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Destiny Agrees to Halt N.C. Sales

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RALEIGH — A California-based telephone card companyhas agreed to stop doing business in North Carolina, the state AttorneyGeneral's office said Friday.

Destiny claims to have more than15,000 sales representatives in NorthCarolina.

WRAL-TV5 News reported Monday that theN.C. Attorney General had asked destinty tovoluntarily cease operations or face alawsuit.

Sales reps flooded the attorneygeneral's office with calls. Destiny bills itself as atelecommunications company sellingphone cards, pagers and fax machines.

But the Attorney General's officeconcluded Destiny met the legaldefinition of a pyramid scheme.

Alan Hirsch, head of the Consumer ProtectionSection, says Destiny can't legally dobusiness in North Carolina unless itcompletely changes the way it sells.

"For the time being,Destiny has agreed they're not going todo any further business in NorthCarolina until the Attorney Generalagrees that they are now working on aplan that complies with the law," Hirsch said. "Sowe'll wait and see if they have theability to change the plan, then, ofcourse, we'll listen to them."

If Destiny breaks the agreement ordoes not file a legal business plan byDec. 4, the state can ask ajudge to order the company to quitdoing business in North Carolina.

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