MOBE Shut Down By FTC
So, despite all the threats, denials, attempts at bullying, from the MOBE Moonies for those who simply spoke the truth about their beloved “business,” and called it what it was – a scam – MOBE has been officially branded a scam by the Federal Trade Commission (FTC) and shut down.
Yup. It would seem there is some justice in this world.
On June 4th 2018, the FTC filed a civil lawsuit against MOBE, its owner Matt Lloyd and several associates.
In that lawsuit the FTC described MOBE as a “fraudulent internet business” and in violation of Section 5(a) of the FTC Act, 15 U.S.C.A. §45(a).
Describing MOBE as an “illegal scheme”, the FTC requested an ex-parte Temporary Restraining Order (TRO) on June 4, 2018.
Just as I said in my review, the lawsuit alleges that MOBE’s training offered nothing more than training to sell the same exorbitantly overpriced licenses and training, the members themselves had been sold.
So in other words, it operated as a pyramid scheme.
Which we all knew, even if the MOBE Moonies, and the hucksters peddling it who actually made money off it, denied it.
And they’d try and get your web page calling them scammers taken down, or contact you with dire threats to sue (posturing either with money they didn’t have, or if they did, were loath to spend).
I’ve called them the MOBE mafia for their bullying and intimidation tactics, and it seems it was an apt comparison – as Matt Lloyd went into hiding, failing to respond to the lawsuit when it was issued, as the official receiver in receipt of his seized business publicly called for assistance in contacting him.
In typical MOBE fashion, when their website was shut down, and queried by its members, they didn’t put their hands in the air and admit the game was up; they just did what they did best and lied some more, saying it was due to a technical issue.
A technical issue of law, not information technology.
That was around June 7th. At the same time MOBE top earners Michael Williams and Michael Giannulis, announced they were jumping ship to their (stranded) downline: “The FTC has brought the hammer down upon MOBE and we have to cut ties with them 100%.”
Then all the MOBE sites started dropping like dominoes.
Of course, still the faithful refused to believe – it must be a mistake of some sort?! And the top earners put out a call to help fund Matt Lloyd’s legal defence… suggesting Lloyd’s and MOBE’s assets had been frozen.
But if it was a “mistake” by the FTC, then they’d documented it pretty well by accompanying their charges against MOBE with over 4,557 pages of evidence to back up their case. Evidence from people effectively swindled by MOBE based on its marketing lies, and Matt Lloyd’s and his top earners’ own words: they knew there was little, to no chance, anyone would make the sort of sums they claimed possible.
The Temporary Restraining Order filed against MOBE by the FTC includes:
- Declarations from multiple MOBE victims (168 complaints were filed with the FTC)
- Citations from MOBE’s 2016 case against Digital Altitude.
- Evidence collected from transcripts of communications between undercover FTC agents and MOBE staff.
- Evidence collected via the attendance of undercover FTC agents at MOBE events.
- Evidence collected from multiple banks and payment processors.
- Evidence collected from hotels and property leasing agents.
- Trademark application filings.
- MOBE corporate registrations and filings.
- Citations from MOBE’s website and compensation plan and MOBE video marketing presentations.
By June 10th it was over. The news had spread, it was out that MOBE had been shut down and on the receiver’s website it plainly stated “According to the FTC, MOBE is a scam.”
And Matt Lloyd was still being sought by the receiver at that time.
That receiver has now been confirmed as being in possession of MOBE’s seized assets and will work towards recompensing the victims of MOBE who are described in the lawsuit (along with top affiliates) as having “defrauded thousands of consumers who collectively have paid over $125,000,000.”
A figure the FTC describes as “staggering”.
MOBE’s Enablers & Accessories
So where does this leave the hucksters who benefited from peddling this scam? That evidence collected by undercover FTC agents at MOBE events is being cited as part of this case, then some of them have got to be having the sort of sleepless nights the folks who believed their BS experienced after losing all their money.
I’ve spoken on this blog already about John Chow, Chris Cobb and “Big” Luca de Stephanie, and frankly I feel vindicated. Not that you exactly needed the investigative prowess of Woodward & Bernstein to see the con being sold through their third rate car salesman act.
In my opinion, this action by the FTC leaves them looking like what I always said they were – people who never cared one jot about their “students” or readers; they were just hurting these people, bleeding them dry like vampires, and all they cared about was extracting the money from their bank accounts to get the commissions off it.
Or as the FTC puts it: “…the vast majority of consumers who buy into the MOBE program and pay for these memberships make very little to no money, and many experience crippling losses or mounting debts.
Some consumers have individually lost as much as $60,000 or more to MOBE.
Although MOBE claim to offer a system for making substantial income quickly and easily, the only ones making that kind of money are MOBE and a few insiders.
The entire business model is a fraud.”
And now the blood flow just stopped to the vampires promoting this fraud. Be interesting to see John Chow’s next monthly income report – what size cheque he’s flashing around or wad of cash he’s waving.
“Uncle John” as I call him, has already removed all links and former blogs posts promoting MOBE, including his book. That book contained links to join to MOBE, as Chow never failed to miss an opportunity to push this crap to his audience.
Who he was treating like marks to fleece at a fairground.
Of course all this drama presented Luca with the chance to step up and play sage again, knowing more about everything than everyone else…
I’ve said it before, but Luca’s the guy in the bar that anything you’ve ever done, he’s done with bells on and whipped cream – according to him. The value to Luca these days is purely in the comedy value.
He’s still doing the limited mental gymnastics he’s capable of, in trying to claim MOBE isn’t a pyramid scheme or a scam… and if you haven’t lost your money in MOBE then Luca firmly believes you’re not entitled to an opinion. Which is more comedy gold from Luca if you’re aware of his pronouncements on Empower and its demise, a money making teat he’d have been suckling from too if he’d had the chance.
Thing is, Luca thought he saw an opportunity to play the “noble man” stepping up and defending MOBE while everyone else remained silent or ran… being too dumb to realise that was actually the smarter move than sitting waxing lyrical trying to defend the indefensible.
But Luca’s held every opinion on every subject and never allows complete ignorance of the subject matter to prevent him from pontificating. I used to think he was okay, just getting his hustle on with his own programs, but when he got into MOBE he just showed what he really is: another internet huckstering vampire.
The FTC had over 4,500 pages of evidence: all Luca has is to sit in front of a camcorder running his mouth some more, because, as ever, Luca knows better.
Yeah, thanks… but I think I’ll go with the FTC on this one, Luca.
Chris Cobb hopping up on board MOBE was no surprise. That guy would sell his own grandmother if there was a buck in it for him. Wonder how he’s feeling with that business loan he took out? There endeth Chris’s seminars on “plugging into processes” that were nothing more than MOBE promotions.
So, if you have any illusion that these people were ever interested in helping anyone but themselves, and to the money in your wallet, then you have the official condemnation of MOBE from the FTC accompanied by four and a half thousand pages of evidence to back up their charges.
And the top earners/affiliates who are accomplices in all this, have already cut all ties, erased posts in the hope it erases the past (but not the money they made in their bank accounts), and are already looking for the next money train.
In that regard, I’ve read some speculation that the top earners might be in for some rough legal times themselves, knowingly peddling this harmful shit and benefiting as they did from it: I can only hope so.
Especially if, as alleged, some of the photo opportunity cheque-receiving moments are staged, and it was purely a marketing stunt to try and add legitimacy to the fraud.
I joked once that network marketing was due a tell-all Jordan Belfort type autobiography, but like Belfort, it wouldn’t be forthcoming until the author had done prison time and lost everything. I nominated Matt Lloyd then.
That’s one MOBE spin-off product I’d buy, and might just get the chance.
This news is especially welcome as MOBE’s (in hiding) CEO Matt Lloyd had the gall to bring a lawsuit against Wealthy Affiliate, for saying what the FTC says: that they’re a scam business you’ve no hope of making money from.
Top earner Shaqir Hussyin similarly objected to folks who’d been to his programs saying they weren’t value for money and didn’t make good on the marketing promises – I know of a few bloggers who received “legal” threats from him.
Well… more like the threat to get legal, than actually paying for a lawyer, because these internet marketers are notoriously cheap (and would-be bullies and keyboard warriors to a man).
But Shaqir’s another who just had his gravy train derailed… LOL!!
And it was Shaqir who fist got me interested in seeing if it was possible to make some money online. I looked into him, and around the same time Wealthy Affiliate (WA)…. And I went with WA as I could see it was legit and its promises of making money were grounded in reality, not pie-in-the-scheme schemes and exploiting the desperate.
You can read my review of WA here.
Take a look, see what you think. The guys running it were amongst the first whistle blowers of MOBE, so I think you can trust them. They’ve also been around fifteen years with WA without a FTC lawsuit or being shut down, so it’s a legit business.
But don’t take my word (or anyone’s) for it in this game, check it out for yourself.
Bernie should’ve registered his business in Kuala Lumpur.
I watched the movie of this with Robert DeNiro as Madoff, and followed up with the book – because how did he get away with it?
A scam to make even Matt Lloyd envious.
Bernie Madoff, The Wizard of Lies
by Diana B. Henriques