State settles with company it says ran pyramid schemes
July 23, 2016

By Martha Stoddard, Omaha World-Herald

LINCOLN — Attorney General Doug Peterson has settled with a Wymore, Nebraska, company that allegedly was running multiple pyramid schemes. Peterson announced the settlement agreement Friday. Under its terms, B & B Communications and its owners, Brian Barnhouse and Steve Borgman, denied the allegations but said they agreed to settle the case to avoid the cost and uncertainty of a trial.
B & B operated several websites, including, (formerly,,, (formerly and According to the agreement, which was filed in Lancaster County District Court, B & B sold memberships through the websites.

The state alleged that the company’s business plan depended on people buying memberships rather than on selling actual products. Members earned financial rewards for getting other people to buy memberships. The settlement requires Barnhouse and Borgman to not promote or participate in any pyramid schemes and to discontinue any businesses that operate as such. The two must pay $11,068.32 into a fund to be used to pay back customers. They also must make a $15,000 payment to the state to be used for consumer protection activities.
If the men violate the agreement, they will have to pay an additional $45,000 to the state.

Customers who qualify for restitution will be notified by the Attorney General’s Office.

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