July 8, 2009 by Robert Tharp at 11:53:10 am
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Retail electricity and gas provider Stream Gas & Electric has grown like crazy in the last three years with an intoxicating message. With a business model that offers individuals a path to personal wealth by schlepping electrical service to friends and neighbors, it has become the 29th largest private company in Dallas/Fort Worth,
But some are starting to question whether Stream's business plan amounts to a multilevel marketing pyramid scheme, which is an illegal and non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered. Attorney's from Houston's The Clearman Law Firm have filed a federal class action lawsuit under the Racketeer Influenced Corrupt Organizations(RICO) Act against the Dallas-based company.
Clearman attorneys allege that Stream and its marketing arm, Ignite, induced the plaintiffs and others to invest in the "Ignite Services Program" at a cost of $329 and purchase an "Ignite Homesite" web page for a charge of $29 per month. The lawsuit claims that a large portion of the $329 is paid to those higher in the pyramid. "Some of the individuals at the top of the Stream and Ignite pyramid earn millions of dollar a year, while most of those that are now joining the scheme will likely never recover their investment," says Scott Clearman of The Clearman Law Firm, lead counsel for the plaintiffs. "Stream promises recruits that they can make vast sums of money, but the fact is that most will lose their money."
A copy of the lawsuit and more information about The Clearman Law Firm is available at http://www.clearmanlaw.com. For more information or to schedule an interview with Mr. Clearman, please contact Barry Pound at 800-559-4534 or barry@androvett.com.
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