RICO Class Revived in Pyramid Scheme Case

Investors may proceed as a certified class with allegations they were victims of an illegal pyramid scheme to sell energy services, the full U.S. Court of Appeals for the Fifth Circuit ruled Sept. 30 (Torres v. S.G.E. Mgmt. LLC, 5th Cir., No. 14-20128, 9/30/16).

The full court’s ruling overturns a contrary ruling by a three-judge panel.

Stream Energy resells gas and electricity that it buys from other utilities through its marketing arm, Ignite. Investors pay a $329 fee to participate in Ignite’s marketing program, and then may recruit potential energy customers for Stream and additional investors to join ...