In the lawsuit, the SEC alleged that the defendants operated high-ranking affiliates of the MOBE scheme. Since 2013, they lured tens of thousands of consumers and defrauded them more than $300 million.
MOBE victims suffered substantial losses, experienced crippling debts
The consumers who purchased the MOBE’s online business coaching program “suffered devastating financial losses or crippling debt” contrary to the affiliate marketer’s claim that they would generate significant income, according to the FTC.
In a statement, FTC Bureau of Consumer Protection Director Andrew Smith said, “These so-called ‘affiliates’ helped MOBE swindle consumers out of millions of dollars by making outlandish and false earnings claims. Affiliates should take note that the FTC will hold you personally and financially accountable for false or unsubstantiated marketing claims.”
Affiliate marketers agreed to settle FTC charges
The defendants agreed to pay FTC a monetary judgment to settle the charges against them.
