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Trump appointee linked to ‘allegedly illegal pyramid scheme’ shut down by federal regulators

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President Donald J. Trump (DoD Photo by U.S. Army Sgt. James K. McCann)

On Thursday, Politico reported that James Miles, the Trump administration’s choice to run the federally-backed Open Technology Fund, was involved in a pair of multilevel marketing schemes, including one that was shut down after a government investigation.

“The Federal Trade Commission shut one of them down, calling it ‘an allegedly illegal pyramid scheme.’ A 2010 government legal filing describes Miles as a ‘participant’ in that company, Fortune Hi-Tech Marketing, which he acknowledged was a ‘pyramid’ — but insisted was legal,” reported Daniel Lippman. “Miles publicly vouched for the second company, Excel Communications, while he was a top South Carolina official and his wife was being paid by the firm. But today he denies he ever had any formal involvement with either company.”

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“Miles and his wife were never accused of wrongdoing, and he said in a statement that the two companies’ legal woes began after her involvement with them had ceased,” said the report. “In fact, his wife was affiliated with the company in the 1990s during years when a number of state attorneys general investigated it.”

Multilevel marketing companies work by encouraging salesmen to recruit more people into the company, offering rewards and a percentage of sales based on recruitment. While some of these businesses operate legitimately, there is overlap between this business model and illegal “pyramid schemes,” in which the product being sold is just a front to scam money up the chain from new recruits.

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Trump blasted for ‘avalanche of lying’ in brutal takedown by CNN fact-checker

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CNN fact-checker Daniel Dale provided a brutal dose of reality after President Donald Trump constantly mislead Americans with his false claims during the first 2020 general election presidential debate.

CNN's Wolf Blitzer introduced Dale by recapping that, in his opinion, "clearly this debate was an embarrassment for the United States of America -- a clear embarrassment."

"How much was fact?" Blitzer asked. "How much was false?"

"Well, it depended Wolf on who we were listening to," Dale replied.

"I think it's important for us as journalists to say when both sides are not alike -- and they were not alike tonight," he explained.

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WATCH: Van Jones delivers epic lecture on CNN after Trump ‘refused to condemn white supremacy’

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CNN political analyst Van Jones tore into Donald Trump after the president's highly controversial decision to repeatedly refuse to condemn white supremacy at the first 2020 general election debate.

"Only three things happened for me tonight," Jone said.

"Number one, Donald Trump refused to condemn white supremacy," he explained.

"Number two, the president of the United States refused to condemn white supremacy," he continued.

"Number three, the commander-in-chief refused to condemn white supremacy on the global stage -- in front of my children, in front of everybody's families -- and he was given the opportunity multiple times to condemn white supremacy," Jones said.

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2020 Election

Jake Tapper stunned by Trump’s debate: ‘That was a hot mess inside a dumpster fire inside a train wreck’

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CNN Jake Tapper reacted in shock on Tuesday following the first presidential debate between Democratic nominee Joe Biden and President Donald Trump.

"That was a hot mess inside a dumpster fire inside a train wreck," Tapper said. "That was the worst debate I have ever seen. In fact, it wasn't even a debate. It was a disgrace."

"And it's primarily because of President Trump," he remarked, "who spent the entire time interrupting, not abiding by the rules that he agreed to, lying, maliciously attacking the son of the vice president. When asked to condemn white supremacists, he brought up the name of a neo-fascist, far-right group and said, 'Stand back and stand by.'"

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