Source: Npros 6/19/2007
BurnLounge CEO Resigns Amid FTC Probe
BurnLounge co-founders Ryan Dadd and Stephen Murray along with the company's board unanimously approved the appointed of Alex Arnold's succesor, Grand. D. Johnson. Johnson is currently on the BurnLounge board and is a BurnLounge investor.
BurnLounge co-founder Stephan Murray said, "This change in management is a first step toward a reinforced focus on building the entertainment company we've always envisioned."
The company maintains that it's "revolutionary business model" is legal, and said it is "working to understand and address any legitimate issues and concerns the FTC may have."
A hearing will be held on Tuesday in California Federal Court on the FTC's demands for an injunction and asset freeze.
Related News
-
Burnlounge Lawsuit in Hands of US Judge
The federal lawsuit that alleges former USC football star Rob DeBoer was involved in the pyramid scheme is in the hands of a judge.Testimony recently ended in the case over Burnlounge, a New York online music store operator that attracted many investors from the Columbia area.The Federal Trade... Read More...BurnLounge in Wired News
Have you ever wanted to be a snarky record store clerk like the ones in High Fidelity, recommending the choicest cuts to a grateful and adoring public? People's Music Store lets you set up your own online storefront to sell up to 50 DRM-free albums from a decent range of high-quality electronica, ro... Read More...FTC Settles with BurnLounge
The Federal Trade Commission (FTC) has announced that one of the operators of BurnLounge, a digital music distribution service the agency had determined was actually a pyramid scheme, has settled charges and agreed to give up $20,000 in ill-gotten gains.The FTC charged BurnLounge in June 2007 wit... Read More...BurnLounge on Wired Blogs
You may remember a site called BurnLounge, which charged users upfront for a chance to make money selling other peoples' music, like a digital music version of Amway.If your reaction to BurnLounge was anything like mine, you quickly became frustrated by chirpy, overenthusiastic strangers infiltra... Read More...
