STATE OF NY v. PHASE II


109 Misc.2d 598 (1981)

State of New York, Plaintiff, v. Phase II Systems, Inc., et al., Defendants.

Supreme Court, Special Term, New York County.

May 13, 1981


Attorney(s) appearing for the Case

Robert Abrams, Attorney-General (David L. Crawford of counsel), for plaintiff. Jonathan G. Jacobson for defendants.


EDWARD J. GREENFIELD, J.

Plaintiff, State of New York, by the Attorney-General seeks an order enjoining defendants from operating a pyramid scheme and from distributing any funds obtained from the foregoing "fraudulent practices."

Defendants allege that they are in the business of selling cosmetics. They have an elaborate marketing plan described both in the plaintiff's and defendants' papers. Plaintiff characterizes the plan as one in which the...

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