OpTree

More questions keep coming up about DSA Member company YTB and whether or not the company is completely legit. Lawsuits have been filed, board members have resigned, and allegations have been flying for months now that the company, an online travel site, is running an illegal pyramid scheme. There has also been some talk about insider deals within the company.

Now comes word that amongst the members of the Board of Directors is Florida State Senator Burt Saunders, (R-Naples). Saunders serves on the Board of YTB International which operates YourTravelBiz.com.

Saunders, who is currently running for U.S. Congress has been paid in the past by the company to be its director and has received money as a consultant for the company. Financial documents show that he had received $16,000 dollars in 2007 from the company, no word yet on whether or not he has been paid for any services this year.

Currently YTB is facing two class action suits each asking for over $100 million dollars, with California asking for restitution for victims in that state. California’s Attorney General even went so far as to call YTB a pyramid scheme.

Saunders has yet to release any official statement regarding his current affiliation with the direct sales travel company, although he did say that the law suits were “silly.” In this day and age, when every politician’s life is looked into so deeply, this could have serious repercussions for Saunders if YTB is found to have operated an illegal pyramid scheme. I wouldn’t be surprised if Saunders is the next in line to step down from the board.

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As we reported last week, the California Attorney General has filed a $25m lawsuit case against YourTravelBusiness.com and its affiliates YTB et al. There have been numerous emails and websites which have been trying to detail what is the  real meaning behind the suit and what is really going on at YTB.

Attorney General Brown charges the company, its affiliates, and the company’s founders J. Lloyd Tomer, J. Scott Tomer, J. Kim Sorensen and Andrew Cauthen with operating an “endless chain scheme,” an unlawful pyramid in which a person pays money for the chance to receive money by recruiting new members to join the pyramid. Brown also charges the company with unfair business practices and false advertising practices including:

* Deceptive claims that members can earn millions of dollars with the company
* Operating without filing legally mandated documents with the attorney general and the Department of Corporations
* Selling an illegal travel discount program

Under California’s unfair business practices statue, the company is liable for $2,500 per violation of law. Attorney General Brown is suing YourTravelBiz.com to get a court order that:

* Bars the company from making false or misleading statements
* Assesses a civil penalty of at least $15,000,000 and at least $10,000,000 in restitution for Californians who were ripped off by the company.

The lawsuit against YourTravelBiz.com, filed in Los Angeles Superior Court, also names affiliates which include YTB Travel Network, Inc., YTB Travel Network of Illinois, Inc., as well as the company’s founders J. Lloyd Tomer, J. Scott Tomer, J. Kim Sorensen and Andrew Cauthen. For a copy of the lawsuit click here.

It may not be a coincidence that we reported that YTB may be considering adopting a Franchise model which could shift away from the MLM model.  This one is far from over.

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