation mug year about Vemma’s growing presence take-off Cincinnati-area campuses.

Other countries also chipped down on Vemma.

The Romance government declared Vemma a grave scheme in April 2014, snowball a spokesman for Switzerland’s Indict Secretariat for Economic Affairs inveterate that prosecutors there are delving the company. Consumer protection agencies in Germany and Austria as well issued warnings about the go with and advised young adults to behavior clear.

The Phoenix Suns terminated their Vemma affiliation, Suns spokeswoman Mare Baier said last week.

Lawsuit alleges false claims

The foundation of Vemma's go well lies its "clinically studied, single-formula product line," according to say publicly company's website.

Vemma, or Vitamins Essential Minerals Mangosteen Aloe, takes its name escape an Asian fruit called Garcinia mangostana.

Vemma in 2014 was leadership target of a class-action causa in New York accusing rendering company of false and deceptive marketing, advertising, and sale firm their Vemma product line, inclusive of Verve.

The federal lawsuit accuses Vemma of violating the 1999 FTC order by claiming its receipts improve immune function, reduce accelerator levels, increase blood levels, grow antioxidants in the blood boss increase health.

Vemma countered in have a stab documents that the case was brought by a former correlate who is contractually barred raid filing a lawsuit and poverty-stricke his member agreement.

It asked rendering court to dismiss the case, which has since been transferred promote to Arizona and is ongoing.

Vemma boasts that its core mission not bad "to help others by flattering their well-being, and offering uncorrupted income stream to people who introduce others to a invention line they believe in."

Vemma's site said Boreyko started the company offspring leveraging 20-plus years of "experience gather the wellness industry with king passion for creating unique construction to keep people healthy add-on founded Vemma."

Boreyko, is the divorced father of six children tolerate has homes in Scottsdale favour Southern California.

"Al Jazeera America" found he made about $12 million in 2013, according to his divorce records.

Boreyko was born in Calgary, Alberta, Canada. According to Vemma's website, fulfil parents came from small upcountry artless communities but made millions subordinate the multi-level-marketing business.

Ben and Dottie Boreyko and their four children "built a multimillion-dollar networking business be thousands of team members spanning several countries," the website states, adding that as an excrescence of their success they based "countless charitable organizations."

Vemma also claims to be dedicated to kind and improving "the lives carry children around the world." Staff the Ben and Dottie Boreyko Foundation, Vemma claims it works with deserving nonprofitmaking organizations to help the world's children live healthier lives.

But excellence foundation's most recently available tax takings show that in 2011, 2012 and 2013 very little went to charities.

The foundation reported $34,819 finalize revenues in those years abide made three donations for $17,500.

Those included: $5,000 to the Phoenix Children's Haven and $2,500 to a Heavenly kingdom Valley foundation called Out rob the Shadows in 2011; and $10,000 to the Freedom Academy Northerly in Scottsdale in 2013.

Wide implications

The FTC action could have broader implications for the controversial exertion, and it’s sparked renewed calls for tighter industry regulations – even from people who hindmost multilevel, or “network,” marketing.

“I be endowed with been pushing for more corpus juris that lead to a bonus predictable marketplace in network marketing,” Kevin Thompson, a lawyer who represents multilevel marketing companies, aforesaid in an online video he informed on Vemma.

“This is what happens when you push read an environment of no jus canonicum \'canon law\', no regulation. When there’s clumsy regulation, the regulators can prosecute anybody.”

Multilevel marketing draws comparisons hinder pyramid schemes because both count on members recruiting other everyday to make money for those above them.

Some people dealing to boil the legality let down to whether a company sells a real product, but that’s too simplistic, said William Preserve, a pyramid scheme expert post dean of the School befit Business at the College delightful New Jersey.

“The issue of creation efficacy is by and hefty a non-issue in court.

It’s a red herring,” Keep blunt. “Real companies sell real receipts, that’s true. But so relax schemes.”

It’s impossible for everyday ancestors to determine whether a sheer is a pyramid scheme in that you’d need a complete discovery of the company’s finances – which companies aren’t required class provide the general public – to accurately make the call.

Shana Mueller, a spokeswoman for Have a rest in Advertising, said Vemma admiration going to have a arduous time recovering from the FTC action.

“This is not going away,” she said.

“Vemma could role-play the order lifted, they could go back into operations, nevertheless it’s never going to emerging the same. ... It’s party blowing over.”

'Cult-like' and pervasive

Some course group describe Vemma affiliates as actuality "cult-like."

Austin Neff, a 23-year-old recent college alum from Portland, said it it’s hard to describe to outsiders just how pervasive Vemma became on campuses nationwide.

Neff and Devitalize Liggins said they invited to numerous institution parties that were Vemma transaction pitches in disguise.

They became so frustrated they launched topping Twitter account mocking Vemma beam the Young People's Revolution.

“It got to a point where incredulity would tell people we weren’t down with the idea always the business, and people would be so pushy about it,” said Liggins, 23, who averred being driven to Vemma recruiters’ houses under the guise pay going out to a expressive lunch.

“I’d say, ‘Where are miracle going?’ And they’d say, ‘You should just come to that meeting.

It’ll be, like, 30 minutes and then we’ll make a payment do whatever.’ I’d say, ‘Let me out of the car.’”

It’s unclear how many Arizona set the company had recruited infer sell its product.

When 21-year-old Scottsdale Community College student Chris Benson signed up to sell Vemma juice drinks, he said direct didn’t feel right.

He said he invested less than $50 to get an “affiliate” based on promises of quick money and the right lane of a free car theorize he sold enough.

It was a huge mistake, he said.

‘’When they started talking about ranks, that’s what really got middle name as it’s a little pressure sketch in my opinion,” put your feet up said. “I was like, yea, no one is going pileup give me a free BMW.”

Benson said the company presentation was enticing and made people oblige to be a part come close to the company.

‘’They use all these things like colorful words, ration people retire early,” he held.

“You know, these things wind make you kind of what to join into it. Nearby I have to admit knock down seems appealing, which is in all probability what got me.”

Benson said fiasco didn’t have a lot give a miss money to spend at blue blood the gentry time, and he had steady graduated from high school. Why not?

said some of his actors invested up to $500 affected the company.

Benson said he conventional no help in selling greatness product, and the company emphatic recruiting new people.

‘’It’s not good, you just gotta work work flat out and do what most family unit do for money. There act no shortcuts in life,” powder said.

Arcadia High School senior Musthafa Mahmood, a former Vemma connect, said he stands by character product.

‘’Maybe the setup is dissipated "but the product itself silt a good product,” he said.

Mahmood said even though he deterrent $500 into it, he doesn’t see it as a forfeiture.

He did not recruit satisfactory people to make his meditate back, but he views renounce as his own fault, moan Vemma's. He said he attain has Vemma nutritional drinks other vitamins that he uses.

Other Vemma supporters also defended the earnings and criticized federal regulators parade cutting off access.

‘’The sad good thing is that Vemma closed closefitting doors so that those look up to us who really liked picture product now have no well to get it,” an unnamed person wrote on the FTC website..

“The marketing plan may well have been faulty, but excellence product was not.”

Reporter Lynnie Nguyen blond Cronkite News Service contributed capable this article.