FTC Cracks Down on Fraudulent Business Opportunity Scheme

Federal Trade Commission

WASHINGTON, D.C. — The Federal Trade Commission (FTC) has successfully halted the operations of a deceptive business opportunity scheme that allegedly extracted over $12 million from unsuspecting consumers. The scheme, which operated under various names including Lunar Capital Ventures, Ecom Genie, and Profitable Automation, as well as the defunct Valiant Consultants Inc., is accused of promising substantial returns from e-commerce businesses on platforms like Amazon and Walmart.

The FTC’s complaint outlines a pattern of deceit dating back to at least 2019, with the scheme’s operators enticing consumers through social media, websites, and email marketing. They boasted of potential earnings reaching “$100K+ per month” and the possibility of transforming businesses into “million-dollar” ventures, claims that rarely translated into reality. Instead, participants often found themselves in financial distress, having invested tens of thousands of dollars with little to no returns.

Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the gravity of the situation, stating, “At a time when consumers are increasingly looking online for opportunities to supplement their income, this scheme made grand promises of guaranteed passive income.” He further noted that the operators “took millions of dollars, lined their own pockets, and left consumers with debt and stress.”

The FTC’s investigation revealed that, under the guise of different company names, the scheme continued to lure victims with misleading claims. Despite rebranding efforts to avoid the negative reputation of Valiant Consultants Inc., the core operation remained largely unchanged. The public face of Lunar was Boba Milic, yet Steven Mayer, the original owner, managed activities behind the scenes. Sales representatives, such as Wessam Baiz, assured prospective clients of large earnings, adding credibility to the operation’s deceptive allure.

Consumer grievances and legal actions mounted against the scheme, highlighting prolonged delays in store openings and unfulfilled inventory orders. With the collapse of Lunar, Mayer shifted focus to Ecom Genie, maintaining the same fraudulent assurances. A promotional video even falsely portrayed an Ecom Genie employee as a successful client, claiming over $1.2 million in sales within five months.

The FTC’s complaint also implicates Profitable Automation for making similar pitches and diverting funds into Ecom Genie’s accounts. The Commission’s 5-0 vote authorized the filing of the complaint in the U.S. District Court for the Southern District of Florida, marking a significant step in holding the operators accountable for their deceptive practices.

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