FTC Closes $7 Million Fraudulent Business Opportunity Scheme

In a significant victory, the Federal Trade Commission (“FTC”) has successfully shut down an elaborate business opportunity scam that defrauded American and Canadian consumers out of more than $7 million. The court orders against 18 individuals and several companies effectively ban them from selling business or work-at-home opportunities, a major step in holding the perpetrators accountable for their deceptive practices. Many of the victims of this scam were seniors with limited income, making the impact particularly devastating. The fraudulent operation, which began under the name "Money Now Funding," involved misleading consumers with promises of easy money by referring local businesses to a non-existent money-lending service. The defendants falsely claimed that individuals could earn up to $3,000 per month by simply referring small businesses to obtain loans, all while running their businesses from home. However, after paying up to $499 to purchase the business opportunity, consumers were pressured into buying sales leads that were worthless—often at prices reaching tens of thousands of dollars. The FTC’s investigation revealed a deliberate attempt by the defendants to avoid detection by law enforcement. They frequently changed business names, office locations, and merchant identities, all while continuing to deceive consumers. Despite these efforts to cover their tracks, the FTC successfully uncovered the full extent of the operation and secured court orders halting the fraudulent activities.