A top MLM recruiter settles over "no less than six figures" claims across two companies

2026 United States Settled

The FTC sued Stormy Wellington, a high-level participant in the multilevel marketing companies Total Life Changes (TLC) and Farmasi, alleging she used false or baseless earnings claims on YouTube and social media to recruit new members into both companies' income opportunities — when each company's own income-disclosure data showed the large majority of participants earned little or nothing. An April 2026 settlement order bars Wellington from making unsubstantiated earnings claims and requires her to notify her existing downline of the order's terms.

Year
2026
Where
United States
Outcome
Settled
Victims
Not stated in the sources
Schemes
MLM pyramid schemes
Last reviewed
2026-09-17

The facts, as recorded

Why this case matters

The other two cases on this page target a company and its founders. This one targets an individual distributor — proof that FTC enforcement against pyramid-style earnings claims reaches the recruiter level, not only corporate operators, and that being a participant rather than a company owner is not a shield.

Two companies, the same numbers

Wellington recruited into two different MLMs, and both companies’ own income-disclosure filings — the kind every serious MLM is expected to publish — describe the same reality her recruiting pitch contradicted: at TLC, 76.8% of participants earned nothing and only 0.4% cleared $5,000 in a year; at Farmasi, fewer than 1% reached six figures. Her promise of “no less than six figures” was not an exaggeration of a plausible outcome — it was a claim about something documented to happen to under 1 in 100 people.

What the remedy targets

The order does not ban Wellington from MLM participation. It requires her to stop making unsubstantiated income claims, to substantiate any future one in writing, and — notably — to tell the people she already recruited into her downline that this order exists. That last requirement matters because a downline recruiter’s continued silence is itself part of how the original claim keeps being relied upon by people already inside the structure.

The caveat

This matter was resolved through a settlement order, agreed without Wellington admitting the FTC’s allegations and without a court finding of liability at trial. It is a civil consumer-protection matter; Wellington has not been charged with or convicted of a crime in connection with it.

Sources

  1. FTC Takes Action Against High-Level MLM Participant who Deceived Workers About the Amount of Money They Can Earn. US Federal Trade Commission. Accessed 2026-09-17. Supports: Wellington's name and role, the TLC and Farmasi company names, all three direct quotes, the TLC and Farmasi income-disclosure statistics, the Mufarrige quote, the court, the date and the terms of the settlement order.

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