Regulatory body FTC takes action against IM Mastery Academy founders in a fraud case worth $1.2 billion
The Federal Trade Commission (FTC) has announced a settlement with Global Dynasty Network, LLC, Jason Brown, and Matthew Rosa, who allegedly ran a deceptive financial training multi-level marketing (MLM) scheme under the names IM Academy, iMarketsLive, and IM Mastery Academy. The defendants have agreed to pay $2.5 million to settle the allegations.
According to the FTC, the defendants used deceptive income promises and glamorized social media marketing to lure consumers into buying financial education packages and joining a recruitment-driven business opportunity. They trained other marketers to make similar deceptive claims while avoiding detection, as outlined in the complaint.
The settlement prohibits the three parties from violating the Telemarketing Sales Rule, including false claims about profitability. It also bars them from misrepresenting earnings or product performance in any business they operate or promote. The settlement permanently bans them from making earnings claims without written evidence of typical results.
Moreover, the settlement prohibits the three parties from offering negative option services without clear disclosures and affirmative consent from consumers. This refers to services where consumers are enrolled in a subscription or recurring billing without explicit agreement.
The FTC alleges that the scheme caused more than $1.2 billion in consumer harm since 2018. The settlement reflects the defendants' reported financial condition, with the total judgment against them being $36 million, but this amount is suspended after they pay $2.5 million. If the defendants are found to have misrepresented their finances, the full amount could become due.
The case highlights ongoing concerns about deceptive marketing in the MLM and financial education spaces. Consumers are urged to approach MLM and trading education opportunities with caution, particularly when high earnings claims are not backed by clear evidence. Profitability in MLMs should not appear more tied to recruitment than actual product value.
It is important to note that IM Mastery Academy is a financial education and MLM company historically associated with founders or leaders such as Mathew and John Moreland. The allegations against IM Mastery Academy generally involve claims that it operates as a pyramid scheme, where earnings largely depend on recruitment rather than product sales, as well as criticisms of misleading marketing, unrealistic income promises, and exploitative recruiting practices. These claims have been common for MLM schemes with financial training components.
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Businesses were alleged to have used deceptive practices in financing and marketing their financial training multi-level marketing (MLM) scheme under the names IM Academy, iMarketsLive, and IM Mastery Academy. The settlement legally prohibits these parties from making misleading earnings or product performance claims in any future business.
