Premier Financial Alliance Pyramid Scheme Claims
December 2019: A federal judge denied the defendants’ motion to reconsider the January 2019 order denying arbitration and their motion to transfer the case to a court in Georgia. In the same court order, the judge lifted the stay and gave the plaintiffs until January 10, 2020 to file an amended complaint.
May 2019: A federal judge dismissed the claims against National Life Insurance Company, National Life Holding Company, and NLV Financial Corporation for lack of personal jurisdiction and the claims against Life Insurance Company of the Southwest for failure to state a claim. Plaintiffs have until August 2, 2019 to file an amended complaint consolidating this case with a similar case Wang v. Life Insurance of the Southwest. The judge also stayed the remaining claims pending the determination of several motions in the Wang case, including forthcoming motions to compel arbitration and to transfer. Click here to read the decision.
Later in May, the company and some of the other defendants filed a motion asking the judge to reconsider the January 2019 decision denying arbitration in this case if the Wang case goes to arbitration or, if the Wang case does not go to arbitration, to transfer this case to a court in Georgia.
January 2019: A federal judge denied defendants’ motions to compel arbitration concluding that Premier Financial Alliance and the other defendants did not establish that there was a valid arbitration agreement.
October 2018: Plaintiffs filed an amended complaint that added several defendants, including National Life Holding Company and NLV Financial Corporation.
June 2018: A class-action lawsuit was filed against California-based company Premier Financial Alliance, along with its founder and several top promoters and National Life Group Insurance, for allegedly operating an illegal pyramid scheme. Specifically, the complaint alleges that individuals earn commissions and financial rewards by recruiting others to join instead of selling insurance policies and “[m]ore than 95% of [the company’s] Associates average net losses.” In addition, the plaintiffs claim that the defendants make deceptive income claims by promising that Associates will earn “vast wealth, luxury vehicles, and lavish trips” when, according to the complaint, only those in the middle and at the top of the pyramid make money and receive such benefits. (Plaintiffs amended their complaint in October 2018.) (Chen et al v. Premier Financial Alliance, Inc. et al, Case No. 18-cv-3771, N. D. Cal.)
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