MOBE Ltd.
Also known as: MOBE, My Online Business Education, My Own Business Empire.
The FTC alleged that MOBE Ltd. sold a business education program with false income and refund claims, taking more than $125 million from consumers. Defendants agreed to pay more than $17 million, and the FTC later distributed more than $23 million in refunds.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- MOBE Ltd., et al. (FTC case 172-3072, 2018)
- Jurisdictions
- United States (federal)
Business education claims led to shutdown, settlements, and refunds
The Federal Trade Commission charged MOBE Ltd. and other defendants over a business education program called MOBE, or My Online Business Education. The FTC alleged that the program falsely promised a proven 21-step route to starting an online business and earning substantial income quickly and easily.
Consumers initially paid $49 for the program, then received sales pitches for membership packages costing thousands of dollars. According to the complaint, participants eventually learned that the system required selling the same memberships to others for commissions. The FTC alleged that most buyers could not recover their costs and that some lost more than $20,000. It charged the defendants with taking more than $125 million from thousands of consumers and alleged that refund and money-back guarantees were often not honored.
A federal court halted the operation and froze assets in June 2018. Susan Zanghi later settled and was required to turn over $33,400 in frozen assets. In later settlements, founder Matthew Lloyd McPhee was to surrender more than $16 million from personal and company accounts, while the estate of Russell Whitney surrendered more than $1.3 million. The FTC described the settlements as requiring more than $17 million in payments and asset surrenders.
In April 2022, the FTC announced more than $23 million in payments to over 37,000 consumers. The release states that the refund pool also included money from lawsuits against MOBE affiliates and payment processors.
What is not established
The supplied documents do not report admissions by the settling defendants.
Sources
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- Enforcement action June 11, 2018
- Enforcement action December 10, 2018
- Enforcement action February 13, 2020
- Enforcement action April 5, 2022
- Enforcement action April 5, 2022
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First recorded June 11, 2018 · Last updated April 5, 2022