Federal Trade Commission Asks Court To Shut Down Burnlounge and Freeze Assets

As we reported earlier this week, the U.S. Federal Trade Commission has filed a complaint (pdf) against download store BurnLounge accusing the company of operating an illegal pyramid scheme and is asling that the site be shut down immediately.

The complaint, filed in U.S. District Court for the Central District of California on June 6th asks the court to permanently shut down the alleged illegal pyramid practices, the FTC said in a press release. The FTC alleges that Burnlounge operates an illegal pyramid scheme, make deceptive earnings claims, and fails to disclose that most consumers who invest in pyramid schemes don’t receive substantial income, but lose money instead.

The FTC asked asked the court to freeze Burnlounge’s assets. At a hearing on June 8th, BurnLounge’s attorneys asked for more time to respond and Judge George Wu ordered a full hearing for June 19th.