MOBE Scam Shutdown For Bilking $125 Million From Victims

What should you do next and where is Matt Lloyd?

Official word has arrived from the FTC today on the fate of My Online Business Empire (MOBE). A federal court has halted the MOBE scam and frozen the companies assets at the FTC’s request. They have been charged with bilking more than $125 million from thousands of people.

The Commission vote approving the complaint was 5-0.

This action follows the agency’s recent action against Digital Altitude, LLC, a competing business opportunity scheme that was also halted by court order.

Here are the details of the MOBE scam according to the FTC:

Since 2013, Defendants have used online advertisements, social media, and live events held throughout the United States to promote a fraudulent business education program called “My Online Business Education” or “MOBE.” Through their program, Defendants claim to reveal a simple 21-step system that will show consumers how to quickly and easily start their own online business and make substantial income.

Although the initial entry fee for Defendants’ 21-Step System is relatively modest—typically $49 or less—as consumers proceed through the steps, they are bombarded with sales pitches for various MOBE membership packages costing thousands of dollars that consumers must buy in order to continue through and complete the 21-Step System.

Defendants eventually reveal, as consumers progress through the steps, that the way to make money through MOBE is by luring other consumers into the MOBE program and earning commissions when these consumers buy the same costly memberships.

In fact, the vast majority of consumers who join the MOBE program and purchase the costly MOBE memberships lose money. In income disclosures buried on their website, Defendants acknowledge that the average “active consultant” makes only a few hundred dollars a year from their program—far less than the thousands of dollars consumers pay for their MOBE memberships.

In addition to their false and unsubstantiated claims that consumers will earn substantial income by joining the MOBE program and purchasing these costly memberships, Defendants also make false and misleading refund and money-back guarantees to induce consumers to purchase MOBE memberships. After consumers pay, however, Defendants require these consumers to sign post-purchase agreements that seek to impose onerous conditions for obtaining a refund, or that claim in other instances that the purchases are nonrefundable and final. Defendants often cite to the language in these post-purchase agreements to deny refund requests or dispute chargebacks.

In sum, Defendants’ scheme has defrauded thousands of consumers who collectively have paid over $125,000,000 to Defendants based on their misrepresentations  about how much money they will earn by purchasing the MOBE program and memberships. Numerous consumers have individually lost more than $20,000 from Defendants’ scheme.

The defendants are Matthew Lloyd McPhee, also known as Matt Lloyd, an Australian living in Kuala Lumpur, Malaysia; Russell W. Whitney, Jr.; Susan Zanghi; MOBE Ltd., also doing business as MOBE, My Online Business Education, and My Own Business Empire; Inc.; Transaction Management USA Inc.; Inc.; 9336-0311 Quebec Inc., also d/b/a Business Education Training; MOBE Pro Limited; MOBE Inc.; MOBE Online Ltd.; and Matt Lloyd Pty Ltd., also d/b/a Matt Lloyd Publishing and Home Business Builders.

– Source FTC

Here is my original opinion after looking into MTTB/MOBE:

In my opinion, MTTB/MOBE is internet marketing at its worst. This is not just a single level affiliate program. There are pass ups to people above you if you have not purchased programs customers from your traffic are buying. Also, members get 5% commissions on the personal sales of the members they sponsor. The upsells are massive and the prices are insane. The way that people earn money is by promoting the same sales funnel they have been victimized by. Avoid this scam.