Posted 06/17/2015 at 10:19 AM
Posted 2 years ago
For some people who remember the online digital music marketplace BurnLounge, the name may kick up a lot of ire.
Eight years after their shutdown, those wronged parties may get some restitution.
BurnLounge was touted as a prime place to open a digital music store for any interested parties who wanted to buy in.
Investors bought in by signing up for one of three packages, ranging from $29.95 per year for the basic tier to $429.95 for a VIP package.
But it was all part of an elaborate pyramid scheme that made the owners of BurnLounge a lot of money — to the point that over 93% of investors never even made back their original investment.
The Federal Trade Commission stepped in and shut the site down back in 2007 after giving them an injunction.
Eight years later, some victims will be getting compensation to the tune of $1.9 million.
This comes after a United States Court Of Appeals decision ruling in favor of the F.T.C.
The agency will send out over 52,000 checks to cover the amount to the disgruntled investors.