Digital Altitude Scam Can't Be Reopened By The Receiver

Back in February, the FTC shutdown the Digital Altitude scam. The Receiver released their first report on the Digital Altitude scam in March. At that time the Receiver believed that the business could not be operated legally and profitably. This conclusion remains the same in their second report.

Here are the key details from the Receiver’s second report:


As previously reported the Receiver suspended business operations in accordance with the TRO and Preliminary Injunction because the Receiver determined in his business judgment that the business cannot be operated lawfully and profitably. The Receiver has not resumed operations, and has no plans to do so, as he has not determined a feasible means of resuming operations in a lawful and profitable manner.

Frozen Funds: The Receiver has continued to take possession of the Receivership Entities’ frozen funds in accordance with the TRO and Preliminary Injunction. A number of bank accounts of the Receivership Entities were frozen upon entry of the TRO. Based upon information gathered from Digital Altitude’s digital books and records, the Receiver identified additional non-named parties and took actions to freeze their bank accounts. On February 28, 2018, the Receiver filed his “Notice of Identification of Nonparties as Receivership Parties pursuant to Temporary Restraining Order.” Since that time, additional accounts have been identified and have also been frozen. A list of funds recovered from these additional entities which total $444,481.14 is provided in Exhibit A. During the Reporting Period, the Receiver took possession of a total of $652,809.29 previously held at various banks and financial institutions. Through May 31, 2018, the Receiver took possession of a total of $1,873,810.47.

Merchant Account Payment Processors: Most of Digital Altitude’s customers paid their fees with a credit card and Digital Altitude used a very large network of merchant accounts to facilitate the payment of members’ fees. The Receiver has provided notice of the freeze order and TRO to known merchant account processors and has instructed them that charge-backs requested by cardholders cannot be paid from the reserves in these accounts. The Receiver’s investigation into the existence of additional merchants and merchant accounts is ongoing and, as before, notice that the accounts are to be frozen will be provided when additional processors are identified. The Receiver’s efforts to collect the funds are ongoing. This includes the Receiver’s recovery of $171,386.75 in early June. While most merchant account processors have been cooperative, one merchant account processor in Mexico has not cooperated and claims to have depleted the entire reserve. The Receiver is currently considering whether he has recourse to redress this processor’s recalcitrance (mindful that there are potential jurisdictional hurdles to overcome), and is assessing and considering the practicalities involved as well.

Release of Funds to Individual Defendants: Four Defendants – Alan Moore, Mary Dee, Michael Force, and Sean Brown – have petitioned the Receiver to release $5,000 for their personal expenses in accordance with the TRO. The appropriate substantiation was provided, and the Receiver directed the respective banks to release $5,000 from the frozen accounts. The Preliminary Injunction in this matter provides that additional funds may be released to Defendants Michael Force and Mary Dee for essential living expenses. In accordance with the TRO and
Preliminary Injunction the Receiver has released $19,588.87 to Michael Force and $34,704.03 to Mary Dee.

Personal Property: As reported previously, upon his takeover of Digital Altitude’s business premises in Orem, Utah, the Receiver took possession of all computers located there but abandoned various cubicles, desks, chairs, monitors, and headsets which were of limited value, if any (and the expenses of selling the same would likely exceed any proceeds of any sale).


To foster communication with interested parties, the Receiver established the website Interested parties may sign up to receive emails when the website is updated.