YTB Trial Date Set For September
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Having Their Day In Court
The YTB Lawsuit: Illegal Pyramid Scheme reported on last August 2008 will have their day in court later this year. The California lawyers have been given a trial date of Septembet 21, 2009 to state their case against YTB.
The accusations made against YTB by the state of California involved running an illegal pyramid scheme, and engaging in a deceptive business. The origional intent by Attorney General Edmund Brown Jr. was to shut down the company's unlawful operation before more people were hurt by this scam.
Although YTB is yet to be proven to be a scam, it was noted that in 2007, 73% of the YTB revenue came from fees paid by their Referring Travel Agents, another 10% from selling training and marketing materials. But only 14.5% from the selling of actual travel.
Other aligations have also been made against YTB, and will all be addressed during this September trial. The state of California is seeking $10 million in restitution for the California residents who bought into the business, and another $15 million in cival penalties.
Since the lawsuit was first presented, YTB has reported some changes in their business plan and stratagies. But will it be a case of "too little too late"? We will all be watching the outcome of this case. One has to wonder why it had to come to this in the first place?
Larry Buhrandt
