The Federal Trade Commission (FTC) has reached a proposed court order against Ascend Ecom and its owners, William Michael Basta and Jeremy Kenneth Leung. The order bans them from selling business opportunities following allegations that their operation cost consumers millions of dollars.
The FTC's lawsuit accuses Ascend Ecom of misleading consumers with claims that their AI-powered tools could generate significant passive income. The complaint states that the operation defrauded consumers of at least $25 million.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated, “Consumers looking to start a new business should never have to wade through waves of false information and deceptive promises of easy money. The FTC is on the lookout for fraudulent actors, and when we find them, we’ll stop them.”
Ascend allegedly charged consumers large sums to set up online storefronts but failed to deliver promised earnings. They also attempted to prevent affected consumers from filing complaints or reviews. Ascend operated under various names including Ascend Ecommerce and ACV Partners.
The proposed settlement would permanently ban the defendants from marketing any business opportunity or coaching services. It also prohibits them from making misleading claims or restricting consumer complaints and requires them to turn over assets for consumer compensation.
A monetary judgment totaling $25 million is included in the order but is partially suspended due to the defendants' inability to pay in full. If they are found to have misrepresented their financial status, the full amount will become payable immediately.
The Commission approved the stipulated final order with a 3-0 vote, filing it in the U.S. District Court for the Central District of California.
Elsie Kappler served as staff attorney on this case within the FTC’s Bureau of Consumer Protection.
The FTC continues its mission to promote competition while protecting and educating consumers about fraud prevention and reporting avenues available at ReportFraud.ftc.gov.
