Automators AI

Also known as: Empire, Onyx Distribution.

The FTC alleged that Automators AI and related companies sold AI-powered e-commerce stores and coaching with unfounded earnings claims. The defendants settled, agreed to surrender assets for refunds, and accepted restrictions including business opportunity bans.

1Official action

3Business names used

Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.

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Registrations: FTC v. Automators AI, Empire Ecommerce, and Onyx Distribution (FTC federal court action, 2023)
Jurisdictions: United States (federal)

AI e-commerce claims led to a settlement and business opportunity bans

Automators AI and related companies sold online storefront investments and coaching for Amazon and Walmart. They claimed artificial intelligence and a proven system could produce profitable stores, including projections of $4k-$6k in consistent monthly net profit and a 100 percent return on investment in eight months. The FTC alleged that consumers were lured to invest $22 million. It also alleged that most clients did not earn the promised returns or recover their investment, while Amazon and Walmart repeatedly suspended or terminated stores for policy violations.

The FTC filed its complaint in August 2023 against Roman Cresto, John Cresto, Andrew Chapman, and companies including Automators AI, Empire Ecommerce, and Onyx Distribution. The complaint also alleged false success stories, unsupported claims about AI machine learning, and pressure on dissatisfied consumers to sign non-disparagement agreements.

The defendants later agreed to stipulated orders. Most were permanently banned from offering business opportunities or coaching related to online marketplace stores. The orders also restricted deceptive earnings claims and contract terms that prevented negative reviews. Defendants were required to surrender receiver-held assets and funds in bank and cryptocurrency accounts for consumer refunds. The releases describe those assets as worth millions of dollars. They also report a $21,765,902.65 judgment that was partially suspended based on inability to pay.

What is not established

The supplied releases describe a settlement through stipulated orders and do not report an admission of wrongdoing. They also do not state the exact value ultimately surrendered, so the partially suspended judgment is not recorded as redress ordered in the record panel.

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