State of California v. YTB

YTB is charged with operating an illegal pyramid scheme

Card Mill Confidential

Click here to read more about YTB in TravelAge West's exclusive cover story Card Mill Confidential 

State of California Attorney General Jerry Brown announced this week that the state is bringing suit against (YTB), charging that the company operates an illegal pyramid scheme and engages in deceptive business practices.

" operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else," said Brown. "Today’s lawsuit seeks to shut down the company’s unlawful operation before more people are exploited by the scam."

The suit specifically names YTB executives Lloyd Tomer, Scott Tomer, Kim Sorensen and Andrew Cauthen.

" and its affiliates operate an illegal pyramid scheme that only benefits members if and when they find enough new members to join the scam," said Brown. "Once enrolled, members who join the pyramid scheme earn compensation for each new person they enlist, regardless of whether they sell any travel. The company lures new members by offering huge income opportunities through online travel agencies yet the typical person actually makes nothing selling travel."

Brown charges that YTB’s unlawful business practices include 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; and selling an illegal travel discount program.

Brown is suing to get a court order that bars the company from making false or misleading statements and assesses a civil penalty of at least $15 million and at least $10 million in restitution for Californians who were victimized by the company.

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