Nutritional drink maker Vemma has been temporarily shut down for running pyramid scheme

MarketsAssociated Press

The Federal Trade commission says that Vemma Nutrition has been temporarily shut down for operating a pyramid scheme that promised college students riches if they sold its nutritional drinks, but most ended up losing money.

The FTC says the company told recruits that they could make as much as $50,000 per week selling its nutritional beverage Vemma, energy drink Verge or protein shake Bode. An initial investment of $600 was paid for products and business tools, the FTC says, and $150 in Vemma products had to be bought each month to receive bonuses.

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The FTC says Vemma provided little help on how to sell its products and instead rewarded them for recruiting more people.

A representative from Vemma did not immediately respond to a request for comment.