Atlanta, GA – Published July 01, 2009
Stream Energy, a fast-growing Texas-based natural gas retailer that entered Georgia last year, is being charged with running a pyramid scheme in a federal class action lawsuit filed this week.
Stream, in a statement, called the suit “groundless and without merit.”
A Houston law firm says in the complaint filed in Texas that Stream Gas & Electric and its Ignite Holdings division operated a multilevel marketing program it contends is a pyramid scheme.
In a pyramid, new participants pay money to the people who recruit them, then hope to recoup their investment and more by recruiting others. The fraud collapses when there aren’t enough new recruits providing money to sustain the hierarchical structure.
“Some of the individuals at the top of the Stream and Ignite pyramid earn millions of dollars a year, while most of those that are now joining the scheme will likely never recover their investment,” said Scott Clearman of The Clearman Law Firm, which brought the suit.
Read the entire article at the Atlanta Journal Constitution
Learn more about Pyramid Schemes by watching our Free Video Presentation
Also, read our company overview: Ignite Inc./Stream Energy Facts, News and Review
Related posts:
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- Stream Energy / Ignite Announce Dismissal of Federal Lawsuit
- Ignite Inc. / Stream Energy, Facts, News, and Reviews
- Stream Energy Rejects Basis of Class Action Lawsuit
- Green Mountain sits atop survey on power retailers
- Stream Energy gets $10 million boost
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