Bioperformance Slammed for $7 Million
TheTexas Attorney General Greg Abbott today stopped a Dallas-based pyramid scheme from illegally marketing the so-called "top secret gas pill" that it falsely claimed would increase fuel efficiency in automobiles. The Attorney General's settlement with BioPerformance and its owners, Lowell Mims and Gustavo Romero, prevents the defendants from continuing to deceptively market their products and ends the State's eight-month legal action against the company.
How are the consumer defendants going to get paid? Is this one of judgments that is simply a piece of paper?
No, apparently "A combination of the defendants' frozen assets and the dissolution of two trusts created by Mims and Romero will provide more than $7 million in compensation to deceived consumers. Mims and Romero may continue to operate any legitimate enterprise, but may not deceptively market BioPerformance pills or similar fuel additive products."
This is a terrific result for consumers, $7 million in real money.
According to the press release, "Attorney General Abbott added: "Texans will not tolerate con artists who prey upon unsuspecting consumers. Though we will continue aggressively cracking down on fraudulent pyramid schemes that profiteer from worthless products, consumers should always be dubious when offered 'miracle' products that are long on hype but short on credible proof." (my emphasis)
Now how do consumers determine that a product is long on hype but short on credible proof?
Well consider this, "The Attorney General further alleged that the worthless product, combined with the defendants' downline marketing scheme, constitutes a product-based pyramid scheme, which violates the Texas Pyramid Promotional Scheme statute. By the defendants' own admission, they recruited 50,000 participants within six months of their scheme's inception."
This type of growth is typical of a product long on hype but short on credible proof. Fast and out of control growth is more likely a cancer than a real sustainable business.
Technorati Tags: texas attorney general, mims, fuel additive products, greg abbott, pyramid scheme, consumers, bioperformance, gustavo romero, fuel efficiency, legitimate enterprise
