The FTC has secured a preliminary injunction towards Digital Revenue System, Derek Jones Foley, William J. Foley, Jennifer Hedrick and Kaitlyn Scott.
The injunction follows an identical preliminary injunction granted towards DIS promoter Brandon Frye a number of weeks in the past.
As per the December twenty first stipulated preliminary injunction submitting, the court docket discovered the Digital Revenue System defendants
- misrepresented achievable revenue;
- failed to supply potential purchasers with disclosure paperwork (earnings claims assertion and so on.);
- made unverifiable revenue claims;
- misrepresented precise gross sales inside Digital Revenue System; and
- misrepresented that DIS would have the ability to discover clients for associates.
There may be good trigger to consider that Defendants Digital Revenue System, Inc., Derek Jones Foley, William J. Foley, Christopher Brandon Frye, Jennifer Hedrick, and Kaitlyn Scott have engaged and are more likely to have interaction in acts or practices … that violate the FTC Act, and the Enterprise Alternative Rule.
The court docket additionally discovered that the FTC is ‘more likely to prevail on the deserves of this motion’.
There may be good trigger to consider that speedy and irreparable hurt will consequence from Defendants’ ongoing violations of the FTC Act and the Enterprise Alternative Rule except Defendants are restrained and enjoined by order of this court docket.
The granted injunction prohibits the DIS defendants from additional partaking in violations of the FTC Act and Enterprise Alternative Rule.
They’re additionally not allowed to profit in any approach from Digital Revenue Techniques’ affiliate database.
Property have been frozen and I think about going ahead we’ll seemingly see settlements that clear out the defendants one after the other. We’ll get a greater thought of how that’s coming alongside when the court docket appointed Receiver information his first report.
It’s uncommon for defendants in MLM associated FTC Act violation circumstances to go to court docket. And personally I’m not conscious of anybody defending an MLM fraud case who’s efficiently defended an FTC fraud case.
Trying ahead, the case has been referred to mediation as of December twenty first.
The court docket clerk additionally recorded entries of default towards Brandon Frye and Kaitlyn Scott on December twenty third. These entries pave the best way for the FTC to file for default judgment at a later date.
Keep tuned for updates as we proceed to observe the case.