After failing to answer the FTC’s filed criticism, Digital Revenue System defendants Brandon Frye and Kaitlyn Scott have obtained default judgment orders.
Frye is up for $600,000, Scott for $171,500.
In granting default judgement towards Frye and Scott, the court docket accepted the allegations made by the FTC towards the pair as true.
Defendants Frye and Scott, by their inaction, waive all rights to attraction or in any other case problem or contest the validity of this Order.
Frye, an Arizona resident, was Digital Revenue System’s most seen promoter.
Frye, together with Scott and others, advertising and marketing DIS on YouTube by flashing earnings checks.
On the time of publication, one DIS promotional video was nonetheless obtainable on Frye’s YouTube channel:
The FTC alleges DIS was a “fraudulent money-making alternative scheme”.
BehindMLM reviewed Digital Revenue System in April 2019. Primarily based on its enterprise mannequin we concluded DIS was a pyramid scheme.
After leaving his social media dormant since October 2020, Frye made a one phrase publish on Fb on February eleventh.
“Ultreia” has its roots in latin and might roughly be translated as “onward”.
Nonetheless Frye intends to proceed, his DIS default judgment bans him from collaborating within the sale of selling of enterprise and funding alternatives.
Default judgment was granted on March twenty third, giving each Frye and Scott fourteen days to pay up.
Trying ahead, the FTC’s case towards the remaining DIS defendants continues.
As per a March twenty second filed Standing Report;
Defendant Hedrick has responded to all discovery requests served on her excluding one Request for Manufacturing and the Requests for Admission, which aren’t but due.
Defendants Derek Foley and William Foley have supplied some responses, however Plaintiff has despatched deficiency letters to Derek Foley and William Foley requesting that they full their responses.
Depositions of Defendants Derek Foley, William Foley, and Jennifer Hedrick in addition to Deborah Foley have been scheduled by Plaintiff for April.
Deposition of a shopper declarant has been observed by Defendant Hedrick and has been scheduled for April.
That is a part of discovery, which was initially scheduled to be accomplished by April twenty third.
The events have since filed a joint-motion requesting the invention deadline be pushed again to June 18th.
Within the meantime a mediator has been appointed and mediation is ready to kick off on April fifteenth.
Settlement discussions started on March twenty second and can presumably proceed all through mediation.