(Phoenix, Ariz. – May 24, 2006) Attorney General Terry Goddard today announced a settlement with Liberty League International, LLC, and its principals, Brent Payne and Shane Krider. The consent judgment resolves complaints that the multi-level marketing corporation tricked customers into spending substantial amounts of money by promising “sizable commissions” if they helped market three “personal development” products and recruit new participants into the program.
The settlement requires Liberty League International, based in Scottsdale, to pay $115,000 which will be used to pay for consumer education, attorneys' fees and investigation costs, and victim restitution to be determined by the court at a later date.
According to documents filed in Maricopa County Superior Court, Payne and Krider said customers had the potential to earn large sums of money if they used and recruited new participants to use Liberty League’s “personal development” products. In fact, the majority of participants did not earn enough to cover the amount they paid to buy the products sold to them.
The personal development products included a home-study course, a four-day personal development conference and a five-day personal finance and development conference. Prices ranged from $1,495 to $12,995 per person.
In addition to the civil penalties, attorney’s fees and restitution, the defendants are also required to:
- Refrain from making unsubstantiated income claims.
- Advise potential customers of the correct percentage of participants who have made a profit through their participation in the Liberty League program.
- Refrain from making any false or deceptive statements in their marketing materials.
Assistant Attorney General Nancy V. Anger handled this case.
If you believe you have been a victim of fraud, please contact the Attorney General's Office in Phoenix at 602.542.5763; in Tucson at 520.628.6504; or outside the metro areas at 1.800.352.8431. To file a complaint in person, the Attorney General's Office has 22 satellite offices throughout the state with volunteers available to help. Locations and hours of operation are posted on the Attorney General's Web site at www.azag.gov. Consumers are also encouraged to sign up on the Web site to receive consumer advisories from the Attorney General.