FTC Targets $50 Million Growth Cave Scam That Preyed on Aspiring Entrepreneurs

Federal Trade Commission (FTC)

WASHINGTON, D.C. — The Federal Trade Commission (FTC) has filed a lawsuit aimed at halting the operations of a deceptive business opportunity and credit repair scheme known as Growth Cave. The agency alleges that since 2020, Growth Cave and its operators—Lucas Lee-Tyson, Osmany Batte (also known as “Ozzie Blessed”), and Jordan Marksberry—have misled consumers with empty promises of substantial income, ultimately taking approximately $50 million from individuals seeking legitimate opportunities.

Elaborate Schemes and False Promises

At the center of the operation is the Knowledge Business Accelerator (KBA), a program marketed to consumers via highly persuasive YouTube ads. Growth Cave advertised the KBA as a lucrative pathway to earning $20,000 to $50,000 in passive income by creating and selling digital education products. Videos featuring Lee-Tyson and Batte portrayed them as marketing experts and self-made millionaires eager to share their success stories. Potential customers were bombarded with follow-up marketing campaigns and urged to schedule “strategy calls,” during which they were told they would begin making significant money within four to six weeks.

According to the FTC’s complaint, consumers were guaranteed their investment would be profitable, with Lee-Tyson stating there was “literally IMPOSSIBLE to fail.” However, those who paid the steep price—often thousands of dollars—soon discovered that the program’s promises were unfulfilled. The FTC alleges that Growth Cave failed to deliver essential support and provided only generic advertising templates. Consumers also faced hidden requirements and substantial additional costs, which left many unable to generate the income promised.

The scheme was further extended with an upsell called Digital Freedom Mastermind (DFM)—marketed as a hands-off service where Growth Cave would create educational courses on behalf of clients for an additional $30,000 to $50,000. However, consumers reported that the promised services were never delivered.

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Most KBA and DFM purchasers did not generate any income, instead finding themselves in debt to Growth Cave, credit card companies, or third-party lenders.

Additional Deceptive Ventures

Growth Cave’s fraudulent practices weren’t limited to KBA and DFM. Another business opportunity, the Cashflow Consultant Academy (CCA), claimed to teach customers how to close sales with “wealthy business owners.” It guaranteed placements with clients, backed by testimonials that the FTC alleges were fabricated by Growth Cave employees posing as satisfied customers. Consumers paid up to $6,800 for this program but were rarely placed with clients. When they were, the clients were often individuals in other Growth Cave programs, perpetuating a complex cycle of deception.

Adding to the damages was Growth Cave’s bogus credit repair scheme, Buffalo Bridge, introduced in 2023. This service targeted victims of earlier schemes, charging $6,800 upfront and promising 0% interest business loans. The FTC alleges that Buffalo Bridge merely enrolled consumers in multiple business credit cards, rather than providing legitimate credit repair services.

Despite facing private consumer lawsuits, Growth Cave’s operators reportedly continued to market new programs under rebranded names. Lee-Tyson introduced PassiveApps, a supposed AI-powered system following the same deceptive template as KBA. Meanwhile, Batte launched ApexMind, recycling false endorsements and marketing tactics from earlier schemes.

Legal Action to Protect Consumers

The FTC’s lawsuit charges Growth Cave’s operators with numerous violations, including the FTC Act, the Business Opportunity Rule, the Credit Repair Organizations Act, and the Reviews and Testimonials Rule. The Commission unanimously voted 4-0-1 to authorize the legal complaint, with then-Commissioner Lina M. Khan abstaining.

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The complaint, filed in the U.S. District Court for the Central District of California, seeks to permanently ban the defendants from promoting business opportunities and credit repair services. It also requests monetary relief for consumers defrauded by the scheme.

“Consumers seeking to start a business deserve an honest chance—not false promises of reliable income and expert help,” said Chris Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC has its eye on business opportunity schemes like this one and will take decisive action to stop them.”

This lawsuit aims to protect consumers from fraudulent business opportunities and ensure operators engaging in misrepresentation are held accountable. Individuals considering business opportunities should remain cautious and vigilant against schemes offering guarantees that seem too good to be true.

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