A brand new class-action pyramid lawsuit was filed in opposition to Premier Monetary Alliance earlier this yr.
Along with masking that, as we speak we’re additionally revisiting the unique 2018 Premier Monetary Alliance pyramid lawsuit.
In response to the 2018 lawsuit, Premier Monetary Alliance filed a movement to dismiss the lawsuit and compel arbitration in October 2018.
Following the submitting of an amended grievance, a second movement to dismiss and compel arbitration was filed later that very same month.
On November twenty eighth defendants A JW Manufacturing, LLC, Invoice Hong, The Consortium Group, LLC, Jack Wu, Rex Wu, and Lan Zhang, filed their very own movement requesting the identical.
On January twenty second, 2019, the courtroom denied each motions.
Primarily based on the proof submitted, the courtroom dominated that the Premier Monetary Alliance defendants had ‘failed to ascertain the existence of an settlement to arbitrate‘
Defendants have failed to satisfy their burden to point out, by undisputed materials info, that the events entered into an settlement to arbitrate the claims right here.
On February twenty eighth, 2019, a brand new class-action was filed by plaintiffs Youxiang Eileen Wang and Biyun Zong.
Wang and Zong, each New Jersey residents, declare Premier Monetary Alliance is a “pyramid scheme” they had been “lured” into.
The scheme targets Chinese language, Vietnamese, and Filipino immigrants and their households with guarantees of riches from recruiting individuals to purchase—and promote—the Residing Life Listed Common Life Insurance coverage coverage, issued by Life Insurance coverage Firm of the Southwest.
The enterprise mannequin described within the lawsuit is that of your typical “no retail” MLM pyramid scheme.
Though potential associates are instructed they’ll be capable of keep their very own insurance coverage enterprise, the coverage purchased and bought via the pyramid is considerably overpriced.
Premier Monetary Alliance instructed Plaintiffs and continues to instruct different “associates” to hawk this coverage to different individuals who, in flip, are instructed to enroll extra associates, and so forth and so forth, advert infinitum.
As a result of the coverage is so costly, over 95 p.c of its gross sales happen via the Premier Monetary Alliance pyramid.
If that 95% determine is wherever remotely correct, Premier Monetary Alliance seems to be a major goal for an FTC shutdown.
In BehindMLM’s personal Might 2016 Premier Monetary Alliance evaluation, I opined
If Premier Monetary Alliance is certainly an MLM firm filled with associates incomes commissions based mostly on how a lot their recruited downlines are spending every month – that’s an issue.
Appears like that precisely what’s happening.
On the unique 2018 pyramid scheme case docket, an administrative movement was filed on March nineteenth.
The movement sough to narrate the 2018 and 2019 circumstances, and was granted on March twenty sixth.
Which means that the identical Californian Choose will hear each circumstances.
On Might sixth an preliminary case administration convention for each circumstances was held.
On the listening to defendants Life Insurance coverage Firm of the Southwest, Nationwide Life Insurance coverage Firm, NLV Monetary Company and Nationwide Life Holding Firm had been granted a movement to dismiss.
The plaintiffs got permission to file an amended grievance by August 2nd.
Nonetheless the identical order additionally stayed the case, pending consequence of a movement to compel arbitration within the 2019 pyramid case.
The final important submitting within the 2018 case is a Might twenty eighth movement by the Premier Monetary Alliance defendants,
The movement requests permission to hunt reconsideration of the sooner arbitration denial determination, or within the different a switch of the case to Georgia.
Plaintiffs Gonzales and Chen have opposed the movement, and a listening to to determine the matter has been scheduled for July nineteenth.
Switching over to the 2019 case, the movement to compel arbitration that stayed the 2018 case was filed by Premier Monetary Alliance on Might twenty eighth.
A listening to to determine the arbitration matter was scheduled for July nineteenth.
As per a July 1st order nonetheless, the listening to was continued until August twentieth.
To sumarize, Premier Monetary Alliance is dealing with two separate lawsuits that accuse it of being a pyramid scheme.
Essentially the most damning allegations within the new 2019 lawsuit are the focusing on of Asian immigrants, and declare that 95% of gross sales inside Premier Monetary Alliance are affiliate purchases.
As soon as they pay the $125 membership charge and purchase the Residing Life IUL coverage, Premier Monetary Alliance associates are pressured to recruit and promote the coverage inside their community of family and friends members, sometimes from the identical immigrant group.
As a result of the Residing Life IUL insurance policies are far dearer than Nationwide Life Group’s non-Premier Monetary Alliance coverage alternate options, Premier Monetary Alliance brokers are unable to promote these Residing Life IUL insurance policies exterior of the Premier Monetary Alliance pyramid.
Thus, as explicitly acknowledged in a coaching presentation that Defendant Lan Zhang delivered to Premier Monetary Alliance associates, “Recruiting is the sport”—96% of gross sales derive from promoting the Residing IUL coverage downline.
Lan Zhang seems to be a prime Premier Monetary Alliance affiliate.
A 2016 video cites Zhang as a Premier Monetary Alliance “President”, and depicts her receiving a “particular birthday current” from PFA founder and CEO, David Carroll.
I’ll be checking in for updates on each circumstances on July nineteenth, after which our subsequent scheduled case replace will probably be on or round August twentieth.
Keep tuned…
Replace 18th April 2020 – As of April 2020, the 2 pending Premier Monetary Alliance class-actions have been consolidated right into a single case.