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Pyramid Scheme Victims File Class Action Lawsuit

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Case ID: 4839 | Consumer Products | 06/09/2006

Lawyers filed a a class action lawsuit against the operators of an alleged pyramid scheme in Louisville, Kentucky. The Phoenix Group and Eli Ohayon are named as defendants.

Participants of the pyramid scheme claim Ohayon defrauded them out of tens of thousands of dollars in an alleged pyramid scheme.

"Looking at it now, it was a scam, a big time scam," says Gerald Grett, one of the plaintiffs in the suit. Grett says he was recruited by Ohayon in 2002 to a company called Phoenix USA. He says he lost $4,000 on products he bought from Phoenix, believing it was a legitimate multi-level marketing operation.

"They were told that they could buy this inventory and re-sell it for handsome mark ups when in fact Phoenix was charging them retail for the inventory in the first place." said the attorney for the plaintiffs. "Literally, there was no way to make money" the attorney continued.

"The lawsuit seeks tens of thousands of dollars in damages for Ohayon's victims, some, who lost their life savings" said the plaintiffs attorney.

"I think it's really about getting more information out there so people know about it and know that these people are bad," Ross Dodd, another plaintiff said.

The judge has set a September trial date. Attorneys are asking anyone else who believes they lost money in Phoenix USA to come forward and join the class action suit.

Ohayon and the other defendants have not responded to the suit; attorneys have been unable to locate him.

The attorney representing the plaintiffs thinks it's likely they won't show up to court and the clients will get a judgment.

The lawsuit seeks to represent anyone who invested in the Phoenix Group or Eli Ohayon.


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