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The Federal Trade Commission (FTC) stated in June 2018 that it had reached a settlement with My Online Business Education Ltd, a firm that allegedly defrauded customers out of hundreds of millions of dollars. The allegations against My Online Business Education Ltd. The Federal Trade Commission has agreed, as part of the settlement, to pay back $23 million to MOBE’s victims. In this article, we will talk about the MOBE case, the settlement that the FTC reached, and what it implies for the people who were hurt.
What exactly is a MOBE?
MOBE, which stood for “My Online Business Education,” was a corporation that promoted itself as being able to instruct individuals on how to start and run successful internet businesses. Matt Lloyd, an Australian businessman, established it in 2011 and established its headquarters in Malaysia at the time. The My Online Business Education business strategy consisted of selling memberships and training packages to individuals who claimed taught them how to become great internet marketers. These memberships and programs were sold separately. The organization said that its members had the potential to make big sums of money if they adhered to the training it provided and made use of the tools and resources it provided.
According to the Federal Trade Commission, however, My Online Business Education’s operation was a hoax. The commission alleged that the company made false and misleading claims about its products and services and that it misled customers into believing that they could make significant amounts of money by purchasing MOBE’s memberships and training programs. The commission also alleged that the company deceived customers into believing that they could make significant amounts of money by purchasing MOBE’s products. The Federal Trade Commission (FTC) accused My Online Business Education of running a pyramid scam, in which participants were incentivized to bring in new members of the program so that they may increase their earnings.
The case that the FTC has filed against MOBE
The Federal Trade Commission (FTC) made an announcement in June 2018 that it has initiated legal action against MOBE and its creator, Matt Lloyd, for running a fraudulent company. The commission said that MOBE had conned customers out of over $125 million and that the corporation had used dishonest and deceptive practices in order to get individuals to join its program.
In this case, the FTC aimed to put an end to My Online Business Education’s business as well as to recoup some of the money lost by its customers. The commission said in its official statement that “To trick customers into spending thousands of dollars on MOBE’s training classes and business coaching services, the company made income promises that were both untrue and deceptive. The claims made by MOBE about quick money turned out to be frauds, and the company’s business model was nothing more than a fraudulent scam aimed to enrich the company’s founders at the cost of the company’s customers.”
The agreement reached with MOBE
The Federal Trade Commission (FTC) stated in September 2018, only a few months after it had first launched its action, that it had achieved a settlement with MOBE and its creator, Matt Lloyd. The terms of the settlement were not disclosed. My Online Business Education and Lloyd both consented to a permanent prohibition on running or engaging in any company that includes “the sale, marketing, or distribution of business coaching services, business opportunities, or work-at-home possibilities.” This provision was included in the conditions of the settlement.
In addition, MOBE and Lloyd reached an agreement to pay a monetary judgment in the amount of $5 million and to release assets valued at $17 million that had been frozen by the court. The court’s decision to award $5 million in damages was intended to be used to compensate those who had been defrauded.
According to the Federal Trade Commission, one of the greatest redress settlements in the history of the agency is the $23 million that was recovered. “the recovery in this action sends a strong message that the FTC will not tolerate fraudulent business schemes that mislead consumers and steal their hard-earned money,” the agency said in a statement.
What the settlement implies for those who were affected by MOBE?
The fact that MOBE was able to collect $23 million for its victims, many of whom had lost considerable sums of money due to the fraud the firm perpetrated, is undoubtedly welcome news. Yet, it is essential to keep in mind that even after the victims have recovered, it is quite unlikely that they will be in their previous state.
The Federal Trade Commission (FTC) reports that MOBE had more than 125,000 consumers, many of whom spent tens of thousands of dollars on memberships and training programs offered by the firm. While the recovered sum of $23 million will very probably be of assistance to some of these victims, it is quite improbable that it will recompense them in full for the harm they have suffered.
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