Success By Health Is Facing Legal Action From FTC

As discussed in the detailed review of Success By Health, this company is a highly controversial platform that has been involved in a number of suspicious activities. Such activities have not gone unnoticed by the regulatory authorities in the USA. 

SuccessByHealth.com has spent the entire year 2020 facing such legal actions and try to survive the massive backlash it has received from the investors and affiliate members. Following are some of the issues and legal cases that the company is facing:

Allegations About Pyramid Scheme

All of the problems of Success By Health began when Federal Trade Commission (FTC) accused it of being a pyramid scheme back in January 2020. FTC was quick to take action against the company and file a pyramid scheme lawsuit against it. 

Under the complaint, the FTC made it clear that Success By Health was involved in massive fraud and collected more than $7 million from the customers. It was also alleged that the executives behind the company, Jay Noland, Lina Noland, and Thomas Sacca, have personally amassed about $1.5 million.  

Fraud 

Success By Health has been allegedly defrauding the users by promising them complete financial freedom and more than $1 million in profits. In actuality, only a few affiliate members got around $250 per month. As a result, the company is facing severe criticism not only from the legal authorities but also from the users. 

The basis of the FTC allegations of fraud by Success By Health is that the company does not make it clear to the users that they will have to recruit more than 100,000 members to achieve the goal of earning $1 million per month. This shows that the company is trying to make people invest in the company without providing all of the essential information. 

Success By Health’s Response

Despite these allegations and a considerable amount of evidence, Success By Health is still trying its best to counter the allegations and survive in the market. The company is claiming that it is not a Ponzi or pyramid scheme because it has other ways of generating revenue other than the affiliate memberships. 

However, FTC has argued that Success By Health has violated the FTC Act by concealing important information from the affiliate members. Initial orders of the court also show that the case is going in favor of FTC as the company’s request to dissolve the case has been rejected several times by the court. 

Allegations About Concealing the Evidence

In November 2020, FTC alleged that Success By Health has been concealing and even deleting evidence related to the court’s proceedings against the company. These allegations were supported by the fact that Jay Noland has asked all of the employees to use the Signal app for communication within the company because this app does keep any records of the messages. 

Despite the court’s order, the team behind Success By Health refused to provide their communication records. Further analysis also shows that the company has deleted a large number of emails, which is also against the court’s orders. 

In order to cover these actions, the company is arguing that it has been using an ‘auto-delete function to save storage. However, all of such actions and unconvincing defense by Success By Health shows that it is only trying to save its reputation to keep getting more investment from the users. 

As of February 2021, the court has rejected several of the stay motions filed by Success By Health. As a result, the cases against this company are progressing quite quickly. FTC is also asking the court to take down SuccessByHealth.com so that it can stop scamming more people. However, a final decision on these motions is still pending.