11. The Multi-Level Marketing Company Pyramid Scheme
Year: 2012-Present
Approx. Amount: $2 Billion*
Company / Person Involved: LuLaRoe
LuLaRoe works just like any other pyramid scheme. Sellers buy lots of products and make money by selling the product or recruiting others to sell the product. Encouraged to spend anywhere from 5 to 9 thousand dollars on their first purchase, and advised to reinvest profits back into the company, investors in the multi-level marketing company have been swindled out of almost $2 billion.
The Multi-Level Marketing Company Pyramid Scheme ©Indigo Photo Club / Shutterstock.com
The clothing company that’s based out of southern California has had its fair share of troubles with the law in recent years. There are also claims that the company has been charging customers sales tax in states that don’t have any. No charges have currently been laid, however, there are multiple lawsuits against the company that are pending.