Bioperformance – an illegal pyramid scheme?

May 18, 2006 by Ty | 6 Comments

 heraldnet:

What do mothballs and toilet bowl deodorant bars have to do with drastically improving gas mileage?

Nothing, say prosecutors who are going after a company that claims a small ball made with the chemicals in those products is a “gas pill” that can boost mileage 25 percent or more.

Texas Attorney General Greg Abbott on Wednesday announced a lawsuit against BioPerformance Inc., a day after a San Antonio judge signed a temporary restraining order forcing the Dallas company to cease alleged deceptive acts and freeze its assets.

The pills, which are dropped into gas tanks, are part of an illegal pyramid scheme, Abbott said. According to the lawsuit, the company makes money by getting consumers to purchase in bulk, then sell the pills to others.

If found in violation of state law, BioPerformance owners could be fined $20,000 per violation.

In Network Marketing Companies

Related Posts

Comments

  • Barbara on May 24th, 2006 at 9:12 pm

    What a crock! If the Texas Ag is permitted to get away with this nonsense all MLM or Network Marketing companies will begin to fall like dominoes.
    I don’t suppose he ever considered the damage he personally is causing to the 50k+ distributors that depend on BioPerformance as a livelyhood. For many it is thier sole source of income.
    For the first time in the companies history the product is not being shipped at all and the checks that were already cut no longer negotiable.
    Way to go Mr Abbott, I am sure all Texans are proud to have you protecting them! Yep you are protecting them from conducting their own business. You are protecting them from selling a produuct that is so toxic that you picked it up with your bare hands. Geesh somebody call an ambulance lest Mr. Abbott not be able to pursue a lawsuit afterall.
    And last but not least surely the great citizens of Texans will thank you for rendering the paychecks in their hands completely useless. I just know they will all send you congratulations as they try to explain to their mortgage companies that their own government shut down their only source of income and that is why they can’t make this months payment.
    If in this country you still have the presumption of innocnese until proven guilty then
    My questions are:

    Why are the AG’s in this country allowed without hindrance to shut down any business without solid evidence to back up their claims?

    And you who so gallantly place test data on the internet as proof that BioPerformance has lied….do you know that the tests were done correctly and that the type of test itself didn’t alter the chemical makeup of the product?
    Without much more knowledge than what is on that piece of paper you have proven nothing but your ignorance of chemistry.

  • Sarah on May 25th, 2006 at 9:41 am

    Interesting.

  • M Marshall on May 25th, 2006 at 2:33 pm

    I am sure all the pill pushers will be delighted to here what I am about to say. Because, after all they are right and we well we get to laugh at there efforts to stop the bleeding. I know that many pill pusher as I call them have threatend that lawsuits can be issued because slander is wrong. With this in mind, shall I become more brave in the quest with others to show Bioperformance for what it is a complete scam? Why yes. So with this in mind lets continue on are little adventure in the to shut down pill pusher fraud. The following is pure fact. Not only is the Texas AG going after Bioperformance as We all have heard. Bioperformance has made a few more freinds one being the Florida AG who is currently doing an investagation on the company throuht the economic crime division.
    Case Number: L06-3-1083

    Subject of investigation:
    Bio Performance, Inc. and Lowell Mims, Director

    Subject’s address:
    1300 W. Walnut Hill Ln, Irving, TX 75038

    Subject’s business:
    Multilevel marketing

    Allegation or issue being investigated:
    Unfair/deceptive business practices in the sale of product that purports to make gasoline burn with greater efficiency without independent scientific testing to substantiate claim. Further, product is sold/distrbuted by means of multi-level marketing whereby the compensation is not based primarily on volume of bona fide sales. Possible violations of Florida Unfair or Deceptive Trade Practices Act, F.S. 501.201, et. seq., production and/or dissemination of misleading advertisements (F.S. 817.40 & 817.41), and operating, participating in, or soliciting on behalf of a chain letter or pyramid club (F.S. 849.091).

    Status of case:
    Investigation opened

    Subject’s position:
    Unaware of investigation.

    AG unit handling case:
    Economic Crimes Division in Orlando Florida Seems the also agree with the Texas AG that the pill is just a scam.Looks like another lawsuit is coming Bioperformance next new friend is the AG of Kentucky A just released press announcement says the following Attorney General Greg Stumbo today issued cease and desist warning letters to Kentucky distributors of Bioperformance, a so called “gas pill� which marketers claim improves fuel efficiency when added to the gasoline tank. The letter warns distributors that further efforts to distribute the pills in Kentucky may subject them to possible civil and criminal liability for theft and violation of the state pyramid sales act.
    Well thats all we have for today if you would like to look for yourself it can be found at each states AG sites.

  • David on June 1st, 2006 at 1:30 pm

    The latest word we just got from San Antonio, is that the charge of operating an “illegal pyramid” was immediately dismissed. Judge is a little overwhelmed by the amount of information presented, will need today and probably Friday before taking it all under consideration.

  • todd on July 31st, 2006 at 8:08 pm

    Way to go MLMer’s my kitty tore my gas tank right out of my vehicle!!

  • jan on August 4th, 2006 at 7:58 pm

    A fool and his money are soon parted.

Leave a Reply