Lawsuit Filed Against Coach Stormy For Allegedly Running A Ponzi Scheme

Added: 2026-05-07

[00:00:04]Hey all my crimsonesites and welcome to the Crimson Cure channel [music] where we embrace our femininity, increase our womanly value and celebrate our brothers. So join me [music] on our feminine journey to learn, heal and grow.

[00:00:26]Hey there my crimsonites and welcome to the Crimson Care channel. your hostess, femininity coach and author, The Crimson Cure, and this is my perspective. So, we got an interesting thing going on with so-called coach Stormmy Wellington, who according to this headline is saying that the FTC filed a lawsuit against Stormmy Wellington, claiming that she deceptively promised followers that they make millions through MLM.

[00:00:55]Um, now people who might be unfamiliar, MLM is multi-level marketing. Basically, a pyramid or a Ponzi scheme. Most business models that are built on the MLM model are typically Ponzi schemes. They are borderline legal. They're like borderline legal because they're technically not doing anything illegal.

[00:01:23]However, it is called referred to as a pyramid and a Ponzi scheme because it typically does not deliver on the promises made. A mar a multi-level marketing company is a company built on a l and I'm loosely giving y'all this definition that a c that you have a company selling a product okay or a service usually a product a tangible product and you instead of having like actual employees that you that you give a W2 to what you do is is you sign on independent contractors or salespeople into the company.

[00:02:10]The people that you bring into the company as salespeople who are independently going to sell the product that you have and distribute and sell it have to pay dues. They have to pay a fees in order to actually work. Okay. So the fee structures are, you know, it depends on which company what kind of fee structure it is, but you you as the person. So like if you wanted to sell ABC cosmetics and uh ABC cosmetics doesn't really hire employees per se, but what you can do is you can become a ABC cosmetic representative.

[00:02:55]And what that means for you is that you get you pay uh certain amount of money either per month or what have you to ABC cosmetics. They give you a supply of ABC cosmetics. You also have um you have a quota to meet per month that you must sell.

[00:03:20]ABC Cosmetics not only gets your fee, but they also get a percentage, a commission of your sale, okay, that you make.

[00:03:30]Um, now that isn't illegal.

[00:03:35]However, the problem comes in is that most of these companies promise that you'll be able to make six figures. In some cases, they promise you to you make seven figures and you'll have all of this stuff because you don't have to make the product. You don't have to, you know, do anything except for sell it.

[00:03:59]Now, what they don't tell you is all the work that goes into selling it because you have to become the person like you have to become basically the plug. All of that branding, all of that promotion, all of the marketing, all of that, that stuff is coming out of your pocket.

[00:04:18]That's the part that they don't tell you. A lot of people go broke doing it because ABC cosmetics tells you to pay them in order for the opportunity to sell their product and then they also take some off the top when you do sell it.

[00:04:36]So you whatever fees that you incur for selling it, no matter how you sell it, you can go to trade shows and sell it.

[00:04:45]You can do parties at home. Remember the Avon parties and all that kind of stuff.

[00:04:49]Whatever you do, those costs come out of your pocket to sell it.

[00:04:56]Okay? ABC Cosmetics does not give you any support for selling the product. However, if you fail to meet the quota of ABC cosmetics, then they get to charge you more money for quote unquote supplementing because you didn't sell to the amount that you were supposed to sell, which actually makes that person go, they can go into debt trying to do this. And you're also encouraged to just do more, just work harder, just, you know what I'm saying?

[00:05:31]you have a mentor, quote unquote, that helps coach you into how to sell, but that rarely works. Meanwhile, you're pouring money into the program in order to remain a part of the program. So, you're also encouraged to recruit people to do the same. So, not only are you called upon to sell the product, but you are also called upon in multi-level marketing to recruit other people who will also do the same thing that you are doing. Okay?

[00:06:08]Those people also have to do the same thing. They have to pay the fee to the company to be able to have access to the product in order to sell ABC cosmetics.

[00:06:18]Okay? that money funnels up towards the top of the pyramid. The people at the bottom of the pyramid do not get this money. The people at the top of the pyramid get the money because they're not getting money from the selling of the product. They are making money from you paying your fees to have access to sell the product. They're going to sell the product regardless of you.

[00:06:45]You understand? So ABC Cosmetics exists and the people that's running ABC cosmetics are able to have the lifestyle that they're having because you are paying for it as the person who's the salesperson and representative. Your fees that you pay to ABC cosmetics is what runs ABC cosmetics, not the selling of the product. And that's where the slight of hand comes from and why people feel like multi-level marketing is borderline illegal. It's technically legal, but it's a bad idea for you to become one of the representatives because you usually what they promise most people can make this that and the third. The majority of the people that are in multi-level marketing never make that kind of money. They don't even sniff it. They don't even sniff that money. they lose money more often than not.

[00:07:43]So, now that I've given y'all about a seven minute crash course in multi-level marketing and why people don't like companies who are built on that model, I I like the Avon companies. Um, it's a it's a it's another real popular I think one prim. It's another one that's real popular.

[00:08:05]A lot of insurance companies was kind of built on that model as well. Okay.

[00:08:10]Getting people to sell the insurance independently. You become a seller D.

[00:08:15]And depending on how many policies you could close out and sell on, then there was a commission for that. You know, basically they was getting people to be like um they were getting people to be a salesperson without the overhead cost of it.

[00:08:32]It's an avoiding of a retail the retail costs and distribution costs that other companies that are not built on MLM structure have to do.

[00:08:44]So anyways, Coach Stormmy has been, you know, I don't keep up with her, but you know, she's been working for uh she's been working for whatever company that she's saying that she working for cuz it's difficult to even find the name of the company or whatever. Uh oh, TLC, that's the company. And so she, every time I see Stormmy, it's like some controversy with her and people being disgruntled and not having the thing that she promised them. Uh, so this is what we're seeing right here is a screenshot of the actual paperwork, okay, that was filed.

[00:09:39]So it's a complaint for permanent injunction and other relief. Okay. So the FTC is the plaintiff versus Stormmy Wellington as the defendant. And when it the summary of the case says since at least 2014, defendant Stormmy Wellington has participated in multi-level marketing uh MLM in at least two different companies as a total life changes TLC LLC participant defendant.

[00:10:08]sold nutrition, wellness, and skincare products and recruited other consumers to join. Defendant has also participated in the MLM pharmarmac pharmacy fi LLC selling makeup, skincare, health, and wellness products and recruiting consumers to join. In the course of recruiting consumers to become participants, the defendant has frequently represented the part represented that participants in both MLMs will or are likely to earn uh seven five to seven figures. Stating for example, I will help a thousand families make five to seven figures in the next 90 days to 12 months. defendant has promised new recruits that they will make six to seven figures, saying, "I'm telling you right now, no less than six figures, no less. Repeat that to me, no less than six figures, and that defendant will make 60 new millionaires in 2026." These claims are deceptive. As described below, income disclosure statements created by TLC and pharmacy show the participants in both MLMs are unlikely to earn any substantial income.

[00:11:17]Nearly all TLC participants earn little to no money. TLC's disclosures uh available on its website says that se 76.8% of all active participants do not earn any compensation in the calendar year of 2023 and that at most point4% of all active participants earn more than $5,000.

[00:11:42]Using the average monthly earnings provided by the pharmacy disclosure, fewer than 1% of its active participants earn an income in the six figure range, contrary to the defendant's claims that participants will earn quote no less than six figures. Further, the disclosure appears to state that no rank of participant earns an average monthly commission large enough to earn a million dollars a year despite the defendant's claims that she will make quote 60 new millionaires in 2026.

[00:12:13]Okay, so that was the summary of why they file a suit. Okay? Because she is running around claiming that she's going to be able to make people millionaires and they're going to be making five and six figures a month and they're going to be making seven figures a year and all of this. Basically, a get-richqu scheme that still works for people, especially people who are impoverished and who have a poverty mindset. They don't know how money works. So, it's easy to get them to tell them that all you have to do is this type of work and follow these instructions. It's super easy. You don't have to really make up anything. The system has been created for you. All you have to do is plug and play. Here, take this um super successful products. Um these products already sell. So, all you have to do is run the script blah blah blah blah, you know, go around the people who would be the target audience.

[00:13:14]Sell the product will sell itself. you know, you don't have to do too much.

[00:13:18]People want to have these products and they and they, you know, once you explain the benefits and blah blah blah blah, these products, once again, they sell themselves. You don't have to do too much to sell the products. They what they don't tell you is that most people don't know how to sell products regardless of how good the product is.

[00:13:37]Being a salesman is a skill and it's one that you have to learn and it's also one it can be cultivated for the most part but it's also one some people are better at salesmanship than other people because of their internal qualities and intangible qualities not all the people of the population most people don't have that quality okay you need the gift of gab you need to be charming you need to be confident you need to be you know what I'm saying and all these certain things have the you know have the charisma have everything that you need and the product and be in front of the people that you need to be in front of.

[00:14:11]See, they don't tell you all the work that goes into it and really all the money that goes into doing that. Okay?

[00:14:20]So, she's promising these people that, you know, no sooner than 90 days is just three months. So, no sooner than you get it and go through the little training and whatever we got for you and telling you how to do it and what the product is and blah blah blah blah. um then you are going to be able to make all of this a substantial money and people this is how people get involved. And so all you got to do is pay, you know, $1,000 upfront or $2,000 upfront or $5,000 upfront or whatever the money is. You got to pay that upfront and then you'll have access to all of the materials and the marketing materials that you need and blah blah blah blah. See, it's a scam.

[00:15:00]It's mostly a scam.

[00:15:03]I don't know. I don't know a company that's based on multi-level marketing that's not a scam. I actually don't know one that that hasn't been accused of scamming, that has not been uh a a lawsuit brought or something of the sort.

[00:15:22]Okay. So, with that being said, I want to show y'all this because now she's gotten on here to try to explain it or whatever. And just just just listen to how she's even framing any of this stuff.

[00:15:38]>> When you on a break of greatness, the enemy will try to steal, kill, and destroy your confidence, your focus, [music] and to try to distract you.

[00:15:48]>> It's the ASPCA music for me. But okay, girl, you got it.

[00:15:54]>> But your responsibility is [music] to stay focused at all cost. No matter what tries to come your [music] way. When you know who you are and whose you are, you don't let little things throw you off your aame. Little things. And so just remember to stay focused. No matter what adversity comes your [music] way, no matter who tries to come up against you, know that you are a child of God. And as a child of God, you got to know that no weapon formed against you shall be able to prosper. So what the weapons formed?

[00:16:20]You don't allow them to prosper. So have a good night everybody and just know that no weapon formed against me shall prosper. They're going to form. They've been forming since I was a baby. Almost they made it. That's how much they've been forming. But no [music] weapon can prosper unless I allow it. And I will not stop and I would not allow any weapon to form against me and prosper.

[00:16:40]That's a choice and I choose not because God is within me. I cannot fail. [music] So have a good night everybody and God bless you all.

[00:16:50]when you on the brink of great.

[00:16:52]>> And so with that being said, she doesn't even fight against or mention why she's being brought into a lawsuit, you know, or anything. She gets on here.

[00:17:09]She could have kept that to herself.

[00:17:11]Getting on here with a positive affirmation.

[00:17:15]She could have did that, you know, on her own. She did not have to come to the internet to do that. If you were going to come to the internet to do anything, you should have addressed it if you were going to address it. If you're not going to address it publicly, then don't do it. Um, but the fact that she feels like it's a weapon formed against her, ma'am, you're promising people, the average person that if they get involved with this company and start selling these products and if y'all teach them how to sell and how to do this and how to do that, then in 90 days from n anywhere from 90 days to one year's time, these people are going to see substantial income. See, people would be okay if they didn't become millionaires. If you were to get people to make 10 to 15,000 a month, that's more than most people make anyway.

[00:18:15]Okay? And these people would be like, "Oh, this does work." Okay? Oh, let me, you know, go harder in the paint then.

[00:18:23]Let me do let me do more.

[00:18:26]But getting people in and then the companies themselves having to admit that 76% that's almost 80% of all the active participants in the company literally don't make any money. So basically eight out of 10 participants don't make any money at all. And the other two that make money, they're not millionaires.

[00:18:51]They're making maybe $5,000 a month.

[00:18:55]That's that's regular. That's a regular job without all the headache and the footwork.

[00:19:02]You can go and get a regular job to give you that without the footwork and without a quota to meet and without somebody breathing down your neck about how much you did or did not sell and having to check in with people and having to pay somebody in order to be able to have the products and in order to be able to, you know, and all this other stuff.

[00:19:23]flat out lying to the people. It wasn't even a reasonable like expectation that you were setting with people. This was an outrageous ex expectation and you couldn't you can't even back it up by saying we have over the past x amount of time that this company has been active we have made such and such millionaires and we can actually contact these people so that you can see how much these people have made doing exactly what we're trying to recruit you to do.

[00:20:01]Okay. Not the upper corporate of the company, the regular people that the the thing the people we recruited.

[00:20:09]You can't even go in the records and say, "But we did do it." You know, a year ago we did have five millionaires.

[00:20:16]You know, two years ago we did have 15 millionaires. Like, you can't even say that we Well, we did do it. So just because everybody is not going to do it doesn't mean that the system doesn't produce it. Then you could argue that maybe the people aren't doing the work that they should be doing. You know, they're not putting forth the effort that they should be putting forth in order to get the results. But the results can come if you put forth the proper effort. You can't even say that if if almost 80% eight out of 10 people can't get this result then that it don't work. that system that you're saying works, it doesn't work. And that's where the suit is coming from. That's the deception. That's the lie because so now you're just lying to get people to pay to be involved in something that they're not going to get any benefit out of.

[00:21:08]This is where it becomes a scheme and a scam. That's why people, no, nope, it's a scam because because you got to be lerary of any job that want you to pay them.

[00:21:21]It's got to be some real concrete stuff going on for you to pay a company to work.

[00:21:31]Most of them are Ponzi schemes.

[00:21:36]So, I'm not surprised that her name is being brought up because she lives well, but not because she's selling them products. She lives well because she's a top recruiter. She's able to use her platforms and things of that nature to talk to the people, usually women, talk to them and sell them a lifestyle and this is how you can achieve that lifestyle. Look at me, you know, I I, you know, have yachts and things of that nature and we can we can travel and she throws these uh functions in order to recruit. It's not to sell the product.

[00:22:08]It's to recruit the people.

[00:22:13]I'm not surprised these women get on get online to cap about the lifestyle that they're living and how they are achieving the lifestyle and what they're doing in order to maintain it.

[00:22:25]You supposed to be a girl's girl, but you are scamming the women that probably don't have this money to give to you and you're stringing them along.

[00:22:37]Well, this month this money didn't work, but here's a strategy for the next two months. If you do this strategy, you should see a increase. And they don't.

[00:22:50]Jump down in the comment section. Let me know what you think. Like, share, subscribe to the channel if you have not. Once again, I'm your host, the Crimson Cure, and this was my perspective. Bye-bye, Crimsonites.