FTC Settles with Operator of Work-at-Home Scheme
The Federal Trade Commission (FTC) finally settled with the last defendant in a complaint the agency brought almost two years ago.
Benjamin Moskel was charged with leading people to believe that they could earn a sufficient income through affiliate marketing with websites like Prada, Sony, Louis Vuitton and Verizon. Moskel, a former officer for Online Entrepreneur, will be banned from selling businesses and work-at-home opportunities.
The FTC action was part of a federal-state crackdown on scams that falsely promise jobs and opportunities to "be your own boss" to people who are unemployed or underemployed.
According to the complaint filed in November 2012, the scheme, called the 'Six Figure Program,' lured people into thinking that they could make money via their own website by earning commissions through other company websites. The initial investment was $27, but consumers quickly learned that it would cost an extra $100 or more just to set up the websites.
In March 2014, the FTC announced a settlement with the other defendants in the scheme.
The order imposed a judgment of more than $2.9 million, which will be suspended when Moskel has paid the income he earned from the scheme, $259,394, and surrendered certain bank accounts and personal property. The full judgment will become due immediately if he is found to have misrepresented his financial condition.