Pre Paid Legal Faces Ponzi Scheme Accusations And SEC Investigation

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 17, 2009 -- Pre Paid legal, was considered one of America’s best companies to invest in recently, but that shining corporate American image is quickly being tarnished by accusations of conducting deceptive Ponzi Scheme business practices that compare to the Bernard Madoff Ponzi Scheme,
and an SEC investigation into the deceptive business practices of Pre Paid Legal.

Pre-Paid Legal Services Inc. has received a subpoena from the Securities and Exchange Commission to produce a variety of documentation, the company announced Tuesday.

"The subpoena was surprising to all of us," said Randy Harp, chief operating officer.

The subpoena from the SEC's Division of Enforcement requires the Ada-based public company to produce a variety of documents, including those pertaining to a stock repurchase program that Pre-Paid has had since April 1999.

Other documents requested include those pertaining to the company's Affirmative Defense Response System program and other marketing practices; membership statistical information; segment reporting; a contingency disclosure to the Federal Trade Commission; and other operational practices.

What does these mean for Pre Paid legal?

It means that Pre-Paid Legal would have to tell prospects that fewer than a quarter of its sales representatives sold more than one insurance plan in 2005, something it disclosed to investors in a filing with the S.E.C. While Pre-Paid’s Web site tells prospects that if they “market just five memberships per week, you’ll receive $500 per week!” very few representatives have consistently sold five memberships a week.
Pre Paid legal also faces stiff opposition to its deceptive business practices from The Fraud Discovery Institute Inc. (FDI).

FDI has unveiled some of the results of a six-month undercover investigation of Pre Paid Legal Inc. (PPL) by launching a new Web site, http://www.prepaidillegal.com.
The site includes a comprehensive 25-page report from nationally recognized multi-level marketing (MLM) expert Robert Fitzpatrick outlining for the first time the startling fact that Pre Paid Legal Inc. is not a product-based, multi level marketing company like Usana Health Sciences Inc. or Herbalife - which are both in a constant state of collapse, but rather it is a service-based multi-level marketing company actually collapsing.

To view Complaints and Articles Against Pre Paid Legal See Links Below:
http://www.consumeraffairs.com/legal/prepaid.html

http://www.mediamoogle.com/
http://www.scstatehouse.gov/code/t37c016.htm
http://www.ripoffreport.com/Attorneys-Legal-Services/
Pre-Paid-Legal-Service/pre-paid-legal-services-is-a-m-7x4x7.htm
http://www.articlesbase.com/skin-care-articles/
prepaid-legal-scam-gives-bad-name-to-mlm-1116566.html


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