The Federal Trade Commission (FTC) has taken action against operators of a deceptive business opportunity, resulting in permanent bans and financial penalties. Trevor Duffy Young and Wessam Baiz, along with two companies associated with Baiz, have been ordered to relinquish profits from their alleged scam operations, which were conducted under the names Lunar Capital Ventures, Ecom Genie, Profitable Automation, and previously as Valiant Consultants.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated: “Young, Baiz, and Baiz’s companies were part of a deceptive operation that took advantage of consumers looking to invest their hard-earned money, only to learn that promises of successful e-commerce stores were a total sham.” He further noted that the defendants are now banned from marketing or selling business opportunities and must make payments to those defrauded.
The lawsuit filed by the FTC in October 2024 accused these entities of falsely claiming consumers could earn substantial profits through online e-commerce stores managed by the defendants. Promises included generating sales exceeding "$100K+ per month" and achieving "million-dollar" store operations. These outcomes rarely occurred, leaving most consumers with significant financial losses.
Court orders prohibit Young, Baiz, and their companies from participating in any business opportunity-related activities. They are also barred from misleading consumers about any products or services they offer.
Baiz and his companies are required to surrender assets held by a court-appointed receiver along with funds from multiple bank accounts to the FTC. The order includes a monetary judgment totaling $13,988,712 but is largely suspended due to an inability to pay. Similarly, Young must transfer funds from several bank accounts under a judgment amounting to $6,024,211 which is also largely suspended for similar reasons.
If any falsehoods regarding financial status are discovered by the FTC among the defendants’ claims, full payment will be demanded immediately.
The case continues against other defendants currently under preliminary injunctions that halted their operations. The U.S. District Court for the Southern District of Florida approved final orders on March 19 following a unanimous 4-0 vote by the Commission.
Sara Tonnesen and Molly Rucki from the FTC’s Bureau of Consumer Protection are leading this matter.
The FTC aims to promote competition while protecting consumer rights through education and advocacy. More information on consumer topics can be found at consumer.ftc.gov; fraud can be reported at ReportFraud.ftc.gov.
