A federal court has temporarily halted the operations of a business opportunity scam that allegedly defrauded consumers of over $12 million through false promises of profits from selling goods on platforms like Amazon and Walmart. This action follows a lawsuit by the Federal Trade Commission (FTC).
The FTC's complaint states that since at least 2022, the scheme operated under various names, including Lunar Capital Ventures, Ecom Genie, and Profitable Automation. Before these, it was known as Valiant Consultants Inc., which is now dissolved. Under each name, the operation falsely claimed consumers could achieve significant earnings by investing tens of thousands of dollars to start online e-commerce businesses. However, most participants reportedly suffered substantial financial losses.
“At a time when consumers are increasingly looking online for opportunities to supplement their income, this scheme made grand promises of guaranteed passive income,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Instead, the scheme’s operators took millions of dollars, lined their own pockets, and left consumers with debt and stress. Through its actions, the FTC is holding them accountable for the significant injury they have caused.”
According to the FTC's allegations, those behind the scheme used social media advertisements, websites, and marketing emails to promote supposed client successes in earning tens of thousands monthly through e-commerce stores. Claims dating back to 2019 suggested potential sales exceeding $100K per month and promised "million-dollar" business operations.
Participants were charged large sums to set up online stores—sometimes depleting savings or retirement funds—only to find no returns on their investments. In 2020 while operating as Valiant Consultants Inc., numerous complaints and lawsuits emerged against the company and its owner Steven Mayer from disgruntled customers who had lost money.
With increasing negative publicity and legal challenges against Valiant in 2022, Mayer reorganized under Lunar Capital Ventures with Boba Milic publicly fronting it but Mayer still managing "behind the scenes." Lunar allegedly offered similar inflated income prospects as Valiant.
Lunar's representative Wessam Baiz purportedly assured at least one potential client earnings between $60K-$70K in their first year with growth beyond that—a promise not realized according to consumer feedback cited in complaints after investments ranging from $30K-$35K failed due largely due delays launching stores coupled missing inventory despite further expenditures by clients.
Facing yet more grievances during 2023 concerning its practices,Lunar vanished leading Mayer into another venture named Ecom Genie touting claims mirroring predecessors' tactics such as showcasing an employee posing as successful customer achieving purported sales figures reaching over $1.2 million within five months yielding monthly profits around $22k according promotional material used lure unsuspecting investors
Additionally,the complaint indicates Profitable Automation also appears linked sharing nearly identical pitches while funneling revenue primarily towards Ecom Genie's accounts.The charges accuse Mayer alongside associated companies deceiving clients neglecting mandatory disclosures mandated under Business Opportunity Rule intended ensure transparency regarding previous ventures' outcomes enabling informed decision-making among prospective buyers evaluating profitability assertions presented
The Commission unanimously voted authorizing filing proceedings initiated Southern District Court Florida case adjudication remains pending judicial determination outcome Staff attorneys handling matter include Sara Tonnesen Molly Rucki representing Bureau Consumer Protection interests safeguarding marketplace integrity
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