FTC Returns Almost $1.9 Million to Consumers in BurnLounge Pyramid Scheme

The Federal Trade Commission is mailing 52,099 checks totaling almost $1.9 million to consumers who lost money to a pyramid scheme that pretended to be a legitimate multi-level marketing program selling opportunities to operate online digital music stores.

In June 2014, the FTC won an appeals court ruling upholding a district court finding that BurnLounge had operated a pyramid scheme.

Consumers who receive the checks from the FTC’s refund administrator for this matter, Gilardi & Co. LLC, should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed. The amount will vary based upon the amount of each consumer’s loss.

Consumers who receive checks and have questions can contact Gilardi & Co. at 1-877-417-4484. More information about the FTC’s refund program is available on the FTC’s website.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.