BurnLounge

BurnLounge, Inc.was amulti-level marketingonline music storefounded in 2004 and based inNew York City. By 2006, the company reported 30,000 members using the site to sell music through its network. In 2007, the company was sued by theFederal Trade Commissionfor being an illegalpyramid scheme. The company lost the suit in 2012, and lost appeal in June 2014. In June 2015, the FTC began returning $1.9 million to people who had lost money in the scheme.[1][2]The company is dormant pending additional appeals.