The Federal Trade Commission (FTC) has reached a settlement that permanently bans Bratislav Rozenfeld, also known as Steven Rozenfeld and Steven Rozen, from selling business opportunities. The action follows allegations that he and his company, FBA Machine (formerly Passive Scaling), misled consumers by guaranteeing income through online storefronts.
According to the FTC’s complaint filed in June 2024, FBA Machine and Rozenfeld promoted a business opportunity scheme using claims that consumers could earn money operating online storefronts powered by artificial intelligence software. The agency alleges these promises were not fulfilled and that more than $15 million was taken from consumers.
Amanda Peremen, identified as Rozenfeld’s wife, was added to the case as a relief defendant. The amended complaint states she received proceeds from the scheme despite not being directly involved.
Following the FTC’s legal action, a federal court issued an order to temporarily halt the operation and placed it under receivership. Under the proposed final order, FBA Machine and Rozenfeld are banned from advertising or selling any business opportunity and from making material misrepresentations in connection with any product or service. They are also prohibited from enforcing contract provisions barred by the Consumer Review Fairness Act.
The order includes a monetary judgment of $15.7 million against the defendants. This amount is partially suspended due to their inability to pay in full; however, if they are found to have misrepresented their financial status, they will be required to pay the entire sum immediately.
The settlement requires FBA Machine and Rozenfeld to surrender assets held in multiple financial accounts as well as proceeds from real estate sales. These funds will be used for consumer redress.
The Commission approved the stipulated final order unanimously with a 3-0 vote. The FTC filed this order in the U.S. District Court for the District of New Jersey. Once signed by a District Court Judge, stipulated final orders carry the force of law.
Frances Kern and Colleen Robbins served as lead staff attorneys on this matter.
"The Federal Trade Commission works to promote competition and protect and educate consumers," according to an FTC statement. "The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize." Consumers can learn more at consumer.ftc.gov or report scams at ReportFraud.ftc.gov. Updates are available via social media channels and email alerts.