Thousands lose out as fraudulent business education program “My Online Business Education” – or MOBE taken down by FTC
The Federal Trade Commission has charged three individuals and nine businesses with bilking more than $125 million from thousands of consumers with a fraudulent business education program called MOBE (“My Online Business Education”). A federal court halted the scheme and froze the defendants’ assets at the FTC’s request.
According to the FTC, the defendants behind this international operation target U.S. consumers—including service members, veterans, and older adults—through online ads, social media, direct mailers, and live events held throughout the country. This action follows the agency’s recent action against Digital Altitude, LLC, a competing business opportunity scheme that was also halted by court order.
The FTC alleges that the defendants falsely claim that their business education program will enable people to start their own online businesses and earn substantial income.
They claim to have a “proven” 21-step system for making substantial sums of money quickly and easily from internet marketing, which they promise to provide to those who join their program.
According to the complaint, consumers who pay the initial $49 entry fee for the 21-step program are bombarded with sales pitches for membership packages that cost thousands of dollars, which the defendants pressure them to buy in order to continue through the 21 steps.
The defendants eventually reveal that their “proven system” for making money is for consumers to sell the same memberships to others in the hopes of earning commissions on those sales.
Most people who buy into the program and pay for the expensive memberships are unable to recoup their costs, and many experience crippling losses or mounting debts, including some who have lost more than $20,000, the FTC alleges.
The FTC also alleges that the defendants offer refund and money-back guarantees to further mislead people to believe the program is risk-free, but they often refuse to honor refund request, or they provide refunds only after buyers make persistent demands or threaten to complain to the Better Business Bureau or law enforcement agencies.
The defendants are Matthew Lloyd McPhee, also known as Matt Lloyd, an Australian living in Kuala Lumpur, Malaysia; Russell W. Whitney, Jr.; Susan Zanghi; MOBE Ltd., also doing business as MOBE, My Online Business Education, and My Own Business Empire; MOBEProcessing.com Inc.; Transaction Management USA Inc.; MOBETraining.com Inc.; 9336-0311 Quebec Inc., also d/b/a Business Education Training; MOBE Pro Limited; MOBE Inc.; MOBE Online Ltd.; and Matt Lloyd Publishing.com Pty Ltd., also d/b/a Matt Lloyd Publishing and Home Business Builders.
One of the defendants involved in MOBE, has since agreed to settle with the Federal Trade Commission.
The settling defendant in this case, Susan Zanghi, allegedly helped operate and perform acts crucial to the MOBE enterprise, including opening up bank accounts and merchant accounts in the United States. Under the settlement order, Zanghi is permanently banned from selling or marketing business coaching or investment opportunities. In addition, she is prohibited from making or assisting in the making of any misrepresentations about any product or service.
The settlement order also requires Zanghi to turn over $33,400 in frozen assets under her name and to immediately surrender to the FTC all control over funds held in the name of the MOBE corporate entities.
The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357).
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