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Destiny Agrees to Change Business Practices in N.C.

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RALEIGH — There have been major developments in astory that WRAL TV5 first broke in November. A phone card company accusedof running a pyramid scheme has now agreed to change the way it doesbusiness,andto pay North Carolina $100,000.

Destiny Telecomm claims more than 15,000 independent salesrepresentatives in the state and says it sells phone cards, beepers andfax machines. The attorney general's office concluded it was a pyramidscheme and didn't want it operating here. Now Destiny is back and wants achance to get back into business doing things differently.

In late November, phone calls flooded in to the attorney general'soffice when its Consumer Protection Section warned Destiny to quit doingbusiness or face a court battle. Under Destiny's old promotion,independent sales representatives had to pay to get started and made moneyas they recruited other representatives.

Deputy Attorney General Alan Hirsch says that's all changed under thenew agreement.

Destiny President Randy Jeffers released a statement saying the companyis "very pleased with the resolution of this matter and the timelycooperation extended ... by the State Attorney General's office".

The statement went on to say that the company looks "forward tocontinuing to expand ... business under these new guidelines in the greatstate of North Carolina".

Hirsch says Jeffers also agreed Destiny would pay the state $100,000.

Hirsch says the $100,000 isnota fine because Destiny is notadmitting to breaking the law. The company's position is that it is not apyramid scheme.

Hirsch says the state will apply the same standard to othermulti-level-marketing sales programs in North Carolina. He says Destiny hasagreed to strict monitoring to ensure its compliance with the guidelines.

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