There are two FundAmerica companies. The current and active FundAmerica is an SEC-compliant company offering tools for tech-driven securities offerings. It was acquired by Prime Trust and continues to be a product offering of Prime Trust.
On August 14, 2023, Prime Trust and FundAmerica's parent company, Prime Core Technologies, filed for Chapter 11 bankruptcy protection. It is currently in talks to sell all of its assets, including FundAmerica. Prime Trust will also request to continue to pay wages and provide benefits to ongoing employees as usual. For now, FundAmerica will continue to operate normally during the bankruptcy process. [1]
The second is FundAmerica, Inc.. It was a discount buying club that marketed consumer buying club memberships through multi-level marketing. The business began in 1987 in Los Angeles, California before moving its offices to Irvine, California.
FundAmerica's founder, Robert T. Edwards, was arrested in July 1990 for allegedly running a pyramid scheme. [2] [3] FundAmerica filed for bankruptcy in August 1990 [2] In late August 1990, Robert T. Edwards was fined $20.4 million dollars by Florida for running a pyramid scheme. [4] In 1994 in Florida, the company pleaded no contest to a reduced charge of misrepresenting investors' odds of success and paid a $200,000 fine. [5] A new company, FundAmerica 2000, was started with Robert Edwards as a consultant. [5]
References
- ^ "Prime Trust files for Chapter 11 bankruptcy". Crowdfund Insider. August 14, 2023. Retrieved August 14, 2023.
- ^ a b Crouch, Gregory (18 August 1990). "FundAmerica Files for Bankruptcy, Cites 2 Overseas Creditors". Los Angeles Times.
- ^ Michaud, Anne (12 August 1990). "His Pyramids Were Schemes, Authorities Say : Marketing: FundAmerica of Irvine was only Robert T. Edwards' latest dubious venture. Surpassing the Pharaohs, he's left his mark on three continents". Los Angeles Times. Retrieved 11 April 2019.
- ^ Crouch, Gregory (28 August 1990). "FundAmerica Founder Hit With $20-Million Fine : Investigation: Florida's attorney general levied the largest fine ever against an individual. The state says the Irvine firm's Robert T. Edwards operated a pyramid scheme". Los Angeles Times. Retrieved 11 April 2019.
- ^ a b Flagg, Michael (26 January 1994). "FundAmerica Pleads No Contest to Reduced Charge in Florida". Los Angeles Times. Retrieved 11 April 2019.
- VanDruff, Dean. "What's Wrong With Multi-Level Marketing? - III". Quixtar.
- Wichner, David (1990-07-23). Metro. The Phoenix Gazette (Final ed.).
{{ cite news}}: Missing or empty|title=( help) Record Number 9007260151 - Pender, Kathleen (1990-08-01). Business. San Francisco Chronicle (Final Chaser ed.).
{{ cite news}}: Missing or empty|title=( help) Record Number 9008060184 - Rechtin, Mark (1990-07-30). Orange County Business Journal.
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External links
- [1] The current SEC-compliant company offering tools for tech-driven securities offerings.
- [2] The parent company that acquired FundAmerica.
- False Profits "We're Looking For Five Exceptional Leaders..." - False Profits, Mentions FundAmerica
- LA times articles on the company