Local News

Destiny Agrees to Halt N.C. Sales

Posted November 22, 1996 12:00 a.m. EST

— A California-based telephone card company has agreed to stop doing business in North Carolina, the state Attorney General's office said Friday.

Destiny claims to have more than 15,000 sales representatives in North Carolina.

WRAL-TV5 News reported Monday that the N.C. Attorney General had asked destinty to voluntarily cease operations or face a lawsuit.

Sales reps flooded the attorney general's office with calls. Destiny bills itself as a telecommunications company selling phone cards, pagers and fax machines.

But the Attorney General's office concluded Destiny met the legal definition of a pyramid scheme.

Alan Hirsch, head of the Consumer Protection Section, says Destiny can't legally do business in North Carolina unless it completely changes the way it sells.

"For the time being, Destiny has agreed they're not going to do any further business in North Carolina until the Attorney General agrees that they are now working on a plan that complies with the law," Hirsch said. "So we'll wait and see if they have the ability to change the plan, then, of course, we'll listen to them."

If Destiny breaks the agreement or does not file a legal business plan by Dec. 4, the state can ask a judge to order the company to quit doing business in North Carolina.