Digital Income System, Inc.
Also known as: Digital Income System.
The FTC alleged that Digital Income System charged $1,000 to $25,000 for memberships while falsely promising commissions of $500 to $12,500 per sale. Final orders banned the operators from business and investment opportunities, and the FTC later sent more than $542,000 in refunds.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- FTC v. Digital Income System, Inc. (FTC federal court action, 2020)
- Locations
- Florida
- Jurisdictions
- United States (federal)
Final orders ended the membership income opportunity case
The FTC sued Digital Income System, Inc. in 2020 after alleging that it falsely promised large commissions from selling memberships to other consumers. Digital Income System charged between $1,000 and $25,000 for memberships that included access to a website. The defendants claimed that consumers would earn between $500 and $12,500 per sale and would receive a large commission check when the defendants’ professionals closed a sale. The FTC alleged that the vast majority of buyers never earned substantial income and that many earned nothing.
A federal court granted a temporary restraining order on November 17, 2020. The complaint alleged violations of the FTC Act and the Business Opportunity Rule.
Final orders approved in 2021 permanently prohibited Digital Income System, its owners Derek Jones Foley and William Foley, and promoter Jennifer Hedrick from offering business or investment opportunities and from misrepresenting earnings. A nearly $3.6 million judgment against the company and the Foleys and a $217,426 judgment against Hedrick would be partially suspended after the defendants turned over various assets. Separate default judgments imposed $600,000 against Christopher Brandon Frye and $171,500 against Kaitlyn Scott.
In June 2022, the FTC reported sending 1,064 checks totaling more than $542,000 to consumers.
What is not established
The 2020 release states that a complaint is not a finding that the defendants violated the law. The supplied releases report final orders but do not report an admission by Digital Income System.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action December 14, 2020
- Enforcement action July 2, 2021
- Enforcement action June 1, 2022
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First recorded December 14, 2020 · Last updated June 1, 2022