Digital Revenue System, its homeowners and prime promoters have been sued by the FTC.
In accordance with the regulator, Digital Revenue System is a
fraudulent money-making alternative scheme that preys on customers hoping to earn cash from house.
The FTC’s lawsuit was initially filed below seal. We turned conscious of it because of a reader tip-off yesterday.
BehindMLM reviewed Digital Revenue System in April 2019. In our evaluate we recognized DIS as a $25,000 visitors rotator pyramid scheme.
Reader feedback on our evaluate counsel Digital Revenue System was shut down or collapsed in or round Might 2020. The FTC’s lawsuit was filed in November 2020.
Named defendants within the FTC’s lawsuit are
- Digital Revenue System Inc.
- Derek Jones Foley (proprietor, Florida resident)
- William Foley (proprietor, Florida resident)
- Christopher Brandon Frye (promoter, Arizona resident)
- Jennifer Hedrick (promoter, California resident) and
- Kaitlyn Scott (promoter, South Carolina resident)
The FTC alleges the above defendants
falsely inform customers that, via Digital Revenue System’s program of promoting memberships, customers will or are prone to earn massive sums of cash.
Whereas Defendants extract steep charges for membership, the overwhelming majority of customers who pay Defendants by no means earn substantial earnings, a lot much less the claimed quantities.
In actual fact, many customers by no means earn something from this system.
Of the named promoters, Brandon Frye was in all probability probably the most outstanding.
Digital Revenue System’s web site featured Frye, boasting $224,500 in earnings “since becoming a member of”. Frye would personally later declare to have made simply over half one million {dollars} via the pyramid scheme.
Jennifer Hedrick used the COVID-19 pandemic as a advertising device, telling one shopper
individuals have to study to earn a living from their house due to being laid off or out of a job as a consequence of coronavirus.
Frye, Hedrick and Scott all brandied Digital Revenue System checks as a part of their social media advertising.
Digital Revenue System proprietor Derek Foley additionally made fraudulent earnings representations;
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After signing up, new Digital Revenue System associates have been promised leads via “the system”.
Predictably, “the system” didn’t work.
Customers have complained to DIS, to the homeowners, to their coaches and to the promoters that, opposite to (the) defendant’s guarantees, DIS has generated no gross sales on their behalf.
The Digital Revenue System defendants addressed these considerations
by convincing customers to purchase extra leads, or “visitors”, from advisable companies, claiming the elevated visitors will improve their incomes potential.
In quite a few situations, the extra visitors has resulted in no commissions.
On the time of publication the overall greenback quantity misplaced to Digitial Revenue System and its promoters hasn’t been calculated.
Via their actions, the FTC asserts the Digital Revenue System defendants violated the FTC Act and Enterprise Alternative Rule.
The FTC has sued the Digital Revenue System defendants for
- misrepresentations concerning earnings;
- disclosure doc violations;
- earnings claims violations;
- basic media earnings claims violations;
- misrepresentations concerning earnings or income; and
- misrepresentations (basic).
The FTC’s November sixteenth filed lawsuit seeks a everlasting injunction, disgorgement of ill-gotten monies and prices.
On November seventeenth a Non permanent Restraining Order (TRO) was granted towards the Digital Revenue System defendants. A Receiver to handle the defendant’s frozen property was additionally appointed.
In late November lawyer appearances have been entered into on behalf of Digital Revenue System, Derek Foley, William Foley and Jennifer Hedrick.
On December 1st a present trigger listening to pertaining to the TRO was held.
Brandon Frye was absent, prompting the courtroom to ‘suggest {that a} preliminary injunction be issued towards’ him.
Later that very same day an appointed Justice of the Peace printed a report,
recommending that that the Courtroom difficulty a preliminary injunction enjoining all Defendants from the violations of the legislation alleged within the Grievance, persevering with the freeze of their property, persevering with the receivership, and imposing such extra aid as could also be acceptable pending a closing ruling on the Grievance.
The FTC filed a movement requesting the granted TRO be prolonged, which was granted on December 2nd.
Because it stands the TRO is in place and has been prolonged to December twenty second.
Wanting ahead, a call on the requested preliminary injunction stays pending. An Preliminary Scheduling Convention has been scheduled for January 4th, 2021.
I’ve added the FTC’s Digital Revenue System case to our courtroom calendar. Keep tuned for updates as we obtain them.
Replace nineteenth December 2020 – A preliminary injunction has been granted towards Brandon Frye.
Replace twenty fourth April 2021 – As per an April eighth scheduling order, a trial has been scheduled for August twenty seventh, 2021.
Replace fifteenth Might 2021 – Following a mediation convention held in late April, every of the DIS defendants have reached settlement with the FTC.