After failing to respond to the FTC’s filed complaint, Digital Income System defendants Brandon Frye and Kaitlyn Scott have received default judgment orders.
Frye is up for $600,000, Scott for $171,500.
In granting default judgement against Frye and Scott, the court accepted the allegations made by the FTC against the pair as true.
Defendants Frye and Scott, by their inaction, waive all rights to appeal or otherwise challenge or contest the validity of this Order.
Frye, an Arizona resident, was Digital Income System’s most visible promoter.
Frye, along with Scott and others, marketing DIS on YouTube by flashing earnings checks.
At the time of publication, one DIS promotional video was still available on Frye’s YouTube channel:
The FTC alleges DIS was a “fraudulent money-making opportunity scheme”.
BehindMLM reviewed Digital Income System in April 2019. Based on its business model we concluded DIS was a pyramid scheme.
After leaving his social media dormant since October 2020, Frye made a one word post on Facebook on February 11th.
“Ultreia” has its roots in latin and can roughly be translated as “onward”.
However Frye intends to proceed, his DIS default judgment bans him from participating in the sale of marketing of business and investment opportunities.
Default judgment was granted on March 23rd, giving both Frye and Scott fourteen days to pay up.
Looking forward, the FTC’s case against the remaining DIS defendants continues.
As per a March 22nd filed Status Report;
Defendant Hedrick has responded to all discovery requests served on her with the exception of one Request for Production and the Requests for Admission, which are not yet due.
Defendants Derek Foley and William Foley have provided some responses, but Plaintiff has sent deficiency letters to Derek Foley and William Foley requesting that they complete their responses.
Depositions of Defendants Derek Foley, William Foley, and Jennifer Hedrick as well as Deborah Foley have been scheduled by Plaintiff for April.
Deposition of a consumer declarant has been noticed by Defendant Hedrick and has been scheduled for April.
This is part of discovery, which was originally scheduled to be completed by April 23rd.
The parties have since filed a joint-motion requesting the discovery deadline be pushed back to June 18th.
In the meantime a mediator has been appointed and mediation is set to kick off on April 15th.
Settlement discussions began on March 22nd and will presumably continue throughout mediation.