Montana regulators accuse NC company of running pyramid scheme for phone, Internet service

Mont. accuses NC company of running pyramid scheme

HELENA, Mont. — Montana regulators have accused a North Carolina company of running a pyramid scheme involving phone and Internet services.

Commissioner of Securities and Insurance Monica Lindeen said Tuesday that ACN Inc. lured hundreds of Montanans to join by making deceptive claims that members could earn large sums of money by recruiting new members and selling services.

ACN’s services include digital phone service and high speed Internet that the company’s website says are not available in major Montana cities. Its website also lists satellite television and home security services.

ACN executive vice president Dave Merriman said Wednesday the only service ACN sells that is not available in Montana is local phone service. He added that ACN representatives only get paid for selling services, not for recruiting other members.

There is, he said, “a misunderstanding as to how our plan works.”

ACN was issued a cease-and-desist order, which also names ACN officers and founders Gregory Provenzano, Robert Stevanovski, Anthony Cupisz and Michael Cupisz.

The state alleged ACN recruited about 400 Montana participants who paid a total of nearly $300,000 to be a part of the program and received about $1,600 in compensation for selling phone services in 2008 and 2009. Montana participants received just under $16,000 for recruiting other members in 2009, Lindeen’s office alleged.

Lindeen’s office is seeking restitution and fines.

The company has the right to request a hearing on the matter.

Merriman said the company is reviewing the order with attorneys.